21-Sep-17 World View -- With Trump's sanctions in place, Venezuela expected to go bankrupt soon

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John
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21-Sep-17 World View -- With Trump's sanctions in place, Venezuela expected to go bankrupt soon

Postby John » Wed Sep 20, 2017 10:56 pm

21-Sep-17 World View -- With Trump's sanctions in place, Venezuela expected to go bankrupt soon


Maduro tells Venezuelans to breed and eat rabbits

** 21-Sep-17 World View -- With Trump's sanctions in place, Venezuela expected to go bankrupt soon
** http://www.generationaldynamics.com/pg/xct.gd.e170921.htm#e170921



Contents:
With Trump's sanctions in place, Venezuela expected to go bankrupt soon
Analyst advises Venezuela on keeping its assets safe from creditors
Maduro tells Venezuelans to breed and eat rabbits


Keys:
Generational Dynamics, Venezuela, Nicolás Maduro Moros, Hugo Chávez,
Petróleos de Venezuela, S.A., PDVSA, Fitch Rating, Freddy Bernal,
Mark Walker, Millstein & Co, Richard Cooper, Cleary Gottlieb

Tom Mazanec
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Re: 21-Sep-17 World View -- With Trump's sanctions in place, Venezuela expected to go bankrupt soon

Postby Tom Mazanec » Wed Sep 20, 2017 11:06 pm

Is rabbit food edible by humans? If so, it would make more sense for the Venezuelans to eat the greens and not use them to fatten the rabbits. It takes 10 calories of vegetables to make 1 calorie of meat.

John
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Re: 21-Sep-17 World View -- With Trump's sanctions in place, Venezuela expected to go bankrupt soon

Postby John » Wed Sep 20, 2017 11:08 pm

Tom Mazanec wrote:Is rabbit food edible by humans? If so, it would make more sense for the Venezuelans to eat the greens and not use them to fatten the rabbits. It takes 10 calories of vegetables to make 1 calorie of meat.



Maduro is an idiot.

Coordinated fires
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Re: 21-Sep-17 World View -- With Trump's sanctions in place, Venezuela expected to go bankrupt soon

Postby Coordinated fires » Wed Sep 20, 2017 11:19 pm

In my opinion, Maduro's government is headed in the same direction as the government of Syria...
Why do I get the feeling this won't end well...
Politics is war by other means

Guest

Re: 21-Sep-17 World View -- With Trump's sanctions in place, Venezuela expected to go bankrupt soon

Postby Guest » Thu Sep 21, 2017 8:46 am

Couldn't Venezuela just declare bankruptcy and pay back creditors pennies on the dollar like Argentina and other countries have done? Why do some countries have to pay dollar for dollar? Investing in Latin America is casino gambling. What do investors really expect? I expect nothing from Latin Americans.

John
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Re: 21-Sep-17 World View -- With Trump's sanctions in place, Venezuela expected to go bankrupt soon

Postby John » Thu Sep 21, 2017 12:54 pm

Guest wrote:> Couldn't Venezuela just declare bankruptcy and pay back creditors
> pennies on the dollar like Argentina and other countries have
> done? Why do some countries have to pay dollar for dollar?
> Investing in Latin America is casino gambling. What do investors
> really expect? I expect nothing from Latin Americans.


Of course Venezuela and Maduro can do anything they want, including
simply ignoring their bond repayment obligations. I'm sure Maduro
would love to do that, but the problem is that if he does that, then
neither the government nor PDVSA will be able to borrow any more money
on international markets. Furthermore, imports of all products would
have to be done on a cash-only basis.

The Walker/Cooper proposal would allow Venezuela to declare bankruptcy
in an orderly fashion. They would still not be able to borrow on
international markets, but they could get substantial loans from the
IMF, which could be enough to get them by, which is what happened in
Greece and other countries.

Coordinated fires
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Location: Merica

Re: 21-Sep-17 World View -- With Trump's sanctions in place, Venezuela expected to go bankrupt soon

Postby Coordinated fires » Thu Sep 21, 2017 7:40 pm

Guest wrote:Couldn't Venezuela just declare bankruptcy and pay back creditors pennies on the dollar like Argentina and other countries have done? Why do some countries have to pay dollar for dollar? Investing in Latin America is casino gambling. What do investors really expect? I expect nothing from Latin Americans.


They can yes, but that is somewhat of a last resort that the government would not wish to undertake until there is absolutely no rope left, since doing so would severely limit their ability to access capital in the future. Just like your personal finances, you can easily declare bankruptcy but your credit is completely trashed for 7 years.

The question is, where is the floor? If oil prices continue to remain stagnate and the foreign reserves reach zero, then the clock is going to start on a default.

Venezuela( read state owned Venezuelan oil companies) have lots of assets as well. Creditors will demand some of those assets be liquidated, another reason to delay such an action for as long as possible while they hope for crude prices to rebound.
Politics is war by other means


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