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The Dictatorship

Trump’s open bid for oil from Venezuela reeks of neocolonialism

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Trump’s open bid for oil from Venezuela reeks of neocolonialism

President Donald Trump escalated his effort to force regime change in Venezuela on Tuesday by announcing a blockade of all “sanctioned oil tankers” coming in and out of the country.

On Truth SocialTrump boasted about the military assets he’s moved into the Caribbean — “Venezuela is completely surrounded by the largest Armada ever assembled in the History of South America” — and promised the pressure campaign would continue until “they return to the United States of America all of the Oil, Land, and other Assets that they previously stole from us.” On Wednesday, Trump doubled down, telling reporters, “We had a lot of oil there. As you know, they threw our companies out. And we want it back.”

Trump didn’t specify exactly what he meant, but he’s probably referring to Venezuela’s nationalization of its oil sector in the 1970s through the 2000s. As The New York Times explains:

[T]he Venezuelan government forced Western firms decades ago to become minority partners in joint ventures with the state-owned oil company, Petróleos de Venezuela, S.A., or PDVSA.

American companies were a major presence in the industry until the 1970s. That decade, Venezuelan leaders put the industry under state control, creating PDVSA, in a popular action that was a hallmark of the country’s democratic and nationalist movements. Hugo Chávez, the socialist leader, enshrined that in the Constitution after he came to power in 1999.

Venezuela’s decision to nationalize its oil sector meant it took over private assets belonging to multinational corporations based in the U.S. (and elsewhere), but it hardly stole oil — the oil belongs to Venezuela. “Venezuela’s natural resources never belonged to the United States,” David Goldwyn, president of Goldwyn Global Strategies, an international energy advisory consultancy, told The Washington Post. “While there have been charges of expropriation, which have been arbitrated in an international tribunal, there is no basis for arguing that Venezuela’s oil was stolen from the United States.”

Countries, including friends of the U.S., commonly nationalized lucrative industries focused on extracting their national resources in the 20th century. Saudi Arabia ousted U.S. companies and nationalized its oil industry in the 1970s and ’80s. In 1938, Mexico expropriated foreign oil assetsincluding U.S. oil companies. These countries and others chose to reap profits from their own natural resources rather than have them siphoned off in perpetuity by foreign corporations that had the initial advantage of investment capital and technical know-how.

Until now, Trump has been justifying his saber-rattling against Venezuelan President Nicolas Maduro with the false argument that Venezuelan drugs pose an existential threat to Americans. But it appears he’s also making a neocolonial rationale for war, effectively claiming that the U.S. is entitled to Venezuela’s natural resources. Trump is once again revealing his tendency to confess to what his predecessors on the right have denied. While the George W. Bush administration insisted that control of oil was not a reason for the U.S. invasion of Iraq, Trump seems happy to announce that control of the oil is a reason he’s threatening Venezuela. Trump’s America First paradigm doesn’t seek to present the pursuit of geopolitical power as something more noble than it is.

Trump has expressed a desire to seize oil during U.S. conflicts with foreign countries many times in the past, and in a 2023 speech, he said of his first term: “When I left, Venezuela was ready to collapse. We would have taken it over, we would have gotten all that oil, it would have been right next door.”

As Karthik Sankaran, a senior research fellow in geoeconomics at the Quincy Institute for Responsible Statecraft, recently pointed out, Trump’s bid for Venezuelan oil is also strangely timed. The U.S. is not in dire need of oil because of its own massive production of it, and the price of oil is as cheap as it has been in many years. Furthermore, Sankaran notes, global demand for oil may have peaked due to increasing demand for clean energy. In other words, even someone who is unswayed by ethical considerations can’t make a strong case for the U.S. risking war in pursuit of oil when it already has so much.

Zeeshan Aleem is a writer and editor for MS NOW.

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The Dictatorship

Justice Jackson chides ‘oblivious’ Supreme Court conservatives…

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Justice Jackson chides ‘oblivious’ Supreme Court conservatives…

WASHINGTON (AP) — Supreme CourtJustice Ketanji Brown Jackson has delivered a sustained attack on her conservative colleagues’ use of emergency orders to benefit the Trump administration, calling the orders “scratch-paper musings” that can “seem oblivious and thus ring hollow.”

The court’s newest justice, Jackson delivered a lengthy assessment of roughly two dozen court orders issued last year that allowed President Donald Trump to put in place controversial policies on immigration, steep federal funding cuts and other topics, after lower courts found they were likely illegal.

