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Venezuela Default Risk Surges To Jan 2009 Highs
Venezuela CDS is surging once again this morning, even as oil prices stabilize on the day, to its highest since January 2009 as traders increase hedges or speculation that the nation will be forced to default on its bonds. Current prices imply around an 85% chance of default (likely not helped by President Maduro's insistence that all is well and that he will try to destrout the black market for dollars that implies a massive devaluation is afoot for the Bolivar)
Highest default risk since Jan 2009...
And it appears since 2008, Venezuela has become entirely dependent on the ticks in oil prices...
Charts: Bloomberg
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there is no such thing as a default fellas
a la 2008
thanks fuckers(fed and friends)
Forward!
No such thing as a Default anymore. Remember the PIIGS. CDS counter parties will never pay off.
Go ahead and default, Venezuela. Stick it to the banksters.
No doubt this would be good for the Grand Duchy of Evil since chaos in the oil market would raise the price at least temporarily and maybe help Putin stay in power a while longer. Not that's he's ever intending to leave, of course, but circumstances can alter even the best-laid plans of even the most enlightened President-for-life.
Kinda hard when there isnt much of a crysis for Russia. One has to see where this crisis is and I can simply point to worst situations (2008) and see that nothing has changed in United Russian party. Guess it helps when oil and gas only account for 17% of gdp and 25% of consolidated budget.
I dont know venezuelas case.
Adelante, siempre adelante!
Forward, always forward. Motto of the Conquistadors, and other retards.
The only conquistadores left in Venezuela are the brave gringos visiting the Caracas cat houses. BTW, the deals are unbelievable. You would be surprised what the mamacitas will do for toilet paper and diapers. Some of the hottest women in SA live in Venezuela.
http://www.break.com/picture-topics/venezuelan-girls-in-bikini
senior,
listo para visitar los casitas gatos conmigo!?!?
yo tengo ahora un gato.....Calico...pero gracias
i love tortas
Janet Yellen has the helicopters fired up, ready for another bailout money drop !!
He will just say he is not paying the Capitalist pigs any maney..that is not a default...that is a political statement....he is trying to sell his gas stations in the USA right now....he needs the cash ASAP...after that he will default....funny..my military websites say e is going to buy a bunch of landing craft from China soon....hes got money for the military...but then again..in socialist countries they are always well feed and payed....
Japan is looking more like zimbabwe.
Tick-tock, just a matter of time.
CDS = Can't Default on Shit!
financial engineering at it's best
oil < $60 won't help
Couldn't happen to a nicer bunch of coconuts;)
Even if they do default it won't be a default. Keep buying that "insurance" suckers.
That should get three hundred up arrows. Are we going to "socialize" these losses too? If so...how exactly? Sure seems like it's well past Bill Dudley time. I simply don't see the folks who keep threatening higher interest rates as having any meaning anymore. I understand the part where "Zero Prosperity is the goal here"...but so we have to keep threatening everybody with this in public and then not following through on it?
I feel let down in a way. "Like we missed the recovery part but we sure haven't forgotten the part where you pay." Maybe the The Fed should hire a mariachi band as their next "statement to the public via CNBC"?
What's the latest on the clowns in Argentina? Goldman got that all under control?
Venezuela needs to take a page from Argentina and start nationalizing pensions and savings...that will buy them another 6 months.
So a country that produces an absolutely essential ingredient of the modern economy is near default while the country that only produces paper sees it's currency surge...W.T.F.??
The world cannot continue to operate in such a system. Lower oil prices will be fun until those who rely upon the income from higher priced oil default. Then debt fails and fiat dies. As fiat dies the printer responds with more base money. It gets really messy after that.
Our money is sick and not likely to make it. Using the currency of a single country as the world's reserve has resulted in many problems. The rest of the world struggles to get those dollars and the USA loses it's industry. One of these factors (or perhaps a failure in the gold derivative market will fail.
Fofoa has a new post up dealing with currency problems. Global Stagnation
http://fofoa.blogspot.com/2014/12/global-stagnation.html
Now ZH has ads that pop up every time one clicks...just now I got a page and an ad inside the page with just a roll over. Can the Hedge get more annoying?
Russia is next - wait Russia will started WWIII before that occurrs.
It is dissapointing ZH has many smart people but most do not even know Russian economy yet talk as if they do. I think many here needs to stop reading what they call the msm and start reading other news sites.
Russian budget in coming years will be based off of $40bbl
What Venezuela has: Yellow + Black Gold. And Beauty Queens.
What Venezuela doesn't have: Leaders with vision and brains, or Nukes (no "MAD Policy", no "Sampson Option").
Ergo... What Venezuela will soon get confiscated or get pumped: Gold, Oil, Beauty Queens.
Peeps, just for fun I researched the "GDP by country" the other day, and then had some fun with Excel.
It turns out, if you make additional columns (for various Alliances and Blocs), you get some interesting results in terms of: GDP by Alliance or Bloc. This is particularly highlighted if you add the Gold and Oil/Gas factors for any given country, and into which super-block an EM country can be swung.
Most of us 'know' that the US is targeting gold-holding and energy-rich countries. But it's interesting to see the actual GDP numbers that could back up said gold and hydrocarbons. If a nation wanted to back their currency with either one or both, then they'd need enough political independence from the US and its Petrodollar, to either issue their own asset-backed currency, or to join another currency block that has a regional asset-backed currency (Real, Yuan, Ruble...).
Clearly the US keeps front-running the BRITICS (BRIICS+Turkey) with their "Nation building" (hostile takeovers) that focus on these countries, to retain its Dollar hegemony. And, if all else fails, I can imagine (foresee) that the Fed and their G7 minions would simply replace the USD with the FRN as the new Reserve Currency. If that were to happen, then GDP numbers, gold reserves and oil/gas control would make them a bigger power block than everyone else combined. I was surprised at the Excel results, but check it for yourself, if you like. Facts are facts and math is math.
The point is, the BRITICS + EMs have a long, hard uphill climb against the G7 and NATO -- who are acting in concert. As a united front (also acting in concert), they have the resources and population. But the key word here is "united" front. And we all know how TPTB like to isolate, divide & conquer a country that they covet. Should be interesting.