• Tag Archives Venezuela
  • IMF Says Venezuela’s Inflation Rate May Rise Beyond 2,300% in 2018

    This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.
    (Bloomberg) Venezuela’s triple-digit annual inflation rate is set to jump to more than 2,300 percent in 2018, the highest estimate for any country tracked by the International Monetary Fund.
    An intensifying political crisis that’s spiraled since 2014 has weighed heavily on economic activity. Gross domestic product is expected to contract 6 percent next year, after shrinking an estimated 12 percent in 2017, the IMF said in its latest World Economic Outlook report published Tuesday.

    This post was published at Wall Street Examiner by Anthony B Sanders ‘ October 10, 2017.


  • This Is What The Death Of A Nation Looks Like: Venezuela Prepares For 2,300% Hyperinflation

    Back in January 2016, we showed what the collapse of Venezuela looks like, when in addition to charting Venezuela’s imploding currency (which back then was trading at a positive expensive 941 bolivars to the dollar), we presented what at the time was the IMF’s latest Venezuela inflation forecast, which stunned us as it surged from 275% in the just concluded 2015 to a whopping 720% at the end of 2016.
    Fast forward nearly two years until today, when the IMF released its latest estimate of what it believes will happen to Venezuela’s economy in the coming year and a half. What is striking, besides the fact that Venezuela has somehow still managed to avoid bankruptcy, is that the IMF now expects Venezuela’s hyperinflation to reach a staggering 2,349% in 2018, after rising by “only” 626% this year, the highest estimate for any country tracked by the IMF. While the South American country stopped reporting economic data in 2015, the IMF estimates that last year inflation clocked in around 254%, a number which is set to soar in the coming years for obvious reasons.

    This post was published at Zero Hedge on Oct 10, 2017.


  • Maduro Visits Putin, Proposes Global Oil Trade In Rubles, Yuan

    Three weeks after the US imposed financial sanctions on Venezuela in an effort to cripple its economy and choke the Maduro regime, which in turn prompted Caracas to announce it would no longer receive or send payments in dollars, and that those who wished to trade Venezuelan crude would have to do so in Chinese Yuan, today during an energy summit held in Moscow, Venezuela’s president Nicolas Maduro proposed to expand his own personal blockade of the US, by proposing that all oil producing countries discuss creating a currency basket for trading crude and refined products. One which is no longer reliant on the (petro)dollar.
    ‘Developing a new mechanism of controlling the oil market is necessary,’ Maduro said on Wednesday at the Russian Energy Forum, being held in Moscow this week.
    Quoted by RT, Maduro also blamed trade in crude oil paper futures as having an adverse impact on the oil market, which has undermined attempts by OPEC to stabilize prices. To counteract such “speculation”, Maduro proposed an alternative currency basket, one which is based not on the world’s reserve currency but includes the yuan, ruble, and other currencies, and which will mitigate the alleged adverse impact of futures trading.

    This post was published at Zero Hedge on Oct 4, 2017.


  • Nightstick Democracy at its finest…

    The last several days in Venezuela have been absolutely mind-blowing.
    Pretty much all the stories you’ve heard are true – countless people eating out of garbage cans, the appalling shortages of basic staples like food, medicine, and even soap… and the lines.
    Oh boy, the lines.
    The longest lines I saw, in fact, were not at grocery stores, but at banks.
    Hundreds of people were queuing up, many of them to pull money out of their accounts to exchange cash on the black market.
    Lines snaked through a bank’s cavernously large lobby, continued outside, wrapped around the entire building, and terminated at some point down the street.

    This post was published at Sovereign Man on October 3, 2017.


