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Venezuela "Boosts" Reserves With Rocks, Other "Easily Converted To Cash" Stuff; Suffers Major Blackout
With its bonds trading at 50% of face value, CDS implying an 84% chance of default, a black-market FX rate that signals massive devaluation is likely, and a teetering-on-the-brink of social unrest population entirely dependent on President Maduro's generosity (and the military junta), it is perhaps not entirely surprising that they are trying any trick in the book to bolster reserves. The Venezuelan Central Bank issued a statement today (akin to Europe's hookers-and-blow GDP adjustment) that enables them to count a whole new set of 'assets' as potential international reserves including "stones" and "precious metals held in their vaults on behalf of foreign financial institutions." Hey presto... new reserves.
Risk is rising...
And Reserves are sliding
So make up some new ones...As Bloomberg reports, Central bank sends e-mailed statement explaining parts of new central bank law issued by President Nicolas Maduro.
“Foreign currencies that are easily converted in the principal international marketplaces and that are used as a unit of account or payment in commitments assumed by the Bolivarian Republic of Venezuela will make up part of international reserves”
“Assets that can be added as reserves include diamonds and stones or precious metals defined as reserve assets by the bank board and that have been deposited in the bank’s own vaults or those of financial institutions abroad rated as first class”
Venezuela’s intl reserves have traditionally been made up of sources including monetary gold, deposits and FX-denominated securities issued by foreign financial institutions or foreign public entities where Venezuela has a stake and interest: Central bank
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Did Venezuela just say they will use foreign-deposited gold in their vaults as reserves? Confiscation?
* * *
And if that wasn't enough, a massive blackout just hit Caracas...
La estación @metro_caracas Plaza Venezuela #SinLuza esta hora @CaracasMetro @JasonLugoski21 @ReporteYa @LucioQuincioC pic.twitter.com/I39MPT89cC
— AgrioDulceCcs (@SweetSourCcs) December 4, 2014
#4D Usuarios reportaron apagón en varios sectores de Caracas ¿A usted le afecto? pic.twitter.com/2mVUx11OnK
— Visión 360 (@360UCV) December 4, 2014
Caos en el centro de Caracas por el apagón pic.twitter.com/qrT0VtDOrJ
— RAFAEL FINOL. (@finolprensa) December 4, 2014
Venezuela electricity minister Jesse Chacon says in post on Twitter account that failure at Boyaca substation affected power service in parts of central Caracas including Sabana Grande, La Florida and Chacaito.
Authorities are currently restoring power to affected areas: Chacon
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What foreign financial institution would ask Venezuela to hold their gold?
Zimbabwe.
They should add Venezuelan girls to the GNP. They look great and give good head.
http://www.break.com/picture-topics/venezuelan-girls-in-bikini
By comparison, check out these american beauties, LOL:
https://www.facebook.com/FattyAmerican
Any of this for export?
"Don't cry for me, Venezuelaaaaaaa..."
Maduro! "Better call Putin"
"stones" and "precious metals held in their vaults on behalf of foreign financial institutions."
Sounds like Venezuela's got them by the stones now.
Seriously how you American can have the envy with those women !?
It's outside of my comprehension...
when shit gets real, their are always blackouts....cant let the sheep communicate wit each other.
The CIA and exile Cubans ran sabotage in Cuba for years and maybe still are. Would not surprise me that this is more of the same. Just sayin'....
dupe
Detroit.
They should consider adding coconuts as a reserve asset. Might work.
Sure, we have no power. But the guy in charge's twitter account is still active.
So, there's that.
Just print moar.
"count a whole new set of 'assets' as potential international reserves including "stones" and "precious metals held in their vaults on behalf of foreign financial institutions.""
They Corzined some folks.
The only reserve assets left in Venezuela of any significant value come wrapped tightly in a bikini.
So they took the coal out of the plants and put into GS custodial reserve account?
Smart...for GS.
I read an article yesterday that said Spain is seeing a huge outflow of their young folks, looking for greener pastures. And apparently, many of them are heading to...South America.
I'd keep my eyes on that continent. It is the sister of our own North American continent, and packed to the gills with natural resources. Although areas ARE developed, it still has much room for expansion yet, unlike most other habitable areas on the globe.
Sure, it is horribly mis-managed by lousy governments. But maybe that is because most of "the people" are of the peasant farmer class, and more easily led. With an influx of educated young people from all over, those demographics would change, and then those governments would change too over time.
I can think of no other place on earth with the potential of South America.
"I can think of no other place on earth with the potential of South America."
I can: Africa.
Tons of natural resources (Gold, Diamonds, Oil, Agriculture), governed completely (with the current exception of South Africa) by two-bit, penny-ante, corrupt dictators.
How's that workin' out for the dark continent?
Yes, Africa is also a land of potential...but I wonder if we shouldn't just leave that place alone for awhile. White Europeans have managed to do a lot of damage there, that place needs to heal. And the native populations need some breathing room to develop their own functioning societies, outside the influences of the very groups who have been exploiting them.
And unfortunately, the racial issues are just too problematic right now for Africa to be a viable place for Western youth, who are largely white and European. Hopefully, after Africa has had time to settle and develop on its own, and its black indigenous people feel secure, THEN we can reach out to them. But it has to be an agreement between equals, not a paternalistic one-sided relationship like it is now.
They already count bananas as reserves?
Now gold counts on banking balance sheets again. Good excuse to run it up. Probably publicly acting on some plan they heard in secret coming from other places.
Forward.
I totally forgot I could claim my neighbors home as an asset.
No lulz hay, Jose.
IMHO, China/Russia will sweep in to be the Knight and shinning armor for Venezuela...
a once proud and prosperous country. how sad.......
"Nicolás Maduro is certainly not as charismatic as Chávez was, but should had take better advantage of Venezuela's position inside OPEC, being also one of the first members of the organization. Russia should also approach Venezuela, especially after the latest decision by - the manipulated by the US oil industry and the Saudi monarchs - OPEC, which harms the interests of both countries."
http://failedevolution.blogspot.gr/2014/12/chiles-turn-with-power-of-peo...
Don't worry, the Zionist banksters' goons, aka the DC US military, will soon be there to "secure" their gold, and the oil fields too. Just like in Iraq, Libya...
An American, not US subject.
"including "stones" and "precious metals held in their vaults on behalf of foreign financial institutions."
So I guess that means the gold repatriated by Chavez now belongs to GS and is still kept in Venezuela for safe keeping? LOL
The Chavez Family itself probably has the bulk of its stones and PMs in safe deposit boxes in Miami and Houston.
Venezuela is as bad as Detroit. Blackouts in the principal city. Bankruptcy restructuring inevitable.
The people deserve every hardship and injustice that their arvace and herd mentality can muster.
Rocks? Fuck that.
¡Oro, Putas!
(Gold, Bitchez!)
Bemused har dee har har. Whitie has been gone a long time. Leaving the tribal mind with functioning economies was a great wrong. We should have left them with ...............Ummmm what they have now? Har........quit blaming whitie you arsehole. Blackie knows how to set up his own dysfunction just fine.
South American potential........yes. Hope and change is coming, majically transformed by the new age of parasites from Europe. Not one clue in the world for prosperity, and the greatest one is is dying of inner rot. Obunionism worldwide.
Start selling them Teslas.
Goldman will lend a hand to Venezuela.