ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Tuesday, January 09, 2007

Viva La Hugo!

Well, it looks like Hugo is keen on sending his country into a death spiral economically. Fortunately, he still has the oil which will allow him to continue providing free chickens to the population. Of course, when the oil stations break down because of inadequate investment, might get a bit tricky down in Venezuela.

Chavez: Will Nationalize Telecoms, Power
Jan 08 3:35 PM US/Eastern

By IAN JAMES
Associated Press Writer

CARACAS, Venezuela (AP) -- Venezuelan President Hugo Chavez announced plans Monday to nationalize the country's electrical and telecommunications companies, calling them "strategic sectors" that should be in the hands of the nation.

The New York Stock Exchange immediately halted trading in CANTV, Venezuela's largest publicly traded company, which was singled out in Chavez' speech. The decision was also likely to affect Electricidad de Caracas, owned by AES Corp.

It was the boldest move by the Venezuelan leader since he was re-elected by a wide margin last month promising to a more radical turn toward socialism in Venezuela.

"All of those sectors that in an area so important and strategic for all of us as is electricity all of that which was privatized, let it be nationalized," Chavez said in a televised speech after swearing in a new Cabinet.

"C.A. Nacional Telefonos de Venezuela (CANTV), let it be nationalized," Chavez said. "The nation should recover its property of strategic sectors."

Chavez threatened last August to nationalize CANTV, a Caracas-based former state firm that was privatized in 1991, unless it adjusted its pension payments to current minimum wage levels, which have been repeatedly increased by his government.

Of course, the national interest argument can be made of almost any sector... automobile production, healthcare, IT call centers... all of them have been targeted by the "protectionist" Left and Right as being strategic to the US economy and thus should protected from foreign competition. Chavez is just taking the next step and nationalizing the sectors.

And keep in mind that this is just weeks after Hugo stated that an opposition TV station would be shut down, which elicited cheers from the DUers.

Oh, and the Club For Growth has this excellent post:
The 'Cliff' of Nationalization

See this stock chart? This is what happens when a tyrant decides to nationalize a company. It loses value...rapidly.

According to Publius Pundit, Venezuelan dictator Hugo Chavez decided yesterday to take control of CANTV, a telecom company. The receipts of its stock, which are listed on the New York Stock Exchange, immediately cratered before trading was halted. CANTV is Venezuela's largest publicly-traded company and the country's only firm that's traded on the NYSE. Well, probably not any more.

And the Dems think that Bush is listening in on his citizens... imagine what they'd think if the US nationalized the phone companies.


Ahhh, the glorious revolution continues!

Your Co-Conspirator,
ARC: St Wendeler