Trump Bars Purchases Of Debt, Receivables Owed To Venezuela, PDVSA

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

TheWholeYearInn Mon, 05/21/2018 - 15:49 Permalink

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).

Dr. Acula TheWholeYearInn Mon, 05/21/2018 - 15:54 Permalink

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 by TheWholeYearInn

dirty fingernails Dr. Acula Mon, 05/21/2018 - 17:19 Permalink

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 by Dr. Acula

Labworks TheWholeYearInn Mon, 05/21/2018 - 15:55 Permalink

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 by TheWholeYearInn

Labworks Anunnaki Mon, 05/21/2018 - 17:21 Permalink

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 by Anunnaki

soyungato TheWholeYearInn Mon, 05/21/2018 - 16:15 Permalink

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 by TheWholeYearInn

Zerogenous_Zone soyungato Mon, 05/21/2018 - 17:26 Permalink

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 by soyungato

serotonindumptruck Mon, 05/21/2018 - 15:52 Permalink

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.

NoDebt Mon, 05/21/2018 - 15:52 Permalink

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.

 

land_of_the_few NoDebt Mon, 05/21/2018 - 16:43 Permalink

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 by NoDebt

Labworks Mon, 05/21/2018 - 15:58 Permalink

Whatever you think of maduro, stay the fuck out of venezuelas business.

 

Stay the fuck out of it, let them solve it themselves. PERIOD. 

silverserfer Labworks Mon, 05/21/2018 - 17:35 Permalink

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 by Labworks

Chief Joesph Mon, 05/21/2018 - 16:01 Permalink

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.,. 

shovelhead Chief Joesph Mon, 05/21/2018 - 16:19 Permalink

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 by Chief Joesph

Iconoclast Mon, 05/21/2018 - 16:20 Permalink

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....

Oreilly ZeroPoint Mon, 05/21/2018 - 17:02 Permalink

"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 by ZeroPoint

hola dos cola Mon, 05/21/2018 - 16:43 Permalink

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.

Consuelo Mon, 05/21/2018 - 16:58 Permalink

"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...?

SJ158 Mon, 05/21/2018 - 17:15 Permalink

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.