[NYTr] Chavez Warns of "Financial Earthquake"

[All the News That Doesn't Fit]

Agencia Cubana de Noticias (ACN)
http://ainch.ain.cu/mailman/listinfo/ingles


Chavez Warns of "Financial Earthquake"

Havana, September 17 (acn) Speaking on his popular Alo Presidente radio 
and TV program on Sunday, Venezuelan President Hugo Chavez talked about 
taking measures to protect the country from a possible "global 
financial earthquake" which, he believes, could come as the result of 
"irresponsible" US economic policy.

Chavez referred to the mortgage crisis in the US and quoted reports 
from prestigious economists including Nobel Laureate Joseph Stiglitz, 
to warn that the world could be at the doorstep of a major catastrophe, 
published Granma news daily.

Chavez said the mortgage crisis in the US "could lead to a [...] global 
fiasco and widespread misery, hunger and severe unrest. The US 
government is to blame," he noted.

"We aren't only talking about the invasion of Iraq, Afghanistan, the 
attempted coup in Venezuela, or other threats against the world, now 
it's the economic situation," added Chavez.

The Bush administration "has had to inject $300 US billion into the 
private banks this month to avoid a collapse of the dollar and the 
world economy [...] And they talk about investment security and have 
the gall to call us high risk countries and that governments shouldn't 
intervene in economics."

"The dollar is going down, they don't see that it isn't supported by 
reality," said Chavez, arguing that the US has been printing money 
without backing, "because its [annual] fiscal deficit is the biggest in 
history, and of all countries totally some $500 billion US."