Venezuela, leftist allies create regional currency

[Guest guest]

What is happening is that leader like Chavez have destroyed their economies. In typical leftist fashion, they are saying that they couldn't go "big enough" to make socialism work. The idea is that a joint currency of all these nations would achieve the needed size. It won't. All that will happen is that all of their economies will tank even harder.

You are right that there will be a transfer of wealth, but it won't be to the poor. What will happen is that the powerbrokers will suck it all up. This always happens with this kind of government. The real beneficiaries will be the already super rich and those who hold power.

It is simply the historical pattern seen time and time again.

In a message dated 4/16/2009 1:33:21 P.M. Eastern Daylight Time, no_reply writes:

The best this union could do is cause the most economically rich country to determine the prices in other countries. The worst is that the wealth will get drained from the richest countries and given to the undeserving poor ones. Administrator Great deals on Dell's most popular laptops - Starting at $479

[Guest guest]

Seeing the failure that the European union is, I cannot see why Latin America

would want to follow in their footsteps.

Maybe they have an economic death wish.

If they are looking for economic viability, they need to do three things:

1) End the drug trade. Countries are reluctant to trade with slimey countries

who engage in this activity.

2) Quit manufacturing shoddy products. Even the stuff you buy in high end

markets is shoddily built.

3) Quit raping the environment. (Slash and burn agriculture and harvesting

timber at a non-sustainable rate).

If these countries were people, what countries would want to know them?

The best this union could do is cause the most economically rich country to

determine the prices in other countries. The worst is that the wealth will get

drained from the richest countries and given to the undeserving poor ones.

Administrator

http://www.reuters.com/article/bondsNews/idUSN1625462420090416

Venezuela, leftist allies create regional currency

Thu Apr 16, 2009 12:46pm EDT

CARACAS, April 16 (Reuters) - An alliance of Latin American and Caribbean

governments led by Venezuela will create a regional electronic currency that is

expected to circulate by 2010, Venezuelan President Hugo Chavez said on

Thursday.

The leftist Chavez, who has called the global financial crisis the end of

capitalism, has frequently urged allies to stop storing currency reserves in

dollars and recently proposed creating an international currency backed by oil

reserves.

Member nations of the ALBA, a trade bloc of Venezuela's allies including

Bolivia, Nicaragua and Cuba, meet on Thursday to sign an accord creating the

currency called the " sucre. "

" Today the Sucre will be born, " said Chavez, speaking on live television with

Cuban President Castro.

" In September, we should be ready to begin some pilot projects for exchange with

that virtual currency ... by the first of January of 2010 we should have the

system functioning, " he said.

He did not offer more details on how the currency would work. In the past,

Chavez has said the Sucre could one day become a physical currency.

The OPEC nation's finance ministry on Thursday said it hopes countries outside

the ALBA trade bloc, including other nations in South and Central America and

the Caribbean, will later join in using the currency.

Most Latin American countries store their reserves in U.S. dollars, though the

greenback's steady decline in recent years and China's growing influence in the

region have left countries seeking new ways to store cash.

Chavez has also championed the use of alternative " social currencies " used in

barter-style markets of small Venezuelan communities as part of his self-styled

socialist revolution he calls an alternative to global capitalism. (Reporting by

Rondon; Writing by Ellsworth; Editing by Jan Paschal)