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Venezuela is shipping gold to pay debt
krcrtv ^ | 02/25/2016 | Patrick Gillespie

Posted on 02/25/2016 5:44:22 PM PST by BenLurkin

Venezuela sent $1.3 billion worth of gold bars to Switzerland in mid-January, according to data from the Swiss Federal Customs Administration.

That gold was shipped out just weeks before two big debt payments due this month, totaling $2.3 billion. On Friday alone, Venezuela has to pay bondholders $1.5 billion.

Venezuela is running out of cash and many experts believe there's a high chance it will default by this fall when a string of big debt payments are due.

"It's a question of when Venezuela will default, not if," says Russ Dallen, managing partner at LatInvest, a firm that invests in Latin America. "They're running out of options."

That's why the country is using its dwindling gold reserves to make debt payments. But experts say it has to ship the gold all the way to Switzerland for two likely reasons:

1. Switzerland is one of the largest hubs for gold in transit and has the most trusted stamp of purity. So once Switzerland verifies the quality of the gold, Venezuela can then sell it for cash.

2. Venezuela can also put up its gold as collateral in exchange for a cash loan from banks in what is known as a "gold swap."

(Excerpt) Read more at krcrtv.com ...


TOPICS: Business/Economy; Cuba; Russia
KEYWORDS: bitcoin; cryptocurrency; cuba; gold; goldbugs; hugochavez; hugochavezlegacy; latinvest; nicaragua; nicolasmaduro; russia; switzerland; venezuela; venezuelacrisis; venezuelagold
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1 posted on 02/25/2016 5:44:22 PM PST by BenLurkin
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To: BenLurkin

Which domino is going to cause all the other dominoes to fall?


2 posted on 02/25/2016 5:45:34 PM PST by E. Pluribus Unum ("The goal of socialism is communism... Hatred is the basis of communism" --Vladimir Lenin)
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To: BenLurkin

fed x?


3 posted on 02/25/2016 5:46:51 PM PST by al baby (Hi Mom yes I know)
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To: BenLurkin

I will gladly accept all the Lyman #2 alloy they have, LOL!


4 posted on 02/25/2016 5:47:06 PM PST by txnativegop (Tired of liberals, even a few in my own family.)
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To: BenLurkin

Not one month ago, I read a story about how Chavez shut down a major gold mining operation in Venezuela.


5 posted on 02/25/2016 5:49:29 PM PST by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto!)
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To: BenLurkin

How long before Obama:

1. Blames Bush
2. Apologizes for the U.S. and
3. Promises to send Venezuela a few billion dollars to bail them out?


6 posted on 02/25/2016 6:02:45 PM PST by Bubba_Leroy (The Obamanation Continues)
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To: BenLurkin

I hear that the daughter of the late Venezuelan dictator, Hugo Chavez, has over a billion dollars. Maybe she can kick in some money and buy some toilet paper for her people. Isn’t socialism great.


7 posted on 02/25/2016 6:13:26 PM PST by forgotten man
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To: BenLurkin

Insured?


8 posted on 02/25/2016 6:13:29 PM PST by Big Red Badger (UNSCANABLE in an IDIOCRACY!)
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To: Bubba_Leroy
How long before Obama:

1. Blames Bush
2. Apologizes for the U.S. and
3. Promises to send Venezuela a few billion dollars to bail them out?

Who knows? Saturday afternoon maybe? You know he will, however.

9 posted on 02/25/2016 6:17:20 PM PST by Mark17 (Thank God I have Jesus, there's more wealth in my soul than acres of diamonds and mountains of gold)
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To: forgotten man

“I hear that the daughter of the late Venezuelan dictator, Hugo Chavez, has over a billion dollars.”

I think it’s a little over 4 billion dollars.


10 posted on 02/25/2016 6:17:27 PM PST by PLMerite (The Revolution...will not be kind.)
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To: BenLurkin

The Venezuelan government is running out of other people’s money? What a shocker!

Nothing a free market economy couldn’t fix in less than a decade.


11 posted on 02/25/2016 6:18:20 PM PST by Two Kids' Dad (((( ))))
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To: BenLurkin

This is why the current low price of oil won’t stay low for long. The political and economic instability of Venezuela could result in a halt of oil exports, and that will have huge impact on the price of crude oil since Venezuela supplies a good fraction of the crude oil for Western Hemisphere.


12 posted on 02/25/2016 6:27:50 PM PST by RayChuang88 (FairTax: America's Economic Cure)
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To: BenLurkin

1.3 billion in gold would have bought a hellovalotta toilet paper.


13 posted on 02/25/2016 6:31:47 PM PST by Slyfox (Ted Cruz does not need the presidency - the presidency needs Ted Cruz)
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To: BenLurkin

Once they go completely broke they will turn away from Democratic Socialism, break out the guns and usher in some real Communism.


14 posted on 02/25/2016 6:33:04 PM PST by RetiredTexasVet ("Just living the life" in Democratic Socialist Venuzuela, EU, Argentina, etc. /S/)
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To: combat_boots

TO #5. Yeah, Chavez’s “major gold mining operation” closed because sane Jews left the country and he couldn’t carry out his plan to take their gold teeth, or those from anyone else he could catch.

Don’t think that the Communists haven’t done this in the past.


15 posted on 02/25/2016 6:43:47 PM PST by MadMax, the Grinning Reaper
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16 posted on 02/25/2016 7:00:57 PM PST by DoughtyOne (Facing Trump nomination inevitability, folks are now openly trying to help Hillary destroy him.)
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To: BenLurkin

Isn’t it interesting that gold can move from Venezuela to Switzerland but the Germans cannot get their gold from New York?


17 posted on 02/25/2016 7:12:42 PM PST by MSF BU (Support the troops: Join Them.)
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To: BenLurkin; E. Pluribus Unum; forgotten man; Two Kids' Dad; RayChuang88; RetiredTexasVet; ...
When I saw an article that the U.S. external debt now exceeded annual GDP, I decided to see how other countries stood. For Venezuela debt is 51.25% of GDP. The G-20 countries are at 74.85%. The countries of the European Union are at 178.57%. They would be at 158.51% without Luxemburg. With debt of $3.472 trillion and a GDP of only $66 billion, its ratio is 5,285.99%. Now that is weird.

I looked up at random other countries we would never consider economic powerhouses and found an average ratio of 35.23%. They were Belarus, Sri Lanka, Uruguay, Uganda, Columbia, Lebanon, Honduras, Zambia, Cuba, Malaysia, Kazakhstan, Vietnam, Peru, Puerto Rico, Angola, Albania, Egypt, Botswana, Venezuela, Chile, Philippines, Algeria, Bangladesh, and Paraguay.

Here are the links in case you want to have some fun with the numbers.

List of countries by GDP (nominal)
https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

List of countries by external debt
https://en.wikipedia.org/wiki/List_of_countries_by_external_debt

18 posted on 02/25/2016 7:15:16 PM PST by Retain Mike
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To: BenLurkin

http://www.bloomberg.com/news/articles/2012-01-31/venezuela-receives-last-shipment-of-repatriated-gold-bars-1-


19 posted on 02/25/2016 7:21:02 PM PST by ameribbean expat
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Folks, if you're reading this, you know what needs to happen.
It doesn't take a big contribution. Pick your comfort level and
please join others to help put the FReepathon to rest. Thank you.

20 posted on 02/25/2016 7:31:06 PM PST by DoughtyOne (Facing Trump nomination inevitability, folks are now openly trying to help Hillary destroy him.)
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