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Showing posts with label venezuela. Show all posts
Showing posts with label venezuela. Show all posts

Tuesday, April 18, 2017

Venezuela is the new Greece as Maduro forced to sell gold and give up oil assets to deal with debts

At least with Hugo Chavez, the former Venezuelan President understood that gold was an important reserve to help hedge against the nation's declining oil revenues following the Great Recession.  But unfortunately for the people of Venezuela, the individual who followed him into power after Chavez's mysterious death is as ignorant about finance and economics as anyone can be.

But hey, what would you expect from a former bus driver?

Not counting the currency debasement that President Maduro has created which has led to more than a year's worth of hyperinflation from his socialist policies and capital controls, the Venezuelan dictator also chose to lease the very gold his predecessor had returned to the country.  But as things have continued to spiral downward, Maduro is being forced to sell it outright just to get some hard currency to at least pay the military as civil unrest reaches epic proportions.

Image result for maduro hyperinflation
It was almost exactly two years ago when a cash-strapped Venezuela quietly conducted its first, little-noticed gold-for-cash swap with Citigroup, as part of which Maduro converted part of his nation's gold reserves into at least $1 billion in cash courtesy of the US bank. As Reuters reported then, the motive was simple: convert $1 billion of the country's gold into much needed dollars to fund imports and keep the economy from sinking. However, instead of selling the gold outright, a move which would have been met with a firestorm of protests from political opponents and allies alike, leased it to Citi instead. 
Specifically, Venezuela provided 1.4 million troy ounces of gold to Citi in exchange for cash. And while Venezuela would have to pay interest on the funds, it got the key benefit of being able to maintain the gold as part of its foreign currency reserves. After all, the gold was "merely rehypothecated", if only on paper, the actual physical gold would be transferred to an unknown vault of Citi's choosing where it would become an asset effectively controlled by the bailed out US ban (there was a brief scare last July when Citi warned it would close the account of the Venezuela Central Bank, which prompted us to ask if Citigroup was about to confiscate $1 billion in Venezuela gold). 
While it is still unknown if Citi did in fact confiscate a substantial chunk of Venezuela's sovereign gold, what is worth noting is that even just two years ago, Venezuela was in far better economic and social shape than it is currently, which ultimately prompted Maduro's choice of picking a swap instead of an outright sale of the country's gold. Now, however, with hyperinflation rampant, with daily protests, many of which turn violent and deadly, and with the opposition set to unleash the "mother of all protests" on Wednesday even as Maduro has ordered the army to take to the streets, the president has far fewer qualms about preserving even the illusion of stability at this point. What he does need, however, is access to dollars, be it to pay Venezuela's creditors, provide funds to the cash strapped state-owned energy company PDVSA, or simply to pay the army which is the only thing keeping the nation away from a revolution, and Maduro from facing a deadly endgame. 
Which is why Maduro is about to do what he did two years ago, only on a vastly greater scale, and perhaps simply sell Venezuela's gold outright. - Zerohedge
However, this news isn't the only economic calamity for Maduro to hit the wires today as Russia has chosen to seize a Venezuelan oil tanker to use as collateral for the $30 million the nation owes in delinquent port fees.

It is estimated that Venezuela has some of the largest oil reserves in the world, as well as untapped minerals that could save the country from its monetary hell.  But with Hugo Chavez having nationalized (stolen) corporate property and equipment from foreign entities several years ago, Venezuela no longer has the skills, resources, or cash to produce their way out of debt, and thus the Bus Driver in Chief is left with little options but to sell the nation's gold just so he can stay in power a little bit longer.

Thursday, March 2, 2017

As global currencies roil in turmoil, Bitcoin has now officially reached parity with the price of gold

After shifting Westward since the beginning of the year, when Bitcoin's price movements were primarily tied to Chinese influence, the crypto-currency has not only reached a new all-time high on March 2, but it has also achieved parity with the current price of gold.

Diverging together at $1236 apiece just minutes ago, the alternative choices to holding fiat currencies are now justifiably vying for the market share of individuals around the world who experiencing severe crises in their own economies and local currencies.

