Oil is the way for KRY success

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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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investor101a

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Oil is the way for KRY success

posted on Nov 11, 2008 10:05AM

Ok...last post for today...

http://www.economist.com/displayStor...

I think I've exhausted The Economist for now.

The main point of this article is that Russia - Iran and Vz are all in trouble. Vz is in the worst shape. Their state oil company has lost production capacity due to: 1) Chavez milking money from it's investment budget for la revolution 2) Said oil company is doing social projects - almost like a parallel state and 3) the oil company is no fully focused on it's main business...which should be oil, but now are things like education, housing, food distribution. Add a mounting debt, international arbitration, lower world oil prices, free oils to allies... AND oil being the #1 revenue source for Vz - it looks bleak for Vz and Chavez.

Chavez has about 30 Billion (if I recall correctly) in money that he can spend... but it won't last long.

The Soviets have 500 Billion in a rainy day fund BUT they have poor infrastruture...want to build up their military AND have to bail out their financial institutions. 500 Billion won't be enough. All because oil is down.

Iran is in much better shape due to international isolation. They don't have the exposure that the Soviets and Vz have.

Where does this leave us? As a revenue source (jobs, investment and revenue from gold mining) I really believe that when Vz REALLY goes down they will have to look to private enterprise and forgein investment to help save their state. the Soviets and Iran won't have cash to help them.