World

Venezuela








Very usefull links



Petroleumworld
Bookstore



Institutional
links


OPEC



 


Petroleumworld
Business Partners

 


IRAQ OIL THE FORUM


Blogspots
recomended

caracas chronicles

Gustavo Coronel

Iran Watch.org

Venezuela Today

Le Blog des
Energies Nouvelles

 

 

Lagniappe


 

VenEconomy : Borrowing , borrowing ....

 

 

Hugo Chávez has requested the National Assembly to pass, as a matter of “urgency,” a Supplementary Borrowing Act to the tune of Bs.F.45 billion, which would be in addition to the Bs.F.40.5 billion approved under the Borrowing Act passed in December 2010.

The President explained that the money would be used to finance the Great Venezuelan Housing Mission, the Job Mission, the Public Debt, and the emergency caused by the rains. How about that for nerve!

To start with, this request is being made at completely the wrong time and is totally illegal. According to the Budget Act and the Organic Financial Administration Act, the National Assembly may only authorize requests to contract debt from the President of the Republic in December each year, except in the case of a national emergency or a natural catastrophe.

Leaving aside the legality or not of Chávez's new request to contract more debt, the government has already mortgaged the future of the Venezuelan people to the hilt with a debt that exceeds $125 billion. And that does not include the humiliating debt with the Communist Republic of China. In other words, that is nearly four times the $32 billion debt that the country had in 1998, when Hugo Chávez won the presidential elections.

The naive question is: What have Chávez and his pals done with so much money? The answer, rumored by everyone, is: they've used it to finance his communist project in Venezuela, the region, and the rest of the world; to support outlaw regimes and international organizations; in an unnecessary buildup of weapons, and in corruption and more corruption, because it is obvious that there have been no sustainable or lasting improvements made in Venezuela.

When Carlos Andrés Peréz plunged the country into debt in the 1970s, despite the oil boom at that time, at least he left behind him some booming steel and aluminum industries and the Guri dam.

Here are some more questions: 1) Why does the government have to borrow if the average oil barrel price is currently in the $90-$100 range? The answer: because PDVSA has collapsed and produces and exports increasingly less oil. And 2) Where are the resources that have supposedly been deposited in the National Development Fund (Fonden) and the many other funds the government has set up?

For things to have reached these extremes of unsustainability, the regime's necessary accomplices in the castrated branches of government had to have been actively involved.

It's time that Venezuelans demanded accountability from the people who've been running things for the past 12 years.

Follow us and post your comments: in Twitter Facebook

 

 

 

VenEconomy has been a Venezuela's leading specialized publisher on financial, political and economic data since 1982. VenEconomy's Points of View on the issues of the day, as seen by VenEconomy during the last week. Petroleumworld does not necessarily share these views.

Editor's Note: This commentary was originally published by VenEconomy, on June 2, 2011. Petroleumworld reprint this article in the interest of our readers.

All comments posted and published on Petroleumworld, do not reflect either for or against the opinion expressed in the comment as an endorsement of Petroleumworld. All comments expressed are private comments and do not necessary reflect the view of this website. All comments are posted and published without liability to Petroleumworld,

Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of environmental and humanitarian significance. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml.

All works published by Petroleumworld are in accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.Petroleumworld has no affiliation whatsoever with the originator of this article nor is Petroleumworld endorsed or sponsored by the originator.

Petroleumworld encourages persons to reproduce, reprint, or broadcast Petroleumworld articles provided that any such reproduction identify the original source, http://www.petroleumworld.com or else and it is done within the fair use as provided for in section 107 of the US Copyright Law.

If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
Internet web links to http://www.petroleumworld.com are appreciated
.

Petroleumworld News 06/03/2011

Follow us in Twitter

And post your comments in our Facebook site


Petroleumworld welcomes your feedback
and comments, share your thoughts on this article,
your feedback is important to us!


We invite all our readers to share with us their views and
comments about this article, write to editor@petroleumworld.com

Copyright© 1999-2010 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ stories by anyone provided it mentions Petroleumworld.com as the source.Other stories you have to get authorization by its authors

Send this story to a friend Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+Windows NT 4.0, '95, '98, ME,
XP, Vista, W7 +/ 800x
600 pixels

.


TOP


Editor:Elio Ohep /
Contact Email: editor@petroleumworld.com

Contact:
editor@petroleumworld.com/ phone: Office (58 212) 635 7252,
or Cel (58 412) 996 3730 or
(58  412) 952 5301


CopyRight © 1999-2010, Elio Ohep - All Rights Reserved. Legal Information

- CCS Office Tele
phone/Teléfonos Oficina: (58 212) 635 7252

PW in Top 100 Energy Sites


Technorati Profile

Fair use notice of copyrighted material:

Legal Information

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.