Replies

Venezuela Heads From Bad to Worse*** CARACAS, Venezuela - President Hugo Chavez's government is driving Venezuela toward economic crisis by year's end, economists and Wall Street analysts warn. "In the next six months, there will be a traumatic crisis," says Francisco Rodriguez, head of the oil-rich nation's congressional budget office. Venezuela, says the Harvard-trained economist, is suffering from a variety of ills: inflation, unemployment, growing poverty, a looming budget deficit, capital flight, high interest rates, a weakening currency and, on top of it all, a shrinking economy.

But the biggest problem, Mr. Rodriguez suggests, may lie with the leftist president himself. "A lot of investors are worried about Chavez," he says. "There are deep worries about the security of property rights in Venezuela and that things will get politically more difficult. The specter of political instability has hovered over the Venezuelan economy since January, beginning with a series of mass demonstrations, strikes and, finally, an unsuccessful military coup that ousted Mr. Chavez for 48 hours, before he was brought back by loyal troops. Since then, the country has been in a fiscal swoon, despite rising prices for oil, which accounts for 80% of exports and generates about half of government revenues.***

Opposition humorists, Chavez allies hold dual rallies on anniversary of failed coup *** "Did you know that Chavez is traveling to Cuba on Sunday?" joked comedian Manuel Graterol on Monday night. "Yes, because it's Father's Day," he said, alluding to Chavez's admiration for Cuban President Fidel Castro. CARACAS, Venezuela - They admit it was no laughing matter. But anti-government humorists couldn't resist using their talent to mark two months since a bloody opposition march that helped spark a failed coup against President Hugo Chavez.

Standup comedians and political cartoonists led hundreds of flag-waving, pot-banging Venezuelans in a rally Tuesday to demand justice for those who died in three days of upheaval that deposed and quickly reinstated Chavez. "This is a very sad time for us, but the people are going to continue making humor," said Pedro Leon Zapata, a renowned artist and political cartoonist for El Nacional newspaper.

Also in downtown Caracas, the capital, hundreds of Chavez sympathizers held their own rally to protest an opposition campaign to oust the president through a popular referendum. "I am here to support Chavez," said Nancy Cepeda, 36, surrounded by hundreds of people waving posters of the populist former paratrooper and wearing knockoffs of his trademark red military beret. "We would be living in a dictatorship if Chavez had not returned."***