Monday, September 17, 2007

Chávez warns of impending world financial crisis

CARACAS, September 16 (PL).—Venezuelan President Hugo Chávez warned this Sunday of the danger of a world financial crisis due to the problems presented by the high-risk mortgage business in the United States.

In his TV program "Aló Presidente", the president said that the authorities are studying a combination of measures "to protect us from a large financial earthquake" that would affect the entire world.

In that context, Chávez noted that in recent weeks the Federal Reserve was forced to inject around $300 billion to avert the collapse of the dollar.

The statesman blamed the Washington administration for the current situation by cutting taxes on the rich and offering low interest rates on loans.

Now interest rates have gone up, he observed and the effect of that is extending to credits, with the threat of generating a debacle and more poverty, hunger and serious upheavals.

Hence the need to create structures like the Bank of the South and bring reserves over here, in addition to considering the possibility of changing the composition of the international hard currency inventories and moving to currencies like the euro or the Asian ones.

Chávez mentioned the turmoil generated in August when the European and U.S. Central Banks contributed billions of dollars to avoid the finance system plummeting.

Translated by Granma International



No comments:

Post a Comment