A Political Alliance

Guatemalan leftist candidate for the next elections Alvaro Colom has visited Venezuela to ask for campaign financing. Lets speculate what Colom is promising in return for those petrodollars.

Nothing would make Hugo Chavez more happy than to see a Guatemalan Leftist candidate get elected and humiliate the United States by ending Guatemalan participation in the Central American Free Trade Agreement. A major blow to the prosperity of Guatemala. David Ricardo and Adam Smith proved a long time ago that everyone benefits from free trade. Once again, look up to counties like Ireland and Singapore that embraced free trade and drastically improved their prosperity and wealth. The most important aspect of trade and one that all leftist leaders seem to forget is “comparative advantage”.

This is only speculation, but be sure that Alvaro Colom and Hugo Chavez are political allies.