Backdoc » August 19th, 2015, 12:09 pm
I MENTIONED MONTHS AGO THAT THE BRICS WOULD BE CRUSHED BY BLACK GOLD PRICES DROPPING!
YOU ARE NOW SEEING CHINA BEING IMPACTED AS WELL. THIS IS WHAT BEING MARGINALIZED LOOKS LIKE!
WHAT WE ARE NOW SEEING IS THE BEGINNING OF THE NEW LANDSCAPE, WHERE TRADE CONTROLS COUNTRIES' CURRENCIES AND EXTRACTION COSTS DETERMINES THE WINNERS AND LOSERS!
REALIZE THE WAR WILL GET IN FULL BLOOM IN LATE NOVEMBER WHEN IRAN WILL RAMP UP TO FULL CAPACITY AS THE WORLD LETS THEM FLY LIKE A BIRD!
THEY WILL BE AT 100% CAPACITY WITHIN 3 DAYS AS COMPARED TO 15 YEARS AGO WHEN THEY WERE AROUND 1.2 MILLION BARRELS PER DAY!
....
I MENTIONED MONTHS AGO THAT THE BRICS WOULD BE CRUSHED BY BLACK GOLD PRICES DROPPING!
YOU ARE NOW SEEING CHINA BEING IMPACTED AS WELL. THIS IS WHAT BEING MARGINALIZED LOOKS LIKE!
WHAT WE ARE NOW SEEING IS THE BEGINNING OF THE NEW LANDSCAPE, WHERE TRADE CONTROLS COUNTRIES' CURRENCIES AND EXTRACTION COSTS DETERMINES THE WINNERS AND LOSERS!
REALIZE THE WAR WILL GET IN FULL BLOOM IN LATE NOVEMBER WHEN IRAN WILL RAMP UP TO FULL CAPACITY AS THE WORLD LETS THEM FLY LIKE A BIRD!
THEY WILL BE AT 100% CAPACITY WITHIN 3 DAYS AS COMPARED TO 15 YEARS AGO WHEN THEY WERE AROUND 1.2 MILLION BARRELS PER DAY!
....
REMEMBER THEY HAVE BILLIONS OF BARRELS STORED READY TO SELL.
REMEMBER I TOLD YOU THIS WHEN I WROTE THE MATRIX!
WITH THE UN,UK,CANADA,AND THE SWISS RELEASING THEM FROM SANCTIONS, THE FUSE OF THIS ECONOMIC BOMB HAS BEEN LIT!
AS WE APPROACH MID SEPTEMBER WE WILL SEE A MELTDOWN IN WORLD MARKETS.
A COUPLE OF ADDED PRESSURES BESIDES BLACK GOLD DROPPING WILL BE THE FED ANNOUNCEMENT ON RAISING INTEREST RATES, AS WELL AS OUR CONGRESS ANNOUNCING THEIR DECISION ON THE IRAN DEAL!
REGARDLESS OF CONGRESSES' DECISION WE SHOULD ALSO SEE A DOLLAR CRASH AFTER THE MARKETS MELT DOWN!
OF COURSE THIS IS JUST DING DONG DOC'S OPINION! DOC
**************
Walkingstick : Cash-Strapped Venezuela May Sell Off Gold, Citigroup Says
Countries facing cash shortages may be tempted to sell part of their gold reserves to raise funds, according to Citigroup Inc., which cited Venezuela as a potential example amid concern it may default.
The South American nation is one country that may be at risk of selling part of its holdings after oil fell and commodity prices weakened, analysts including David B. Wilson and Aakash Doshi, wrote in a report. Calls by Bloomberg to Venezuela’s central bank and the media office at the finance ministry outside normal office hours weren’t answered.
Gold retreated to a five-year low in July as the dollar rallied on prospects of higher U.S. interest rates. Sales of bullion by governments may add to pressure for weaker prices even as other central banks, including China’s, expand holdings. Should Venezuela sell part of its gold, prices could see lows maintained, according to Wilson and Doshi.
“I don’t think many central banks will be that tempted,” said Aberdeen Asset Management Plc’s Edwin Gutierrez, who helps oversee $13 billion as the head of emerging-market sovereign debt. “Someone as desperate as Venezuela, absolutely, because they don’t have recourse to many other options.”