  • This is what $100 buys you in Venezuela

    The gunfire on the streets near my hotel started around 9pm last night.
    The sound is unmistakable, especially at night on an otherwise quiet city street.
    I had recently returned to the hotel after a few evening meetings. And coming back after dark it was as if they had rolled the sidewalks up – restaurants with no patrons, bars and clubs that were totally empty.
    There was an incredibly striking woman I remember, standing in front of her restaurant playing hostess to absolutely nobody.
    And with few people on the streets, it felt like some sort of zombie apocalypse.
    Amazingly enough this country used to be THE wealthiest in the region. And not too long ago.
    Throughout the 1950s, 60s, and 70s, Venezuela enjoyed robust growth. Low inflation. Substantial foreign investment. High wages. It was the envy of Latin America.

    This post was published at Sovereign Man on September 28, 2017.


  • Venezuelan Annual Inflation Rate Drops To … 2,276% (As Average Venezuelan Loses 20 Lbs In Weight)

    This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.
    The people of the once thriving country of Venezuela are suffering mightely. Although lower than the all-time high of 2,432.9%, the current annual inflation rate is 2,274,78%.
    ***
    Compare Venezuela’s inflation with that of the USA which has 1.40 or 1.68% YoY, depending on your government measure of choice.

    This post was published at Wall Street Examiner on September 26, 2017.


  • The Demise Of The Dollar As We Know It: ‘A Break Is Coming… On A Worldwide Basis’

    The significance of the shift taking place on a geo-political basis to unseat the U. S. dollar as the world’s reserve currency cannot be understated. It is, by all means, a complete upending of the financial and economic systems as we have come to know them. According to Keith Neumeyer, the Chairman of First Mining Finance and Chief Executive Officer of First Majestic Silver, the world’s purest silver producing mining company, the move is already taking place with countries like China, Russia, Venezuela and Iran already beginning to trade commodities with Yuan, Rubles and gold.
    Amid a recent announcement about developments in the gold and silver mining industry discussed in the following interview with SGT Report, Neumeyer, who previously called out, in very public fashion, the manipulation of precious metals by a small concentration of market players, says that the global currency wars currently playing out on the monetary battlefield will lead to significant price increases in the world’s most trusted hard assets of last resort.

    This post was published at shtfplan on September 24th, 2017.


  • An Insider’s View Of The Bitcoinization Of Venezuela

    With Venezuela ‘almost’ defaulting on their government debt this week, Daniel Osorio, of Andean Capital Advisors, has had a front-row seat in the collapse of the socialist utopia, spending at least a week every month in the almost-failed state.
    In a brief but fascinating interview on CNBC, Osorio discussed the fact that as Washington unleashes ever tougher sanctions on Maduro, China and Russia are all that’s left for the country with the largest proven oil reserves in the world.
    Then exposed the realities of living under Maduro’s crazed policies:
    “Venezuela was one of the richest per-capita nations in the world… but now, hyperinflation is a very difficult thing to understand until you have to buy lunch…“

    This post was published at Zero Hedge on Sep 24, 2017.


  • SEPT 20/BANKERS SET UP ANOTHER GOLD AND SILVER RAID ON THE CLOWNS FOMC BALANCE RUNOF/YIELD CURVE FLATTENS WITH THE FOMC ANNOUNCEMENT INDICATING FED FAILING POLICY/DEVASTATION IN BOTH MEXICO AND P…

    GOLD: $1312.75 UP $5.25
    Silver: $17.29 UP 5 CENT(S)
    Closing access prices:
    Gold $1300.00
    silver: $17.15
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1316.24 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1312.70
    PREMIUM FIRST FIX: $3.54
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1318.43
    NY GOLD PRICE AT THE EXACT SAME TIME: $1313.85
    Premium of Shanghai 2nd fix/NY:$4.58
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1314.90
    NY PRICING AT THE EXACT SAME TIME: $1315.20
    LONDON SECOND GOLD FIX 10 AM: $1311.30
    NY PRICING AT THE EXACT SAME TIME. 1311.80
    For comex gold:
    SEPTEMBER/
    NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 0 NOTICE(S) FOR nil OZ.
    TOTAL NOTICES SO FAR: 54 FOR 5400 OZ (0.1679 TONNES)
    For silver:
    SEPTEMBER
    71 NOTICES FILED TODAY FOR
    355,000 OZ/
    Total number of notices filed so far this month: 5,881 for 29,405,000 oz

    This post was published at Harvey Organ Blog on September 20, 2017.


