Hilarious: S&P Downgrades Venezuela on “Political Risk”

Reuters
August 19, 2011

Standard & Poor’s on Friday downgraded Venezuela’s credit ratings as it implemented a new methodology more heavily focused on political risk—a key weakness in the oil-producing country.

S&P cut Venezuela’s long-term sovereign rating to B-plus from BB-minus. The outlook on the new rating is stable. The agency’s new methodology was published on June 30, a little more than a month before it invoked political concerns to downgrade U.S. credit ratings.

Political risk has been a constant issue in Venezuela, where change in economic rules and nationalization of companies are common. Uncertainty about the health of President Hugo Chavez, who had surgery in Cuba earlier this summer to remove a cancerous tumor followed by chemotherapy treatment, has added to those risks, S&P said in a statement.

“In our opinion, changing and arbitrary laws, price and exchange controls, and other distorting and unpredictable economic measures have undermined private-sector investment and hurt productivity, weakening Venezuela’s domestic economy,” S&P analyst Roberto Sifon Arevalo wrote in a report.

Venezuela’s vast oil and gas reserves “somewhat” offset the policy uncertainty, S&P said. The country posts steady current account surpluses which, combined with strict capital controls, result in positive net asset positions.

However, S&P expressed concern about the actual level of Venezuela’s gold and foreign exchange reserves after reports that the country plans to repatriate them.

“When you have the reserves held abroad, you do have some level of confidence,” Arevalo told Reuters in an interview. “That is not going to be the case anymore. They are going to be held at the central bank domestically, then you fall in the same circle of lack of transparency that everything else has in Venezuela.”

Proyecto de Ley venezolano Incluye Medidas Draconianas Dictatoriales

Por Luis R. Miranda
The Real Agenda
12 de junio 2011

Un documento enviado a The Real Agenda y que es un borrador de un proyecto de ley actualmente en discusión en la Asamblea Nacional de Venezuela compila una lista de las medidas más draconianas jamás vistas en América Latina. El documento denominado “Proyecto de Reforma Constitucional: Leyes Socialistas para Venezuela“, que se dice estár circulando entre los miembros de la asamblea es etiquetado como un anteproyecto de ley en discusión.

Mandatario venezolano Hugo Chávez

El documento que se divide en varias secciones, aborda temas como la medicina privada y las compañías de seguros, la educación privada, la identidad y las actividades cívicas, banca privada, las comunicaciones, la propiedad privada, la moneda, la economía, las prácticas religiosas, las prácticas sociales y otros.

En cuanto al tema de la medicina privada, el documento tiene la intención de expropiar los edificios y el equipo de los actuales proveedores de atención médica privada mediante el pago de sólo el 5 por ciento del valor de mercado de la propiedad en bonos del Estado con vencimiento a 20 años. Además, todos los seguros de vida privados serán cerrados y todo su personal se quedará sin trabajo y sin derecho a una pensión.

En la enseñanza privada, el proyecto de ley establece que toda la educación quedará bajo el control del Estado. Todos los estudiantes usarán un uniforme similar al militar mientras asistan a la escuela. Estará compuesto de camisas rojas, pantalón azul con una leyenda lateral que dice “República Bolivariana” y un sombrero o boina roja. Aunque la mayoría de los cursos escolares se mantendrán como están, algunos se cambiarán para dar cabida a otros nuevos relacionados con “El Socialismo en el siglo XXI”.

Bajo la sección de Educación Privada, el documento también incluye un llamado a socializar todas las propiedades:

“Autorizar a las familias sin hogar a ocupar segundas viviendas comenzando por los apartamentos y casas ubicadas en las playas, incluyendo las ubicadas en clubes y luego pasar a las de las zonas urbanas.

Los propietarios de viviendas se verán obligados a abrir sus casas a las familias compuestas por no más de tres miembros que ocuparan una habitación de la casa, reservando una habitación para tres miembros de los propietarios originales. Los propietarios estarán obligados a compartir espacios comunes de la casa con los nuevos miembros. “

El proyecto de ley también habla de temas relacionados con las actividades cívicas de los ciudadanos. Bajo las nuevas directrices, todos los ciudadanos recibirán un documento de identificación. Las formas anteriores de identificación serán invalidadas. Todos los que participaron en activismo contra el actual presidente y el gobierno venezolano no podrán obtener la nueva identificación y serán considerados delincuentes que se oponen a la Asamblea Nacional, el Presidente y el Gobierno. Además, los derechos de los padres de cualquier menor de 21 años, serán compartidos entre los padres biológicos y el Estado.

