Venezuela Forced To Pay For Medicine With Diamonds And Gold

Venezuela’s government has nearly exhausted its foreign exchange reserves and its citizens have resorted to mining bitcoin  and fashioning ad hoc neighborhood currencies  to facilitate day-to-day transactions.

But the cash crunch that has helped worsen the country’s economic crisis is finally forcing the government to make an unusual request of its trading partners, including pharmaceutical companies from which the government buys medicine for the country’s hospitals: Would they accept payment in diamonds, gold or other precious stones?

 

Venezuela

According to the Wall Street Journal, companies were baffled by Venezuela’s offer. As for whether they accepted it: That’s not clear.

The proposed exchange perplexed the pharma representatives, whose companies had no policies on accepting precious gems and metals as payment, according to three people familiar with the meeting last month where Venezuela’s health minister made the offer.

While it isn’t clear if any of the companies accepted it, the proposal underscores how Venezuela’s economic collapse is forcing President Nicolás Maduro’s embattled administration to improvise to pay for goods as severe dollar shortages push the country toward a barter society.

As WSJ  pointed out, using commodities as payment isn’t uncommon for large global companies trading in mining or oil. But it's almost unheard of as a way to settle debts to other sectors like pharmaceuticals. The trend also mirrors the rise of bartering on the streets of many Venezuelan towns and cities.

In this capital city’s sprawling Petare slum, residents like 25-year-old baker Norvis Bracho use Facebook groups—some with more than 100,000 members—to post pictures of sugar and corn flour offered in exchange for beans or blood-pressure pills.

“This is how we get by every day,” said Mr. Bracho, a member of 13 Facebook and WhatsApp networks where he trades everything from bread to computer parts.

On a recent day, Mr. Bracho’s family, thrilled to see hard-to-find Coca-Cola sold on the streets, rushed to purchase a dozen 2-liter bottles with a debit card.

“This will come in handy to exchange later,” his aunt, Ruth Villarreal, said.

The Venezuela bolivar has depreciated more than 97.5% against the dollar over the past year. And economists expect annualized inflation to surpass 2,000% during the coming year, even as the price of oil has steadily crept higher.

Given the country’s opaque finances, it isn’t clear how much Venezuela holds in certified precious metals and stones.

 

Venezuela

The Socialist government unilaterally pulled out of the international Kimberley Process, which certifies the origins of diamonds, for eight years until it re-entered in 2016. Much of the country’s mining of diamonds and other valuable minerals is in the hands of wildcat miners in the lawless, jungle-covered states of Amazonas and Bolívar.

But to help stave off bankruptcy, President Nicolas Maduro recently promised that the country would back a soon-to-be-launched digital currency with $5 billion of gold and oil.

Comments

peddling-fiction American Psycho Jan 4, 2018 5:02 PM Permalink

Maduro belongs to the same secret brotherhood that Trump does.

-> You butthurt bro? Or is that a feature of your "Knightly" red-teamed masters?

Like Allende and Pinochet did.

Problem -> Reaction-> Solution 

Rinse (the sacrificial blood) and repeat.

These are Hegelian dialectics used for benefit of the brothers (while useful) and the (((bankers))).

The world to these "people" is but puppet theater with dire consequences to the goi scouts.

To: R.C. Christian 

In reply to by American Psycho

peddling-fiction Justin Case Jan 4, 2018 6:12 PM Permalink

Edgy-Tyler: this is a juicy story (I could write for you).

I could water it down (de-peddle it) and focus on the facts. There are many other corroborating public domain facts, that point towards that Finland is preparing for war.

