Editor's Note: We watched President Chavez last night on VTV as he delivered a riveting message to the opposition business leaders, many of whom were golpistas (those involved in the attempted coup against him in 2002). Dressed smartly in a business suit and dress shirt, complete with what the Iranians call the "capitalist leash" (necktie), he handled his listeners with aplomb.

Until now, business has had difficulty obtaining US dollars to make their transactions in the US. But last night, Chavez told them that under his new policy, they would be able to obtain $50,000 a year, strictly for the purchase of raw materials and equipment to support their businesses. After the applause that followed, Chavez looked at them like a schoolmarm, without a smile, raised his finger and said, "But don't let me catch any of you cheating." Like good students, they heard what he said.

I commented to my fellow Chavistas, "Do you know what is magical about the number - $50,000?" - and answered my own question: "$50,000 is nada for a big transnational corporation". President Chavez made a number of other offerings to them which drew applause ... a nonstanding applause, of course.

But Chavez is fulfilling his commitment to support and build medium and small business enterprise in Venezuela and $50,000 is a new initiative, welcomed by members of that business community.

We laughed as he spoke in his jocular style with the business folks as easily as he hangs out with campasinos (peasant farmers) or any other sector of the working class. Throughout his speech they applauded when he offered them money. But each offering was punctuated with a firm lesson about the virtues of socialism when his captive audience fell silent, some with grim looks on their face. Amidst his offerings, he taught them lessons about class warfare, racism, greed and common decency. Many of them plainly and simply do not know what is going on because they could only see as far as the $50,000 hanging on the end of their noses which they can now receive under the new arrangement. But we have to believe that as they applauded and laughed at his jokes, the barrier is breaking down and some of the golpistas are beginning to understand who is boss and where their bread is buttered. The others, well, some folks just have to learn the hard way.

-Les Blough in Venezuela

Venezuelan president Hugo Chavez said foreign investors have no longer ¡°any room in the country¡± because they are only interested in making money and transferring earnings overseas. However, he invited private companies to joint ventures in ¡°non strategic¡± areas of the economy.

Chavez invites the private sector for a ride with him ¡°The only purpose of capitalism has always been to obtain the most profits, that is why company owners take away overseas the money that belongs to the Venezuelan people, which our sovereign motherland¡± said Chavez during a rally with workers from the Argentine steel foundry Ternium-Sidor recently nationalized. Chavez criticized the multinational corporations adding that they are the ones ¡°which really run the capitalist world, more than governments, legal systems, congresses and peoples¡±. Ch¦Ávez in the last few years has been nationalizing companies from the oil, electricity, steel and cement sectors which he describes as ¡°strategic¡±. But in spite of criticism he said he encourages Venezuela's private sector to work with his government to create new businesses and factories that would produce consumer goods. ¡°My administration is open to joint ventures with private companies in "non-strategic" areas of the economy. Cooperation should spur growth¡±, he underlined. The Venezuelan president is expected to unveil a set of new economic measures this week including possibly a new Finance minister according to the Caracas press. In spite of booming oil prices, growth is down to a four year low of 4.8% in the first quarter (8.8% in 2007) and annual inflation reached an annualized 29.3% in April. The Venezuelan Central Bank said last Monday soaring global food costs and looser price controls by the government had driven food and non-alcoholic beverage prices up a startling 6.1% in May. "In this period, we have been adjusting some prices that were regulated in categories that influence the price index" Planning Minister Haiman El Troudi said, adding that a 30% hike to public sector and minimum wages last month also made an impact. Domestic production has not kept up with consumer demand in Venezuela. The oil-strengthened Bolivar currency makes imports relatively cheap, but imported foods have this year grown more expensive. The government relaxed controls on goods such as beef, chicken and pre-cooked corn flour -- a staple of the Venezuelan diet -- after farmers said the regulations were to blame for sporadic shortages of basic products that hit Chavez' popularity.