Daniel (Davies?) at Crooked Timber : Of course there is now a fairly substantial Catch-22 situation. Part of the reason why Chavez was able to win was that in recent months he’s been throwing around money like water on social programs. He was able to do this because oil was up above $40 a barrel, generating vast profits for the state oil company. A lot of the reason why oil prices were so high was that … there was significant uncertainty about supply from Venezuela because of the impending referendum. Now that some of the uncertainty has been resolved, oil futures have already started tumbling, meaning that it’s going to be that little bit more dfficult to deliver on these promises; if I were a Venezuelan, I wouldn’t be assuming that we were out of the woods yet.

Crooked Timber: Chavez declares victory