Posted on 05/03/2007 4:56:10 PM PDT by Jean S
Venezuelan President Hugo Chavez threatened Thursday to nationalize the country's largest steel company and private banks unless they make national interests a priority.
In a nationally televised speech, the leftist president said he would nationalize steel maker Sidor if it continued to sell its products abroad instead of selling them to domestic industries, particularly in the oil sector.
He also announced plans for a law to force the private banking sector to give top priority to the financing of domestic companies.
If the banks flout the law, he warned, "they should leave."
The outspoken champion of "21st century socialism" and leader of the world's fifth-largest oil exporter holds the power to rule by decree for 18 months, granted in January by parliament.
Chavez said that Sidor -- a multinational steel maker that makes 60,000 tons of tubes for the oil industry -- "had created a monopoly through its relationships with other companies and they only supply the raw material to these companies, leaving us to import these tubes from China."
"That is unacceptable. If Sidor, which was privatized, does not accept from now on to change this way of operating, then they will force me to nationalize it the same way we did with CANTV," the state telecommunications firm.
Sidor was privatized in 1997 and acquired by the Latin American consortium Orinoquia, which groups Siderar of Argentina, Mexican firms Tenaris Tamsa and Hylsamex, Usiminas of Brazil and Venezuelan firm Sivensa. The Venezuelan state owns 10 percent of its shares.
The leftist governments of Venezuela, Argentina and Brazil are driving an integration process in South America, guided by their shared principles.
"A number of time we have talked about the Sidor case; some urged me to nationalize it, I said that it was Latin American investments, let's talk. There is Argentine, Brazilian capital, let's see if they can behave differently from transnationals," Chavez said.
Chavez said he had instructed his industrial and mining minister, Jose Khan, to come back with a recommendation on the steel sector within 24 hours.
The president dismissed any potential counter-proposals from the companies: "It must be done immediately."
Sidor not only must assure steel supply to Venezuela, it also must do it at "a low price," not the international price, he said.
Chavez's latest nationalization threats came two days after the government finalized control of privately run installations in the Orinoco River basin, possibly the world's richest oil fields.
The key oil move was authorized by a law that obliges transnational companies operating in the vast region to hand over 60 percent of their assets to the Venezuelan state.
After his landslide re-election in December for another six-year term, Chavez, who has been in power since 1999, has stepped up state control of strategic sectors such as oil exploration, electricity and telecommunications.
On Monday Chavez announced he was withdrawing Venezuela from the International Monetary Fund and the World Bank, calling them "tools of imperialism" to exploit poor countries.
Chavez warned banks Thursday they were expected to support his program.
"I invite the private banking sector to join in this effort. In any case, we are preparing a law to oblige them to do it, in case they refuse," Chavez said.
"If private banks don't want to be involved, then they should leave."
“It should be obvious to any semi-intelligent person shouldn’t it?’
They’ll tell you the same thing we heard when presented with compassionate conservatism: “This time, it’s different.”
“in a country where your property can be stolen by the government without notice.”
Hey, he’s giving notice. In the case of steel, 24 hours.
Imagnine a Communist thinking up something like that!
/s
No wonder the dems love this little tyrant.
Hey Senior Chavez, ask the North Koreans how much prosperity a similar plan has provided them.
<<< If the banks flout the law, he warned, “they should leave.” >>>
Oh, they will.
Where’s John Galt when you need him?
History is great. We get to see this same story over and over again, but with new and interesting characters. And it ends the same way, too.
Id shoot every asset I had offshore, If I was a Sidor exec..
I like the fact that you don’t fall for the usual pitfall for future predictions... picking a date that is unrealistically early... but I think you’re actually over-estimating Venezuela’s stability. Zimbabwe, the bread-basket of Africa, collapsed just a few years after the farms were taken. I’ll say Venezuela gets crunched in about 2013-2015.
The infrastructure is rapidly getting there. See the following video (made over two years ago):
| The Truth About Venezuela (Shocking Video) ^ |
||
| Posted by Stultis On News/Activism ^ 08/07/2006 9:51:26 PM CDT · 37 replies · 2,330+ views YouTube ^ | 2005 | DNAX Productions Believe it or not there's more than thuggery, political murder, smashing of the presses, arming of narco-terrorists, and hobnobbing with Castro and the crazy mullahs in Tehran. Chavez, despite record oil revenues, is presiding over the Cubanization of Venezuela. Video uses simple before (1998) and after (2005) images. See Hugo's "Beautiful Revolution". |
||
Ah for the good old days. When Allende nationalized the copper industry he was soon gone. Of course he had promised us he wouldn’t and I’m sure Chavez made no such promises.
I’m sure Jimmy Karter is drafting a congratulatory letter right now.
Ayn Rand was right...
Tick tock Tick tock.....
A while back, while in Costa Rica, the students were protesting their government. Upon further review, I was informed a major telecommunicatins company had recently completed the infrastructure upgrade for the country, and the government had decided, in a Chavez-like way, to nationalize the telecommunications and kick the company out.
A year passed, the infrastructure was failing due to neglect, and the Costa Rican government asked the company to come back and “fix it”. The company raised a middle finger to Costa Rica. Needless to say, the officials making the stupid decision were bounced. Unfortunately the backlash continues and the country is is slowly but surely slipping back to 3rd world communications capability.
I’m going to enjoy watching this egomaniac do his own country. Realize the leftist leaders always have an ego problem. Hugo’s is the 800-pound gorilla in the corner, er, or is that Hugo himself?
I saw how long it took for Poland to throw off the Communist yoke first-hand. I have no illusions about how long it may take the people of Venezuela. Chavez has China backing him up just as the Polish Communists had CCCP backing them up.
As for the fuel situation...I just have a hunch...nothing really concrete to back it up...
Go ahead. Communism has been sooooo successful over the past century. High oil prices will keep Venezuela riding high for a while, but there will be a day of reckoning someday. Ask the Soviet Union.
John Galt had stopped putting up with this s*** years before. He was building his community, and that's where the book ended.
If there is a John Galt, he doesn't give a hoot about you or I.
We all have to be John Galt.
The steel company needs to rig explosives onto all it’s facilities.
That way, they have a bargaining tool to use against Chavez.
IE - you can nationalize the company, but all you’ll get is a pile of rubble.
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