En el asunto de la banca privada, los proponentes del proyecto de ley tienen la intención de hacer que todos los trabajadores de banca privada se vuelvan empleados del Estado. La moneda conocida como el Bolívar cambiará su denominación al “eliminarse los últimos tres ceros”. Los ciudadanos que tienen activos en el extranjero serán obligados a traerlos a Venezuela. Una vez hecho esto, nadie podrá poseer más de 7 millones de bolívares en moneda. Todos los excedentes serán confiscados por el Estado.

En lo referente a las comunicaciones, la televisión por cable y otras tecnologías por satélite serán reservadas sólo para el Estado. Los servicios de teléfonos celulares y acceso a Internet estarán exclusivamente a disposición del Estado. La gente no será capaz de poseer o alquilar cualquiera de los servicios antes mencionados. Todos los ordenadores personales deben estar registrados con el Estado, y el gobierno va a nacionalizar todos los medios para formar una sola red para la difusión de boletines de información del producidos por el Estado. Los propietarios de los medios actuales serán compensados con el 5 por ciento del valor de sus negocios en forma de bonos del Estado con vencimiento de 20 años.

En la sección dedicada a la propiedad privada, el documento dice que toda propiedad privada será nacionalizada. “La tierra será propiedad del Estado, que a través del INTI distribuirá las propiedades a nuevos ocupantes, como agricultores y campesinos que no podrán venderla, hipotecarla o transferirla de ninguna manera.”

En cuanto a las Fuerzas Armadas, el proyecto de ley propone la creación de una milicia popular, que progresivamente va a sustituir a la actual fuerza de militares venezolanos muy al estilo Gestapo. Todas las policías estatales y locales se consolidarán en una sola fuerza bajo el poder del Estado. El servicio militar será obligatorio para los hombres y las mujeres que comienzan su servicio a la edad de 17 años. Estos nuevos soldados estarán disponibles para el apoyo de Venezuela y sus aliados como Irán, Nicaragua, Cuba y Bolivia en cualquier conflicto.

En lo económico, las personas que tienen en su posesión moneda extranjera serán castigados con penas de prisión. Se prohíbe la tenencia de cuentas bancarias en el extranjero. Todas las clases de tarjetas de crédito y débito serán eliminadas en el país y para operaciones en el extranjero. “El Estado va a imponer el uso de tarjetas de alimentos a ser utilizados en el Mercal. Además, el gobierno impondrá el salario mínimo para todo el personal en la nómina del Estado: profesionales, técnicos y otros por igual. El Estado prohíbe el ejercicio de su profesión a cualquier persona que se niegue a servir al Estado. “

El documento finaliza describiendo las limitaciones a las prácticas religiosas y sociales. Dice que se prohíbe llevar ropa que vaya contra la moral y la decencia, como minifaldas, trajes de baño “tangas”, escotes muy pronunciados, pantalones ajustados, etc.) Todo jugador profesional de béisbol y otros deportes estarán bajo el control del Estado. El gobierno restringe la importación de artículos de lujo tales como whisky, electrodomésticos, coches de lujo, etc Además, será ilegal usar o difundir imágenes y artículos que representan “la influencia imperialista” en todas las instituciones públicas, entre ellas Santa Claus y el ratón Mickey .

En la actualidad, el partido Socialista de Venezuela -partido de Hugo Chávez -domina la Asamblea Nacional, por lo que no es difícil creer que un proyecto de ley como este no sería aprobado. El documento que contiene las reformas termina con una llamada típica Bolivariana: Patria Socialismo o Muerte.

El mandatario venezolano Hugo Chávez ha manifestado su aprobación del proyecto de ley en varias publicaciones diciendo: “Esto es nuevo, estamos sembrando las semillas del socialismo. Sólo el socialismo será una verdadera democracia. En el capitalismo, la democracia no es posible “, dijo Chávez antes de decir que ciertas encuestas tratan de confundir a la gente, separando la democracia del socialismo. “La democracia nunca será un sistema capitalista”, agregó.