Bitcoin Chart:


Gold Chart:

Live New York Gold Chart [Kitco Inc.]

Global currency troubles:

Venezuela: The Central Bank of Venezuela says the country is down to just $10.5 billion in foreign reserves. At the same time, Caracas has to meet debt obligations of $7.2 billion this year.

Greece: Now, fresh tensions over the country’s bailout are putting that progress at risk. About 1.3 percent of deposits were pulled from the banks in January, while bad loans crept higher, an increase Bank of Greece Governor Yannis Stournaras blamed on borrowers using the deadlock with creditors as an excuse to avoid making their payments.

Greek officials are meeting in Athens this week with representatives of the euro area and International Monetary Fund to set out the policies Greece must undertake to unlock more loans. The government foresees an accord in March or early April, but the scale of pending issues raises concerns they may be politically hard to sell at home.

U.S.: On March 15, the latest suspension expires and the debt limit will likely reset a little north of $20 trillion.

If Congress has not voted by mid-March to either extend the suspension or raise the ceiling, Mnuchin will have to start using special accounting measures just to keep paying the country's bills without violating the borrowing limit.

With the gold price currently being held down through the Comex and London derivatives markets, the likelihood of Bitcoin's price soaring well past that of the yellow metal is very real, especially as the Federal Reserve has come out in recent days almost assuring the markets of another rate hike.  And this will only add more fuel to the crypto-currency's legacy as it officially becomes one of the world's most popular alternatives to holding one's wealth in any sovereign currency.

Wednesday, February 15, 2017

Bitcoin use surging in countries who have bad monetary systems, or large outdoor market environments

The tale of Bitcoin and other crypto-currencies has become two-fold.  First, it is a potent medium of exchange for high net worth individuals who want to transfer wealth from one currency to another. And secondly, it has functioned as originally intended in places like Venezuela and Morocco, where governments have either destroyed their own sovereign currencies through bad monetary policies, or where large outdoor markets facilitate the use of cash in the majority of their transactions.
On February 2, Venezuela's leading bitcoin exchange, SurBitcoin, was forced to suspend operations when its bank account was revoked. According to Rodrigo Souza, who runs SurBitcoin's trading platform, the bank closed the account in anticipation of a nationwide crackdown on bitcoin use in Venezuela after the police raided a warehouse with 11,000 mining computers. SurBitcoin is in talks with other banks, and hopefully it will be operating again soon. 
As he predicted, SurBitcoin's closure has led to a surge in peer-to-peer trading. LocalBitcoins, a site where users connect to buy and sell bitcoins, makes its trade volume public through an API. (See the chart below.) Last week, 464 bitcoins were exchanged in Venezuela on LocalBitcoins, the equivalent of nearly $470,000 dollars based on today's price. That's close to a 50 percent increase in volume since SurBitcoin stopped operating. (LocalBitcoins' previous trading volume peak was 377 bitcoins the week of October 15, 2016, but, at the time, bitcoin was worth almost 40 percent less than it is today.) - Reason
LocalBitcoins Venezuelan volume (BTC) |||

Bitcoin and other cryptocurrencies use are spreading rapidly in the Kingdom of Morocco on the blind side of the global Satoshi community. Professional crypto trader and developer, Aziz Elmi estimates that more than $200,000 of Bitcoin trading is done daily under the radar in his native Morocco. 
Elmi is a leading member of the crypto community in his country with a huge following and the main developer of AtlasCoin, one of Africa's only two cryptocurrencies. He is positive Morocco has a lot to offer to the digital currency world.
Morocco's unwillingness to open up enough to the rest of the world may account for the silent revolution that is going on there. Some pundits think Morocco might be ahead of some of the countries in Africa. Morocco is perceived as leaders in Bitcoin adoption, like Kenya, Ghana and even Nigeria. 
There is the general confidence in the Moroccan cryptocurrency community that there is great potential in their IT arena, especially in cryptocurrency coding and trading. This combined with the huge investments they are making will advance the Kingdom to be at the forefront of adoption in Africa, if the government will regulate the sector fairly. 
“More people and merchants are gradually integrating Bitcoin and other altcoins in their daily lives by accepting payments via Bitcoin. We believe the government should, therefore, intervene accordingly so as to regulate the circulation of Bitcoin reasonably," Elmi proposed. - Coin Telegraph
Bitcoin was created as a way for individuals to function in the global financial system without having to deal with devaluing sovereign currencies, or centralized control over money by governments and central banks.  And in the end crypto-currencies like Bitcoin and others will flourish more in most non-G20 economies, and most likely could have aided individuals in places like Cyprus and Greece when their own banking systems and economies collapsed over the past seven years.

