The people of Venezuela can rejoice… not so fast. Amid paranoid-sounding (though not unlikely) rantings about US-created coups (and blaming ‘economic’ war for his nation’s Socialist utopia hyperinflation), it appears President Maduro just got another life-line (or more rope to hang himself). After begging China’s leader Xi early in January for moar money (and getting it), China – which is already Venezuela’s biggest creditor with over $50 billion loaned since 2007 – as Reuters reports, is said to plan on signing another $5bn loan to Venezuela for “wide-ranging” projects like “mature oil fields.” So, it appears China is enabling Maduro to hollow out his economy even more.
China is poised to lend Venezuela around $10 billion in coming months, half as part of a bilateral financing deal and the other half for development of oil fields, a senior official at state oil company PDVSAsaid on Thursday. Continue reading »
Venezuelan President Nicolas Maduro expressed confidence that Caracas and Moscow can achieve more than they have over the past 61 years of diplomatic relations.
MOSCOW (Sputnik) — Caracas is ready to cooperate closely with Moscow within the framework of the UN Security Council, and hopes that the Russian head of state will pay Venezuela a visit, the country’s President Nicolas Maduro said in a letter to his Russian counterpart Vladimir Putin.Venezuela became a new non-permanent member of the UN Security Council in October 2014 and will serve to the end of 2016. Continue reading »
Maybe it is because the soap-opera factor of the puppet proxy civil war in east Ukraine is dying down, it is time for another major geopolitical diversion, and it appears that the administration’s attention this time has fallen on Venezuela.
Perhaps he was tired of being accused for being too soft and engaging in a detente with not only Iran but Cuba, and so he decided to turn his attention on the one country he knew had absolutely no way of retaliating especially now that Venezuela’s only asset, has become a liability and all production at current prices is a loss maker for Caracas.
Whatever the reason, as Reuters reported yesterday, the United States on Monday yesterday declared Venezuela a national security threat and ordered sanctions against seven officials from the oil-rich country in the worst bilateral diplomatic dispute since socialist President Nicolas Maduro took office in 2013. Continue reading »
Back in August, when we wrote about the latest instance of trouble in Maduro’s socialist paradise, we cautioned that as a result of the economic collapse in the Latin American nation (and this was even before the plunge in crude made the “paradise” into the 9th circle of hell), Venezuelans soon may need to have their fingerprints scanned before they can buy bread and other staples. This unprecedented step was proposed after Maduro had the brilliant idea of proposing mandatory grocery fingerprinting system to combat food shortages. He said then that “the program will stop people from buying too much of a single item”, but did not say when it would take effect. Continue reading »
In case the world needed any more geopolitical risk “hotspots”, overnight Venezuela’s flailing president Nicolas Maduro, faced with an unprecedented economic crisis at home, decided to do what most authoritarian rulers do when faced with imminent civil unrest: point the finger abroad, and in this case, at Washington, as a distraction. With crude oil plunging, with opposition leaders being arrested, and with the economy generally in shambles, Venezuela has in recent weeks accused the United States of being behind an alleged coup plot. Then overnight, Maduro switched from broad generalizations to specifics when, as CNN reports, Maduro said Saturday an unspecified number of Americans were arrested “a few days ago” for engaging in espionage and recruitment activities.Continue reading »
THE UNITED STATES, GERMANY, CANADA, ISRAEL AND THE UNITED KINGDOM LAUNCHED “OPERATION JERICHO”
Once again, the Obama administration has tried to force the change of a political regime that resists it. On February 12, an Academi (formerly Blackwater) plane disguised as an aircraft of the Venezuelan army was supposed to bomb the presidential palace and kill President Nicolas Maduro. The plotters had planned to place former MP María Corina Machado in power and have her immediately acclaimed by former Latin American presidents. Continue reading »
Coup plotters planned on assassinating the Venezuelan president and installing a de facto government.
A coup plot against the Venezuelan government has been foiled, with both civilians and members of the military detained, President Nicolas Maduro revealed Thursday in a televised address.
Those involved were being paid in U.S. dollars, and one of the suspects had been granted a visa to enter the United States should the plot fail, Maduro said.
Venezuela’s president stated that the coup plotters already had a “transitional” government and program lined up once the plan, which included bombings on the Miraflores Palace and the teleSUR offices in Caracas, as well as assassinations of members of the opposition, Maduro and others, was carried out. Continue reading »
Why somebody like Hugo Chavez, who seemed to know quite a bit about what is really going on in the world, resorted to chemotherapy (= death camp/gulag medicine) is beyond me.
