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Venezuela allows US diplomats to stay, defusing showdown

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CARACAS, Venezuela — Venezuela defused a potential showdown with the United States, suspending a demand that U.S. diplomats leave the country as Washington called on the world to “pick a side” in the South American nation’s fast-moving crisis.

Socialist President Nicolas Maduro broke relations with the United States on Wednesday after the Trump administration and many other nations in the region recognized opposition leader Juan Guaido as Venezuela’s interim president, a move that Maduro called a coup attempt.

Maduro gave U.S. diplomats three days to leave the country, but the Trump administration said it wouldn’t obey, arguing that Maduro is no longer Venezuela’s legitimate president. That set the stage for a showdown at the hilltop U.S. Embassy compound Saturday night, when the deadline was to expire.

But as the sun set on Venezuela’s capital, the Foreign Ministry issued a statement saying Maduro’s government was suspending the expulsion to provide a 30-day window for negotiating with U.S. officials about setting up a “U.S. interests office” in Venezuela and a similar Venezuelan office in the United States. The U.S. and Cuba had a similar arrangement for decades before the Obama administration restored diplomatic relations with the communist-run island.

The State Department did not confirm the Venezuelan government’s account, reiterating only that its priority remains the safety of its personnel and that it has no plans to close the embassy.

Earlier Saturday, Secretary of State Mike Pompeo told the U.N. Security Council: “Let me be 100 per cent clear — President Trump and I fully expect that our diplomats will continue to receive protections provided under the Vienna Convention. Do not test the United States on our resolve to protect our people.”

In the Security Council meeting, critics and supporters of Maduro’s government faced off in a reflection of the world’s deep divisions over Venezuela, which is mired in political confrontation as well as an economic collapse that has caused millions to flee the country.

During the debate, which was requested by the U.S., Pompeo urged all nations to end Venezuela’s “nightmare” and support Guaido.

“Now is the time for every other national to pick a side,” Pompeo said. “No more delays, no more games. Either you stand with the forces of freedom, or you’re in league with Maduro and his mayhem.”

Russian Ambassador Vassily Nebenzia charged that the Trump administration is trying “to engineer a coup” against Maduro. He said Venezuela doesn’t threaten international peace and security, and he accused “extremist opponents” of Maduro’s government of choosing “maximum confrontation,” including the artificial creation of a parallel government.

Nebenzia urged Pompeo to say whether the U.S. will use military force.

Pompeo later told reporters who asked for a response, “I am not going to speculate or hypothesize on what the U.S. will do next.”

Pompeo was accompanied to New York by Elliott Abrams, who was named a day earlier as the U.S. special representative for Venezuela. Abrams is a former assistant secretary of state for Latin America who worked at the White House when a 2002 coup in Venezuela briefly ousted Maduro’s predecessor, the late Hugo Chavez.

On his first day on the job, Abrams met with exiled leaders of Venezuela’s opposition. He also spoke by phone with Guaido, the leader of Venezuela’s opposition-controlled congress. Abrams reaffirmed U.S. support for Guaido as interim president, said Kimberly Breier, the current assistant secretary of state for the region.

The Security Council, the U.N.’s most powerful body, has not taken action on the Venezuelan crisis because of the divisions. The Security Council’s five veto-holding permanent members could not unite behind a statement on Venezuela, presenting widely differing texts.

The leaders of two of those council nations — France and Britain — joined Spain and Germany to turn up the pressure on Maduro, saying Saturday that they would follow the U.S. and others in recognizing Guaido as president unless Venezuela calls a new presidential election within eight days.

The European Union’s foreign policy chief, Federica Mogherini, said that if there is no announcement of a new election in the next days, the 28-nation bloc “will take further actions, including on the issue of recognition of the country’s leadership.”

Venezuelan Foreign Minister Jorge Arreaza dismissed the deadline.

“Europe is giving us eight days?” he asked the council. “Where do you get that you have the power to establish a deadline or an ultimatum to a sovereign people. It’s almost childlike.”

Arreaza asked that someone show him where in Venezuela’s constitution it says an individual can proclaim himself president.

Guaido says he is acting in accordance with two articles of the constitution that give the National Assembly president the right to hold power temporarily and call new elections.

While the council debated, a man identifying himself as Venezuela’s military attache in Washington posted a video saying he had broken with Maduro and now would report to Guaido.

“The armed forces have a fundamental role to play in the restoration of democracy,” Col. Jose Luis Silva said in the video, which he said was shot at his office in the Venezuelan Embassy in Washington, sitting in front of the nation’s red, blue and yellow flag.

He called on other members of the military to join him in supporting Guaido, saying they need to avoid “attacking” protesters whose only aim is to feed themselves.

Guaido celebrated Silva’s decision to defect.

“We welcome him and everyone who with honesty want to follow the constitution and the will of the Venezuelan people,” he said on social media after attending a small assembly in Caracas to discuss the opposition’s next moves.

Garrett Marquis, a spokesman for U.S. National Security Council, encouraged others to follow Silva’s lead “to protect constitutional order, not to sustain dictators and repress its own people.”

Venezuela’s top commanders have pledged loyalty to Maduro’s government in the days since Guaido declared himself interim leader on grounds that Maduro’s re-election last year was fraudulent — an allegation supported by the U.S., the European Union and many Latin American nations.

But support for Maduro’s rule is weaker among the military’s rank and file, whose households are suffering from widespread food shortages and hyperinflation like their civilian counterparts. Last week, a small National Guard unit stole a stockpile of weapons in what it said was an attempt to oust Maduro. The uprising was quelled and 25 guardsmen arrested.

The standoff has plunged troubled Venezuela into a new chapter of political turmoil that rights groups say has already left more than two dozen dead as thousands take to the street demanding Maduro step down.

___

Associated Press writer Manuel Rueda reported this story in Caracas and AP writer Edith M. Lederer reported from the United Nations.

Manuel Rueda And Edith M. Lederer, The Associated Press






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Taxpayers Federation calling on BC Government to scrap failed Carbon Tax

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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

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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.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute
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