Chavez poised to take control of banks

Financial Times (UK) ^ | 9/1/2005 | Andy Webb-Vidal

[Santiago de la Vega]

Caracas - Venezuela is preparing to take political control of private banks as part of a drive to spread “revolutionary” government control over the economy of the world's fifth largest oil exporter. Trino Alcides Diaz, Venezuela's banking superintendent, has privately told the heads of several of the country's banks that President Hugo Chavez wants to place two government representatives on the institutions' governing boards.

[Santiago de la Vega]

This is perfect.

Nationalizing the banks is the first step to economic disaster.

Next, we'll have inflation, as soon as they've spent the oil money on idiotic projects that produce nothing but votes from los pobres.

Venezuela is doomed and it serves 'em right. They voted for this clown and he's now running the circus into the sea.

It further shows how important a good constitution is, requiring compensation for taking private property, and a supreme court willing to understand and enforce the rights of the people.

[Brilliant]

This ought to accelerate the Venezuelan exodus to Miami.

[anniegetyourgun]

GGGRRRRRR........

[Travis McGee]

Even an incompetent socialist govt can go a long way, sitting on a lake of oil.

[RockinRight]

Diving into Soviet-style communism...

[2banana]

This is going to make Katrina look like a drizzle...

[atomicpossum]

Even an incompetent socialist govt can go a long way, sitting on a lake of oil.

Especially when it's at record prices.

We could use a crash, for so many reasons.

[Tijeras_Slim]

Next, we'll have inflation

Hyperinflation is a standard Marxist tool to destroy a society.

[Brilliant]

I don't mind wealthy Venezuelans coming to Miami. The poor love Chavez, so we won't see them.

[Cincinatus' Wife]

He's taken the oil, the congress, the supreme court, the freedom of press and now the banks.

[msnimje]

Nationalizing the banks is the first step to economic disaster

And when it happens he will blame it on the US and President Bush

[untenured]

Allende did something similar. Look where it got him.

[Travis McGee]

Chavez is the communist "anti-saviour."

He has breathed new life (via petroleum and petrodollars) into the dying Cuban revolution, and he is helping to spark radical socialist revolution all across South America.

[Travis McGee]

There is not Pinochet in Venezuela. When the coup leaders had him in custody, they had their chance, but they let him go.

"When you go to kill the king....KILL THE KING."

(Otherwise.......)

[expat_panama]

Panama had a bank crisis about 15 years ago. All banks closed and over night; the entire country went on a barter system, and everyone just lived their own lives for a year and a half in spite of predications of immediate doom. Venezuela has serious problems-- at least in Panama they could imagine that Noriega seized power against the wishes of the people (yeah, right). Panamanians were able to get the US to clean up their mess, but the Venezuelans are probably stuck with the one they're in.

[Santiago de la Vega]

Travis ol' buddy,

Well said.

You've been listening to Meyer again, haven't you.

[madconservative]

As I understand it (trying to channel what remains of Macro 101 here), the 70's brought similar governmental expansion in South America, and preceded the implementation of "Import Substitution" strategies there. It also was a period where the global oil crisis led to huge debts in those governments in SA that are oil-rich -as they bet that oil would continue to rise indefinitely. The results were disastrous for the continent. In the period that followed, oil prices did not match expectations, and this combined with rapid inflation led to the grinding halt of progress in South America. In addition, the act of isolating themselves economically to try to duplicate the industries of their neighbors for which they had no competitive advantage led to tremendous economic inefficiency.

While Asia followed an "Export-led Growth" strategy, and grew at a staggering pace, South America crumbled.

But hey, this time it'll probably work. I mean, with an economic wizard like Fidel with you, how can you be wrong?

[John Jorsett]

Zimbabwe, South Africa America.

[Siena Dreaming]

Was this announcement timed with Katrina in mind?

I can't help thinking that this is a great time for oil-rich communist Venezuelan Chavez to move now that the US is having a large oil crisis.

[Travis McGee]

Always.