One day after Nicolas Maduro won another six-year term as Venezuela's president in a vote that western countries denounced as illegitimate and which the opposition boycotted, President Donald Trump escalated economic pressure on the Latin American nation with an executive order prohibiting purchases of debts owed to the government, including to the state-run oil company Petroleos de Venezuela, Bloomberg reported.
While both entities are now officially bankrupt, having failed to make several coupon and maturity payments in the recent past and triggering CDS, hardly leading to a burst in investors confidence even among those desperate to allocate "other people's money" into this particular hyperinflationary socialist paradise, the executive order - which covers all transactions on any debts owed to the Venezuelan government or state-owned enterprises including accounts receivable - will make funding of the Caracas regime by US-linked entities impossible.
Speaking to Bloomberg, Trump administration leakers - of which there are many - said the order was intended to restrict the Maduro regime’s ability to liquidate its assets and close off avenues for corruption. While that was not surprisingly, in a novel the prohibition on purchases of debts owed to Venezuela also explicitly targets working capital in the form of accounts receivable.
One administration official said the action was intended to choke off funding the Maduro regime has been raising by selling off money owed in future to the government and state-owned enterprises in exchange for immediate payment cash.
And while an official said such transactions were tantamount to mortgaging the future of Venezuela, what the leaker forgot to mention is that the only entities who would be willing to fund such receivable are China and Russia, neither of which would subject itself to US sanctions.
The order also prohibits the sale, transfer or pledging of collateral of any equity interest in which the Venezuelan government has a 50 percent or greater ownership interest.
What the order will achieve, is give China even greater control over financial and political events in Venezuela, while further pressuring PDVSA production, and leading to even lower Venezuela oil output...
... which in turn will send the price of oil to even higher highs, just in time for peak driving season, and assuring that the bulk of Trump's tax stimulus is spent on gasoline.
Comments
How Presidential!
If lobbing missiles into Syria on a false flag gains you no ground, it's time to go after lower hanging fruit.
He shoulda kept Tillerson around for this one. (meh ~ maybe not, the CIA prolly has more assets in Venezuela than Exxon).
Is Trump connected to pedophiles, pimps, and the NXIVM sex cult?
"Mueller co-operating witness is a convicted pedophile... called himself a friend of Steve Bannon and Jared Kushner" - http://www.dailymail.co.uk/news/article-5503595/Nader-Muellers-latest-c…
"The island owner also would sometimes pass along teens to NXIVM" - http://www.crazydaysandnights.net/2018/05/blind-item-8_20.html
Plus there is Stormy Daniels with a NXIVM brand under her tattoo.
In reply to How Presidential! by TheWholeYearInn
That's a funny way of spelling Bill Clinton
In reply to Is Trump connected to… by Dr. Acula
Trolling with a dirty Al Saipan Translator https://www.youtube.com/watch?v=uN0DMS3phZg
In reply to That's a funny way of… by Amaroosta
There is mucho denial of the Epstein connections among the faithful followers. I'm not accusing or insinuating Trump was involved in the same kinds of shit we can confidently say Billy Clinton was, but there *is* more of a connection than just casual partiers. Factor in Trump's affinity for sleeze... Sure would make for a great control file.
In reply to Is Trump connected to… by Dr. Acula
Trumpers cheering on as their eternal ruler fucks them in the ass over and over.
"No more meddling in the middle east" -Donald J Drumpf.
Then why are you meddling in the middle east, Trumpers? What are you doing in Syria? What have Iran done to you? Haven't attacked a country in 200+ years. Iran is the victim, 1953 you remember?
Now Venezuela, and you're not even trying to cover it up. How about you leave other countries the fuck alone? God I can't wait until the economy collapses on your disgusting asses, THEN you will finally understand, but not until then.
In reply to How Presidential! by TheWholeYearInn
I hope you didn’t believe in Drain the Swamp or MAGA anymore than Hope & Change
In reply to Trumpers cheering on as… by Labworks
Wrong, I DID BELIEVE HIM. Don't get it twisted, I WAS a die hard Trump supporter, I really thought Trump was the new coming of Washington.
But then he held the speech at AIPAC, and I was heartbroken. I wanted to believe him, I tried to, but the damage had already been dealt after that. He was "just another puppet" for the DEEP STATE.
After that it just gradually became worse, and here I am today. Puppet or not, he's doing what they tell him to do. AND THAT'S A FACT!
In reply to I hope you didn’t believe in… by Anunnaki
Three dumb fucks in a row, were not worthy.
In reply to Trumpers cheering on as… by Labworks
4 mother fucker dim wits down voted you.
In reply to Trumpers cheering on as… by Labworks
Ya. Your mom, sister, brother and wife...make it 5 dim wits.
In reply to 4 mother fucker dim wits… by soyungato
The King of Literacy has spoken!