Take a close look at the cancer drug 5-Fluoracil. Here is some historic background:
Dr. Louis Bullock, president of the Los Angeles branch of the American Cancer Society touted the new cancer drug 5-Fluoracil as “one of the most effective drugs used to treat and control cancer”, stating that they ‘safely’ gave cancer patients 150 to 500 mg of fluoride a day”, and that “it strengthened the bones”. [Yet, the 1965 Modern Drug Encyclopedia and Therapeutic Index Pharmaceuticals, Biologicals and Allergens contains a three-column listing of disasterous effects from 5-Fluoracil, one of them being “fatalities may be encountered occasionally in patients in relatively good condition”. In March 31, 1972, the Los Angeles Herald Examiner headlined a story “Scientist Hots Cancer Drug ‘Overkill’ “, which stated that 5-Fluoracil as a cancer treatment represents a case of classic overkill which does more harm than the cancer itself.” In other words, Bullock was either naive or he lied at the July 21, 1966 meeting ]. See 1969 LA Times.
Well, and here is the ugly truth:
“Fluoride causes more human cancer, and causes it faster, than any other chemical.” – Dean Burk, Chief Chemist Emeritus, US National Cancer Institute
Fluoride makes people docile, infertile and gives them cancer. With about 70% of the public drinking water being fluoridated in the U.S. it is safe to say that TPTB turned the U.S. into one big concentration camp. This is genocide!
Over the years we have had our fair share at the epic social(ist) experiment that is Venezuela. Below is a random selection of stories over the past years or two, which truly capture the essence of Venezuela’s socialist revolution:
Unfortunately, the country whose president two weeks ago said that “Venezuela Must Deepen Socialism To Improve Economy“, which is the political equivalent of “we must do even more QE to fix record wealth inequality”, may have just hit rock bottom when Venezuelans, who already must line up for hours to buy the simplest of daily necessities (which they can obtain without being arrested in the process if they are lucky) now have to pay $755 for a pack of condoms.
“The country is so messed up that now we have to wait in line even to have sex,” lamented Jonatan Montilla, a 31-year-old advertising company art director. “This is a new low.” Continue reading »
Plenty of coffee in the coffee houses and bakeries in Caracas. In the supermarkets or grocery stores? Very rare in the last few months. This is hardly surprising when, in the last week, the authorities uncovered more than 1,000 tons of ground coffee and roasted coffee beans waiting to be spirited away to Colombia. In Falcón state 15 tons of coffee was found; in Lara state a supplier and packaging company had 500 tons standing idle in his warehouse; in neighboring Portuguesa state a further 460 tons were discovered hidden in a warehouse and being sold as “gourmet coffee” which is almost 6 times the official price for standard ground coffee when there is, is fact, very little difference.
At the other end of country in Anzoategui state, the National Guard found 91 tons of food, personal hygiene and cleaning products. In this haul the authorities found 50,600 kilos of corn flour; 23,180 kilos of wheat flour; 9,100 kilos of rice; 3,510 kilos of pasta; 4,700 liters of vegetable cooking oil and 830 cans of fish. We could not detect if arrests were made.
Interestingly enough cooking oil has suddenly become easy to find in Caracas – BUT, as this game continues, now white rice has vanished and all you can find is brown rice. Venezuela exported rice last year so where has it gone? Has it all been eaten suddenly?! Continue reading »
While Venzuelans line up for hours every day to garner staples such as soap and toilet paper, the Argentinians have a potentially more explosive problem. As Reuters reports, the country’s 20.6 million women couldn’t find their favorite tampons earlier this month – during the height of summer – “for 20 days, we simply couldn’t source any tampons from wholesalers.” The government vowed to keep the supply chain filled with tampons as media talk of a “run on tampons” stoked peoples’ fears that Argentina is rapildy heading down the same socialist utopia track as its neighbor. Continue reading »
Practically presented with no comment, we could not quite believe the words coming out of Venezuela’s President Maduro last night as he addressed the nation’s concerns over mile-long lines for toothpaste, toilet-paper, bread, and soap:
*VENEZUELA MUST DEEPEN SOCIALISM TO IMPROVE ECONOMY: MADURO
Having apparently failed on his mission to Asia to garner enough support to drag oil prices up to the $100 level he “believes is fair,” Maduro went on to explain how he will “change the food supply system, not the economic model,” to solve the nation’s crisis, since “most of the private sector are parasitic bums.”
