Empowered by his third electoral victory, Chavez just informed us that he'll cancel Radio Caracas Television's license. Why? Though Chavez doesn't say it, we all know it's because the station is openly critical of his government. Chavez' recent actions ripple outward, causing self-censorship among many independent journalists.

The Venezuelan president has already thrown international investors away. He warned them that his government will nationalize international companies, revoking the acquisitions of earlier privatization programs. In addition, the state-owned oil company, PDVSA, will now control the entire oil sector, harming many international corporations' investments.

However, Chavez is most dangerous because he's undermining democracy itself. Chavez wants to change the Constitution for a second time to perpetuate his hold on power. Through referendums and new laws, he has changed the composition of Congress, the structure of the Supreme Court and the membership of the Electoral Council. Last year, the government approved a media law to constrain the press. And it goes on and on. What kind of confidence could investors have in a country with crumbling institutions for checks and balances?

In Argentina four years ago the government broke the contracts with debtors and investors. In the midst of a huge crisis, authorities were forced default on their debt. It meant losses to thousands of American and European owners of public debt bonds and it cost Argentinean investors dearly.

While Venezuela falls apart, Brazil has been paying ahead its external debt, substantially reducing the volume of debt facing many kinds of investors. The country has made the tough choices.

In JP Morgan index, Brazil's Risk is 192 basis points over the U.S. Treasury Bond, Argentina's Risk is 207 and Venezuela's Risk is 206. Surprisingly, after the recent surge of Chavez's radicalization, Venezuela's risk dropped!

It seems to be contradictory, but the financial market has a specific way of calculating risk by relying on core indicators, crucial to their particular interests not those of ordinary people.

Truly important risk is not measured by financial market's narrow-minded calculus. Latin American journalists that lived in terror under the dictatorship in the 60's and 70's know the real risk of losing their freedom. I am one of many Brazilian journalists that experienced the military's prison and faced trial in a military court. That is why I am convinced that Venezuela faces a grave risk with Chavez.