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  • #34337
    Profile photo of 74
    74
    Survivalist
    rnews

    Venezuela wants to float their economy with loans like the US has done. When our creditors call in the chips this is where we will be.

    “In the last week Maduro and his closest ministers have visited China, Russia and fellow OPEC members to seek financing and OPEC action on tumbling oil prices.”

    http://www.voanews.com/content/reu-venezuelan-shortages-long-queues-violence-arrests/2595224.html

    #34341
    Whirlibird
    Whirlibird
    Survivalist
    member10

    The problem for Ven is that aside from oil, they really don’t have squat to work with.

    And already having been in crisis for years, they’ve already burned most creditors.

    We are well above their level, the S&P rating for Ven ic CCC+, unlike the US. We could default on most everything and not be that bad off.

    #34350
    Profile photo of freedom
    freedom
    Survivalist
    rnews

    Cuba controls Venezuela’s communist Maduro. The Cuban communist protect Maduro but since oil is down the Cubans are not very interested right now since they can’t steal the oil and sell it for a profit. This is why Cuba is talking to Obama because there two cash cows are down and out(Venezuela and Russia).

    Hugo Chavez was totally controlled by Casrto and when Chavez died the Castro’s had picked Maduro to take over. Castro was stealing so much oil and selling it on the world market which was paying for Cuba’s economy.

    #34351
    Profile photo of undeRGRönd
    undeRGRönd
    Survivalist
    member8

    Venezuela better kiss Xi-Xhao-Pingo-was his name-o’s @$$ cuz that is the only member of BRICS that has any real leverage w/o oil sales.
    Brazil and ZAR may be OK, but Russia is pretty low right now. The US oil trade machine is being brought lower, which is amazingly easy, they just let the prices naturally drop… This does many things for TPTB, it de-funds their enemies, it drops domestic prices which is always good for poli-ticks and it kills the small oil producer who needs higher prices to operate. They have to shut down, or even sell off, to the big boys who are firmly entrenched in the political system and WILL Predictably not “bite the hand that feeds them”. It’s a big win-win-WIN for TPTB all the way around. Once the oil industry consolidation is complete, and things return to normal, we’re right back to higher oil and fuel prices.
    I Guarantee!

    "ROGUE ELECTRICIAN" Hoping to be around to re-energize the New World.....

    Cogito, ergo armatus sum

    #34353
    Profile photo of Roadracer
    Roadracer
    Survivalist
    member7

    Underground: Absolutely right on. Continue to be amazed that people celebrate low gas prices without thinking of the ramifications. We could see several hundred wells shut down by March. Figure 100 employees per well, and you have several thousand newly unemployed. Big oil gets the wells and can ride out the oil price decrease. Got to give credit to Rick Perry in Texas. He has been out hustling diverse companies to come to Texas to offset the job losses coming from the oil bubble bursting.

    #34355
    Profile photo of Brulen
    Brulen
    Survivalist
    member9

    <div class=”d4p-bbp-quote-title”>Whirlibird wrote:</div>The problem for Ven is that aside from oil, they really don’t have squat to work with.

    And already having been in crisis for years, they’ve already burned most creditors.

    We are well above their level, the S&P rating for Ven ic CCC+, unlike the US. We could default on most everything and not be that bad off.

    …. we are defaulting on everything and stripping the cupboards bare. We the people should thank Saudi and Opec for the oil cut.
    Its nice to have some money in my pocket for a change.
    We will burn China sooner or later and their exports to us will stop. teotwawki
    In the long run Venezuela is like Nigeria. Too many people to feed. To many .gov officials to pay off. Wait till oil goes to $25 bl.

    #34356
    Profile photo of undeRGRönd
    undeRGRönd
    Survivalist
    member8

    I was aware, but did not list the unemployment increase. It further brings the common man more under control of “Big Brother”, does it not? Excellent Point, RR.

    It seems to “temporarily fix” so many problems for TPTB. Diabolical, to say the least…

    "ROGUE ELECTRICIAN" Hoping to be around to re-energize the New World.....

    Cogito, ergo armatus sum

    #34357
    Profile photo of Brulen
    Brulen
    Survivalist
    member9

    Diabolical is the US debt bubble. You might quess there was another reason Satan didn’t show his face in France for the funeral.

    #34363
    Profile photo of undeRGRönd
    undeRGRönd
    Survivalist
    member8

    Brulen wrote:
    Diabolical is the US debt bubble. You might quess there was another reason Satan didn’t show his face in France for the funeral.

    Yup. It’s all related. Rather “intertwined” and “entangled”…

    "ROGUE ELECTRICIAN" Hoping to be around to re-energize the New World.....

    Cogito, ergo armatus sum

    #34366
    Profile photo of bluesgal
    bluesgal
    Survivalist
    member1

    While we all can theorize as to the international ramifications and high level nation building theories.. more important is the result of such government policies on the everyday life of the people that live there:

    State-run supermarkets have started restricting access based on identity cards. Only Venezuelans whose card number ends in 0 or 1 were allowed to shop on Monday, local media reported.

