I just saw this in a newsletter (free) from US Global Investors. Interesting development if you ask me. Nothing but fleas by lying down with that dog. Threats Goldman Sachs is set to swap $1.68 billion in cash with the Venezuelan central bank, to be backed by $1.85 billion of the nation's gold reserves. The terms of the loan dictate the South American government will pay 7.5 percent plus three month LIBOR over seven years, with Goldman Sachs holding the gold in a margin account. Speculation has been rampant after some details of the story were leaked to the press, with some analysts calling the transaction a classic, non-transparent emerging market transaction where deduction is necessary to guesstimate where the story is going. In our view, the gold provided by Venezuela to Goldman Sachs will create another source upon which the bank can write and sell massive paper gold bets on, increasing the already speculative paper gold market, and continuing to disturb the well-earned reputation of physical gold.
After all that Hugo Chavez did to get the country's gold back from Germany, the ECB & New York... how bloody ironic - the octopus' tentacle snafus yet another central bank by substituting phyzz for paper notes of debt (and in Chavez' case, death I guess). Utterly appalling, but entirely predictable. Also makes you wonder what the new leaders of VE are doing with the economy - it's one of the most productive petrodollar & resources countries in S America as you probably know...
Would hate to have to choose between GS & Venezuela as to which one is lying, but Venezuela has denied doing this.
Just before the last gold smash were we not told that Cypress was going to sell its gold. This sounds like a familiar story (aka lie)
Got a link to any storing confirming that the Cyprus sale actually took place? All I have seen is stories claiming they would have to sell their gold, Cyprus denying it and nothing since that time.
The Venezuela thing with GS is already being hushed-up lol! As far as I'm aware the deal's already (probably) done... Money talks, obviously... Chavez must be turning en su tumba... (Reuters) - Venezuela's central bank president denied on Thursday that the institution is carrying out any transactions with Wall Street banks, a day after a senior government source said it was evaluating a swap agreement involving its gold reserves (*with Goldman Sachs*). http://www.reuters.com/article/2013/11/28/us-venezuela-economy-idUSBRE9AR0JG20131128
2 months ago (I think), Venezuela nationalised the toilet paper factories because the government has crippled the economy to the point no once can afford the free market price of toilet paper. So now the government subsidises what people put down the toilet, further driving their economy down the toilet. Then last month we saw videos of mobs looting electronics stores the goverment gave the OK for mobs to smash their way into as the companies were not following the commies' price controls. The price for daring to sell televisions at a profitable price instead of the governments' unprofitable price? Government sanctioned looting. The Venezuelans probably thought they had done something positive by repatriating their gold. In reality it was their government preparing to piss all the national gold away. Edit Just looked at the wikipedia page for the Venezuelan economy and it states in November 2013 (official) inflation was at 54.3!
Ronnie I hate to ruin a good argument with facts, but the gold wasn't sold. So I guess the story that the gold was sold was actually the lie. Headline - "Cyprus central bank has no plan to sell gold reserves-sources" See article below: http://finance.yahoo.com/news/cyprus-central-bank-no-plan-102007379.html
Spot on! And they are using rumours as cover for the smack downs and shatter any bullish sentiment over and over again. What's happening will go down in history and some of us maybe telling this story to our grandchildren as they play with their nextbox720
