Archive for April 3rd, 2008

Hugo Chavez nationalizes Venezuela’s cement industry…at any cost

April 3, 2008

Hugo Chavez just nationalized Venezuela’s cement industry, he asked the companies to “send him the bill” or something like that. “Let it cost, what it may cost”. Chavez said.

I guess he just felt like it, it’s called Government by witticism..God help this poor country…

(Thanks Daniel!)

A correction, a concern and a challenge…

April 3, 2008

I did
make a mistake last night. The “profit” from the sale of the bond is not US$
131.95 million, but “only” US$ 107.9 million, I used the full face value of the
bond, US$ 650 million, rather than the value they sell it for 20% of 83% x 650
million. The numbers changed by today, as they were not able to place it all,
so that the profit went down to around US$ 101 million. I am not sure they were
able to place it this way; I had to change gears to something else. Thanks to
RP for asking the right question and making me realize my mistake.

Concern: While
I try to limit my blog to Venezuelan affairs, I can’t help but see ourselves in
the mirror of what is happening in Zimbabwe, where
opposition offices have been raided by Mugabe’s police
and at least two
journalists have been detained, including the reporter for the New York Times.
The reporter is being held for violating the “journalism” law and it looks like
the opposition victory may not be recognized. Another sad day in Zimbabwe due
to the actions of Robert Mugabe who our own President has called his “friend”.
Will the Venezuelan Government stand up for democracy in Zimbabwe?

The Venezuelan Ambassador to the US “warned”
that country of the consequences of classifying Venezuela as a terrorist
country based on the evidence of the Reyes computer. The warning came in the
form of the commercial consequences such as loss of jobs, oil and exports for
the US. Jeez, how unrevolutionary from Ambassador Alvarez who represents a
Government for whom ideology and their so called “principles” are certainly more important than dirty capitalistic concepts such as commerce and the like. In fact, wouldn’t an embargo accelerate the revolutionary “endogenous” development of the country?

But I
wonder who will suffer more and challenge the Ambassador to tell us who will lose more: The US with less oil, fewer jobs and less commerce
or the Venezuelans and their Government when we can no longer export oil to the
US, all visas will be void, all accounts of financial institution will be
closed, CITGO may be seized, Alvarez will be expelled, US companies will have
to leave Venezuela and Government officials will be tried for terrorism in the
US and The Hague.

Just a thought…