    Officials in Caracas have blamed “media hype” and “panic buying” for the chaotic scenes at outlets around the nation. One state governor has banned queues at night.

    It was one thing last year when they started running low on things and prices soared, now they tell you what you can buy and when you can buy it, IF they have it all and it’s all controlled with “identity cards” by non elected pencil pushing bureaucrats.

    THAT is what we need to be concerned with..

    #34381
    Whirlibird
    Whirlibird
    Survivalist
    member10

    <div class=”d4p-bbp-quote-title”>Brulen wrote:</div>

    <div class=”d4p-bbp-quote-title”>Whirlibird wrote:</div>The problem for Ven is that aside from oil, they really don’t have squat to work with.

    And already having been in crisis for years, they’ve already burned most creditors.

    We are well above their level, the S&P rating for Ven ic CCC+, unlike the US. We could default on most everything and not be that bad off.

    …. we are defaulting on everything and stripping the cupboards bare. We the people should thank Saudi and Opec for the oil cut.<br>
    Its nice to have some money in my pocket for a change.<br>
    We will burn China sooner or later and their exports to us will stop. teotwawki<br>
    In the long run Venezuela is like Nigeria. Too many people to feed. To many .gov officials to pay off. Wait till oil goes to $25 bl.

    China stops imports to us, I’m afraid that might save the middle class.
    We’d have to actually ramp up production on materials and goods made here in the US.
    Perish the thought.

    #34382
    Profile photo of undeRGRönd
    undeRGRönd
    Survivalist
    member8

    <div class=”d4p-bbp-quote-title”>Whirlibird wrote:</div>

    <div class=”d4p-bbp-quote-title”>Brulen wrote:</div>

    <div class=”d4p-bbp-quote-title”>Whirlibird wrote:</div>The problem for Ven is that aside from oil, they really don’t have squat to work with.

    And already having been in crisis for years, they’ve already burned most creditors.

    We are well above their level, the S&P rating for Ven ic CCC+, unlike the US. We could default on most everything and not be that bad off.

    …. we are defaulting on everything and stripping the cupboards bare. We the people should thank Saudi and Opec for the oil cut.<br><br>
    Its nice to have some money in my pocket for a change.<br><br>
    We will burn China sooner or later and their exports to us will stop. teotwawki<br><br>
    In the long run Venezuela is like Nigeria. Too many people to feed. To many .gov officials to pay off. Wait till oil goes to $25 bl.

    China stops imports to us, I’m afraid that might save the middle class.<br>
    We’d have to actually ramp up production on materials and goods made here in the US.<br>
    Perish the thought.

    WE NEED A LIKE BUTTON!!! :D

    "ROGUE ELECTRICIAN" Hoping to be around to re-energize the New World.....

    Cogito, ergo armatus sum

    #34383
    Profile photo of freedom
    freedom
    Survivalist
    rnews

    Well there are a lot of opinions of what the reasons Venezuela is in a recession but I think that it is a good thing all around.

    Whirlibird there S&P rating needs to go to FFF. I do think that oil is the key to taking down all the bad in this world. There isn’t many good countries that sell oil.

    #34390
    Profile photo of 74
    74
    Survivalist
    rnews

    This sounds like where the US is headed as well.

    Back in the late 1980s, the economists Rudiger Dornbusch & Sebastian Edwards described how countries such as Venezuela which pursue highly expansionary populist policies to the detriment of public finances typically go through four distinct phases in what might be called a “boom-bust” cycle. This is their description of Phase 3:

    Phase III: Pervasive shortages, extreme acceleration of inflation, and an obvious foreign exchange gap lead to capital flight and demonetization of the economy. The budget deficit deteriorates violently because of a steep decline in tax collection and increasing subsidy costs. The government attempts to stabilize by cutting subsidies and by a real depreciation. Real wages fall massively, and politics become unstable. It becomes clear that the government has lost.

    This is why Moody’s has been too generous to Venezuela. The balance of payments problem is merely the trigger for a massive fiscal, economic and ultimately political crisis that can only end in one way – the disorderly collapse of the regime. Whether this will take the form of a revolution, a military coup or simple chaos remains to be seen. But what we are witnessing is the destruction of Venezuela’s economy. And that destruction is not, fundamentally, because of external factors. It is a direct consequence of the economic policies pursued by the Chavez and Maduro regimes.” – Forbes

    #34392
    Profile photo of freedom
    freedom
    Survivalist
    rnews

    Well yes the economic policies pursued by the Chavez and Maduro regimes are communist regimes that the only money in there economy was oil and now it cost more to drill it that the price they are getting on the world market.

    They never used the billions they made to develop there country so they would not be so depended on oil. They used it to expand communism in Central and South America which has not worked and they also used billions to keep Cuba economy from collapsing which is the reason Castro is trying to make a deal now with Obama. I am against opening the travel and business to Cuba when now is the time to make sure that there economy collapses and a new regime can take over Cuba.

    Castro know this for a fact.

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