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Chavez urges allies to pull billions out of US



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Published Date: 28 January 2008
By IAN JAMES
HUGO Chavez, the Venezuelan president, has urged his closest Latin American allies to begin withdrawing billions of dollars in international reserves from United States banks, warning of a looming US economic crisis.
He made the suggestion as he hosted a summit aimed at boosting Latin American integration and countering US influence.

"We should start to bring our reserves here," he said. "Why does that money have to be in the north? You can't put all your eggs
in one basket."

To help pool resources within the region, Mr Chavez and other leaders launched a new development bank at the summit of the Bolivarian Alternative for the Nations of Our America (Alba). Its acronym is Spanish for "dawn".

The left-leaning alliance aims to offer an alternative, socialist path to integration, while snubbing US-backed free-trade deals.

The controversial Venezuelan leader called for allies to help end US domination internationally. "We have to do everything possible so that in the coming years the US empire falls," Mr Chavez said.

At the summit, Mr Chavez accepted some coca leaves from Bolivian leader Evo Morales, insisting "coca isn't cocaine".

"You know the strength that coca gives," Mr Chavez said. "I've really grown used to it every day in the morning."

The two men defend the leaf, which has been chewed by Andean Indians for centuries, but condemn its use in making cocaine.

US officials have long tried to stamp out coca cultivation. But Mr Chavez accused Washington of trying to use the issue of drug trafficking to discredit his government for political reasons, noting that John Walters, the White House drug tsar, had accused him of facilitating the flow of Colombian cocaine through Venezuela.

Mr Chavez called that "a serious thing," but smiled as he thanked Mr Morales for recently sending coca to him and asked for more.

Standing up from a table, Mr Morales walked to Mr Chavez and opened a drawstring bag. "Oh, friend, I knew you wouldn't fail me," Mr Chavez said, as he put some in his mouth.



The full article contains 349 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 27 January 2008 10:45 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

Itchy,

28/01/2008 12:25:12
"HUGO Chavez, the Venezuelan president, has urged his closest Latin American allies to begin withdrawing billions of dollars in international reserves from United States banks, warning of a looming US economic crisis.
"

The US may be heading for crisis but then your socialist revolution is many times worse, Mr Chavez.
2

britfree,

camelon (for bolivarian revolution) 28/01/2008 13:26:23
the septics have JUST seen the size of china the welcome resurgence of russia and the stomach turning distaste the world has for them ! when amerikkka falls free people will dance with glee
3

Roberta Burns,

28/01/2008 14:32:49
Can't wait to see the yanks get a good hard slap.
4

milwaukee erik,

Milwaukee, USA 28/01/2008 15:05:23
Hey Itchy,

Actually the Venezuelan economy has experienced massive growth during Chavez's socialist revolution.
http://www.cepr.net/documents/publications/venezuela_2007_07.pdf

This is strange, but Ian James incorrectly translated the ALBA. In English it should be, the Bolivarian Alternative for the Americas. There is no mention of "the nations of our..." That is a complete fabrication, likely aimed to make that organization sound weirder than it is. It's just an economic trade bloc that has had many positive benefits for the countries involved.
5

American,

28/01/2008 20:27:49
#4-miwaukee-good! maybe the illegal mexicans will migrate there.
6

JoeMcT,

BlairsFantasyIsland 29/01/2008 00:24:33
"Chavez urges allies to pull billions out of US"

Chavez is being a wee bit naughty there, but the reality is that Central Banks from Japan, China to the Middle East have already started to diverify away from
US dollars into other currencies.

The $ has sunk through the floor during Bush's time in office, and his handling of the Economy has been so poor that the dollar is now in terminal decline.

7

Wally,

By The Rivers Of Babylon (USA) 29/01/2008 14:41:28
Chavez is a madman and a hero to those on the left because he controls his people.
8

britfree,

camelon 29/01/2008 16:02:01
wally has thought wally shares thought britfree ridicules thought NEXT
9

Dáithí,

San Jose 29/01/2008 16:37:45
#8 - bf

"wally has thought wally shares thought..."

Wally is on the far RIGHT, bf. The left LOVES Chavez. Hard to tell from the far LEFT, but the extremes are not really much different.
10

Dáithí,

San Jose 29/01/2008 16:40:09
#6 - Joe
>"The $ has sunk through the floor during Bush's time in office"

Correct, and many times that’s a good thing! The dollar is low because interest rates are very low – meaning Americans can make big purchases inside the US with low interest rates. Remember, the dollar is still worth the same inside the US – with the exception of gasoline costs.

The low dollar has made drastic cuts in our trade deficit. American tourists are much less likely to visit Europe, Europeans and Canadians are coming here in droves to take advantage of good deals. American goods are now much cheaper in the overseas markets putting us in a better global competitive position.

U.S. Trade Facts

“According to the U.S. Department of Commerce, the United States is the world’s largest economy and the largest market. The United States accounted for over 10 percent of world export trade and 18 percent of total world imports in 2006. U.S. exports accounted for 10.4 percent of the nation's GDP.

High oil prices in 2005 and 2006 threatened some fiscal decline, but the U.S. economy continued to grow throughout much of 2006.”

http://www.calchamber.com/CC/BusinessResources/InternationalResources
/AllAboutInternationalTrade/TradeStatistics.htm

So Joe, we’re exporting 10% and importing 18%. A lower dollar means that our exports increase from 10% (which they have been - drastically) and our imports will lower from 18% (since they are starting to be more costly than American made goods).

When they meet in the middle (say 14%/14%) then our trade deficit is GONE – now, the dollar will start gaining strength.
11

Dáithí,

San Jose 29/01/2008 16:42:32
#6 – Joe (cont…)

China is much less likely to dump their dollar reserves as they now are worth much less (they ‘bought high’ and won’t ‘sell low’). They will wait for the dollar to rise, gain value, then sell them when they are worth the most, not the least.

What would they exchange dollars for – Euros? This would hyper-inflate the value of Euros - and then guess what would happen?

Chinese goods would be very cheap on the European market and European goods would be very expensive in the Chinese market – now letting cheap Chinese goods flood into the European market!

Europe could look forward to a drastic trade imbalance, China can look forward to huge profits.

China has a lot to lose by harming the American economy, their biggest trading partner. They have little to lose by harming the European market, where their share is much less.

Don’t be under the impression that China has any love for Europe – aren’t you guys the ones that monopolized an opium market once-upon-a-time?

"In 2006, China's top ten trading partners were the US, Japan, Hong Kong, South Korea, Taiwan region, Germany, Singapore, Malaysia, Russia and the Netherlands.

China's trade with these ten economies together amounted to US$1,176 billion, i.e. 66.8% of China's total external trade in 2006."

http://www.tdctrade.com/main/china.htm

Also, as you can see, the US economy has stayed strong.
12

britfree,

beentheredoneTHAT 30/01/2008 00:57:59
amerikkkays a basket case. daffy you ol hibee you, its cashed too many cheques on insufficient funds its creditors are getting itchy . if it plays to form the ststes will attempt to bully its way out, and THIS time it may work but diminishing returns! your young folk are numbed by poverty's twin, apathy or so individualistic that to serve, would seem a theft of their consuming time people saw how you were unable to fulfil your mission anywhere you have extended your fist with an increasing frequency and see you more as the wizard of oz than john wayne

 

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