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

Thursday, May 03, 2007

Hugo - Economic Genius

Wow.... After Hugo Chavez came up with the brilliant idea of lopping off 3 zeros from the currency valuation, who would've thought that he would have the cojones to simply nationalize the private banking system in Venezuela:

Chavez Threatens to Nationalize Banks
May 3, 4:53 PM (ET)


CARACAS, Venezuela (AP) - Venezuelan President Hugo Chavez on Thursday threatened to nationalize the country's banks and largest steel producer, accusing them of unscrupulous practices.

"Private banks have to give priority to financing the industrial sectors of Venezuela at low cost," Chavez said. "If banks don't agree with this, it's better that they go, that they turn over the banks to me, that we nationalize them and get all the banks to work for the development of the country and not to speculate and produce huge profits."

It was not clear if Chavez was only referring to Venezuelan banks like Mercantil Servicios Financieros CA and Banco Provincial SA, or if he was also aiming the threat at major international banks with subsidiaries in the country, such as Citigroup Inc. (C) and Spanish banks Banco Bilbao Vizcaya Argentaria SA (BBV) and Banco Santander Central Hispano SA. (STD)

Chavez also warned the government could take over steel producer Sidor, which is majority controlled by Luxembourg-based Ternium SA. (TX) Shares of Ternium fell 3.9 percent to $26.15 in U.S. trading after Chavez's comments.

Sidor "has created a monopoly" and sold the bulk of its production overseas, forcing local producers to import tubes and other products from China and elsewhere, Chavez said.

"If the company Sidor ... does not immediately agree to change this process, they will obligate me to nationalize it," Chavez said.

"I prefer not to," Chavez added, as he ordered Mining Minister Jose Khan to depart immediately for the company's headquarters and come back with a recommendation with 24 hours.

"Sidor has to produce and give priority to our national industries ... and at low cost," he said.

Chavez initiated a nationalization drive in January that is bringing the country's largest telephone company CANTV and the electricity sector under state control. The state oil company also took over the last privately run oil operations in the country from major international oil companies on Tuesday.

Chavez, a close ally of Cuban leader Fidel Castro, says the nationalization of "strategic" companies are part of Venezuela's transition to a socialist system.

"I'm not deceiving anyone," Chavez said. "I'm only governing the country, and the country has elected me various times ... All of those who voted for me backed socialism, and that is where we are heading."

This man is a mental midget, but the people of Venezuela and the moonbat blogosphere just love him as he does the most illiberal and un-progressive things.

He has no idea how his Oil For Chickens economy is going to work.

Previous Chavez posts which demonstrates his idiocy here

If Venezuela was a stock, I'd be shorting the piece of junk to no end. Nothing like watching a self-immolation and profiting. (Is that wrong of me?)

Your Co-Conspirator,
ARC: St Wendeler

Comments (2)
Ontario Emperor said...

Don't know that I'd short it. Look how long Cuba has lasted.

Brian said...

Could this guy play the socialist handbook any closer?

What is he up to chapter 6?