Saturday, January 7, 2017

War on cash in Greece, Australia, India, China, and Venezuela opening door for need to have gold and Bitcoin

2016 was the year where economic 'experts' dropped hints in newspaper op-ed's and university white papers on how governments needed to eliminate cash to sustain the debt bubbles central banks had created through their absurd monetary policies following the 2008 financial crisis.  And while many individuals pushed off the idea of banning physical cash as hyperbole and 'ivory tower' nonsense, by the end of the year at least three countries had begun testing this option, with two more implementing capital controls to achieve the same thing here in early 2017.

Image result for war on cash

In late November, India's Prime Minister Modi issued a sudden mandate where the largest two denominations of currency were being completely absolved, and that the people had until December 15 to turn in their bank notes for new script.  This led to an economic revolt where most people tried to exchange their money for gold or gold jewelry, shooting up the price in some cases to around $3600 per ounce.

This move in India was soon followed by the country of Venezuela, where President Maduro called for the elimination of the $100 Bolivar note to try to keep the Venezuelan people from using their near worthless money to buy food and other goods from neighboring Columbia.

Yet the questions one has to ask are, were these moves independent of one another, or were these nations being used as test cases to see how the public would react to restrictions on owning and using cash?

If we put these inquiries on the back shelf for the moment to look at two other nations instituting restrictions on cash through differing forms of capital controls, the most important focus should be on the reactions of the people to their governments restricting their ability to do as they please with their money, and in what assets they are moving into to escape those restrictions.

That answer of course is the movement of wealth into both gold and Bitcoin.

Image result for gold and bitcoin

In the case of India, people looked towards their long-standing tradition of physical gold, and helped created shortages as they lost nearly all confidence in their fiat money itself.  But over in China, where the government instituted capital controls restricting the offshoring of money in an attempt to counteract growing liquidity problems in their banking system, investors and individuals looked to Bitcoin as the quickest and most liquid way of transferring their Yuan into some other currency or asset outside their borders.

Heading into the second week of the new year, two additional countries are preparing to join in the war on cash and put their own peoples to the test on whether they will accept the elimination of cash, or if they will rebel en masse to this loss of economic freedom.  And for both Greeks and Australians, the coming days will see what their reactions will be and if they too will seek solace in alternative forms of money, or if they will simply accept the inevitable and quietly cede their personal sovereignty to function under a digital system run at the political whims of their governments.

Sunday, December 18, 2016

Venezuela's Maduro halts cash ban as desperate people left with no choice but to give up their children

On Dec. 18, Venezuela President Nicolas Maduro halted his policy from earlier in the week of banning the 100 bolivar currency as the economic situation in the country became even more desperate.  And in addition to the growing starvation, riots, and looting that has emerged from the nation's mass inflation, some Venezuelans are having to give away their children as they can no longer afford to feed them amid the economic chaos.


