In a desperate move to generate some cash from its remaining gold reserves, Venezuela has been negotiating with Deutsche Bank to swap it for hard currency. Down to a mere $10.5 billion in reserves ($7.7 billion in gold), Venezuela is desperately trying to obtain hard currency to prevent an outright default on the nation’s foreign obligations. With inflation expected to run 1,160 percent, the value of its own money will eventually force the country to curtail all foreign transactions once the reserves for propping up the Bolivar have been exhausted.
It’s only a matter of when, not if, for a Venezuelan default.
A third world tin pot dictator runs a country that still has a gold reserve? As Americans, we should feel jealous. Has anybody looked inside the vault at Fort Knox lately?
A look ahead at the US should the Democrat Totalists regain power in the US?
A look ahead? Or we can simply look back at $20 trillion debt + out of control deficit + trillions upon trillions in unfunded liabilities + currency backed by debt. Don’t matter who’s in charge D or R, it ain’t going away anytime soon.
See? National Debt means NOTHING!
Since socialists – sorry, socialistas – don’t believe in the concept of “money” this is just so much folderol. Let Venezuela default – to China, North Korea, Russian “Federation,” Cuba, who cares? None of the fellow travellers believe in “money” so there shouldn’t be any problems. Perhaps Greece and Cyprus could bail them out? Y’know, on 6% loans from Germany, France, Belgium, Spain, &c.?
The great SCAM continues …
Oh, just a thought, maybe Zimbabwe could bail em out? London could print more $Trillion-Trillion Z$ notes for them! Is that “hard-currency” enough for a socialist Hell-Hole?
izlamo delenda est …
Still trying to figure out how Venezuela and California are different? Both of them are Socialist, have a ton of Hispanics and have out of control spending!
Yer lookin at where a Hillary win would have taken us, only our gold would have wound up in The Bank of Clintonista.
Looks like Venezuela’s leaders are cashing out and preparing to make a permanent exit.
Venezuela is not to the level of Cuba quite yet. A Cuba-like utopia is the goal. The only reason Maduro isn’t defaulting is because the timing is off. Default is a weapon that can only be used once. Ironically, the country that has the most to lose if Maduro triggers global default is China. I think that is the primary reason for China’s growing a big deep-water navy. They aren’t going to go away before breaking some kneecaps and taking their pound of flesh.