While designed to be short-term, those orders have largely allowed Trump to move ahead — for now — with key parts of his sweeping agenda.

Jackson spoke for nearly an hour on Monday at Yale Law School, which posted a video of the event on Wednesday.

Last week, Justice Sonia Sotomayor similarly talked about emergency orders in an event Tuesday at the University of Alabama that also took issue with the conservatives’ approach.

Jackson has previously criticized the emergency orders both in dissenting opinions and in an unusual appearance with Justice Brett Kavanaugh last month. But her talk at Yale, addressing the public rather than the other eight justices, was notable.

She referred to orders, which often are issued with little or no explanation as “back-of-the-envelope, first-blush impressions of the merits of the legal issue.”

Worse still, she said, was that the court then insists that “those scratch-paper musings” be applied by lower courts in other cases.

The orders suffer from an additional problem, she said, a failure to acknowledge that real people are involved, making them “seem oblivious and thus ring hollow.”

She also pushed back on the court’s assessment that preventing the president from putting his policy in place also is a harm that often outweighs what the challengers to a policy might face.

“The president of the United States, though he may be harmed in an abstract way, he certainly isn’t harmed if what he wants to do is illegal,” Jackson said during a question-and-answer session with law school dean Cristina Rodriguez.

The court used to be reluctant to step into cases early in the legal process, she said. “There is value in avoiding having the court continually touching the third rail of every divisive policy issue in American life,” Jackson said.

While she said she couldn’t explain the change, “in recent years, the Supreme Court has taken a decidedly different approach to addressing emergency stay applications. It has been noticeably less restrained, especially with respect to pending cases that involve controversial matters.”

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Jackson, often joined by Sotomayor and Justice Elena Kagan, has frequently dissented.

There have been conversations about emergency orders among the justices, Jackson said, but she decided to speak publicly with the goal of being “a catalyst for change.”

Also on Wednesday, Sotomayor issued a rare public apology to another justice, Kavanaugh, for what she termed “hurtful comments” she made last week during an appearance at the University of Kansas law school.

Referencing an opinion Kavanaugh wrote in an immigration case where the court granted an emergency order sought by the administration, Sotomayor said her colleague “probably doesn’t really know any person who works by the hour.” Her remarks were reported by Bloomberg Law.

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The Dictatorship

Trump threatens to fire Powell if the Fed Chair remains with central bank after his term ends

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Trump threatens to fire Powell if the Fed Chair remains with central bank after his term ends

WASHINGTON (AP) — Federal prosecutors made an unannounced visit this week to a construction site at Federal Reserve headquarters that is the focus of an investigation into a $2.5 billion renovation projectaccording to two people familiar with the visit.

Two prosecutors and an investigator from U.S. Attorney Jeanine Pirro’s office were turned away on Tuesday by a building contractor and referred to Fed attorneys, one of the people said. The two people familiar with the visit spoke on condition of anonymity because they weren’t authorized to publicly discuss an ongoing investigation.

The visit underscores that the Trump administration is not backing down from its investigation of the Fed and its chair, Jerome Powell, even though the probe has delayed the confirmation of a new chair nominated by President Donald Trump. The investigation is focused on cost overruns and brief testimony about the project last summer by Powell. Trump confirmed in an interview that aired Wednesday on Fox Business that he wants to continue the probe.

Last month, during a closed-door hearing before a federal judge, a top deputy from Pirro’s office conceded that they hadn’t found any evidence of a crime in their investigation of the headquarters project.

Robert Hur, an attorney for the Federal Reserve board of governors, sent an email to Pirro’s prosecutors about their visit and their request for a “tour” to “check on progress” at the construction site. Hur’s email, which The Associated Press has viewed, noted that U.S. District Judge James Boasberg concluded that their interest in the Federal Reserve’s renovation project was “pretextual.”

AP AUDIO: Prosecutors sought access to Federal Reserve building as Trump threatens to fire Powell

AP Washington correspondent Sagar Meghani reports on more drama surrounding a federal probe of a massive construction project at the Federal Reserve’s headquarters.

“Should you wish to challenge that finding, the courts provide an avenue for you; it is not appropriate for you to try to circumvent it,” Hur wrote.

