This article was written by Tyler Durden and originally published at Zero Hedge.
Editor’s Comment: Underneath it all, there is the gold. They try to persuade people against the logic that he who holds the gold makes the rules, but look around at reality.
Gaddafi was sitting on a huge gold reserve that he was attempting to use as backing for a Pan-African currency that was independent of the U.S. petrodollar, and he was brutally killed for it; the gold disappeared. From 9/11 to Iraq and many other crises, gold finds a way to disappear from the scene of the crime and repatriate to new holders.
Now, while Venezuela collapses in perfect-storm combination of the stupidity of socialism and the artificial collapse of the oil price, and its people starve and live through complete chaos, the very Wall Street power players who have helped facilitate much of the world’s crises is now in position to hold all the cards. A billion in gold… probably just the beginning.
Did Citi Just Confiscate $1 Billion In Venezuela Gold?
by Tyler Durden
Just over a year ago, cash-strapped Venezuela quietly conducted a little-noticed gold-for-cash swap with Citigroup as part of which Maduro converted part of his nation’s gold reserves into at least $1 billion in cash through a swap with Citibank.
As Reuters reported then, the deal would make more foreign currency available to President Nicolas Maduro’s socialist government as the OPEC nation struggles with soaring consumer prices, chronic shortages and a shrinking economy worsened by low oil prices. Needless to say, the socialist country’s economic situation is orders of magnitude worse now.
According to El Nacional, “the deal was for $1 billion and was struck with Citibank, which is owned by Citigroup.”
As Reuters further added:
“former central bank director Jose Guerra and economist Asdrubal Oliveros of Caracas-based consultancy Ecoanalitica said in separate interviews that the operation had been carried out. A source at the central bank told Reuters last month it would provide 1.4 million troy ounces of gold in exchange for cash. Venezuela would have to pay interest on the funds, but the bank would most likely be able to maintain the gold as part of its foreign currency reserves.”
On paper yes – very much as any comparable gold leasing operation conducted by sovereign nations with central banks – but the actual physical gold would be transferred to an unknown vault of Citi’s choosing where it would become an asset controlled by the bailed out US bank.
We note this peculiar gold swap case because something curious took place overnight. On the same day that Venezuela announced it would seize a local Kimberly-Clark factory after the US consumer-products giant announced it would shutter its Venezuela operations after years of “grappling with soaring inflation and a shortage of hard currency and raw materials”, Venezuela’s President Nicolas Maduro said on Monday that Citibank planned to shut his government’s foreign currency accounts within a month, denouncing the move by one of its main foreign financial intermediaries as part of a “blockade.”
Among the many reasons why the sudden departure is surprising is that due to strict currency controls in place since 2003, the government relies on Citibank for foreign currency transactions, meaning that suddenly Venezuela’s financial “blockade” is indeed about to get worse.
“With no warning, Citibank says that in 30 days it will close the Central Bank and the Bank of Venezuela’s accounts,” Maduro said in a speech, adding that the government used the U.S. bank for transactions in the United States and globally.
In typical bluster, Maduro added: “Do you think they’re going to stop us with a financial blockade? No, gentlemen. Noone stops Venezuela.”
What Maduro did not mention is that among the central bank accounts closed by Citi will be at least one, rather prominent, gold swap launched just over a year earlier.
Reuters adds that Citibank, could not immediately be reached for comment about the purported measure against Venezuela’s monetary authority and the Bank of Venezuela which is the biggest state retail bank.
With the OPEC nation’s economy immersed in crisis, various foreign companies have been pulling out or reducing operations. However, few of them held over $1 billion in Venezuela gold as hostage.
So during his next address, perhaps someone inquire Maduro if as part of its “blockade” Citi also absconded with a substantial portion of the country’s gold reserves, and if so, which other banks have comparable “swap” arranagements with the insolvent nation?
Meanwhile, Hugo Chavez, who spent the last years of his life repatriating Venezuela’s gold is spinning in his grave.