Heads up folks. Finns may soon be used as cannon fodder, maybe in a preemptive strike against Russia. It appears that we have been sold down the river and screwed by an agreement that allows NATO to place troops in Finland (without good reason). Finns that are awake are fuming and sharpening their axes; we have been known to use them when words are not enough. Anything having to do with NATO would need at least a direct vote by the electorate, but these schysters know that we would never approve. Our current leaders are sweating bullets and uneasy.

https://fi.m.wikipedia.org/wiki/Suomen_ja_Naton_isäntämaasopimus

Memorandum of understanding (MOU) between the government of the Republic of Finland and Headquarters, Supreme Allied Commander Transformation as well as Supreme Headquarters Allied Powers Europe regarding the provision of Host Nation Support for the execution of NATO operations / exercises / similar military activity

In reply to by Justin Case

RAT005 Justin Case Jan 4, 2018 6:30 PM Permalink

Capitalism has created most of the wealth that the now socialist world is fighting over trying to redistribute.  Is there really a government that isn't bankrupt?  Consider the wealth of USA up until JFK was murdered.  That's a good point of saying end of capitalism, start of socialism.  My definition of socialism is: bigger gov. is better.  My definition of capitalism is: smaller gov. is better.  Cute little differences in money circulation games are just an act to look righteous.

EDIT IS WORKING!!!!

In reply to by Justin Case

LetThemEatRand smallblockchevy350 Jan 4, 2018 5:13 PM Permalink

"This should be required reading for every college-educated American liberal socialist fucktard."

And "Confessions of an Economic Hitman" should be required reading for everyone who wants to understand what is happening in Venezuela.  Socialism and corruption played big roles, but so did the banksters.  Leaving them out of the equation is like blaming capitalism for the banker bailout of '07/'08.  

In reply to by smallblockchevy350

land_of_the_few LetThemEatRand Jan 4, 2018 5:16 PM Permalink

The picture in the supermarket is from Reuters, it is captioned "Stocking up before Venezuela's strike". It is dated Tue Jul 25, 2017, 7.55PM EDT. The reason the shoppers are stocking up is because the opposition declared a two-day strike would start from 6AM the next day after this picture was taken.

This is the worst looking pic out of the album that day, the other shelves look better. The veg section looks fabulous. You can check the other photos in the shop here:

https://www.reuters.com/news/picture/stocking-up-before-venezuelas-stri…

And some more fakery:

https://gizmodo.com/5-more-viral-photos-that-are-totally-fake-1708052803

Photo Number 1. Supposed to be a photo of empty shelves in Venezuela in 2015. It is in fact a Walmart in Texas in 2005.

"Busted! National Review Crops and “Dirties” Photo From Austin Walmart, Claims It Shows “Venezuela”

http://littlegreenfootballs.com/article/44676_Busted!_National_Review_C…

The original photo caption, hilariously, although perhaps not for Maria the shopper, is " Preparing for Hurricane Rita, Maria Chavez of Austin looks for a loaf of bread Thursday in the empty shelves of a Wal-Mart at Interstate 35 and Slaughter Lane. The store was sold out. (Credit: Jay Janner, Austin-American Statesman) "

The reason they cropped it is because the original shows Walmart signs like "BREAD" in English. Which wouldn't exactly be typical in Caracas.

Original un-fucktarded not-Venezuelan pic in Texas Walmart:

http://fergdawg.blogspot.com/2005/09/austin-hurricane-panic-insanity.ht…

http://img.coxnewsweb.com/C/04/61/39/image_1839614.jpg

 

In reply to by LetThemEatRand

not dead yet LetThemEatRand Jan 4, 2018 8:06 PM Permalink

No one has answered the question why the US overthrows governments that are socialist. Guatemala, Chile, Honduras, Libya, Syria, Iraq, and most every country south of the US border that tried socialism was a US target. If socialism is so bad why not wait until it collapses on it's own. What is the US afraid of? Not only should people read about the economic hit men they should read Smedly Butler's "War is a Racket." What is ironic is Smedly was a believer in what he was doing until after he retired and had time to study the consequences of his actions. Most of those consequences of his and other US actions were the rise of oppressive dictatorships that killed millions of innocent people while the US ignored the deaths as long as the dictators kissed US and it's corporations ass.

