In this week’s roundup…The housing crisis is the top of mind issue for Venezuelans, as the country copes with soaring inflation and rising debt. Meanwhile, the oil sanctions debate rages on as President Hugo Chávez jokes about his government’s ties to Iran.
FACTBOX-Housing among top worries for Venezuelans, Reuters
Venezuela’s housing shortage is a challenge for President Hugo Chavez, a major concern for millions in the South American OPEC member, and one of the issues that could shape next year’s election. With 29 million people, Venezuela is short of 2 million housing units. Chavez blames past capitalist governments and local businesses for putting profit motives before the needs of society at large.
Chavez to Request $10.5 Billion in Debt Under New Venezuela Law, Bloomberg
Venezuelan President Hugo Chavez said he will send a request to the National Assembly today to issue up to 45 billion bolivars ($10.5 billion) in new bonds this year as part of a special debt law. Of the total, 20 billion bolivars would help pay for 153,000 homes as part of a housing drive, 10 billion bolivars would go to a new job creation program, 10 billion to cover public debt and 5 billion to respond to heavy rains that have damaged homes and infrastructure, Chavez said.
Venezuelans struggle to cope with soaring food prices, inflation tops Latin America, The Washington Post
Soaring food prices are forcing many Venezuelans to change their eating habits, trim their shopping lists and set aside more of their earnings to feed their families. The oil-exporting country is coping with one of the highest inflation rates in the world: 22.9 percent as of last month, and food prices are rising even faster. “It’s gotten 100 percent worse,” said Evelyn Villamizar, a 29-year-old student who is raising a 5-year-old son in a poor barrio of the Venezuelan capital, Caracas. She said she feels “strangled by the prices.”
Hugo Chavez in the U.S. Crosshairs, Foreign Policy
Finally, Hugo Chavez is being held accountable for his reckless efforts to aid and abet Iran’s illegal pursuit of a nuclear capability and evasion of international sanctions. This week, the Obama administration announced it was imposing sanctions on Venezuela’s state oil company PDVSA and the Venezuelan Military Industries Company CAVIM for their illicit dealings with Iran.
US Oil Sanctions Against Venezuela May End Up Helping Chavez, The Wall Street Journal
U.S. sanctions against Venezuela’s state oil company may benefit rather than hurt President Hugo Chavez’s government by providing fuel for anti-U.S. rhetoric as the leftist leader rallies supporters ahead of next year’s presidential elections. Slamming Washington is a timeworn strategy for winning votes in many parts of Latin America, and it could provide a boost to the re-election bid by Chavez, who in his 12 years in power has become the region’s loudest U.S. critic. “Chavez is using [the sanctions] as a weapon to consolidate his base, to put the opposition in an uncomfortable situation and to rally support for his election campaign,” said Anibal Romero, a Caracas-based retired professor of political science. While analysts don’t expect the recent sanctions to have much effect on Petroleos de Venezuela SA, or PdVSA, as the state oil company is known, the reaction from the Chavez government has generated unease among holders of Venezuelan debt, weighing on bonds trading in New York in recent days.
Chavez condemns US sanctions, jokes about missiles, Associated Press
President Hugo Chavez mocked U.S. concerns about Venezuela’s ties with Iran on Tuesday, joking that while his adversaries worry about Iranian-made missiles lining his country’s coast his government is actually erecting windmills there. The socialist leader at first said missiles could be launched at Washington and other U.S. cities, then held up a photograph of windmills along the South American country’s coast, saying “here they are.”