Is Brazil ready for more Socialism?

Note: Former Guerrilla Leader and street fighter Dilma Rousseff is ready to become Brazil’s next president in an election to be held October 3rd. Rousseff, a former head of a revolutionary group during the military coup in the mis 1960′s is back. This time, she sided with the PT political party, the same socialist movement that took current president Luis Inacio Da Silva to power.

The New Independent

The world’s most powerful woman will start coming into her own next weekend. Stocky and forceful at 63, this former leader of the resistance to a Western-backed military dictatorship (which tortured her) is preparing to take her place as President of Brazil.

Brazil's president Da Silva campaigns with Dilma Rousseff.

As head of state, president Dilma Rousseff would outrank Angela Merkel, Germany’s Chancellor, and Hillary Clinton, the US Secretary of State: her enormous country of 200 million people is revelling in its new oil wealth. Brazil’s growth rate, rivalling China’s, is one that Europe and Washington can only envy.

Her widely predicted victory in next Sunday’s presidential poll will be greeted with delight by millions. It marks the final demolition of the “national security state”, an arrangement that conservative governments in the US and Europe once regarded as their best artifice for limiting democracy and reform. It maintained a rotten status quo that kept a vast majority in poverty in Latin America while favouring their rich friends.

Ms Rousseff, the daughter of a Bulgarian immigrant to Brazil and his schoolteacher wife, has benefited from being, in effect, the prime minister of the immensely popular President Luiz Inacio Lula da Silva, the former union leader. But, with a record of determination and success (which includes appearing to have conquered lymphatic cancer), this wife, mother and grandmother will be her own woman. The polls say she has built up an unassailable lead – of more than 50 per cent compared with less than 30 per cent – over her nearest rival, an uninspiring man of the centre called Jose Serra. Few doubt that she will be installed in the Alvorada presidential palace in Brasilia in January.

Like President Jose Mujica of Uruguay, Brazil’s neighbour, Ms Rousseff is unashamed of a past as an urban guerrilla which included battling the generals and spending time in jail as a political prisoner. As a little girl growing up in the provincial city of Belo Horizonte, she says she dreamed successively of becoming a ballerina, a firefighter and a trapeze artist. The nuns at her school took her class to the city’s poor area to show them the vast gaps between the middle-class minority and the vast majority of the poor. She remembers that when a young beggar with sad eyes came to her family’s door she tore a currency note in half to share with him, not knowing that half a banknote had no value.

Her father, Pedro, died when she was 14, but by then he had introduced her to the novels of Zola and Dostoevski. After that, she and her siblings had to work hard with their mother to make ends meet. By 16 she was in POLOP (Workers’ Politics), a group outside the traditional Brazilian Communist Party that sought to bring socialism to those who knew little about it.

The generals seized power in 1964 and decreed a reign of terror to defend what they called “national security”. She joined secretive radical groups that saw nothing wrong with taking up arms against an illegitimate military regime. Besides cosseting the rich and crushing trade unions and the underclass, the generals censored the press, forbidding editors from leaving gaps in newspapers to show where news had been suppressed.

Ms Rousseff ended up in the clandestine VAR-Palmares (Palmares Armed Revolutionary Vanguard). In the 1960s and 1970s, members of such organisations seized foreign diplomats for ransom: a US ambassador was swapped for a dozen political prisoners; a German ambassador was exchanged for 40 militants; a Swiss envoy swapped for 70. They also shot foreign torture experts sent to train the generals’ death squads. Though she says she never used weapons, she was eventually rounded up and tortured by the secret police in Brazil’s equivalent to Abu Ghraib, the Tiradentes prison in Sao Paulo. She was given a 25-month sentence for “subversion” and freed after three years. Today she openly confesses to having “wanted to change the world”.

In 1973 she moved to the prosperous southern state of Rio Grande do Sul, where her second husband, Carlos Araujo, a lawyer, was finishing a four-year term as a political prisoner (her first marriage with a young left-winger, Claudio Galeno, had not survived the strains of two people being on the run in different cities). She went back to university, started working for the state government in 1975, and had a daughter, Paula.

