Sep
27
2011
Posted by
admin
Comments

Venezuela Expropriates Largest Domestic Ferry Company

Chávez is at it again! The Venezuelan president ordered Monday the expropriation of Conferry, the largest ferry company in the country. Conferry provides transportation from the mainland to Margarita Island, a popular tourist attraction.

Conferry’s expropriation coincided with a new report from Fedecámaras, Venezuela’s  equivalent of the U.S. Chamber of Commerce. In 2011 alone, Venezuela has expropriated 402 companies, according to Fedecámaras.

This is not the first time that the Chávez government interferes with Conferry’s operations. The company had been previously fined by the state-run consumer protection agency for alleged poor service.

This recent acquisition by the Chávez government is the latest entry in a long list of assets seized by the state. Business leaders say Chávez’s nationalizations are ruining the economy.

 
Sep
23
2011
Posted by
editor
Comments

In Case You Missed It… Articles Roundup Week of 9/23/11

In this week’s roundup… Hugo Chávez is moving his overseas gold reserves back to South America, allegedly to avoid accountability to all the foreign investors who are currently demanding fair compensation for their expropriated property. In other news, Chávez threatened to nationalize private banks in Venezuela, ordered the nationalization of the country’s gold industry and continues his outspoken support of Iran’s nuclear program. Lastly, Chávez attacks the practice of cosmetic surgery in Venezuela.

Why Is Hugo Chávez Moving Venezuela’s Gold Holdings Home?, Forbes

When Venezuela’s strongman Hugo Chavez announced plans to move virtually all of his nation’s overseas gold stock—211 tons of gleaming bars stored in vaults in New York, London, Zurich and elsewhere—back to South America, investors were stunned.

Hugo Chavez finishing 4th round of chemotherapy, The Associated Press

Venezuelan President Hugo Chavez said Wednesday that he was finishing his fourth round of chemotherapy in Cuba and expressed optimism that he will not require any further treatment. Chavez spoke by phone from Havana to hundreds of supporters who gathered at the Riverside Church in New York to pray for his health.

Chavez threatens to nationalize Venezuelan banks, Reuters

Venezuelan President Hugo Chavez said on Sunday he could nationalize private banks for refusing to lend to the poor and for failing to sufficiently aid in the country’s development.

Chavez Decrees Nationalization of Gold Industry Amid Surging Bullion Price, Bloomberg

Venezuelan President Hugo Chavez ordered the nationalization of the gold industry and gave companies 90 days to form joint ventures with the state as he seeks to boost control over the nation’s metals producers.

Venezuela, Cuba defend Iran, Syria attacks Israel at nuke meeting, The Associated Press

Iran was praised and Israel criticized Wednesday at a 151-nation meeting, with Cuba and Venezuela defending Tehran’s right to run a nuclear program and Syria saying the Jewish state’s undeclared nuclear arsenal is a threat to world peace.

Venezuela: Hugo Chavez Takes Aim at Breast Implants in a Country Full of Beauty Queens, Nightline ABC

Forget oil. There is no commodity more valued in Venezuela than feminine beauty. The country holds six Miss Universe titles and five Miss World titles — a total of 11 titles compared to America’s 10.

 
Sep
20
2011
Posted by
editor
Comments

Chávez, Circling the Wagons?

DSC 0754 150x150 Chávez, Circling the Wagons?José R. Cárdenas served in several foreign policy positions during the George W. Bush administration (2004-2009), including on the National Security Council staff. He is a consultant with Vision Americas in Washington, DC.

Hugo Chávez appears to be a man in a hurry these days.  Although we continue to have no independent confirmation on the extent of his illness, the recent, rapid succession of announcements from Caracas certainly makes it appear as if he’s someone who believes his days are numbered.

First, there was last month’s announcement that he was transferring $6 billion in cash reserves held in U.S. and European financial institutions to Russian and Chinese banks. In addition, Caracas announced that it was repatriating some 200 tons of gold – valued at $11 billion – held abroad to Venezuela’s Central Bank. Most analysts said there was no economic reason for such a risky move, meaning that its only justification was political, that Chávez likely intends to shield Venezuelan assets from future international sanctions or claims by jilted foreign creditors.

Then, The Wall Street Journal reported that Chávez was planning to make good on his promise to withdraw Venezuela from the World Bank’s International Centre for the Settlement of Investment Disputes (ICSID). The Center is the preeminent global forum where investors can hold governments accountable for breaches of contracts and other malfeasances. There, Chávez is facing more than $40 billion in claims by 20 foreign companies whose assets he has expropriated. Under ICSID regulations, Venezuela is still liable for those claims, although Chávez has never played by anyone’s rules but his own.

Finally, Chávez announced that he is moving up the 2012 presidential elections two months from December to October 7th, 2012, shortening the campaign season and placing less physical demands on his uncertain health.

Again, these decisions by Chávez hardly suggest someone who is steadily convalescing from a bout with cancer, but someone who is trying to get something done in a hurry. In this case, it could arguably be walling off Venezuela from retribution by the “imperial” powers as he rushes to put the final touches on his Bolivarian utopia.

Disengaging Venezuela from the U.S. and European-dominated international financial system — the “tyranny” of the U.S. dollar — has been Chávez’s dream since he first rose to power 12 years ago.  He has railed about the inherent “unfairness” of it all in countless speeches and has busied himself creating alternatives to “imperialist”-dominated international institutions. The effort appears to be entering hyper-drive.

Moving the election up, even by two months, increases the odds he will be healthy enough to keep to an arduous cross-country campaign schedule. If he falters physically, or is unexpectedly defeated at the polls, there is every chance he or his movement will upend the table and continue in power. The democratic world be damned. There will always be buyers of Venezuelan oil, and their cash reserves will likely be beyond the reach of international sanction. Make no mistake about it: over the next 12 months, every effort on Chávez and his acolytes’ part will be dedicated to the continuation of Chavismo, with or without Hugo, and with or without international approbation.