Struggling to feed herself and her seven children, Venezuelan mother Zulay Pulgar asked a neighbor in October to take over care of her six-year-old daughter, a victim of a pummeling economic crisis. 
The family lives on Pulgar's father's pension, worth $6 a month at the black market rate, in a country where prices for many basic goods are surpassing those in the United States.
"It's better that she has another family than go into prostitution, drugs or die of hunger," the 43-year-old unemployed mother said, sitting outside her dilapidated home with her five-year-old son, father and unemployed husband. 
With average wages less than the equivalent of $50 a month at black market rates, three local councils and four national welfare groups all confirmed an increase in parents handing children over to the state, charities or friends and family. 
The government does not release data on the number of parents giving away their children and welfare groups struggle to compile statistics given the ad hoc manner in which parents give away children and local councils collate figures. 
Still, the trend highlights Venezuela's fraying social fabric and the heavy toll that a deep recession and soaring inflation are taking on the country with the world's largest oil reserves. - Reuters


Sadly, the people's trust in their socialist government, along with in their fiat currency, is partially to blame why few Venezuelan's were prepared for the quick, and in some cases deadly, effects that escalating high inflation has caused for their nation and economy.  And because of the growing loss of confidence in the Bolivar, as well as in access to hard currencies such as the dollar, stories have broken out of those who owned a little gold and silver being able to not only survive this ongoing economic collapse, but actually thrive in it.
Tom Cloud: We got an incredible email this morning from one of our clients who's brother in law is a missionary down in Venezuela.  And he was telling us that in Venezuela, once ounce of silver will buy you food for three or four months... one ounce of silver.  And an ounce of gold will buy you a house. - The Daily Economist
While many Americans believe that what is taking place right now in Venezuela, India, and in Greece over the past six years could ever come to America, then all one needs to do is look back 80 years ago in our history to see what the Great Depression did for a large portion of our citizens following a financial crash that involved stock markets, debt, derivatives, the collapse of a housing bubble, and the overall banking system.
From one perspective, the story emerging from the Great Depression can be described as one of family "disorganization" and deprivation. Marriage rates declined, although they started to rise in 1934, and the trend toward decreasing birthrates, already underway, accelerated during the 1930s. Although divorce rates also declined, this seems to have been largely the consequence of the inability to pay lawyers' fees; desertion rates increased during the decade. In some cases, two or more families crowded together in apartments or homes designed as single-family residences. Some 250,000 youths were on the road, travelling by freight train or hitchhiking in order to find work or more favorable circumstances. From 1929 to 1931, the number of children entering custodial institutions increased by 50 percent. In many economically deprived families, children suffered from malnutrition and inadequate clothing. - IC.Galegroup

Monday, December 12, 2016

Venezuela follows India in eliminating large currency notes and sets in motion hyperinflation

When you are an economy that not only relies upon exports and foreign investment, messing with your currency is a recipe for disaster.  And besides the internal turmoil that has arisen for the 1.3 billion people in India who rely upon cash over digital banking for 98% of their commerce, Prime Minister Modi's currency elimination scheme is now causing foreign businesses, such as China's Foxconn, to suspend factory output and fire worker's due to decreased sales inside the country.

Foxconn, the world’s largest contract manufacturer and poster boy of the government’s Make in India project, has asked nearly a fourth of its 8,000 factory workers to go on paid leave for two weeks after last month’s demonetisation of high value notes sparked a severe cash crunch that saw sales slump almost 50%, forcing the company to slash production by half.

The government’s move to ban Rs 500 and Rs 1,000 notes from November 9 has had a domino effect on the mobile phone industry where a large majority of mobile phones are bought for less than Rs 5,000 and most of the transactions happen through cash. Consumer purchase power has been reduced dramatically - mobile phone monthly sales halved to Rs 175-200 crore post demonetisation - and sales revival is not looking up, as was perceived earlier, industry insiders said.  - Economic Times/India Times
So with the results and outcomes that sudden demonitization creates out there for the rest of the world to see, only someone like Venezuela's corrupt leader Nicholas Maduro would have the audacity to... well, DO THE SAME THING!  And sure enough, over the weekend Maduro went full retard and immediately made their $100 bolivar denomination no longer legal tender.