In 1986, she was named finance chief of Porto Alegre, the state capital, where her political talents began to blossom. Yet the 1990s were bitter-sweet years for her. In 1993 she was named secretary of energy for the state, and pulled off the coup of vastly increasing power production, ensuring the state was spared the power cuts that plagued the rest of the country.

She had 1,000km of new electric power lines, new dams and thermal power stations built while persuading citizens to switch off the lights whenever they could. Her political star started shining brightly. But in 1994, after 24 years together, she separated from Mr Araujo, though apparently on good terms. At the same time she was torn between academic life and politics, but her attempt to gain a doctorate in social sciences failed in 1998.

In 2000 she threw her lot in with Lula and his Partido dos Trabalhadores, or Workers’ Party which set its sights successfully on combining economic growth with an attack on poverty. The two immediately hit it off and she became his first energy minister in 2003. Two years later he made her his chief of staff and has since backed her as his successor. She has been by his side as Brazil has found vast new offshore oil deposits, aiding a leader whom many in the European and US media were denouncing a decade ago as a extreme left-wing wrecker to pull 24 million Brazilians out of poverty. Lula stood by her in April last year as she was diagnosed with lymphatic cancer, a condition that was declared under control a year ago. Recent reports of financial irregularities among her staff do not seem to have damaged her popularity.

Ms Rousseff is likely to invite President Mujica of Uruguay to her inauguration in the New Year. President Evo Morales of Bolivia, President Hugo Chavez of Venezuela and President Fernando Lugo of Paraguay – other successful South American leaders who have, like her, weathered merciless campaigns of denigration in the Western media – are also sure to be there. It will be a celebration of political decency – and feminism.

Mossad in South America

Wayne Madsen Report

“N”, a correspondent from an Iranian media agency, whom I met in the association of foreign journalists in Caracas, told me that he Israeli Mossadused to work in Buenos Aires for some time. Things were going well, N’s employer was satisfied with the job he did, and he planned to spend a few more years in Argentine, but eventually had to change his plans. After a while “N” noticed that he was under surveillance and that his mail regularly got stolen. Uninvited guests started to frequent his office. He talked to the local police and counterintelligence service, but both replied they had nothing to do with the problem. They did mention to “N” cautiously that he was in the sphere of interests of «the Zionists». He told me: «The people in my agency in Tehran knew that Iranian citizens often encounter such problems and concluded that the Mossad was planning a provocation against me. This is why I relocated to Venezuela. It is a country friendly to Iran, one enjoys a certain level of security guarantees here and can expect to be protected in case of need».

I had a similar conversation with “F”, a journalist from Syria. He told me frankly that he preferred to stay on the alert even in Venezuela because the Israeli intelligence service watches over all Syrians working in Latin America and often attempts to compromise them. Like most of his countrymen, “F” believes that hostile acts by the Mossad — drugs put in his pocket, allegations of links to Arab terrorists, the emergence of «documentary evidence» of connections to Colombian guerrillas — are likely. “F” said: «I am ready to face whatever happens. I’m not paranoid, I just look at things realistically. I even obtained a gun permit» and showed me a gun he wore under his jacket.

The Mossads’s objectives are listed on its official web site. They include secret collection of operative, political, and strategic information abroad, termination of terrorist activity targeting Israeli and other Jewish installations, prevention of development or acquisition of nuclear weapons by countries hostile to Israel, and covert operations abroad. The January, 2010 killing by the Mossad of the leader of the the paramilitary wing of Hamas Mahmoud al-Mabhouh in a Dubai hotel gives an idea of what the term «covert operations abroad» refers to.

A Mossad hit squad of 11 agents disguised as tourists blocked the corridor leading to the hotel room where al-Mabhouh stayed. Then the Israeli hitmen got inside, electroshocked and strangulated the man. In several hours the Mossad agents left the Emirates with fake British, Canadian, Irish, and Australian passports.

The demonstrative character of the act was supposed to highlight the Mossad’s capability to score with the enemies of Israel in any part of the world. The operation drew extensive coverage in Latin American media, most of which published the photos of the Mossad agents and, of course, that of their chief – the 64 year old Meir Dagan who has long deserved the nickname of «a man with a knife between his teeth». Among other operations, hundreds of killings of Iranian and Iraqi scientists who were involved in military-related research and were regarded as potentially dangerous to Israel are tracked to Dagan.

