Venezuela is Selling its Gold for Cash!

[Shami-Amourae]

http://money.cnn.com/2015/10/29/news/economy/venezuela-selling-gold/



The cash-strapped country could default by next year when lots of debt payments are due. Venezuela's reserves, which are mostly made up of gold, have fallen sharply this year asthe country needs cash to pay off debt and tries to maintain its social welfare programs.





Venezuela owes about $15.8 billion in debt payments between now and the end of 2016.


But it doesn't have enough to make good on its payments. Venezuela only has $15.2 billion in foreign reserves -- the lowest amount since 2003. A lot of those reserves are in gold.


Less than $1 billion of Venezuela's reserves are in cash, and it has a couple billion in reserves at the IMF.
http://i2.cdn.turner.com/money/dam/assets/151028155456-venezuela-selling-gold-780x439.jpg

http://i2.cdn.turner.com/money/dam/assets/151028135720-venezuela-cash-780x439.jpg http://i2.cdn.turner.com/money/dam/assets/151028135754-venezuela-gold-780x439.jpg

[Shami-Amourae]

https://www.youtube.com/watch?v=cIPP9Q05wGY

[Glass]

So they have one choice to make. I bet they make the wrong one.

[Shami-Amourae]

Basically they have a shit ton of natural resources and wealth.

They destroy it all with their idiotic Socialist government/ideas.

They now need to sell off their Gold to survive with their insane system.




This could possibly happen with China too as the economy worsens. Basically all these countries buying Gold will end up selling them, further driving the prices down.

[Glass]

maybe if they are selling into a spot market, but that gold might not even touch open market inventories, instead being horse traded in the dead of night directly into the bond holders vault. I expect that is how it will pan out.

The two main things wrong with socialism are the Givernment masses who get something for nothing and the lack of enforcement against graft, corruption and waste within the organs of government. But this is the plan of socialism. It's just a short portion of the journey onto the utopia of totalitarianism. And they are in it like the rest of us. Some countries will get there before others.

[monty]

With a socialist bus driver steering the country what can possibly go wrong?

[Horn]

I see how that works now,

England passes Tungsten bars to Venezuela then Venezuela gets put on the hook for passing them to China.