With Venezuelan bonds re-collapsing as belief in a 30c recovery floor fades rapidly (and hyperinflating Venezuelan stocks soar – whether oil prices are rising or falling), the people of Maduro’s socialist utopia have a new problem to contend with. After running out of toilet paper, and finding soap and shampoo hard to come by, AP reportsVenezuela’s more than 100 McDonald’s franchises have run out of potatoes and are now serving alternatives like deep-fried arepa flatbreads or yuca, “because of the situation here; it’s a total debacle.”
Social media is awash with striking images of #EmptyShelvesInVenezuela (#AnaquelesVaciosEnVenezuela) as the evaporation of basic human staples such as toilet paper has now been hyperinflated to total chaos at warehouses and supermarkets. As President Maduro decries the loss of $100 oil “stability”, vowing to return oil prices to their rightful places (and heads to China for help), lines reach for miles for milk and soap… and the people defy governmental bans on photographing empty market shelves… “We couldn’t find shampoo, so we washed our hair with soap. Now there’s not even soap.”
Central Intelligence Agency director John Brennan’s long familiarity with Saudi Arabia, owing to the time he spent there as the CIA station chief in Riyadh in the 1990s and his knowledge of Saudi oil operations, has paid off. Petroleum industry insiders claim that Brennan’s agents inside Saudi Aramco convinced the firm’s management and the Saudi Oil Ministry to begin fracking operations in order to stimulate production in Saudi Arabia’s oldest oil fields. The Saudis, who are not known for their hands-on knowledge of their nation’s own oil industry, agreed to what became an oil pricing catastrophe which would not only affect Saudi Arabia but oil producing nations around the world from Russia and Venezuela to Nigeria and Indonesia.
By pumping high-pressure salt water into older wells, some at a depth of three to six thousand feet, an inordinate amount of pressure was built up. The CIA’s oil industry implants knew what would occur when the fracking operations began. Due to the dangerously high water pressure, the Saudis were forced continuously pump oil until the pressure became equalized. That process is continuing. If the Saudis ceased pumping oil, they would permanently lose the wells to salt water contamination. In the current “pump it or lose it” situation, the Saudis are forced to pump at a rate that may take up to five years before they can slow down production rates to pre-glut levels. Continue reading »
With OPEC slashing demand expectations to 12 year lows, oil prices have re-cratered today putting further pressure on socialist-utopia Venezuala which needs $121/bbl to break-even. Credit risk for the South American nation has exploded today to record highs – implying a 93% probability of default and President Maduro has taken to the airwaves to calm a benefit-needy nation… tensions are mounting…
Bond prices in Venezuela have totally collapsed this morning – at 45c on the dollar, they are the lowest since 1998 – as the realization of the “abyss” they are staring into sparks an exodus from all credit positions in the country. VENZ 5Y CDS rallied 130bps which signals hedgers unwinding and the simultaneous sale of the underlying bonds implies broad-based capital flight (and profit taking) as 1Y CDS surges to record highs at 4830bps.
VENZ Bond prices collapse to 1998 lows…
VENEZUELA 2027 DOLLAR BONDS FALL TO LOWEST SINCE 1998
Venezuela’s 1Y CDS has smashed to record highs implying imminent devaluation or default…
The scores of money managers and analysts who crowded into Cleary Gottlieb Steen & Hamilton LLP’s panel discussion on Venezuela last week are a testament to the deepening concern over whether President Nicolas Maduro can make good on the nation’s debt obligations.Continue reading »
Some two weeks ago (when Venezuela CDS was trading at only 2300 bps) we previewed what – with almost absolute certainty – would be the first “casualty of the crude carnage” – Nicholas Maduro’s little socialist paradise that couldn’t: Venezuela. As a reminder, back then we learned that the OPEC member was in such dire straits it had burned through a third of a Chinese’ bailout loan in the matter of days.
Then, in a bout of desperation, late the same week, the country – desperate to give the impression that it is not terminally insolvent and still has some foreign reserves left – ordered its Central Bank to dramatically change the rules, in a step “that enables them to count a whole new set of ‘assets’ as potential international reserves including “stones” and “precious metals held in their vaults on behalf of foreign financial institutions.” Continue reading »