In reply to Ya. Your mom, sister,… by Bill of Rights
uh. you do know when the US economy crashes, both of chavez's daughters will lose their fortunes. the youngest will lose $4.2 billion US.
question for you is: why does she have the money in US banks?
4.2bil would make a dent in helping the venezuelan people. not much, but a dent.
In reply to Trumpers cheering on as… by Labworks
You have just admitted to the whole world that you are one of the brain-dead morons that sucked on and swallowed that failed propaganda line.
Since you are still repeating it, it is fair to suppose that you licked your lips, opened your mouth, and begged for more.
In reply to uh. you do know when the US… by just the tip
It is not enough for kids to roam the street fighting with machetes for better spots in the garbage heap for food, Trump must do more to make sure the Venezuela people really suffer so that his kids can feel safe. We eat big beautiful chocolate cake while you fight to your death for garbage ha ha ha.
Don't complain, you kids have it good. If you were middle Eastern kids you would be dead already. See our beautiful missiles.
In reply to How Presidential! by TheWholeYearInn
So you're ex-Soviet and think you're "Western"? You all look the same to us, sonny, why pretend. Embrace your exotic-ness.
Polishing the old potato collection?
How's your frozen shithole country, adults dumpster-diving for food, while others drive around in the latest Mercedes crossovers pretending not to see them, right?
In reply to It is not enough that kids… by soyungato
so...you say for us to stop meddling...then you say you need help...the help Venezuela needs is to fail...you get the government you deserve...and it sucks...
or autocratic corrupt socialism sucks, right? and now you have El Presidente for 'life'...
and as you kind of mentioned...the US SUCKS at nation building...because TPTB actually only want control, not to really help anyone build anything, right?...
and as we see now...the US is getting her's...and we need a step change...and to air out our dirty laundry...and there are PLENTY of us waiting until the shit hits the fan to try and reclaim the Republic...but think about what happens to the rest of the world when the largest consumer, with all that extra spending money...stays at home and REALLY keeps others out...and stops buying cheap shit made by 'indentured slaves' from 'socialist' countries 'run' by the IMF/World Bank/NWO...
because it's coming
zergenous_zone
In reply to It is not enough that kids… by soyungato
#BringBackOurToiletPaper
Maduro will no doubt soon be assassinated.
Venezuela has the largest proven oil reserves on the planet, and they're conveniently located "close to home".
Sour crude is more expensive to refine, but the end result will keep the Ponzi going for a little longer.
'Course China could bail them out... Then would be more of a problem for Trump to seize anything in Venezuela.
And China could do that, no problemo... /s
In reply to Maduro will no doubt soon be… by serotonindumptruck
China certainly has vested interest in Venezuela, although with Venezuela's coastline (and oil production) in the Gulf of Mexico, China will be forced to extend its naval capacity into the Gulf, which will be perceived as a direct military confrontation by Wash DC.
(Just playing Devil's Advocate)
In reply to 'Course China could bail… by 38BWD22
Does Maduro speak Chinese?
In reply to Maduro will no doubt soon be… by serotonindumptruck
Does Tim Cook? How about the Harbor Freight guys?
In reply to Does Maduro speak Chinese? by Anunnaki
"Maduro will no doubt soon be assassinated"
Roger that ~ Now that Israel can't get any more free oil by way of ISIS in Syria because Putin has kicked them out, they'll have to go to Plan B.
Mossad will take care of Maduro sooner than you can say "All your sheckels are belong 2 us"
In reply to Maduro will no doubt soon be… by serotonindumptruck
That picture of Maduro has finally inspired me to do something...
I'm converting my lawn jockey from holding a lantern to holding a roll of TP. Couple tack welds and I can swap over to the TP holder no problem, then all that's left is to re-color the face from it's current black to dark brown.
Careful...He may eat your horse.
In reply to I'm converting my lawn… by NoDebt
Well clearly it took them a while to photoshop it and change the color balance enough to make him.look like Richard Pryor. Seems they fuzzed it too, were they hitting the Bud hard while operating a Mac, almost in a coma by the looks of the finished work. Maybe they had a Meth chaser, graphic artists eh, the scamps.
In reply to I'm converting my lawn… by NoDebt
When you put a Marxist ex bus driver in charge of an economy you get chaos and madeness.
Nicolas Maduro has been an avid supporter of Argentina's Falklands claim even speaking in CELAC (regional conference) on behalf of Argentina. Funny thing is, Falklands - Argentina's Imaginary Territory (1 pg):- https://www.academia.edu/35715281/Falklands_Argentinas_Imaginary_Territory
Still, good socialist cause.
"Madeness", eh, "Brit" "Bob"? You seem more than a little desperate compared to usual tonight, why would that be?
Any comments on Queen Elizabeth II being an ex-truck driver? Does that somehow make her not head of state too?
