Now Venezuela would like to renegotiate all of their debt.
Of course they do….
17 Replies to “Ponzi Schemes”
Just include an Alberta article and soon a BC one Lance and you will have an amalgamation of socialist paradise stories. You got the story of the moron drama teacher who is bent on destroying any small business and farm ranch wealth being created, you have this Venezuela article here, you just need another story about Rach warrior princess and now the great leftie Weaver who has the real power in BC. In the life of a 20 year old kid the world has watched Venezuela go from the richest country in South America to eating zoo animals and other prisoners in some prisons, that sure is something we should strive for isn’t it. When my youngest came home from the Uof C and told me the new socialism is different from the old socialism, I said ask your prof to move to Venezuela, but no the Penns Belafontes Glovers Notleys and Turdos will never experience it first hand, it’s just for us to. This will not turn out well for wealth creators. If it wasn’t for these blogs and the Breitbarts and sometimes Drudge no one would know. Our so called media will never tell us.
The usual Latin America ploy would be to sell off the huge Venezuelan “Tar sands” deposit
for mountains of cash to gullible foreigners, stage another revolution, and then promptly
steal it back as an act of patriotism to the applause of all. Not sure the Chinese would
be that easy a mark these days.
They would not be as strapped for cash if they had not bailed Texas out. Just say’in.
Well said.
“…and told me the new socialism is different from the old socialism,…” Can’t happen! Socialism is the same today as it was one hundred years ago. When they have control they just fight over the degree of destruction they will wreak.
In this case the Venezuelans wanted a free lunch and now they are getting it. In Canada the government worker union thugs want to protect their turf and the socialist politicians want the power to control people and their lives. Utopia for all.
Venezuela has less than 10 billion USD in foreign reserves available, and that’s not expected to rise in the next few months. If they decide to pay the bonds due, it certainly doesn’t leave much for food imports on the open market. https://dolartoday.com has a simple graph labeled “reservas internacionales” … about $9.88 billion.
If the world oil market rises again to + $100 it will be ok for another few years, maybe a decade. But they’re always going to run out of the capitalist’s money.
If Venezuela renegotiates this debt for “future benefits” with higher interest due, or more of their oil reserves / production sold to China, soon, it will all grind to a halt. They don’t have the fat available to trim anymore.
May as well let it grind to a halt now, with a Presidential election on their horizon, rather than another 6 years of the “bus driver” Maduro in the driver’s seat.
or as the commenters at Zero Hedge might say, “let it burn” …
Please,Allah,don’t let our PM get the idea that Venezuela deserves a bailout,or he’ll be shipping about 2 or 3 billion of our dollars to the socialist paradise.
I picked a fine time to go senile.
there is always a silver lining to these things. Cuba just got wacked by Irma, so they will be too busy fixing themselves to bail the bus driver idiot out
What I’m afraid of is that he’s probably already thought about it and is getting ready to send it there. Like Everett Dirksen once said: “A billion here, a billion there, pretty soon you’re talking real money.”
Of course all the newly-found tax cheats in this country can pay for it, right?
Socialism in a nutshell: “What’s yours is mine and what’s mine is mine.”
The current fiscal situation in Venezuela reminds me of something that happened more than 25 years ago. In the early 1990s, a number of third world countries were seriously in hock over their collective ears. As a result, a number of lenders, including several large banks, were on the hook for those loans.
There were several attempts to renegotiate those debts due, in part, to the cumulative interest that was added to the bill. Nothing satisfactory came out of those efforts and the stock market became rather twitchy because of it.
Eventually, the lenders decided to wipe those loans off the books as there was little point or profit to be gained by continuing to carry them. The stock market reacted favourably, the lenders got on with doing business, and many of those countries staggered back onto their feet.
I wouldn’t be surprised if Venezuela would be allowed to walk away from this one.
Maduro simply needs to follow the Obama playbook … http://blog.ganderson.us/articles/economics/investors-betrayed-by-gm-and-obama/
… and sell new “shares” in the government’s Oil business. The IPO would be sure to attract investors like Sean Penn, Michael Moore, and Danny Glover …
Then the ollllld Bondholders would be carrying worthless paper.
All they can do is trade a big promise for a smaller promise. They don’t have the ability to pay a meaningful amount like even 20 cents on the dollar. I suspect a lot of their debt is secured by oil so all the creditors have to do is wait. Any financier who bought unsecured Venezuelan bonds from a communist dictatorship will get exactly what they deserve.
A basket case of currencies…
Switch your debt from the US dollar to a collection of the Venezuelan dollar, Mexican Peso, Argentine Peso etc.
Then, you work with these countries to devalue their currencies and your debt is gone – inflation is a wonderful thing.
Not following your thought CT. Please help with a bit more information.
Great article bartinsky: Now you need to add NO DONATIONS TO THE TRUDEAU FOUNDATION…as I’m waiting for them to come up with idea like the CLINTON’S DID…donate to our FOUNDATION we will send it on to the people that need it in Texas and Florida. The Clinton’s stole money from the American people that wanted to help Haiti. Trudeau gave 220 million to the The Clinton Foundation of Canadian TAXPAYERS MONEY for what!! To learn how to cheat and not go to jail!! The Trudeau Foundation needs to investigated for prudence.
From the ‘States…
I used to wonder who exactly lent seemingly infinite dough to failing countries. Then, around 10 years ago, I found an “unrelated” little article in the newspaper (I’m old) about a bunch of local bankers. From 3 different banks, they were paying themselves massive bonuses for packaging up loans to some failing country. Probably Colombia. Mandatory employee drug testing in the states was hell on their economy.
