When Oil Isn't Enough

Venezuela's [T]hugo Chavez has gone after the oil industry and has decimated Venezuela's production of food causing food shortages throughout the country. Now, he's setting his sights on the steel industry.

President Hugo Chavez said Saturday that Venezuela's largest steel maker, Sidor, will not be allowed to make any more exports until it meets domestic needs, and threatened to expropriate the Argentine-controlled company if it resists.
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Chavez has criticized Sidor for selling the bulk of its production overseas and forcing local producers to import from elsewhere, saying Venezuelan industry should be given priority.

Sidor's parent company, Luxembourg-based Ternium SA, is controlled by conglomerate Techint Group of Argentina. Chavez said he has summoned Ternium chairman Paolo Rocca from Buenos Aires for talks.

"We're going to pass a law, Rocca. We're going to force you to supply, first and foremost, the Venezuelan domestic market before you take (the steel) to other countries," the Venezuelan leader said at a news conference.

No industry in Venezuela is safe. He's already nationalized telecommunications, electricity companies and the oil sector.

There's a reason that companies are choosing not to do business in Venezuela - and it is summed up in two words: Hugo Chavez.

He's also in the process of creating a Castroesque cult of personality. He wants to establish a single national socialist party. This will also further cement his power and authority - eliminating any potential rivals. He thinks that eliminating all possible dissension will make his job of ruling easier.