In reply to When you put a Marxist ex… by BritBob
Sure Maduro is a prick that can't manage to lead country properly but lets not forget that US did all it could to crush Venezuela.
Like not letting Maduro's cronies travel to the US and sending Cambell's soup back to the peasants?
Oh, sorry. They weren't sending soup back before the sanctions on travel. Crushing.
In reply to Sure Maduro is a prick that… by Thordoom
All we could? Have you looked at Iraq, Libya, Syria, or Yemen just to name a few. We are far from doing all we could to crush them, and truth is we don't need to do anything, Venezuela is falling apart, and really it has very little to do with the US.
In reply to Sure Maduro is a prick that… by Thordoom
Whatever you think of maduro, stay the fuck out of venezuelas business.
Stay the fuck out of it, let them solve it themselves. PERIOD.
problem is, Venezuela does business internationally and they are morons who defaulted on contracts they agree too wiht other countries/companies. So now... Fuck you pay me.
They deserve the pressure because they are mostly socialists who want free shit. They do deserve the shit show they are in.
What they are doing to international business trying to operate there is illegal.
You say stay the fuck out, which means you are hooting for a bloody civil war.
In reply to Whatever you think of maduro… by Labworks
I thought Trumpstein was a businessman. Sanctions are bad for business. American business
Time to short Tampax and Quilted Northern
China to the rescue! Venezuela will be dealing in petro-yuans, the Chinese will be buying Venezuela's oil, China will rebuild Venezuela's infrastructure in exchange for a Naval base and an airbase there, and perhaps making a missile launch facility that will compete with Cape Canaveral in exchange for gold mining. (I am sure the U.S. is going to like that). As desperate as the Venezuelans are right now, anything China has really looks good to them, no thanks to the U.S.,.
Chinese aren't that stupid. Russia already got majority ownership of the oilfields if they default on their loans. Maybe a TV and washing machine factory for some mining rights but Maduro's casual relationship as to ownership rights of foreign investors might even make the Chinese look elsewhere for greener pastures.
Mining a shithole for profits is a losers game.
In reply to China to the rescue! … by Chief Joesph
Bloody hell, the cunts in action (CIA) just can’t rig votes these days eh? Firstly Iraq goes full on retard after they didn’t take too kindly to having Americans version of democacry bombed on them, and now Venezuela gives a landslide 70% victory to Matturo. All those bribes to not vote just don’t work, still, despite not being on the kill list it’s not far to steal the largest oil reserves on planet Earth, could be taken care of in a weekend, only problem the USA never shits on its own doorstep, creating a million martyrs so close to home might be prove to be a mistake....
The US forgot that there was only Maduro to vote for there, incompetent meddlers.
In reply to Bloody hell, the cunts in… by Iconoclast
That's ok they they Gold...oh wait.
They lost the middle east. Time to beat up on South America again. Down the toilet we go.
"Because the US hates brown people" was what someone wrote in the last ZH comments on the failure that is Venezuela... what a bunch of maroons.
Sometimes it's just easier not to think or to just parrot the same old idiocies that have been playing for the past 75 years. Why is an American president keeping Americans from buying Venezuelan debt beating up on South America? I should think allowing them to buy future earnings from the country to fund the corrupt bastards currently in power would be more likely to be called "beating up on" then stopping continued indebtedness for future generations.
In reply to They lost the middle east… by ZeroPoint
Trump tries to bring down Venezuela like his enemies are trying to bring down him.
Hands off Venezuela.
Trump has joined the swamp.
The way the oil price is responding to every action of this administration it looks like neither the Goebbels- nor the Goering-role seemed appealing to Mr. Tillerson.
Fuck the ignorant negroes that took control of Venezuela.
Thugs and thieves.
"Trump administration leakers - of which there are many - said the order was intended to restrict the Maduro regime’s ability to liquidate its assets and close off avenues for corruption."
Indeed. Now then, there's this ex-White House couple galavanting around - one of them up for a prestigious medal award from Harvard, no less. Both with a string of proven criminality that stretches back 30+ years.
Don't you find it somewhat odd that U.S. high leadership can move on a dime when it comes to these evil socialists (which not coincidentally sit on vast natural resource deposits), but when it comes to the multi-$Billion dollar graft operations and arguably (?) deaths associated therein, seems a mountain too high to climb...?
The Trumpster's will rationalize it somehow, just like Obozo's supporters managed to.
10224 D chess or something, the mental contortions should get them in a freak show.
NODB=Not Our Damn Business.
Becoming accessories to murder will do that to peeps.
In reply to "Trump administration… by Consuelo
The US is a giant freaking incompetent meddler. But at least, if they had anything to do with it, they disposed of that old hag commie Dilma from the presidency of my country. Even the corrupt vampire they replaced her with is far better than corrupt AND communist fucks.
Please american ZHrs keep those tax dollars going for international meddling if it means I dont have to leave under a communist dictatorship. Thank you.
Pagination