Image result for maduro never go full retard
Having observed the economic chaos to emerge as a result of India's shocking Nov. 8 demonetization announcement, and perhaps confident it can do better, today president Nicolas Maduro of Venezuela, Latin America's most distressed economy, mired in an economic crisis and facing hyperinflation, likewise shocked the nation when he announced on state TV that just like India, Venezuela would pull its highest denominated, 100-bolivar bill (which is worth about two U.S. cents on the black market), from circulation over the next 72 hours, ahead of the introduction of new, higher-value notes, as large as 20,000. 
"I have decided to take out of circulation bills of 100 bolivars in the next 72 hours," Maduro said. "We must keep beating the mafias." 
To this we would add "and cue economic chaos", but since this is Venezuela, that's a given. 
The surprise move, announced by Maduro during an hours-long speech, is likely to worsen a cash crunch in Venezuela, and lead the largely-cash based economy to a state of paralysis. Maduro said the 100-bolivar bill will be taken out of circulation on Wednesday and Venezuelans will have 10 days after that to exchange those notes at the central bank. 
Critics immediately slammed the move, which Maduro said was needed to combat contraband of the bills at the volatile Colombia-Venezuela border, as economically nonsensical, adding there would be no way to swap all the 100-bolivar bills in circulation in the time the president has allotted. Indeed, if India is any example, Venezuela - whose economy is far worse than that of India, the world's fastest growing emerging market - may have just signed its own economic death warrant. 
According to central bank data, in November there were more than six billion 100-bolivar bills in circulation, 48 percent of all bills and coins. In other words, Venezuela just eliminated half the paper cash in circulation. - Zerohedge
For those who live elsewhere in the world, just remember that following the 2008 financial crisis the U.S. and Europe both passed laws which make any cash you hold in a bank the property of that bank, and considered an unfunded liability to the institution.  And with central banks, Harvard economists, and even a former Asst. Secretary of the Treasury all calling for an end to cash here in America, what we are seeing now in India and Venezuela are test cases for what is currently in motion in the West to bring about a complete monetary control over the population before or after the next banking and financial crisis hits.

Saturday, November 19, 2016

Price of gold in dollars well over $3600 in India as currency crisis threatens to bring their economy to a halt

As news continues to come in from the nation of India following the government's order to eliminate certain currency notes from their monetary system, the rush to both trade in, and move money out of banks has been the singular thought for hundreds of millions of people.

And as part of this monetary transfer has been the massive demand for gold, especially since Modi pushed for a suspension of imports of the yellow metal last week.  And according to many sources, the price of gold in dollars has now reached over $3600 per ounce as the people move to get rid of their rupees and into the one tangible asset that weathers all crises.

Measure planned to prevent people from hoarding cash and generating income that could evade taxes, according to government officials with direct knowledge of the matter. 
Planned measures include limit on large cash withdrawals from bank, the officials said, asking not to be identified citing rules on speaking to media. 
Budget, due in February, may have steps to encourage use of checks, credit and debit cards. 
Purchase of gold jewelry said to be made more stringent to prevent switching of asset from cash. 
Finance Ministry spokesman D. S. Malik couldn’t be reached for comment. - Zerohedge
Perhaps the most interesting and destructive thing to come from Prime Minister Modi's move against the Indian currency is the fact that productivity has virtually stopped as people are spending several hours per day swapping over $60 worth of rupees due to the capital control laws limiting withdrawals.

When Venezuela collapsed into hyper-inflation a few months ago, it was reported on the ground that an ounce of silver would buy you 3-4 months worth of groceries, and a single ounce of gold could buy you a house.  And now in India the price of gold is skyrocketing upwards and outside the control of the paper gold markets which determine the global spot prices, and should be a warning to all on why owning physical metals is vital in a world where confidence in fiat money is crashing.

Thursday, October 20, 2016

How much gold and silver should an individual or family have to protect their wealth?

For those who invest, save, or stack gold and silver, the question always arises on what kind, and how much should individuals or families have to protect themselves from a financial disaster, or to protect their wealth.  The answer of course is arbitrary since no two people live under the same circumstances, but there are some general rules to help in diversifying yourself from the cycles of economic chaos.

If there is anything the last 100 years have taught us is that either by greed, corruption, natural cycles or simple chance, economies and currencies will have periods of extreme decline.  And sadly for most people, no matter how many times the financial system fails, few prepare themselves for that one time the turmoil will come to effect them, or even their entire community.

