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January 10, 2007

Chavez Continues Power Grab

Hugo Chavez, with the backing of his guys in the Venezuelan Congress, continues to consolidate his power.

CARACAS (Reuters) - Venezuelan President Hugo Chavez was sworn in on Wednesday for a new six-year term that he vowed to use to press a radical socialist revolution including nationalizations that have roiled financial markets.

Emboldened by his landslide re-election win, the typically combative anti-U.S. leader has gone on the attack, deciding to strip a private opposition TV channel of its license and take over some major companies owned by foreign investors.

"Fatherland, socialism or death -- I take the oath," Chavez said.

The man who calls Cuban President Fidel Castro his mentor changed tradition by draping the presidential sash from his left shoulder instead of his right in what he says is a symbol of his socialist credentials.

Legislators at the ceremony in Congress chanted "Long live socialism."

Investors took fright this week at the leftist drive that further consolidates power in the hands of a former coup leader who already controls Congress, the courts and says he has total support in the army and the giant state oil company.

As the United States criticized Chavez's moves against private property, the stock market lost almost a fifth of its value on Tuesday, debt prices tumbled to a six-week low and the currency changed hands at nearly twice the official rate


But he's not worried.
Still, buoyed by strong oil revenues and high popularity, Chavez is expected to ride out any economic and political storm.

Something tells me that there's a high correlation between "strong oil revenues" and "high popularity". If he's buying the latter with the former, like he's doing in Harlem, it's no wonder he keeps getting re-elected.

In the meantime, he's planning on holding on to this power for as long as he can make it last, never mind term limits.

A leading anti-U.S. voice in the world and in the vanguard of a shift to the left in Latin America, Chavez now wants to scrap presidential term limits and lead the OPEC nation for decades.

Chavez, who rode to Congress for the swearing-in ceremony in an open-top car waving at crowds of supporters, has said his new term's plans include stripping the central bank of its autonomy and taking on special legislative powers.

...

Chavez's nationalization plans remain hazy and the utilities and foreign investors want to know whether he plans to take a 51-percent governing stake or seize all of their enterprises.

Chavez has already confiscated large cattle ranches. But his decision to nationalize the country's biggest telecommunications company CANTV and power firms represents a bold new policy.


Calling him a dictator may not be technically correct, but in word and deed he is most certainly consolidating his hold over the country and ensuring it continues, stealing entire business sectors if need be.

Next time you see a Sheehan or a Belafonte plant a big wet one on him, just remember who supports him and who his useful idiots are.

Posted by Doug at January 10, 2007 11:57 AM

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Just read in the London Times:

"Venezuela’s stock market tumbled almost 19 per cent and its currency lost a third of its value in unofficial trading as investors took fright at President Chávez’s plans...."

Nothing like a little free enterprise at work!

Posted by: Mark Triplett at January 11, 2007 05:10 PM

I think the financial guys are looking to the long term, while Chavez's popularity is due to short term buying of the public favors. He'd get real unpopular real fast should oil prices drop and dry up his source of cash.

Posted by: Doug Payton at January 11, 2007 07:28 PM