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View Full Version : US Bans trading Venezualan debt Trump issues EO/sanctions




nikcers
08-25-2017, 02:05 PM
President Donald Trump signed an executive order (https://www.treasury.gov/resource-center/sanctions/Programs/Documents/ven_eo_08252017.pdf) approving the sanctions Thursday. “In an effort to preserve itself, the Maduro dictatorship rewards and enriches corrupt officials in the government’s security apparatus by burdening future generations of Venezuelans with massively expensive debts,” Press Secretary Sarah Huckabee Sanders said in a statement.

bunklocoempire
08-25-2017, 02:20 PM
Finally, some U.S. infrastructure/stimulus talk!

...oh wait

nikcers
08-25-2017, 02:25 PM
Finally, some U.S. infrastructure/stimulus talk!

...oh wait

Well they are finally worried about debt..


burdening future generations of Venezuelans with massively expensive debts

timosman
08-25-2017, 02:27 PM
Well they are finally worried about debt..

We are the good guys.

bunklocoempire
08-25-2017, 02:28 PM
America has the best debt.

roho76
08-25-2017, 04:30 PM
America has the best debt.

It's gonna be yuge! You'll see.

timosman
08-25-2017, 04:53 PM
America has the best debt.

and an unlimited line of credit.

Zippyjuan
08-25-2017, 06:07 PM
Pence had said that the US "“will not standby as Venezuela crumbles.” Guess they want to help it crumble. Will the sanctions change anything? Like they did in Cuba after 50 years? (Sanctions can give a failed government an excuse for their own failures- "It was the US sanction's fault!")

Will the sanctions really do much? https://www.washingtonpost.com/world/national-security/trump-administration-moves-to-restrict-venezuelan-access-to-us-financial-system/2017/08/25/18b22a5e-89ad-11e7-a50f-e0d4e6ec070a_story.html?utm_term=.d58a7e9408df


The sanctions would prevent, for instance, a repeat of a $2.8 billion bond deal with Goldman Sachs reached earlier this year that gave the cash-strapped Venezuelan government an important lifeline. Yet Venezuela’s growing international isolation because of Maduro’s power grab, coupled with its fast-eroding financial stability, has already effectively shut it out of debt markets, with investors seeing it as too great a risk.


“It won’t have any important impact in terms of financial flows to Venezuela, because there aren’t any to speak of right now,” said Siobhan Morden, managing director and Latin America expert at Nomura Holdings.

Their real source of income is oil- and the US is their biggest buyer (and they buy lots of oil products from us- they can't refine their oil themselves because it is thick and sulphurous).


U.S. officials called the new financial penalties calibrated and acknowledged that they are less severe than some of Maduro’s critics had requested. Venezuela can still export oil to the United States and import it from here. Venezuelan heavy crude oil is crucial to some U.S. refiners, which are geared to handle that specific type. Venezuela imports lighter crude, including from the United States.

Then there is the claim by Trump during the election that he would not meddle in the affairs of other countries.

goldenequity
08-25-2017, 06:46 PM
We are the good guys.

It's just sheer financial raw power and control..
We literally FUNCTION as a Global Corporation (masquerading itself as a 'Country')
This is executed and performed as dispassionately as Science might look an insect.

They'd much prefer using the World Bank loans to ensnare Latin America
by indebting, plundering assets, installing Goldman Sachs leadership, taxing future generations and demanding 'austerity'
as described in the 'Financial Hitman' account.

But in the final analysis
'Resistance' will not be tolerated.
It's basically the financial equivalent of waterboarding to get what we want.

It's then 'handed off' to the 'silver tongues'
to 'spin' it as 'compassion'.... because 'we care' about Venezuelans.

behold:


The Trump administration introduced sanctions Friday to prohibit Venezuela's national leaders from accessing U.S. credit or selling bonds to Americans, but specifically and purposefully don't hit the country's oil industry.

Senior administration officials avoided directly answering whether a potential fifth wave of sanctions against the government and its leaders would affect oil exports, a major source of wealth for the South American country.

"What we're trying to do here is create a series of escalatory measures that we can take," one official told reporters during a call organized by the White House.

"Obviously the U.S. has a lot of influence over the Venezuelan economy, but it doesn't mean we want to go rush in and use our influence in an irresponsible manner," they said when asked about oil.

The new sanctions are aimed at putting pressure on the government of socialist President Nicolas Maduro, after he assembled a Constituent Assembly to bypass the opposition-controlled National Assembly as the economy tanks amid massive protests.

The sanctions restrict debt restructuring by the state oil company PDVSA, but do not block the company from accessing U.S. credit for fuel transportation. "This was done very deliberately," one official said, by allowing short-term debt.

Citgo, the Venezuela-owned company that runs a large number of U.S. gas stations, is treated specially, officials said. The company will be allowed to continue to access U.S. credit, an official said, but distribution of dividends or other profit-sharing will be limited.

"This is a preemptive measure to ensure the Maduro dictatorship does not subsequently loot Citgo as these measures go into effect," one official said. The U.S.-based company last year became 49.9 percent owned by Russia's state-controlled Rosneft, which is also the subject of separate U.S. sanctions.

"There are multiple provisions that exist to allow Citgo to continue its business operations and make sure the regime does not loot them to sustain its campaign of repression," one official said.

"No, this is not an oil embargo, in fact we specifically provide flexibility to allow transactions in the oil sector to continue, that's why the 90-day rule on PDVSA debt is allowed," an official told reporters.

They added: "This is a prohibition on the Maduro regime accessing U.S. capital markets for the purpose of underwriting its repression of the Venezuelan people."



http://www.washingtonexaminer.com/not-an-oil-embargo-venezuela-exports-citgo-shielded-from-new-sanctions/article/2632583




The end-run AROUND all of this 'control' by the 'gatekeepers'
is Russia's intense interest in developing trade and banking exchanges
allowing for block-chained ledgers and crypto-currency to replace the dollar
bypassing 'sanctions' and institutional tracking/contol on available TRILLIONS
in offshore accounts, Sovereign wealth funds and foreign reserves.

Debt will still be debt but the 'Mother may I...' will be replaced by unfettered risk/reward agreements.

Think of it like
the entire 'investment' world being able to run around with (crypto) CASH
(instead of Debt Instruments/'Credit Cards' that can be shut off at a whim)

perhaps this makes more sense now:

“Pallets of cash were used because sanctions continued to shut Iran out of the international banking system.”