Chavez urges run on US banks

AP/Washington Times:

President Hugo Chavez urged his Latin American allies yesterday to begin withdrawing billions of dollars in international reserves from U.S. banks, warning of a looming U.S. economic crisis.

Mr. Chavez made the suggestion as he hosted a summit aimed at boosting Latin American integration and rolling back U.S. influence.

"We should start to bring our reserves here," Mr. Chavez said. "Why does that money have to be in the north? ... You can't put all your eggs in one basket."

To help pool resources within the region, Mr. Chavez and other leaders floated a new development bank at the summit of the Bolivarian Alternative for the Nations of Our America, or ALBA.

The left-leaning regional trade alliance first proposed by Mr. Chavez is intended to offer an alternative, socialist path to integration while snubbing U.S.-backed free-trade deals.

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Chavez is really trying to structure his economy to be less dependent on the US. It want work. We are too big a customer. He would like to avoid vulnerability to sanctions if he takes aggressive action toward his neighbor and he would like to have their wealth in hand if he does take it. He is already threatening Guyana which borders Venezuela. He wants at a minimum to become the new hegemon in South and Central America.