I am surprised that Venezuela has managed to prolong the collapse this long, because the evidence reveals that the vultures and money masters are attacking vulnerable currencies and have down graded Venezuela’s bonds yet again.
The People living in Venezuela are facing an emergency.
S&P, Fitch, and MOODY’S credit rating agencies have been slashing Venezuela’s rating repeatedly over and over again and again.
S&P cut in September 2014 from B- to CCC+ (which is seven levels below investment grade), then from CCC+ it was cut to CCC .
The following governments have consistently been listed with the “highest default probabilities” in percent of being unable to honor their debts within the next five years:
Greece 98.54%, Cyprus 70.08%, Argentina 55.36%, Portugal 51.87%, Pakistan 48.92%, Venezuela 47.74%, Ukraine 44.05%, Illinois/State of 38.67%, Spain 37.45%, and Ireland 35.73%
Earlier market reports recorded Venezuela’s foreign currency reserves are currently at their lowest level since 2003, dropping $5.7 billion this year alone to $16.4 billion.
“Venezuela’s sources of FX financing are limited, the sovereign last issued a global bond in 2011, and significant multilateral funding is not expected in 2015 – 2016.” –marketwatch.com
Some Venezuela regions have dealt with food and medical shortages.
Harvard University Professor, Ricardo Hausmann, predicts that Venezuela will have no choice but to default next year.
Recall that last year I recorded the Wall Street investors’ predicted that Venezuela would default this year 2015!
What is worse is that institutional investors are advising firms and clients to sell off their Venezuela bonds and stay away from buying any more!
Hedge funds are eyeing Argentina and Venezuela like hungry vultures.
After default, the bankers expect to repossess assets and property as bounty in the aftermath of their loan sharking schemes.
As always, Follow The Money. ~Ron
Video posted 01 Aug 2015