Venezuela gets more than 95 percent of its export revenue from oil, and the slump in crude prices has stoked concern that the nation may face difficulties paying debt. Still, there’s a low probability of default this year, according to Barclays Plc.
Bank Holdings
Venezuela had 11.607 million troy ounces of gold as of September, according to data from the International Monetary Fund. About 68 percent of the country’s reserves are in bullion as of August, according to the Citigroup report.
“Cash-strapped nations could trigger further downside price risk as the temptation to sell gold reserves mounts,” the Citigroup analysts said in the Aug. 18 report. “Venezuela is one such country at risk.”
Gold for immediate delivery traded at $1,123.65 an ounce at 4:06 p.m. in Singapore, 5.1 percent lower this year, according to Bloomberg generic pricing. Citigroup maintained its forecasts in the report, predicting prices to average $1,090 this quarter as the Federal Reserve would probably start to tighten.
Venezuela “appears poised for a near-term crisis” amid protests and shortages of basic goods as the country heads for parliamentary elections in December, according to RBC Capital Markets Ltd. The cost of insuring the government’s five-year bonds has rebounded to near a 12-year high.
In 2011 and 2012, Venezuela’s government repatriated most of bullion that it had held in overseas banks. The move was ordered by then-President Hugo Chavez as a safeguard against instability in financial markets.
“The problem is most of the Venezuelan gold is located in Caracas,” Aberdeen’s Gutierrez said by phone from London on Tuesday. “No bank is going to take collateral for gold that’s actually held in Caracas.”
http://ift.tt/1fohTE2
REMEMBER I TOLD YOU THIS WHEN I WROTE THE MATRIX!
WITH THE UN,UK,CANADA,AND THE SWISS RELEASING THEM FROM SANCTIONS, THE FUSE OF THIS ECONOMIC BOMB HAS BEEN LIT!
AS WE APPROACH MID SEPTEMBER WE WILL SEE A MELTDOWN IN WORLD MARKETS.
A COUPLE OF ADDED PRESSURES BESIDES BLACK GOLD DROPPING WILL BE THE FED ANNOUNCEMENT ON RAISING INTEREST RATES, AS WELL AS OUR CONGRESS ANNOUNCING THEIR DECISION ON THE IRAN DEAL!
REGARDLESS OF CONGRESSES' DECISION WE SHOULD ALSO SEE A DOLLAR CRASH AFTER THE MARKETS MELT DOWN!
OF COURSE THIS IS JUST DING DONG DOC'S OPINION! DOC
**************
Walkingstick : Cash-Strapped Venezuela May Sell Off Gold, Citigroup Says
Countries facing cash shortages may be tempted to sell part of their gold reserves to raise funds, according to Citigroup Inc., which cited Venezuela as a potential example amid concern it may default.
The South American nation is one country that may be at risk of selling part of its holdings after oil fell and commodity prices weakened, analysts including David B. Wilson and Aakash Doshi, wrote in a report. Calls by Bloomberg to Venezuela’s central bank and the media office at the finance ministry outside normal office hours weren’t answered.
Gold retreated to a five-year low in July as the dollar rallied on prospects of higher U.S. interest rates. Sales of bullion by governments may add to pressure for weaker prices even as other central banks, including China’s, expand holdings. Should Venezuela sell part of its gold, prices could see lows maintained, according to Wilson and Doshi.
“I don’t think many central banks will be that tempted,” said Aberdeen Asset Management Plc’s Edwin Gutierrez, who helps oversee $13 billion as the head of emerging-market sovereign debt. “Someone as desperate as Venezuela, absolutely, because they don’t have recourse to many other options.”
Venezuela gets more than 95 percent of its export revenue from oil, and the slump in crude prices has stoked concern that the nation may face difficulties paying debt. Still, there’s a low probability of default this year, according to Barclays Plc.
Bank Holdings
Venezuela had 11.607 million troy ounces of gold as of September, according to data from the International Monetary Fund. About 68 percent of the country’s reserves are in bullion as of August, according to the Citigroup report.
“Cash-strapped nations could trigger further downside price risk as the temptation to sell gold reserves mounts,” the Citigroup analysts said in the Aug. 18 report. “Venezuela is one such country at risk.”