  • Which Countries Have The Most Economic Complexity?

    As Visual Capitalist’s Jeff Desjardins notes, rvery country has an economy that is unique.
    In some places, such as the United States or Germany, economies are able to produce many different goods and services that get exported around the world. These countries tend to house world-class businesses in sectors like financials, technology, consumer goods, and healthcare, with companies that produce highly specialized goods like automobiles, software, or pharmaceutical products. Ultimately, these are innovative economies that can roll with the punches, creating growth even when prospects are dim.
    In other places, this level of sophistication is just not there. Innovation and knowledge are stunted or non-existent for most industries, and these countries may focus exclusively on one or two goods to pay the bills. Venezuela’s reliance on oil is an obvious example of this, but there are even many Western countries that miss the mark here as well.
    MEASURING ECONOMIC COMPLEXITY In 2009, a team at Harvard formalized a measure of economic complexity that compared nations based on the sophistication of their economies. Now known as the Economic Complexity Index (ECI), the exact measurement is complicated, but it essentially uses data on two main things to uncover the underlying level of economic complexity:
    1. Economic Diversity
    Measures how many different products a country can produce.
    2. Economic Ubiquity
    Measures how many countries are able to make those products.
    In other words: if a country produces only a few goods, that economy is not very complex. Further, if a country produces many different products, but they are all simple ones that can be replicated elsewhere, the economy is still not complex. See full details on the project here.

    This post was published at Zero Hedge on Sep 18, 2017.


  • Government Nearing Default on Debt to Russia

    The government in question is that of Venezuela, which is nearing default as it is running out of resources to pay back the money it owes to its Russian creditors according to the terms it accepted when it chose to borrow money from them.
    MOSCOW, Sept 8 (Reuters) – Russian Finance Minister Anton Siluanov told reporters on Friday that Venezuela is having problems with fulfilling its obligations on its debt to Russia.
    ‘We have a request from our colleagues in Venezuela to do a restructuring,’ Siluanov said.
    Venezuela owed Russia $2.84 billion as of September last year.
    The Venezuelan government is now scrambling to restructure its foreign-held liabilities following sanctions put on the country’s President Nicolas Maduro and 20 other individuals, and also the Venezuelan government-owned oil company by the US Treasury Department after Maduro rigged an election to select representatives to rewrite the country’s constitution in his favor.

    This post was published at FinancialSense on 09/15/2017.


  • Venezuela Has Officially Abandoned The Petrodollar – Does This Make War With Venezuela More Likely?

    Venezuela is the 11th largest oil producing country in the entire world, and it has just announced that it is going to stop using the petrodollar. Most Americans don’t even know what the petrodollar is, but for those of you that do understand what I am talking about, this should send a chill up your spine. The petrodollar is one of the key pillars of the global financial system, and it allows us to live a far higher standard of living than we actually deserve. The dominance of the petrodollar has been very jealously guarded by our government in the past, and that is why many are now concerned that this move by Venezuela could potentially lead us to war.
    I don’t know why this isn’t headline news all over the country, but it should be. One of the few major media outlets that is reporting on this is the Wall Street Journal…
    The government of this oil-rich but struggling country, looking for ways to circumvent U. S. sanctions, is telling oil traders that it will no longer receive or send payments in dollars, people familiar with the new policy have told The Wall Street Journal.
    Before we go any further, we should discuss what we mean by the ‘petrodollar’ for those that are not familiar with the concept. The following comes from an excellent article by Christopher Doran…

    This post was published at The Economic Collapse Blog on September 14th, 2017.


