VENEZUELA CASH CRISIS - Venezuelans Angry as Their Fiat Currency Worthless. Economic Crisis Deepens
Guess which country has recently shown the greatest willingness to weather hardship in order to pay its foreign bondholders? Paradoxically, it’s the country that has been among the most vocal in its anticapitalist rhetoric. Venezuela continues to pay despite an economic crisis that would have stymied other sovereign borrowers long ago. Riots prompted by a shortage of cash are just the latest example of the country’s economic crisis. Although reallocating funds from debt service to the importation of much-needed food and medicine is tempting, the government fears that subsequent lawsuits could actually leave less money for imports.
These fears are overstated. Venezuela already faces the typical costs of sovereign default, such as the loss of access to international credit markets and a decline in foreign direct investment, even though it remains up to date on its debt service. With default seemingly inevitable, the country must eventually confront any other consequences, which are unlikely to include the dreaded seizure of Venezuelan oil tankers at sea. Meanwhile, postponing default is costly to the economy and unfair to long-term creditors. Venezuela has reopened its border with Colombia, eight days after President Nicolas Maduro closed it in order to combat smuggling.
Hundreds of Venezuelans have been crossing into Colombia to buy products that are scarce in their country.
President Maduro had closed the border at the same time as announcing the withdrawal of the country's highest denomination bank note.
He has accused criminal gangs of hoarding vast amounts of cash.
Products subsidised by Venezuela's socialist government, including petrol, sugar and flour, can also end up being sold on the Colombian side of the border at much higher prices.
be food to buy that day, and where rioting and looting have become commonplace. So even though the U.S. economy is in dreadful shape at this moment, we should be thankful for what we have, because at least we are not experiencing a full-blown economic collapse yet like Venezuela currently is.
Venezuela is selling oil to Jamaica in exchange for food, medicine, farming materials and building supplies.
Jamaica announced last week that it would provide up to $4 million in the form of goods and services to Venezuela. Venezuela's economy is the worst in the world, according to IMF projections. Its economy is estimated to contract 10% this year and inflation could skyrocket by 700%. Years of heavy government spending, and the recent decline of oil prices, have left the government without enough cash to import basic foods.
the most miserable country in the world" for two years running is really starting to show signs that it is running out of cash. The Venezuelan government says it has imported thousands of tons of basic foodstuffs . President Nicolas Maduro has accused private food production companies and supermarkets of hoarding food for speculation. Venezuela Cash Money Inflation "Travel Money" Supply "Supply & Demand" Bank Savings "Bank Account" "Savings Account" 2017 2018 future gold silver food "emergency supplies" forex "forex trading" currency notes exchange commerce wealth rich USD "U.S. Dollar" people humanity stocks "gold bullion" "Gold Coins" oil crisis economy "stock market" news media entertainment trends trendy "emergency food" gerald celente david icke alex jones coast to coast china fiat currency worthless assets jim rogers prepare prepper prep bugout bag end game dollar collapse underground bunker elite illuminati new world order
Unemployed construction worker order out of chaos
despite the economic crisis gripping Venezuela. But there is one notable difference: a lack of Polar beer. Empresas Polar SA, the country’s largest food and beverage company, has halted beer production because, foreign currency it needs to purchase malted barley. “The state of emergency isn’t improving anything. black market and it is too expensive … this economic model of regulations is only making us poor, without any groceries, and hungry,” she says.
Socialist legislators also warned that “a food emergency would be an excuse for an American intervention.” While most economic experts attribute Venezuela’s dire economic situation to years of socialist mismanagement and, more recently, the international drop in crude oil prices, Venezuela’s government has long blamed the United States. Most recently, Maduro blamed American officials for allegedly prompting a violent supermarket riot in which the fight for bags of flour
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Posted by Nicole Bourbaki