Venezuelan President Hugo Chávez said on Wednesday that the global financial crisis whose epicenter is the United States marks the beginning of a process of "de-escalation" that "will put an end to the evil capitalist model, which has done so much harm to the world."

Chávez added that the world is faced with "a crucial time" as people are learning the magnitude and impact of the crisis. "The financial architecture that viewed the planet as a casino is cracking; what is needed is that the foundations of this harmful capitalist system fall down."

The Venezuelan ruler, who was attending the event "Responses from the South to the Economic Crisis" held at the Venezuelan School of Planning, said to a group of foreign and domestic experts and members of his cabinet that "this evil model (capitalism, liberalism and globalization) is supported on unsustainable and unbearable foundations. The peoples of the world no longer support such a model. This farce must be dismantled." 

Chávez stressed that the International Monetary Fund (IMF) is one of the main culprits of the collapse. "They want to wash their hands and say that they are the saviors. They are accountable to the whole world. They should resign and dismantle immediately the international financial architecture. They must respond for this tragedy" affecting all the mankind, "especially to the people of the United States, who will be the most affected by the crisis."

He said during his speech: "We, the inhabitants of the South, have already suffered a hundred times this crisis that now affects the North. Results are apparent, namely, poverty, malnutrition, misery and death." 

Attentive yet not immune

Chávez also said: "We are implementing a set of measures in Venezuela that allow us to have, not a total immunity, (...) but permit us to be attentive" to these events.

President Chávez recalled that his government withdrew from US banks Venezuelan international reserves. The country's international reserves may total some USD 40 billion at the end of the year, "if the scenario is favorable." The surplus is deposited by the Central Bank of Venezuela (BCV) at the National Development Fund (Fonden) which should have USD 20 billion in the next three years.

On the other hand, Chávez reiterated his willingness to foster the creation of the Bank of the South. "We can set up a new Latin American financial architecture, as a result of this new reality."

Translated by Gerardo Cardenas