Fungible: Etymology: New Latin fungibilis, from Latin fungi to perform
: being something (as money or a commodity) one part or quantity of which can be substituted for another of equal value in paying a debt or settling an account – oil, wheat, and lumber are fungible commodities.
Hugo Chavez, the paleo-socialist who is working tirelessly to turn Caracas into Pyongyang, has threatened to cut off oil sales to the United States due to actions brought against the Venezuelan government in British, Dutch and US courts by ExxonMobil. Following the freezing of $12 billion in assets by a British court, Chavez said:
“If you end up freezing (Venezuelan assets) and it harms us, we’re going to harm you,” Chavez said during his weekly radio and television program, “Hello, President.” “Do you know how? We aren’t going to send oil to the United States. Take note, Mr. Bush, Mr. Danger.”
Chavez has repeatedly threatened to cut off oil shipments to the United States, which is Venezuela’s No. 1 client, if Washington tries to oust him. Chavez’s warnings on Sunday appeared to extend that threat to attempts by oil companies to challenge his government’s nationalization drive through lawsuits.
And your word for the day, Mister Chavez, is ‘fungible’.
If his intention is to sell Venezuelan oil to no one, he will push up the price to everyone, that much is true. And of course that also means he is cutting off the cash flow being used to finance the Glorious Bolivarian Revolution. Your call, El Presidente.
If on the other hand he intends to sell Venezuelan oil to anyone except the USA (and presumably the UK and Netherlands as well as they have also been crossed off his Christmas Card list), then… who cares? As oil is fungible, it just goes into a big global market and what does it matter if Venezuelan oil goes to China instead of the USA when all it means is that someone else’s oil will take its place?