Maduro faces off with US over Venezuela rival’s power claim

CARACAS, Venezuela — Venezuelans headed into uncharted political waters Thursday, with the young leader of a newly united and combative opposition claiming to hold the presidency and socialist President Nicolas Maduro digging in for a fight with the Trump administration.

Violence flared again Wednesday during big anti-government demonstrations across Venezuela, and at least seven protesters were reported killed in the escalating confrontation with Maduro, who has been increasingly accused of undemocratic behaviour by the United States and many other nations in the region.

Juan Guaido, the new leader of the opposition-controlled National Assembly, turned up the heat by declaring himself interim president before a mass of demonstrators in Caracas. He said it is the only way to end the Maduro “dictatorship” in Venezuela, which has seen millions flee in recent years to escape sky-high inflation and food shortages.

“We know that this will have consequences,” Guaido shouted to the cheering crowd, then slipped away to an unknown location amid speculation that he would soon be arrested.

In a united and seemingly co-ordinated front, the U.S., Canada and some Latin American and European countries announced that they supported Guaido’s claim to the presidency.

But Russia, China, Iran, Syria and Turkey have voiced their backing for Maduro’s government.

President Donald Trump promised to use the “full weight” of U.S. economic and diplomatic power to push for the restoration of Venezuela’s democracy. “The people of Venezuela have courageously spoken out against Maduro and his regime and demanded freedom and the rule of law,” he said in a statement.

Maduro fired back by breaking diplomatic relations with the U.S., the biggest trading partner for the oil-exporting country, and ordering American diplomats to get out of the country within 72 hours. Washington said it would ignore the order.

The socialist leader, who so far has been backed by the military, as well as the government-packed courts and a constituent assembly, recalled the long history of heavy-handed U.S. interventions in Latin America during the Cold War as he asked his allies for support.

“Don’t trust the gringos,” he thundered to a crowd of red-shirted supporters gathered at the presidential palace. “They don’t have friends or loyalties. They only have interests, guts and the ambition to take Venezuela’s oil, gas and gold.”

China’s Foreign Ministry called on the United States to stay out of the crisis, while Russia’s deputy foreign minister warned the U.S. against any military intervention in Venezuela.

Some Russian officials reacted with anger to the opposition protests. Alexei Pushkov, chairman of the information committee at the Russian Federation Council, called Guaido’s declaration “an attempted coup” backed by the U.S.

Russia has been propping up Maduro with arms deliveries and loans. Maduro visited Moscow in December, seeking Russia’s political and financial support. Over the last decade, China has given Venezuela $65 billion in loans, cash and investment. Venezuela owes more than $20 billion.

On Thursday, attention will shift to Washington, where diplomats at the Organization of American States will hold an emergency meeting on the Venezuelan situation. The debate promises to be charged, and the National Assembly’s newly picked diplomatic envoy will be lobbying to take Venezuela’s seat from Maduro’s ambassador.

Meanwhile, many Venezuelans will be looking for Guaido to re-emerge and provide guidance on the opposition’s next steps. The armed forces’ top command, which has so far remained silent, is also expected to issue a statement, although nobody expects the general’s loyalties to Maduro to have shifted.

The price of oil slipped for the third time in four days Wednesday, an indication that international energy markets are not overly concerned yet that the situation in Venezuela — America’s third top oil supplier and owner of Houston-based Citgo — will disrupt global crude supplies.

Tensions began ramping up earlier this month as Maduro took the oath of office for a second six-year term won in an election last May that many in the region contend was not free or fair because his strongest opponents were barred from running.

The 35-year-old Guaido, a virtually unknown lawmaker at the start of the year, has reignited the hopes of Venezuela’s often beleaguered opposition by taking a rebellious tack amid Venezuela’s crushing economic crisis.

He escalated his campaign Wednesday by declaring that the constitution gives him, as president of the congress, the authority to take over as interim president and form a transitional government until he calls new elections.

Raising his right hand in unison with tens of thousands of supporters, he took a symbolic oath to assume executive powers: “Today, January 23, 2019, I swear to formally assume the powers of the national executive as president in charge of Venezuela.”

The assault on Maduro’s rule came after large crowds gathered in Caracas waving flags and chanting “Get out, Maduro!” in what was the biggest demonstration since a wave of unrest that left more than 120 dead in 2017.

There were no signs that security forces heeded Guaido’s call to join the anti-Maduro movement and go easy on demonstrators. Hours after most demonstrators went home, violence broke out in Altamira, an upscale zone of Caracas and an opposition stronghold, when National Guardsmen descended on hundreds of youths, some of them with their faces covered, lingering around a plaza. Popping tear gas canisters sent hundreds running and hordes of protesters riding two and three on motorcycles fleeing in panic.

Blocks away, a small group knocked a pair of guardsmen riding tandem off their motorcycle, pelting them with coconuts as they sped down a wide avenue. Some in the group struck the two guardsmen with their hands while others ran off with their gear and set their motorcycle on fire.

Meanwhile, four demonstrators were killed by gunfire in the western city of Barinas as security forces were dispersing a crowd. Three others were killed amid unrest in the border city of San Cristobal.

Amid the showdown, all eyes are on the military, the traditional arbiter of political disputes in Venezuela — and to which Guaido has been targeting his message.

On Monday, a few dozen national guardsmen seized a stockpile of assault rifles in a pre-dawn uprising that was quickly quelled, although residents in a nearby slum showed support for the mutineers by burning cars and stoning security forces. Disturbances flared up that night in other working-class neighbourhoods where the government has traditionally enjoyed strong support, and more violence was reported Tuesday night.