Republican Tillis is key vote

Sen. Thom Tillis, a North Carolina Republican who is a key member of the Senate Banking Committee, has vowed to vote against Kevin WarshTrump’s nominee to replace Powell as Fed chair, until the investigation is dropped. With the committee closely divided on partisan lines, Tillis’ opposition is enough to block Warsh from receiving the committee’s approval.

Tillis on Wednesday criticized the investigation as “bogus, ill-timed, ill-informed” and repeated that seven Republican members of the banking panel have said they do not believe Powell committed a crime when he testified last June.

Tillis also said there aren’t enough votes on the committee or in the broader Senate to do an end-run around the committee and get Warsh confirmed some other way.

“There really is no path,” he told reporters, adding that Pirro and her aides were “asleep at the switch” because the investigation has essentially delayed Powell’s departure from the Fed, despite Trump’s obsessive criticism of the Fed chair. Powell has now said he won’t leave until the investigation is resolved.

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Tillis suggested Pirro blindsided the White House with her investigation. “They should have consulted with the White House, because I’m sure if they would have, (the White House) would have said, ‘no, we can wait,’” until Powell steps down.

But Kevin Hassett, the Trump administration’s top economist, said Wednesday that the Justice Department got involved because “the president wanted to investigate the cost overrun,” Axios reported.

The Banking panel said Tuesday that it will hold a hearing on Warsh’s nomination April 21. Powell’s term as Fed chair ends May 15, but Powell said last month he would remain as chair until a replacement is named.

Powell is serving a separate term as a member of the Fed’s governing board that lasts until January 2028. Chairs typically leave the board when their terms as chair end, but they can remain on the board if they choose. Powell has said he won’t leave until the investigation is resolved. If he remains it would deny Trump the opportunity to appoint someone else to the seven-member board.

Late Tuesday Tillis posted a link on social media to The Wall Street Journal’s article on the visit below an image of the Three Stooges and wrote, “The U.S. Attorney’s Office for D.C. at the crime scene.”

Investigation centers on building renovations

The investigation centers on an appearance by Powell before the Banking Committee last June, when he was asked about cost overruns on the renovations. The most recent estimates from the Fed suggest the current estimated cost of $2.5 billion is about $600 million higher than a 2022 estimate of $1.9 billion.

“It is probably corrupt, but what it really is, is incompetent,” Trump said. “Don’t you think we have to find out what happened there?”

The president’s support for the investigation threatens a timeframe set out by Sen. Tim Scott, a South Carolina Republican who chairs the Banking Committee. Scott said Tuesday on Fox Business that he believed the investigation would be “wrapped up in the next few weeks,” allowing Warsh to be confirmed soon after.

Threat to fire Powell

News of the unannounced visit by prosecutors comes as Trump has again threatened to fire Powell, if the Federal Reserve Chair decides to stay on the central bank’s governing board after his term as chair expires next month.

“Well then I’ll have to fire him, OK?” Trump said.

Trump has for months wanted to remove Powell, saying he has been too slow in orchestrating interest rate cuts that would give the U.S. economy a quick boost. Powell has said the investigation is a pretext to undermine the Fed’s independence to set rates.

Sen. Josh Hawley, a Missouri Republican, said Trump can only fire Powell “for cause,” meaning some kind of misconduct, “so that’s a pretty tall order.”

Supreme Court weighing another Trump removal

Trump’s threat to fire Powell comes as the Supreme Court is weighing the president’s effort to remove another central bank governor, Lisa Cook. Lower courts have so far allowed Cook to remain in her job while her legal challenge to the firing continues. The Supreme Court also seemed likely to keep her on the Fed when the court heard arguments in January. A decision could come any time.

The issue in Cook’s case is whether allegations of mortgage fraud, which she has denied, is a sufficient reason to fire her or a mere pretext masking Trump’s desire to exert more control over U.S. interest rate policy.

The Supreme Court has allowed the firings of the heads of other governmental agencies at the president’s discretion, with no claim that they did anything wrong, while also signaling that it is approaching the independence of the nation’s central bank more cautiouslycalling the Fed “a uniquely structured, quasi-private entity.”

___

AP Writers Seung Min Kim, Mark Sherman, Paul Wiseman, Alanna Durkin Richer, and video journalist Nathan Ellgren contributed to this report.

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The Latest: US blockade of Iranian ports ‘fully implemented’ as Trump says war is near end

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The Latest: US blockade of Iranian ports ‘fully implemented’ as Trump says war is near end

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