Chavez Plans to Nationalize Cantv, Other Utilities

[Herman Munster]

http://www.bloomberg.com/apps/news?pid=20601086&sid=axs6XWXA3ecM&refer=news

Venezuelan President Hugo Chavez said he would nationalize utilities, including the biggest phone company, and scrap central bank independence as he moves to transform the country into a socialist state.

Shares of CA Nacional Telefonos de Venezuela plunged, and the currency fell 17 percent, after Chavez said he will also ask congress for authority to make law through executive order, a power he held for a year during 2000 and 2001. Chavez reiterated that he will seek to end foreign control of heavy-crude refineries in the Orinoco region.

``All those sectors that are so strategic, such as electric power, everything that was privatized will be nationalized,'' Chavez said today in a televised speech in Caracas. ``We will recover the strategic means of production. Cantv, let's nationalize it,'' he said.

Chavez, who last year raised royalties on oil companies and forced some into joint ventures with the state, has sharpened calls to regulate corporate profits and speed seizure of ``underutilized'' farms and factories since his Dec. 3 re- election. The president's control of congress, the courts and state governments means those plans would face little resistance should he choose to pursue them.

``Chavez seems bent on modeling Venezuela after the old Soviet economy where the state controls everything,'' said Robert Bottome, an analyst with Caracas-based research company Veneconomia. ``If his intentions weren't clear before, they are now.''

[leftchick]

1. nah, Chavez seems bent on helping the poor underclass

rather than the Oil Giants and their Corporatist cronies in the US and UK. Seems CRYSTAL CLEAR to me and most other progressives.

:eyes:

[Robbien]

2. Perfect example of pure scare tactics being used by US media

Chavez equals the evil red menace in the elite capitalist's eyes.

[madokie]

3. All I can say for Chavez is

You go man, I know you must be well loved by your fellow countrymen/women

[killbotfactory]

4. Comparing this to the soviet union is silly

These industries were once nationalized in Venezuela, and were privatized during previous governments.

For a less red-scare version of this same news see:
http://www.venezuelanalysis.com/news.php?newsno=2187

[Robbien]

5. I wish we could nationalize the Chicago Skyway which was privatized

a couple of years ago. The Skyway should belong to the public, we are still paying for it.

[Tierra_y_Libertad]

6. Oh, no! He's regulating corporate profits!

What's next? Improving schools for the poor? Offering better health care? Raising taxes on the rich?

Saying unpleasant things about El Supremo Maximo Bush?????

[Joanne98]

7. Good for him

[Igel]

8. A lot of wealthy individuals own shares in companies like that.

So do a lot of retirement funds, with money from both private and state employees. Not to mention insurance companies, who increase rates when investment income is down.

But retirement and insurance are only for rich folk.