According to ALAI (Latin America Information Agency), the Mossad is using at least 40 Israeli companies (as well as embassies and other official institutions of the state of Israel) as fronts for its activity. The total number of the Mossad operatives in Latin America is not greater than 100-110, but an extensive network of agents and the cooperation with Jewish organizations and communities ensure the Mossad’s presence across Latin America and the Caribbean.

The Mossad’s interests gravitate to the regions south of the Rio Grande which are densely populated by Arab immigrants. The Mossad analysts believe that the epicenter of the potential «Muslim terrorism» in Latin America is located in the Zone of Three Borders between Paraguay, Argentina, and Brazil. Venezuela’s Isla Margarita, a place where Lebanese and Syrian immigrants hunting for pearls started to settle down in the early XX century, is viewed similarly. When a free trade zone was opened on Margarita Island, the Arab populations switched to selling shoes, textile, and bijouterie. The Venezuelan government was a number of times forced to disprove allegations that Chavez hosts Muslim terrorists. In reality, Margarita is a small island where more or less everybody knows everybody else and no secret activity — least the operation of Hezbollah training camps — is possible.

Over the years of spying on the above «terrorist centers» Mossad never discovered the networks that could present a threat to Israel. Nevertheless, the Mossad’s efforts were not wasted, at least since the Israeli «reliable» data were invariably used by Washington in planning its struggle against terrorism in Latin America. This is the mechanism of ideological support for the establishment of increasing numbers of US military bases on the continent in the proximity of the Latin American countries with «populist» regimes.

In many cases, Israeli intelligence operatives are involved in legal arms trade business which they use to gain connections in local military circles and security services.

The Mossad also uses affiliated companies to advise its Latin American colleagues on fighting terrorism, «leftist extremism», guerrilla groups and their support networks, as well as to help intelligence services modernize their technical base. A company most often mentioned in the context is Israel’s Global CST, whose CEOs are retired high-ranking Mossad operatives. In July, 2009 the Peruvian government hired the company to help reorganize the country’s intelligence community in order to boost the efficiency of its struggle against «subversive and terrorist organizations» including the re-emerging Sendero Luminoso Maoist group. Global CST is also helping the Peruvian government create a joint system of control over mobile communications, Internet, and other communications media.

Global CST has grown notably more active in Colombia. The Israeli company familiarizes the country’s military intelligence and political police (DAS) officers with new techniques in the spheres of anti-terrorist activity and espionage. Over recent years, Columbia’s intelligence services have been increasingly assertive outside the country, evidently imitating the modus operandi of their CIA and Mossad peers. Columbia maintains intelligence networks in Brazil, Ecuador, Mexico, Panama, and other Latin American countries. The FARC and ELN envoys are finding themselves under permanent surveillance, routinely kidnapped and sometimes — assassinated.

International Security Agency (ISA) mainly staffed by former Israeli special forces officers and intelligence operatives is also active in Latin America. The agency (in tight cooperation with the CIA and the Mossad) took part in the coup that displaced M. Zelaya, the legitimate President of Honduras. Currently ISA specialists are working in the security service of the current President of Honduras P. Lobo, who was propelled to presidency as the result of an imitation of free elections like those Washington realized in Iraq and Afghanistan.

There is a consensus among experts that the Mossad’s number one adversary and target in Latin America is Hugo Chavez, the political leader condemning Israel’s attempts to resolve conflicts in the Middle East by force. Chavez suspended Venezuela’s diplomatic relations with Israel in August, 2006, following the Israeli aggression against Lebanon. At that time Israeli Ambassador Shlomo Cohen and the embassy staff (mostly Mossad operatives) left Caracas. In several months Chavez took steps to normalize the relations with Israel, largely in response to the requests made by Venezuela’s 12,000 Jewish community.

The diplomatic relations between Venezuela and Israel were severed again in January, 2009 when the former protested the crimes committed by the Israeli army in the Gaza Strip, where the Israeli operation resulted in the killing of over 1,000 Palestinians, a third of them — children. In a televised address, Chavez criticized Israel as a country guilty of genocide and inhumane persecution of Palestinians. Not surprisingly, Israel’s reaction was negative. In November, 2009 Shimon Peres addressed a thinly veiled threat to Chavez by saying that «Chavez will soon disappear». The Venezuelan leader remarked that Perez had to undertake a long journey to Latin America to say the words and wondered publicly what would have happened if similar words were said about Peres in Venezuela.