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Associated Press journalists around the world contributed to this report.

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Joshua Goodman on Twitter: https://twitter.com/APjoshgoodman

Joshua Goodman, The Associated Press

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Taxpayers Federation calling on BC Government to scrap failed Carbon Tax

Published on January 16, 2025

Todayville

From the Canadian Taxpayers Federation

By Carson Binda

BC Government promised carbon tax would reduce CO2 by 33%. It has done nothing.

The Canadian Taxpayers Federation is calling on the British Columbia government to scrap the carbon tax as new data shows the province’s carbon emissions have continued to rise, despite the oldest carbon tax in the country.

“The carbon tax isn’t reducing carbon emissions like the politicians promised,” said Carson Binda, B.C. Director for the Canadian Taxpayers Federation. “Premier David Eby needs to axe the tax now to save British Columbians money.”

Emissions data from the provincial government shows that British Columbia’s emissions have risen since the introduction of a carbon tax.

Total emissions in 2007, the last year without a provincial carbon tax, stood at 65.5 MtCO2e, while 2022 emissions data shows an increase to 65.6 MtCO2e.

When the carbon tax was introduced, the B.C. government pledged that it would reduce greenhouse gas emissions by 33 per cent.

The Eby government plans to increase the B.C. carbon tax again on April 1, 2025. After that increase, the carbon tax will add 21 cents to the cost of a litre of natural gas, 25 cents per litre of diesel and 18 cents per cubic meter of natural gas.

“The carbon tax has cost British Columbians a lot of money, but it hasn’t helped the environment as promised,” Binda said. “Eby has a simple choice: scrap the carbon tax before April 1, or force British Columbians to pay even more to heat our homes and drive to work.”

If a family fills up the minivan once per week for a year, the carbon tax will cost them $728. The carbon tax on natural gas will add $435 to the average family’s home heating bills in the 12 months after the April 1 carbon tax hike.

Other provinces, like Saskatchewan, have unilaterally stopped collecting the carbon tax on essentials like home heating and have not faced consequences from Ottawa.

“British Columbians need real relief from the costs of the provincial carbon tax,” Binda said. “Eby needs to stop waiting for permission from the leaderless federal government and scrap the tax on British Columbians.”

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The problem with deficits and debt

Published on January 13, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Jake Fuss

This fiscal year (2024/25), the federal government and eight out of 10 provinces project a budget deficit, meaning they’re spending more than collecting in revenues. Unfortunately, this trend isn’t new. Many Canadian governments—including the federal government—have routinely ran deficits over the last decade.

But why should Canadians care? If you listen to some politicians (and even some economists), they say deficits—and the debt they produce—are no big deal. But in reality, the consequences of government debt are real and land squarely on everyday Canadians.

Budget deficits, which occur when the government spends more than it collects in revenue over the fiscal year, fuel debt accumulation. For example, since 2015, the federal government’s large and persistent deficits have more than doubled total federal debt, which will reach a projected $2.2 trillion this fiscal year. That has real world consequences. Here are a few of them:

Diverted Program Spending: Just as Canadians must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from public programs such as health care and education, or potential tax relief. This fiscal year, federal debt interest costs will reach $53.7 billion or $1,301 per Canadian. And that number doesn’t include provincial government debt interest, which varies by province. In Ontario, for example, debt interest costs are projected to be $12.7 billion or $789 per Ontarian.

Higher Taxes in the Future: When governments run deficits, they’re borrowing to pay for today’s spending. But eventually someone (i.e. future generations of Canadians) must pay for this borrowing in the form of higher taxes. For example, if you’re a 16-year-old Canadian in 2025, you’ll pay an estimated $29,663 over your lifetime in additional personal income taxes (that you would otherwise not pay) due to Canada’s ballooning federal debt. By comparison, a 65-year-old will pay an estimated $2,433. Younger Canadians clearly bear a disproportionately large share of the government debt being accumulated currently.

Risks of rising interest rates: When governments run deficits, they increase demand for borrowing. In other words, governments compete with individuals, families and businesses for the savings available for borrowing. In response, interest rates rise, and subsequently, so does the cost of servicing government debt. Of course, the private sector also must pay these higher interest rates, which can reduce the level of private investment in the economy. In other words, private investment that would have occurred no longer does because of higher interest rates, which reduces overall economic growth—the foundation for job-creation and prosperity. Not surprisingly, as government debt has increased, business investment has declined—specifically, business investment per worker fell from $18,363 in 2014 to $14,687 in 2021 (inflation-adjusted).

Risk of Inflation: When governments increase spending, particularly with borrowed money, they add more money to the economy, which can fuel inflation. According to a 2023 report from Scotiabank, government spending contributed significantly to higher interest rates in Canada, accounting for an estimated 42 per cent of the increase in the Bank of Canada’s rate since the first quarter of 2022. As a result, many Canadians have seen the costs of their borrowing—mortgages, car loans, lines of credit—soar in recent years.

Recession Risks: The accumulation of deficits and debt, which do not enhance productivity in the economy, weaken the government’s ability to deal with future challenges including economic downturns because the government has less fiscal capacity available to take on more debt. That’s because during a recession, government spending automatically increases and government revenues decrease, even before policymakers react with any specific measures. For example, as unemployment rises, employment insurance (EI) payments automatically increase, while revenues for EI decrease. Therefore, when a downturn or recession hits, and the government wants to spend even more money beyond these automatic programs, it must go further into debt.

Government debt comes with major consequences for Canadians. To alleviate the pain of government debt on Canadians, our policymakers should work to balance their budgets in 2025.