In just the past 20 years we have seen two economies go into hyperinflation, and several others experience currency crises and deep depressions.  And while the United States and most of Europe has not fully collapsed into any of these scenarios, history shows that at some point all empires fall, and all monetary systems fail.

But will it be in our lifetimes?

If the financial crisis of 2008 proved anything it is that systems can seize up and collapse in a matter of days.  Yet unlike the phantom specters of events such as Y2K or even the more recent Brexit vote, people often don't have months or years to prepare for change and must learn to make monetary preparation a lifestyle choice.

So the question still remains... how much gold and silver should individuals or families accumulate to be solvent in nearly any crisis or financial cycle change that could take place?  We know in Venezuela right now that on the streets an ounce of silver will buy enough food for a family to last 3-4 months, and a gold ounce coin will buy a house.  But more than this, when the inevitable global financial collapse comes what will you need to be able to both survive, and set the foundations to thrive in what new system emerges.

The first thing one must do is change their mindset.  When determining the amount of precious metals to own the solution is not determined in price or value, but in the number of ounces.  This is important because their values change daily, and are different in relation to the hundreds of different currencies operational around the world.

Second you must do a real evaluation of your wealth, incomes, debts, and needs.  And from there it becomes much easier to figure out what goals to set in accumulating a stack.

Thirdly you must recognize what each form of precious metals does for your portfolio and how to allocate it.  The best rule of thumb is to see the metals and metal stocks in this light.

1.  Gold - Wealth protection
2.  Silver - Barter and also Investment
3.  Mining Stocks - Speculation

Each of these are also in the correct order of risk, with gold being the least risky and mining stocks being the most volatile.

Here is a good example of how much of each metal you would need if there were no longer cash or income from employment, and the economy had moved into an inflationary spiral.

Chart courtesy of Jeff Clark

But as with all financial crises, there are no cut and dry parameters or limits to be fully covered.  As I noted today in Venezuela, only three ounces of silver would cover your food needs for one year.

In times past brokers who actually believed in precious metal ownership suggested having 5-10% of your wealth held in both gold and silver, while another 5% might be dedicated towards speculation (mining stocks).  But this adheres to the premise of value vs. ounces, and since your would be holding the metals physically in hand, ounces are the most important determinant.

As I am not a Certified Financial Planner, I can only give suggestions and thoughts based on my experiences and prognostication of future events.  And with this in mind for myself as a single unmarried individual, my minimum stacks would be like this.

10 ounces (or equal grams) of gold bullion
500 ounces of silver
$500 - $5000 in speculative mining stocks

In the end this article is not meant to determine exactly for you how much gold and silver you would need to protect your wealth and hedge against financial crises or uncertainties.  But it is a beginning from where you can assess your own situations and set some short, medium, and long-term goals because the time for buying any type of insurance is always before the disaster strikes, not while it is happening when that insurance will be far beyond your ability to afford it.



Friday, August 5, 2016

Why do you need to own physical gold and silver? Just ask a Venezuelan

Since last year, monetary policies instituted by Venezuelan President Nicholas Maduro have skyrocketed inflation to the point that it is on the precipice of hyper-inflation.  And reports going back just two months ago show that it is costing citizens around $150 just to buy a dozen eggs.

The official price of eggs is 1,020 bolivars. Yes, the government maintains “official prices.” But Venezuelans can rarely find eggs at the government-run food stores. Maria Linares is a 42-year-old single mother who works for a government ministry as an accounting assistant. She told the Los Angeles Times she has to buy eggs on the street from vendors. Cost? Around 1,500 bolivars for 1-dozen eggs. That translates to $150 at the official exchange rate. - Schiff Gold
Yet something interesting is occurring in Venezuela at ground level outside the rise of black markets and government alternative price controls.  And that is that physical gold and silver are both superseding the soaring price inflation tied to paper currencies, and according to a missionary who lives and works in Venezuela, a single ounce of silver can buy enough food for a family to last three months, and an ounce of gold can buy you a house.
Tom Cloud: We got an incredible email this morning from one of our clients who's brother in law is a missionary down in Venezuela.  And he was telling us that in Venezuela, once ounce of silver will buy you food for three or four months... one ounce of silver.  And an ounce of gold will buy you a house. 
So we're starting to see what I've talking about and predicting for over a year, that we're going to see these countries in Central and South America where everything is going to collapse and if you don't have gold and silver, you literally have nothing. - FTM Daily

