Betting the ranch

The problems you eventually face when you rely too much on one thing have become apparent in Venezuela. Being dependent on one dam to supply your country with over half its electricity is a good example of non-diversification that comes back to bite you. that's true in finance as well as a country's infrastructure.

Hugo Chávez may be wondering, as Venezuela's taps run dry and its cities fall into darkness, whether God is on the side of the Yankees.

The El Niño weather phenomenon appears to be taking sides as it parches leftist-ruled parts of South America and brings bounty to US farmers and corporations. One of the severest droughts in decades has given Venezuela's socialist president a political nightmare as hydro-electrical power dribbles to a standstill, unleashing blackouts, rationing and protests. The waters behind the Guri dam, which supplies more than half the nation's power, have touched perilously low levels. Chávez has declared an "electricity emergency", urging people to spend no more than three minutes in the shower. The president has even dispatched Cuban pilots to seed clouds for rain.