While the situation in Venezuela is horrific I would argue, as I have on a
number of occasions, the entire Venezuelan situation was created by the
Federal Reserve through one of their main banking “generals”, Goldman Sachs.
The reason for my speculation is simple – gold. Venezuela asked for, and received, the return of their gold. As
soon as it arrived Venezuela began having economic problems. Venezuela, like
many nations around the world, is dependent upon Federal Reserve Notes, the
world reserve currency, in order to conduct business with other nations.
Combine this with economic sanctions from the U.S. and a small nation like
Venezuela can get into trouble pretty quickly, and she did. Goldman Sachs offered to loan funds against the gold, Venezuela refused
and their situation deteriorated further.
Fast forward to today and we find Venezuelan President Chavez dead,
incompetent President Maduro destroying the economy to save it and a whole
host of other problems.
Enter China.
China’s Development Bank has loaned Venezuela $5billion equivalent using
oil as collateral. For long time readers of The Daily Coin you are well aware
we have been covering China’s financial systems development and the
integration with the global markets. To this point she has not made any moves
in central or South America. China has been in discussions, for many years,
with Mexico regarding their participation in the BRICS alliance; to date,
there is no real commitment from either side.
This brings us to what is happening right now.
China’s Development Bank has approved a US$5-billion loan for Venezuela’s
oil industry, Bloomberg reports, quoting
the troubled South American country’s Finance Minister Simon Zerpa.
“We’ve received the authorization for a direct investment of more than
$250 million from China Development Bank to increase PDVSA production, and
we’re already putting together financing for a special loan that China’s
government is granting Venezuela for $5 billion for direct investments in
production,” the official said.
The loan is literally a lifeline for PDVSA, which has been unable to stop
an accelerating production decline resulting from years of mismanagement and
a cash crunch brought about by the tightening grip of U.S. sanctions. Source
As Venezuelan President Maduro continues to destroy the economy of
Venezuela and drive people out of the country and suffer through 43,000%
inflation it seems like a logical conclusion that China is going to call this
loan due and will at that point own the ocean of Venezuelan oil. The oil is
far from the best, it actually is some of the worst oil to be found, however,
Venezuela is floating on a massive pool.
As a major creditor and ally, China is sure to benefit from some
preferential oil export conditions amid rising international prices that
would ensure its continued backing of Caracas.
“One of the best things about Venezuelan oil was its stable volumes for
all these years and competitive prices,” a senior Chinese oil industry
official with direct knowledge of the Venezuelan supply issues told Reuters
last month. “But now they seem in very bad shape, not having the money to
upgrade port facilities, no money even to remove the high water content in
crude oil.” Source
China is the worlds largest user of oil and this would go a long way to
creating a long term stable oil supply. China is doing the exact same thing
in Africa with purchasing massive tracts of land for farm production.
Combining these two strategic elements to long term stability of their nation
China is now set up to surpass all of the western “developed” world and never
again play second fiddle to the war lords of the west.
What’s happening in Venezuela begs the question regarding President Trump
being told it may be a good idea to “invade” Venezuela. Why would the U.S. wish to invade Venezuela, other than to start a
proxy war with China or steal the oil she is sitting on?
As far back as August 2017 the Trump administration was discussing
“invading” Venezuela.
“I’m not going to rule out a military option,” Trump told reporters at his
New Jersey golf club discussing recent events in Venezuela. “We
have many options for Venezuela, including a possible military option, if
necessary,” Trump said after a meeting with Secretary of State Rex
Tillerson and UN Ambassador Nikki Haley. Source
This sounds more like “locker room talk” than serious pursuit. Was this a
warning to Venezuela, Russia and China the U.S. is paying close attention and
will be happy to drop love bombs at a moments notice? The reason we ask is
simple. July 4, 2018 President Trump was discussing the real possibility of
“sending tanks” to Venezuela.
Apparently, President Trump’s offhanded remarks about sending tanks to
Venezuela were more than just a scare tactic. Trump reportedly asked a group
of senior administration officials why the US couldn’t simply invade
Venezuela during a meeting in the Oval Office, according to the New
York Post. The meeting was called to discuss sanctions against members of
the Venezuelan regime.
We can only look at what is presented and attempt to see through the fog.
It doesn’t make sense, at least not to me, to even be discussing military
action against Venezuela. Why would this be a topic of discussion? China
being in the backyard, Federal Reserve Notes and gold, that’s why.
