Following a meeting with the presidents of Argentina and Brazil, Venezuelan President Hugo Chavez said on Monday that the countries of South America are constructing a new international financial system, calling the three countries "the main axis of South America."

"We are amidst a world financial crisis, that is why the creation of a new financial-economic system is necessary," Chavez told reporters in a press conference in Argentina. 

While also on his visit there, Chavez met with business leaders to strengthen ties and discuss the projects with Argentina's National Agricultural Technology Institute, including a contract to construct 200 "socialist" factories with Argentine technology.

"We are determined to industrialize Venezuela and I know that you are ready to re-energize the industrialization of Argentina," Chavez said, adding that the two countries might work together to "spread these marvelous projects to other countries that need it."

Venezuela is currently launching similar bilateral investment funds in team with Iran, Russia, and China. Chavez's visit also coincided with the Venezuelan government taking a $1 billion position in Argentine bonds.

Back in Venezuela, Chavez is executing a major power grab by enacting a slew of presidential decrees that formalize the creation of a popular militia and consolidate state control over key areas of the economy. The decrees were published on Friday, at the close of a special 18-month period that allowed him to bypass Congress in making laws.

Additionally six of the seven justices on the Supreme Court are sympathetic to the president. This week they upheld a decision to ban some of Chavez's most popular opponents from running in regional elections in November because of unproven corruption charges. The ban has elicited comparisons to moves by Iran's government, preventing opposition politicians from running in elections in that country.