The Cartel Strikes Back: S&P Downgrades Venezuela to B+
 |
| The New Revolucion is GOLD |
The first retaliatory shot has been fired in the great gold war.
In another Friday night shocker, S&P tonight downgraded Venezuela's credit rating to B+ from BB-.
Shockingly, S&P actually admited that the reason for the downgrade was Hugo Chavez demanding Venezuela's gold be repatriated from the BOE (kept by JP Morgan and friends)!
S&P "expressed concern" that Venezuela's gold will no longer be held at The Morgue.
Bwahahaha!
Standard & Poor's on Friday downgraded Venezuela's credit ratings as it implemented a new methodology more heavily focused on political risk—a key weakness in the oil-producing country.
 |
Walker and Walker | Getty Images
|
Political risk has been a constant issue in Venezuela, where change in economic rules and nationalization of companies are common. Uncertainty about the health of President Hugo Chavez, who had surgery in Cuba earlier this summer to remove a cancerous tumor followed by chemotherapy treatment, has added to those risks, S&P said in a statement.
"In our opinion, changing and arbitrary laws, price and exchange controls, and other distorting and unpredictable economic measures have undermined private-sector investment and hurt productivity, weakening Venezuela's domestic economy," S&P analyst Roberto Sifon Arevalo wrote in a report.
Venezuela's vast oil and gas reserves "somewhat" offset the policy uncertainty, S&P said. The country posts steady current account surpluses which, combined with strict capital controls, result in positive net asset positions.
However, S&P expressed concern about the actual level of Venezuela's gold and foreign exchange reserves after reports that the country plans to repatriate them.
"When you have the reserves held abroad, you do have some level of confidence," Arevalo told Reuters in an interview. "That is not going to be the case anymore. They are going to be held at the central bank domestically, then you fall in the same circle of lack of transparency that everything else has in Venezuela."
Replies to This Discussion
-
Permalink Reply by Maria De Wind on
-
Hmm, let's review: They've got Oil and they've got Gold. Sounds like Venezuela just became the new land of opportunity. The S&P just lost whatever shred of credibility it still had.
The worry is "they might be next Libya" as Libya had exactly the same oil & gold, since Chavez, is not part of the cartel, they will 'create' a reason to 'regime change'
-
-
Permalink Reply by KingKhan on
-
S&P lost "all" credibility when they were giving AAA ratings to mortgage backed security funds days before they collapsed and caused the economic disaster. And we cant forget about the 2 trillion dollar mistake they made when downgrading the US credit rating. Oops.
Their credit ratings are a joke.
In terms of Venezuela, I'm sure the US has sent in their jackals and something is brewing.
-
-
Permalink Reply by Jose Villarreal on
-
From the looks of it this seems like it is going to be quite a feat. See this article
http://lonerangersilver.wordpress.com/2011/08/20/traders-brace-for-... -
-
Permalink Reply by Nikki on
-
I was wondering what the blowback would be
http://12160.info/video/chavez-calls-back-venezuelan-gold-interview...
-
-
Permalink Reply by guest_blog on
-
-
-
"Destroying the New World Order"
THANK YOU FOR SUPPORTING THE SITE!
Latest Activity
- Top News
- Everything
entitlement
Congress makes Social Security that we paid in our whole lives into to some government giveaway and…
Death Threats for Assisting ICE?
An Idaho Bar Helped ICE And Faced This Sick Backlash From DemocratsDecember 10, 20254 minute read…See More
'They’re Waiting for Us to Die': Area 51 Veterans Plead for Trump’s Help | Elizabeth Vargas Reports
Congress quietly killed the one fix that could have helped America’s “Area 51 veterans” prove where they served — and get the care they say they’ve earned.WA...
"Hope you enjoyed your thanksgiving day. I've often thought it'll good if I could send…"
I joined Facebook after 5 years of suspension!!! It went as expected.
"Thats a mighty attempt lionhearted. The true art of perseverance so thumbs up!"
Who Were the Silver Ghosts and Fork Tailed Devils Over Germany in WWII?
The year is 1943 and the Germans are punishing the US Eighth Air Force during their daylight…See More
THE GREAT FLOOD Official Trailer (2026) Netflix | Global Disaster Movies 4K
🌊 A world pushed past the breaking point.In THE GREAT FLOOD (2026), rising oceans, collapsing cities, and unstoppable storms trigger a global disaster unlik...
Mothman Prophecies
When suddenly the universe looked downIt seemed everything came unwoundI wondered if my sanity was…See More
"Joined Facebook after a 5 year absence. One absolutely undeniable picture that Hunter was in!!!!"
The 100 Series Designated for SAC and a Possible WWIII
The “100 Series” as these fighter aircraft were labeled were a succession of Mach II capable…See More
© 2025 Created by truth.
Powered by
