What country / president does this sound like?

[Spencer]

Bush, Biden, and the State Department appear to lack the ability to see that the pot is black.

Chavez Urged by U.S. to Compensate American Companies (Update2)

By Brendan Murray

Jan. 9 (Bloomberg) -- The Bush administration urged Venezuela to compensate U.S. companies that would be affected by President Hugo Chavez's plan to transfer the country's utilities to state ownership, a White House spokesman said.

Chavez said yesterday he plans to nationalize the country's largest phone company and utilities, gain greater control over the oil industry and seek authority to make laws by executive order. His comments sent Venezuelan stocks and bonds tumbling.

The U.S. has "seen the results of nationalization in other places, and in general these types of actions do not produce economic benefits as expected,'' White House spokesman Gordon Johndroe said.  "If any U.S. companies are affected, we expect them to be promptly and fairly compensated.''

Exxon Mobil Corp., ConocoPhillips, Chevron Corp. and Total SA may lose their shares in the four heavy oil ventures if Chavez's plan is approved by Venezuela's congress. New York- based Verizon Communications Inc. has a stake in the country's telephone network.

Senator Joseph Biden of Delaware, a Democrat who chairs the Foreign Relations Committee, suggested that the expansion of government economic control would end up undermining Chavez.  "The prospect is that Chavez will continue to escalate his new socialist revolution to the point he loses support,'' Biden said.

The U.S. is seeking details on how Venezuela plans to carry out the nationalization, according to Eric Watnik, a spokesman for the State Department's Bureau of Western Hemisphere affairs. He expressed U.S. concern over Chavez's pledge to strip the central bank of its autonomy.

"Independent central banks have a global track record in achieving low inflation and economic stability,'' Watnik said.  "Separation of powers, and checks and balances, are fundamental to democracy.''

To contact the reporter on this story: Brendan Murray in Washington at brmurray@bloomberg.net
Last Updated: January 9, 2007 15:15 EST

http://www.bloomberg.com/apps/news?pid=20601086&sid=a9IbEOFV0Gqk&refer=latin_america

[eques]

"Yeah, see, Chavez, you're doing it all wrong.  You've got to make your people think that business is privately owned and then institute regulations in industry.  That way, you get a burgeoning industry and you're swimming in cash!"

[error]

I dunno. As far as I'm concerned, Hugo Chavez can keep running Venezuela back into the ground, destroy any wealth, and keep on building his Socialist Republic until there's 100% poverty -- or the people rise up and shoot him.

As for the immediate circumstance, if I were one of those large companies being nationalized, I'd take the Hank Rearden approach.

[Spencer]

My favorite part, though, is that he is seeking the power to issue executive orders that have the force of law (something our presidents do without hesitation -- not to mention Bushie's use of "signing statements" declaring what parts of the laws he signs he thinks count; sort of his own personal line item veto power).  My other favorite parts are: (1) Joe Biden warning that government interference in business is ill-advised, and (2) the State Department spokesman advocating separation of powers and checks and balances (which we all know fell by the wayside in this country long ago).

As for the corporations who are going to lose their investments there: it is a risk of doing business in an unstable country and region.  The profits can be huge when making a risky investment, but the downside is the likelihood of losing everything.  I don't think that our government should be playing debt collector for private businesses (it would be just another example of corporate welfare).

[error]

My sources tell me that the State Department lives in some otherworldly delusion and has trouble keeping even a tenuous grasp on reality.

[aries]

Next step nationaize the cocaine industry

[David]

Next step nationaize the cocaine industry

Only corporations roll over to gov't, Methinks the drug gangs will not be so passive in allowing the gov't to steal from them.   

[aries]

Next step nationaize the cocaine industry

Only corporations roll over to gov't, Methinks the drug gangs will not be so passive in allowing the gov't to steal from them.  

The government does a lot of selective enforcement from what i glean