The American Empire is Falling, says Chavez

President Hugo Chavez of Venezuela and President Mahmoud Ahmadinejad of Iran blame US dollar weakness on high oil prices.

By: Michael Stevens
Nov 18, 2007, 6:56 PM EST

Despite the best efforts of the host country, Saudi Arabia, to steer the planned meeting away from politics and promote OPEC’s environmental concerns, the leaders of Venezuela and Iran let loose some critical statements against the United States.

"The dollar is in free fall, everyone should be worried about it," Mr. Chavez told reporters. "The fall of the dollar is not the fall of the dollar, it’s the fall of the American empire."

During a news conference after the meeting, Mr. Ahmadinejad added: "The U.S. dollar has no economic value."

Mr. Ahmadinejad said that crude oil, which was hovering last week at close to $100 a barrel, was being sold currently for a "paltry sum." And Mr. Chavez predicted that prices would rise to $200 a barrel if the United States were "crazy enough" to strike at Iran, or even at his own country.

Normal meetings of the Organization of the Petroleum Exporting Countries are tepid affairs where ministers leave politics at the door and talk about oil inventory and supply and demand. This unusual meeting, held amid the pomp and glitter of the Saudi royal court, had been planned since last December but happened to fall at a time of renewed concern over record oil prices and the shrinking value of the dollar.

At the summit’s opening ceremony, Mr. Chavez sought to bring OPEC back to its militant and revolutionary roots.

While Mr. Chavez’s 23-minute statement was brief by his own standards, it drew a gentle rebuke from King Abdullah, the Saudi monarch, who chided him for talking longer than the time allotted by royal protocol. He also turned down Mr. Chavez’s plea, saying, "Those who want OPEC to take advantage of its position are forgetting that OPEC has always acted moderately and wisely."

This meeting, which lasted less than 24 hours, was supposed to focus on long-term issues like the security of supplies and environmental policy. The Saudis in particular sought to reassure the world that OPEC was a reliable oil supplier.

"OPEC has made a point, from its establishment, to work for the stability of the oil markets," said the Saudi foreign minister, Prince Faisal, at a news conference after the close of the summit on Sunday. "Oil should be a tool of construction and development, not one of dispute."

The meeting was held in a conference center that was a gaudy mix of the palace at Versailles and Greek Revival style, with some rococo touches. It also displayed the whole range of Saudi extravagance: blue marble floors, gold-plated fixtures, and dozens of crystal chandeliers, some bigger than trucks.