Collapsing Venezuela

Venezuela is going to pieces under thug Hugo Chavez, but the disater is largely ignored by the media. Richard Rahn discusses the calamity awaiting their economy.

If Venezuelan President Hugo Chavez deliberately intended to sabotage his nation's economy, he would be hard-pressed to do anything different from what he is now doing to his country.

It has been widely reported that Mr. Chavez has been increasingly taking control of the oil, telecommunications and energy sectors, as well as the media. What has not been reported is the full extent of the corruption in Venezuela and how this ultimately will destroy the economy.

The financial scandal taking place is far bigger than Enron, and may ultimately even exceed the U.N. "oil-for-food" scandal, the biggest financial disgrace of all time. Venezuela has had a rapidly growing economy for the last few years, due to high oil prices, but the house of cards is about to collapse. The former Venezuelan representative to Transparency International, Gustavo Coronel, has documented how much of this corruption has taken place in a report published by the Cato Institute's Center for Global Liberty and Prosperity.

Meanwhile, the psychopath runs his mouth and it's headline news: Chavez to U.S.: 'Go to hell, gringos!'.