Gold for immediate delivery traded at $1,123.65 an ounce at 4:06 p.m. in Singapore, 5.1 percent lower this year, according to Bloomberg generic pricing. Citigroup maintained its forecasts in the report, predicting prices to average $1,090 this quarter as the Federal Reserve would probably start to tighten.
Venezuela “appears poised for a near-term crisis” amid protests and shortages of basic goods as the country heads for parliamentary elections in December, according to RBC Capital Markets Ltd. The cost of insuring the government’s five-year bonds has rebounded to near a 12-year high.
In 2011 and 2012, Venezuela’s government repatriated most of bullion that it had held in overseas banks. The move was ordered by then-President Hugo Chavez as a safeguard against instability in financial markets.
“The problem is most of the Venezuelan gold is located in Caracas,” Aberdeen’s Gutierrez said by phone from London on Tuesday. “No bank is going to take collateral for gold that’s actually held in Caracas.”
http://ift.tt/1fohTE2
Venezuela's currency is now so worthless that people are using it as napkins
Aug. 18, 2015
An image is going round that sums up just how ridiculous Venezuela's economy has become.
A Reddit user uploaded a picture on Monday of a man using a 2 bolivar note to hold an empanada.
According to Venezuela's official bolivar-dollar exchange rate, the man using his money as a napkin is wasting about $0.31 (£0.20).
But on the black market, the reality is completely different. You can get 676.88 bolivars to the dollar, according to dolartoday.com. That means holding food with a 2 bolivar note costs the holder less than a third of one US cent.
Dolartoday.com'srt shows just how the value of the bolivar has plunged, with more and more units of the Venezuelan currency required to get hold of a single dollar:
This time last year, the bolivar was far more valuable, and even as recently as May this year, you could still get hold of a dollar for less than 300 bolivars. Today, you need more than twice that.
The country has a spiralling inflation rate. Official inflation is high enough, at 68.5%, but like the official exchange rate, that paints a much rosier picture than reality. Professor Steve Hanke, who runs the "Troubled Currencies Project," a joint program between the Cato Institute and Johns Hopkins University, says in reality inflation is more like 808%.
The country is a major oil exporter, and the plunge in prices is a huge part of what's causing the crisis — as a result, the country is pegged as having the riskiest debt in the world, with the highest likelihood of a future default. Food is increasingly hard to get hold of, shop shelves are often empty, and the country's social order is deteriorating.
The country is heading into a parliamentary election in December, which will not unseat President Nicolas Maduro but could give the opposition a parliamentary majority for the first time since Venezuela's 1999 constitution came into force.
Read more: http://ift.tt/1KvJrQD
Aug. 18, 2015
An image is going round that sums up just how ridiculous Venezuela's economy has become.
A Reddit user uploaded a picture on Monday of a man using a 2 bolivar note to hold an empanada.
According to Venezuela's official bolivar-dollar exchange rate, the man using his money as a napkin is wasting about $0.31 (£0.20).
But on the black market, the reality is completely different. You can get 676.88 bolivars to the dollar, according to dolartoday.com. That means holding food with a 2 bolivar note costs the holder less than a third of one US cent.
Dolartoday.com'srt shows just how the value of the bolivar has plunged, with more and more units of the Venezuelan currency required to get hold of a single dollar:
This time last year, the bolivar was far more valuable, and even as recently as May this year, you could still get hold of a dollar for less than 300 bolivars. Today, you need more than twice that.
The country has a spiralling inflation rate. Official inflation is high enough, at 68.5%, but like the official exchange rate, that paints a much rosier picture than reality. Professor Steve Hanke, who runs the "Troubled Currencies Project," a joint program between the Cato Institute and Johns Hopkins University, says in reality inflation is more like 808%.
The country is a major oil exporter, and the plunge in prices is a huge part of what's causing the crisis — as a result, the country is pegged as having the riskiest debt in the world, with the highest likelihood of a future default. Food is increasingly hard to get hold of, shop shelves are often empty, and the country's social order is deteriorating.
The country is heading into a parliamentary election in December, which will not unseat President Nicolas Maduro but could give the opposition a parliamentary majority for the first time since Venezuela's 1999 constitution came into force.
Read more: http://ift.tt/1KvJrQD
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