TV commentator and former Venezuelan Vice President José Vicente Rangel often warns in his TV show that the Mossad is planning to assassinate Chavez. Agents with the corresponding qualifications were sent to Columbia, Peru, the Dominican Republic, Panama, and Curacao Island. In Rangel’s view, the greatest threat emanates from Colombia as DAS — instigated by the CIA — already conspired quite a few times to kill Chavez. Alarming comments were also made by US journalist Eva Hollinger who is a renown expert in operations against Venezuela. Author of CIA in Venezuela Hose Sant Ross calls the Venezuelan authorities to be mindful of the Mossad’s operations in the country.

As a rule, the efforts of Venezuelan security services to identify the Mossad agents echo with carefully orchestrated protests staged by the country’s Jewish community and with «solidarity» campaigns across Latin America. Media synchronously respond by charging Chavez with antisemitism and collusion with Muslim extremism.

Actually, the theme of antisemitism recurs due to a range of causes, for example whenever the Venezuelan government takes measures to scrutinize the country’s financial sphere. For decades, there used to be a number of jewelry stores in La Francia building in downtown Caracas, not far from the Venezuelan Foreign ministry, where gold and jewelry were bought and sold with practically no fiscal control. The administration’s attempts to make the business take legal shape and to subject the accounting documents of the stores to the long-overdue audit were condemned by the opposition media as persecution of Jewish businessmen. Nevertheless, the announcement of the coming audit had an explosive effect: in a matter of hours La Francia building was completely abandoned. The most valuable stuff was evacuated secretly at night.

Venezuelan counterintelligence agents watched the process from a distance, occasionally taking pictures. They did not expect to learn anything new — it was known that the Mossad used La Francia to carry out its financial transactions.

Bolivia-Venezuela sponsored meeting calls for International environmental justice court

Reuters

A “people’s agreement” reached at an alternative climate change summit this week calls for the creation of an international “climate and environmental justice” court with binding legal power to sanction those who contribute in unwarranted ways to climate change. Such a body is needed in the short term to fight again the impunity enjoyed by major emitters of climate-changing gases, said experts and activists at the People’s World Conference on Climate Change and Mother Earth Rights, held this week in Cochabamba. “I think this court is completely feasible. Not only that, it is urgent and indispensable,” said Miguel D’Escoto, a former president of the United Nations.

The court, as envisioned, would have the capacity to restrain, prosecute and punish states, companies and people who, by act or omission, make major contributions to climate change. “Social pressure is fundamental in order to achieve the creation of this court,” said Francois Houtart, a Belgian sociologist who said he believed the court should be part of the United Nations structure. Right now, there are few consequences facing those who create great environmental threats, said Naomi Klein, a Canadian author and activist. “We need it,” said Klein of the court.

“If there is an enormous amount of pressure exerted from inside the countries, it can happen.” Adolfo Perez Esquivel, who won a 1980 Nobel Peace Prize in part for leading trade protests, urged that environmental crimes be formally recognized as crimes against humanity. He denounced wealthy industrialized countries for causing the growing climate crisis, but warned that developing countries must also work to contribute as little as possible to the problem.

One key element of any court, he said, is that “people should be able to appeal directly to this court without having to rely on their governments.” As the court is envisioned, complaints could be submitted by state bodies, non-governmental organizations, including social movements, and individuals. Some precedents for an environmental justice court can be found in the International Criminal Court, the European Court of Human Rights and the Inter-American Court of Human Rights, among others, experts said.

“There is a very solid judicial basis to talk about the justice climate court,” said Jose Antonio Martin Pallin, a Spanish Supreme Court judge. “A new legal framework is not needed. Let’s use the laws of our countries and the international treaties already signed” as a legal basis for the court, added Perez Esquivel. The court would be based on the principle that climate change is a crime against humanity and nature, participants said. For it to be effective, it would have to be able to issue binding judgments and have an enforcement mechanism, though arbitration could also play a role in resolving conflicts.  More…

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