Monday, January 25, 2016

Venezuela past the point of no return, expected to be next hyper-inflationary state

It has been about a decade since the last instance of true hyperinflation rocked a nation state, with Zimbabwe becoming the most recent ‘Weimar Republic’ example in the global economy.  And while their solution was to simply stop printing their local currency and transition into using dollars (and now Yuan) as their domestic medium of trade, their overall impact on the global economy was relatively negligible.
But the same cannot be said for the newest partner in this auspicious club, as the IMF reported on Jan. 22 that Venezuela is beyond the point of no return, and should enter into the realm of hyperinflation by the end of 2016.

Read more on this article here...

Tuesday, January 19, 2016

France becomes second nation in a week to call for a State of Economic Emergency

Late last week the President of Venezuela announced a 60 day State of Economic Emergency as their financial situation continued to deteriorate due to the decline in oil prices.  And now on Jan. 18, the European nation of France has joined in the festivities and called for their own State of Emergency.
French President Francois Hollande issued the economic decree in an attempt to circumvent the continuing downward spirals that are affecting jobs and overall production.  And while this economic emergency is not as restrictive as the one imposed in Venezuela, it recognizes the importance of the situation in France, where Hollande will seek to work with local businesses on how to stimulate growth.

Read more on this article here...

Sunday, January 17, 2016

Venezuela in crisis: Oil nation put into 60 day state of economic emergency

Last week we focused on Canada, and the economic crises that has exploded across that country due to low oil prices, and massive debts created in the building of a housing bubble.  And with markets crashing all across the world over the first 17 days of 2016, the situation in another oil producing country is also dissolving into economic crisis.
On Jan. 15, Venezuelan President Nicolas Maduro declared a 60 day state of economic emergency for the South American nation in what appears on the surface to be an escalation of capital controls that have already destroyed their economy for almost a decade.

Read more on this article here...

Wednesday, February 1, 2012

Venezuela leading the way it throwing off the global banking cartel

There are very few things good about Venezuelan dictator Hugo Chavez, and in fact, you can count those things on one finger.

But that one thing is a big one, for Venezuela appears to be willing to put itself out on a limb and cast aside the global banking hegemony over the nation, and seek to control its own monetary future.

Two events over the past two days have shown just how dedicated Venezuela is.

1.    Venezuela Completes Repatriation Of 160 Tons Of Gold, Gold At 2012 Highs
2.    Venezuela Announces “Irrevocable” Withdrawal from World Bank’s Arbitration Body

“In two months, we’ve brought 160 tons of gold valued at around $9 billion back to Venezuela,” Merentes said on state television from the Caracas airport. “Today marks the last day of the mission.”

President Hugo Chavez in August ordered the central bank to repatriate the country’s gold reserves as a safeguard against instability in financial markets. The South American country, which has the 15th-largest holdings in the world, according to the World Gold Council, held 211 tons of its 365 tons of gold reserves in U.S., European and Canadian banks as of August. - Bloomberg via Zerohedge


The Venezuelan government has announced Venezuela’s “irrevocable” withdrawal from the World Bank affiliated arbitration body the International Centre for Settlement of Investment Disputes (ICSID).

 According to an official statement released by Venezuela’s Foreign Ministry on Wednesday this week, the move has been taken on the grounds of defending national sovereignty and “to protect the right of the Venezuelan people to decide the strategic orientation of the social and economic life of the nation”. - Venezuelanalysis.com


As with Libya, Iraq, and Iran, the Daily Economist wonders how long it will be before US and NATO warships head to South America to punish the Latin nation for even thinking to defy the global monetary oligarchy.