Just include an Alberta article and soon a BC one Lance and you will have an amalgamation of socialist paradise stories. You got the story of the moron drama teacher who is bent on destroying any small business and farm ranch wealth being created, you have this Venezuela article here, you just need another story about Rach warrior princess and now the great leftie Weaver who has the real power in BC. In the life of a 20 year old kid the world has watched Venezuela go from the richest country in South America to eating zoo animals and other prisoners in some prisons, that sure is something we should strive for isn’t it. When my youngest came home from the Uof C and told me the new socialism is different from the old socialism, I said ask your prof to move to Venezuela, but no the Penns Belafontes Glovers Notleys and Turdos will never experience it first hand, it’s just for us to. This will not turn out well for wealth creators. If it wasn’t for these blogs and the Breitbarts and sometimes Drudge no one would know. Our so called media will never tell us.
The usual Latin America ploy would be to sell off the huge Venezuelan “Tar sands” deposit
for mountains of cash to gullible foreigners, stage another revolution, and then promptly
steal it back as an act of patriotism to the applause of all. Not sure the Chinese would
be that easy a mark these days.
They would not be as strapped for cash if they had not bailed Texas out. Just say’in.
Well said.
“…and told me the new socialism is different from the old socialism,…” Can’t happen! Socialism is the same today as it was one hundred years ago. When they have control they just fight over the degree of destruction they will wreak.
In this case the Venezuelans wanted a free lunch and now they are getting it. In Canada the government worker union thugs want to protect their turf and the socialist politicians want the power to control people and their lives. Utopia for all.
Venezuela has less than 10 billion USD in foreign reserves available, and that’s not expected to rise in the next few months. If they decide to pay the bonds due, it certainly doesn’t leave much for food imports on the open market.
https://dolartoday.com has a simple graph labeled “reservas internacionales” … about $9.88 billion.
If the world oil market rises again to + $100 it will be ok for another few years, maybe a decade. But they’re always going to run out of the capitalist’s money.
If Venezuela renegotiates this debt for “future benefits” with higher interest due, or more of their oil reserves / production sold to China, soon, it will all grind to a halt. They don’t have the fat available to trim anymore.
May as well let it grind to a halt now, with a Presidential election on their horizon, rather than another 6 years of the “bus driver” Maduro in the driver’s seat.
or as the commenters at Zero Hedge might say, “let it burn” …
Please,Allah,don’t let our PM get the idea that Venezuela deserves a bailout,or he’ll be shipping about 2 or 3 billion of our dollars to the socialist paradise.
I picked a fine time to go senile.
there is always a silver lining to these things. Cuba just got wacked by Irma, so they will be too busy fixing themselves to bail the bus driver idiot out
What I’m afraid of is that he’s probably already thought about it and is getting ready to send it there. Like Everett Dirksen once said: “A billion here, a billion there, pretty soon you’re talking real money.”
Of course all the newly-found tax cheats in this country can pay for it, right?
Socialism in a nutshell: “What’s yours is mine and what’s mine is mine.”
The current fiscal situation in Venezuela reminds me of something that happened more than 25 years ago. In the early 1990s, a number of third world countries were seriously in hock over their collective ears. As a result, a number of lenders, including several large banks, were on the hook for those loans.
There were several attempts to renegotiate those debts due, in part, to the cumulative interest that was added to the bill. Nothing satisfactory came out of those efforts and the stock market became rather twitchy because of it.
Eventually, the lenders decided to wipe those loans off the books as there was little point or profit to be gained by continuing to carry them. The stock market reacted favourably, the lenders got on with doing business, and many of those countries staggered back onto their feet.
I wouldn’t be surprised if Venezuela would be allowed to walk away from this one.
Maduro simply needs to follow the Obama playbook … http://blog.ganderson.us/articles/economics/investors-betrayed-by-gm-and-obama/
… and sell new “shares” in the government’s Oil business. The IPO would be sure to attract investors like Sean Penn, Michael Moore, and Danny Glover …
Then the ollllld Bondholders would be carrying worthless paper.
All they can do is trade a big promise for a smaller promise. They don’t have the ability to pay a meaningful amount like even 20 cents on the dollar. I suspect a lot of their debt is secured by oil so all the creditors have to do is wait. Any financier who bought unsecured Venezuelan bonds from a communist dictatorship will get exactly what they deserve.
A basket case of currencies…
Switch your debt from the US dollar to a collection of the Venezuelan dollar, Mexican Peso, Argentine Peso etc.
Then, you work with these countries to devalue their currencies and your debt is gone – inflation is a wonderful thing.
Not following your thought CT. Please help with a bit more information.
Great article bartinsky: Now you need to add NO DONATIONS TO THE TRUDEAU FOUNDATION…as I’m waiting for them to come up with idea like the CLINTON’S DID…donate to our FOUNDATION we will send it on to the people that need it in Texas and Florida. The Clinton’s stole money from the American people that wanted to help Haiti. Trudeau gave 220 million to the The Clinton Foundation of Canadian TAXPAYERS MONEY for what!! To learn how to cheat and not go to jail!! The Trudeau Foundation needs to investigated for prudence.
From the ‘States…
I used to wonder who exactly lent seemingly infinite dough to failing countries. Then, around 10 years ago, I found an “unrelated” little article in the newspaper (I’m old) about a bunch of local bankers. From 3 different banks, they were paying themselves massive bonuses for packaging up loans to some failing country. Probably Colombia. Mandatory employee drug testing in the states was hell on their economy.