I seldom post links to my own blogs, but this story is not getting coverage in the MSM and has a direct bearing on the future security of our borders, I fear.
A move by Venezuela's Hugo Chavez to limit the currency reserves the Venezuelan central bank can maintain may seem like an esoteric topic, but in actuality it is one part of a massive power grab by Chavez, who seeks to spread his influence across Latin America. As the Financial Times notes:
Venezuela will divert as much as $17bn this year and next from its oil export income bonanza into an opaque parallel budget for "development" projects, mostly elsewhere in Latin America, economists said yesterday.
Legislators loyal to President Hugo Chávez approved a law last week that sets a ceiling on the international reserves that can be held by Venezuela's central bank (BCV). The reserves currently stand at $30bn (€25bn, £17bn). "Excess" foreign earnings in the world's fifth- largest oil exporter must now be deposited into a special fund called Fonden.
The fund is expected to receive its first deposit of $6bn in the next few weeks, and because oil prices are forecast to remain high during the next two years, it is likely to be topped up with about $1bn per month.
But the money will be spent largely at the president's discretion, fuelling doubts about the transparency of public finances.
That is an understatement.
More at the link, or just go read the FT article and then google "Chavez" and "television / TV" for more on his recent moves. |