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Venezuela - Socialism of the 21st Century

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thebob Posted: Mon, May 11 2009 11:53 AM

There were many threads on Venezuela on this board, but I think things are accelerating.

 

Chavez seizes oil service firm:

“Military vehicles were used as the state oil company seized supply boats and two US-owned gas facilities.“

http://news.bbc.co.uk/2/hi/americas/8041366.stm

I heard that he is struggling to keep Venzuelan oil prices low. Oil is heavily subsidized. The last time he raised them there were riots.

 

Old cars are more valuable than new ones. Why? because you have to wait two years for a new one.

http://www.globalpost.com/dispatch/venezuela/090114/where-old-cars-cost-more

 

Their inflation rate is about 30% per year, the highest in South America:

http://www.riskwatchdog.com/2009/02/06/venezuela-inflation-%E2%80%93-the-calm-before-the-storm/

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Once he manages to get rid of that last bit of capitalism, things will get better.

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

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I remember when King Juan Carlos I, of Spain, said, "¿Por que no the callas?"

Chavez threatened to nationalize the several Spanish banks operating in Venezuela (although, he specifically mentioned Banco de Santander).  Socialism in South America has hit Spanish companies particularly hard.  I know that Repsol has had trouble operating in Ecuador, and I remember that some time ago the Ecuadorian government decided to seize Repsol's assets and cancel their contract.  Chavez had promised Morales his help in setting up the infrastructure to replace Repsol's, and I believe that the program fell through.  Repsol continued to operate in Ecuador (after destroying countless of their assets, since they had no interest in giving these to the Ecuadorian government), and now they face a similar fate (Ecuador again threatened to not renew the contract).

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Jonathan M. F. Catalán:
I remember when King Juan Carlos I, of Spain, said, "¿Por que no the callas?"

Lol. Youtube or it didnt happen.

To paraphrase Marc Faber: We're all doomed, but that doesn't mean that we can't make money in the process.
Rabbi Lapin: "Let's make bricks!"
Stephan Kinsella: "Say you and I both want to make a German chocolate cake."

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http://www.youtube.com/watch?v=X3Kzbo7tNLg

It's subtitled in English.

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lol. Don't steal. The government hates competition.

To paraphrase Marc Faber: We're all doomed, but that doesn't mean that we can't make money in the process.
Rabbi Lapin: "Let's make bricks!"
Stephan Kinsella: "Say you and I both want to make a German chocolate cake."

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ama gi replied on Mon, May 11 2009 7:03 PM

It's fun pointing at the failures of statism!!

"As long as there are sovereign nations possessing great power, war is inevitable."

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Kakugo replied on Tue, May 12 2009 1:37 AM

I have always mantained that these Latin American demagogues should build a colossal statue to Uncle Sam for helping them to stay in power. The US has such a long history of meddling with them (often with catastrophic results) that all Chavez & co have to do to mask their shortcomings is going on Tv and say "People, it's those damn yankees trying to destroy us again! Viva la Revolucion!". Not that people at Foggy Bottom find this a displeasant state of affairs since it gives them yet another "Hitler" to fight. And considering that Citgo is owned in part by the Venezuelan government yet is allowed to operate undisturbed is sufficient proof enough.

On a more serious note I'd like to ask a question: Latin America has always had a very curious history after the Spanish domination was broken and the Portuguese kicked out of Brazil. Is there any book out there trying to explain how their particular brand of Socialism came to be? Thanks.

Together we go unsung... together we go down with our people
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Socialism in Latin America is relatively recent. They became 'independent' after the Bolivarian revolutions of the 1820s, on the aftermath of Spain's and Portugal's occupation by Napoleon's forces. The first 'socialist' movements in there only came after WW2, that i know of. That's more than one century of history in between., before any  "socialism".

If you want to understand the modern 'socialism' in Latin America, it's best to start with the Cold war situation there, and that requires an understanding of the socio-economic conditions already existent since the formation of those countries, and their development through more than one century.


Regarding their hatred of mistruist for "imperailists", mainly Spanish and North-Americans, that's very easy to understand. Read about the American "Monroe Doctrine". In the late 19th century, a large fraction of the economy of many of those countries was owned by american companies. Many of the wars and political manouvering that happened there for the past century and half were over economic interests of those companies.

More recently, the widespread intervention of the US during the Cold war - Operation Condor, various coups, military interventions, civil wars, etc. Bolivia is still one of the countries that receives the highest military funding from America.

There were even some guys, like one famous William Walker, who tried to create 'personal' kingdoms for them in Latin America. That walker hired an army to establish a "republic of nicaragua" for himself. It was lots of fun and aventure, at the time.

 

And Venezuela? As recent as 2002, the US supported a coup d'etat against Chavez. Guess which single other country recognised the coup? Yeah, Spain. Obviously.

If any country supported a coup against the US government, we would have a 3rd world war, or some new "war on terror" :P

 

The history of Brazil and Argentina is relatively particular and distinct from the rest of the continent. Brazil, Argentina and Chile were big economic giants at the turn of the century, as developed as Europe, and major destinations for European emigration. That 'special situation'  eventually evaporated, and it's debatable why.

Internal strife played a part.  The Brazilian economy was mostly made up of large landowners, and they were many conflicts against/around this feudalistic aristocratic class. The strong isolationism of Brazil also didn't help. Argentina too became increasingly isolated, especially after WW2

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Chavez seizes oil service firm

you have to wait two years for a new one.

inflation rate is about 30%

All sounds very 20th Century to me.

 

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For those unaware of the Latin Americans mistrust for the US, here's another more or less recent example of US good record in 'defending democracy' (when it serves their companies):

http://www.consortiumnews.com/2010/013110d.html

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