I can't say if socialism is good or bad but I do know the situation in Venezuela is largely due to the US destroying the country. Before the current situation erupted the US sent in their pet bulldogs, along with the economic hit men, the National Endowment for Democracy, which is in the business of overthrowing governments and could care less about democracy, to create, fund and organize government opposition. The US was behind a coup in 2002 and has been active behind the scenes since then working for overthrow. The Nobel Bomb them to Pieces prize winner put drastic sanctions on Venezuela claiming they were a "danger to US security." Trump put even more on them and threatened military invasion. Yet we get all these articles and commenters who never mention this stuff and blame socialism.

According to witnesses many of the deaths in Venezuela which the US exploits to put on sanctions and threaten invasion were protestors intentionally shooting protesters then blaming the government. Right out of the playbook the US used in Ukraine and Syria. Protestors notify the press ahead of time so they are on hand for staged protests that are constructed to make the government look bad. Plenty of propagandized Americans believe the US should do everything possible to get rid of that "terrible Maduro" and everything will be peachy overnight. How'd that work out in Libya, Syria, Guatemala, Honduras, and Chile. Over a million dead. Even if the US was correct, they weren't it was all propaganda, about Assad and Qaddafi being butchers if they had left them alone a few thousand would have died and few thousand more in jail and life would go on. Instead we have two failed destroyed countries and over half a million dead, and climbing, and the rise of even more violent terror groups on the US payroll.

The 3 warmonger harpies, Susan Rice Samantha Power and Hillary, wailed no more Rwanda's as one justification for military action in Libya. Libya was another Rwanda. The CIA backed an invasion and civil war in Rwanda. The CIA blew up the plane carrying the presidents of Rwanda and Burundi. When the genocide started to develop the UN commander on the scene repeatedly requested more troops. The US vetoed every request and 800,000 died but the UN gets the blame. The rebel leader Kagame, who has been the leader of Rwanda since the war and a US butt kisser invited many times to White House dinners, when notified of the massacre whose victims were from his tribe refused to intervene because he "had a war to win." During his reign Kagame has been doing a genocide of his own and nary a peep out of the US. Kagame also sends out hit squads to kill any journalists brave enough to report his genocide.

In reply to by LetThemEatRand

LawsofPhysics Jan 4, 2018 4:50 PM Permalink

Well, diamonds do have real world application and hence real value...

The picture above underscores the truth of this biosphere we live in...

Specifically the reality of producers versus consumers...

What is the real value of your labor? Still accepting digital/paper promises?

LOL!  Someday, all those useless fucks will have to learn a tradable skill...

In the meantime...

"Full Faith and Credit"

css1971 serotonindumptruck Jan 4, 2018 5:46 PM Permalink

That was true historically, but they can manufacture flawless rubies easily now.

Real emeralds are much more difficult but they can also be manufactured. The process isn't quite as simple as rubies and good gem quality ones are still rare. I wouldn't bet on that remaining true in the future though.

Takeaway: We can make em easily. Supply is basically infinite. Don't bet the farm on gemstones.

In reply to by serotonindumptruck

Truthoutthere serotonindumptruck Jan 4, 2018 6:24 PM Permalink

The process of growing a synthetic emerald is actually quite simple once knowledge of temperature gradient and compound ratios are known.Essentially emerald(natural and synthetic) is Beryllium Aluminium Silicate with the colourisation coming from trace amounts of Chromium.One of the number of ways of producing synthetic emerald is by placing a seed plate of natural Beryl in a solution of the necessary compounds and elements at a higher starting temperature.Over a period of 6 months or so and as the temperature is gradually reduced the synthetics emerald grows outwards from the seed plate.When the solution is exhausted of 'ingredients' growth stops.A gemstone is then fashioned from the synthetic component of the crystal.Both a natural and synthetic emerald have similar optical and physical properties.Natural emerald may be separated from it's synthetic counterpart by microscope findings(each will have different internal inclusions such as fractures and minerals.Caveat emptor.

In reply to by serotonindumptruck