Yesterday, there were numerous press reports stating that Venezuelan president Hugo Chavez would nationalize the country's electrical and telecommunication companies, continuing to transform Venezuela into a socialist state.

However, entering his third term, Chavez's plans may already be running into trouble. According to yesterday's Wall Street Journal (subscription required), Venezuelan inflation is approaching 17% due to Chavez introducing his own version of socialism and unilateral redistribution of wealth policies. Additionally, Chavez has promised much of the windfall money from high oil prices to leaders of other countries in the region that are tempted to re-explore socialism as a way to govern.

The Journal article suggested that if oil drops below $50 per barrel, Chavez could run into trouble keeping up with all the promises he has made. In addition, oil below $50 per barrel might mean he cannot meet Venezuela's external financial obligations.

Before politicians can get in a frenzy about Mr. Chavez, the market may simply take care of him itself.