  • August CPI: Shelter Inflation Fastest Since 2015 And The Home Price Bubble

    This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.
    While Venezuela has an inflation rate of over 2,000%, the US has an inflation rate of 0.4% for August 2017 (and 1.9% YoY).
    According to the Bureau of Labor Statistics (BLS), Energy led the US inflation in August with gasoline at 6.1% MoM growth (and 10.4% YoY growth).
    ***
    But among the non-energy items, shelter leads the way with an increase of 0.5% MoM (and 3.3% YoY). The fastest growth rate in shelter since 2005 and the house price bubble.

    This post was published at Wall Street Examiner on September 14, 2017.


  • Venezuela’s Inflation Rate Just Hit 2,061% (6 Mo CDS At Almost 13,000)

    This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.
    Yes, the US economy like Europe and Japan are suffering from chronically low rates of inflation (unless you count things like home prices,. rent, college tuition, healthcare, etc).
    But not Venezuela! They just surpassed the year 2017 in terms of their inflation rate: 2061%!
    ***
    Venezuela’s sovereign curve remains steeply downward sloping with short-term rates in excess of 50%.

    This post was published at Wall Street Examiner on September 14, 2017.


  • Oil Rich Venezuela Stops Accepting Dollars

    President Maduro ‘ Venezuela will create a basket of currencies to free us from the dollar,’ Oil traders ordered to stop accepting U. S. dollar in exchange for crude oil Order comes following calls from Russia and China to find alternatives to current reserve system U. S. Dollar accounts for two-thirds of global trade Venezuela has over ten-times more oil than United States Super powers are gradually turning to gold to avoid using world’s main reserve currency Are we seeing the beginning of the end for the U. S. dollar?

    This post was published at Gold Core on September 14, 2017.


  • Venezuela Is About To Ditch The Dollar In Major Blow To US: Here’s Why It Matters

    Authored by Darius Shahtahmasebi via TheAntiMedia.org,
    Venezuelan President Nicolas Maduro said Thursday that Venezuela will be looking to ‘free’ itself from the U. S. dollar next week, Reuters reports. According to the outlet, Maduro will look to use the weakest of two official foreign exchange regimes (essentially the way Venezuela will manage its currency in relation to other currencies and the foreign exchange market), along with a basket of currencies.
    According to Reuters, Maduro was referring to Venezuela’s current official exchange rate, known as DICOM, in which the dollar can be exchanged for 3,345 bolivars. At the strongest official rate, one dollar buys only 10 bolivars, which may be one of the reasons why Maduro wants to opt for some of the weaker exchange rates.
    ‘Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,’ Maduro said in a multi-hour address to a new legislative ‘superbody.’ He reportedly did not provide details of this new proposal. Maduro hinted that the South American country would look to using the yuan instead, among other currencies. ‘If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,’ Maduro also said.

    This post was published at Zero Hedge on Sep 8, 2017.


  • Wave Good-Bye To The Dollar’s Reserve Status

    ‘Paper Money Eventually Returns To Its Intrinsic Value – Zero’ – Voltaire
    Set aside all other financial, economic and political concerns continuously shoved in our collective faces by the mainstream media. It’s a distraction – to a large degree intentional.
    These are the ONLY events that matter right now: this, ‘China Begins To Reset The World’s Currency System,’ and this, ‘Venezuela Is About to Ditch the Dollar in Major Blow to US: Here’s Why It Matters.’
    Once the dollar is no longer regarded or used as the reserve currency, third-world poverty will engulf everyone in this country below the upper half percent wealth stratum…except those who possess a fair amount of physical bullion. I just bought more gold and silver coins from a friend yesterday who had an uncontrollable urge to get their house painted and needed to sell some to me to fund it. It won’t matter what the house looks like in a couple years but they would never take my word on that.
    The level of assumed entitlement in this country by the middle class is absurd…

    This post was published at Investment Research Dynamics on September 9, 2017.