Libertarian Jackass

"Life is short, but truth works far and lives long; let us speak truth." -- Schopenhauer

Tuesday, September 06, 2005

HUGO CHAVEZ

Hugo Chavez wants the Venezuelan State to have more influence on the banks. The real story here is that, according to a related FT article:
Venezuelan banks, among the most profitable in Latin America, are heavily exposed to government debt. Public debt can account for as much as 60 percent of a bank's assets. The government is also the largest single depositor among many banks.

Two months ago, legislators passed a controversial central bank law that allows the government to withdraw and spend part of the country's $30 billion in international reserves.


How private are these banks in the first place? Then again, without the political-banking partnership, how could Venezuela enjoy the benefits of a fiat currency and fractional reserve banking?
Alcohol tests

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