This article was written by Tyler Durden and originally published at Zero Hedge.
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Let us hope so. This is what they wanted, and now they are getting it. No one feels sorry for these turds.
Sgt.
Who’s “they”?
I certainly feel sorry for the Venezuelans digging through the garbage for something to eat, or dying in filthy hospitals where there are no medical supplies. Are you saying you don’t?
Remember that when SHTF in the US, millions of people around the world won’t feel sorry for all the decent, innocent Americans caught in the middle of it all. While the banks mop up billions, they’ll be posting cruel statements much like yours…
Sarg Dale:
..
I feel very sorry for the poor of Venezualea who are starving. I hate the Globalists. They live like kings and have no regard for the suffering they cause.
We, here at SHTF can only watch as this plays out. But do not let it be a lesson wasted on you. It may be extra work and inconvenience, but all Americans should plan for similar circumstances occurring on our soil. Get your hands dirty. Embrace your green thumb. See how much food you can produce out in your own back yard.
Rabbits are quiet. They multiply quickly. They are a good source of protein. They can be kept in urban and suburban settings without disturbing the neighbors.
Hey SGT. Why are you such a hard ass? How about the Bank you have your house Mtg with calls you up and said they are calling your MGT loan die in Full in 30 days or they take your house and kick you out? That is very possible. Its predatory lending. A set up scam to swindle the Gold. The real lesson here is Dont be a debt slave. Unfortunatly this is no different than the US Housing bubble. Loaning money to those who will never be able to pay it back. Crash the economy. Job lose equals house loss. Know who holds all the cards and what ones they can play to beat you. I have no debt, just a few minor Mo. bills and good income. I refuse to rack up debt I could not pay back. Every decision you make is what got you to where you at today. Make smart daily decisions. The US Banking Cartel make other countries borrow at fun point. So don’t slam Venezuela for be robbed.
-WWTI.
OFF TOPIC ALERT
Hate to do this guys but I need information. I live in a trailer and would like to go to solar power.Currently the arrangement is I share with three other trailers electricity power connected by wires. Would it be feasible to put the panels on my roof and then get an electrician to do the work neccessary to seperate me from the others? I only need power for an A/C,fridge,and computer.Thanks in advance
Are you planning on going grid connected or grid disconnected? If grid disconnected, you will need an inverter, a battery bank and a charge controller in addition to the panels. The solar panels by themselves put out around 12-24 volts DC if I guess right and you need 120 volt AC at 60 hz to run American electrical appliances. My opinion is that you should run a separate circuit in the trailer for just the three solar circuits. This way you are not grid dependent for your most basic electrical needs and can still use the grid for everything else.
WS
Good advice. Hard to cover everything.
Sgt.
Go to Youtube and find “Enigmatic Nomadic”. He has videos on solar for RV or vans and how to power a small A/C on solar.
Also “Simple Solar Homesteading” has videos on types of solar panels and their benefits or shortcomings. You could save a bundle if you can get the right equipment at the start.
Good Luck
Keep the ac and low voltage separated. The existing 12 or 14 ga. wires won’t handle the loads at 12 volt. LED lights don’t use much, but fridges are electric hogs. Also, if you can afford it, go gas/12v. fridge and freezer. If you have battery issues the gas will automatically kick in. Maybe pick up used ones on craigslist or a camper store.
South side,
What kind of trailer? Most RV’s are wired for dual voltage systems. If you have a mobile home, it is a different story.
Socialism didn’t cause this and capitalism didn’t cause the problems in the US economy.
GLOBALISM is the “ism” you’re looking for. The whole world is controlled by the globalist bankers that try to keep you distracted with arguments about different types of economic theories. Capitalism no longer exists in the US. It’s a banana republic third world oligarchy now with riots and thievery and grifters in charge.
It’s all interconnected now folks and if you don’t play the way the bankers want, you get overthrown or crushed. Read “Confessions of an Economic Hit Man”. This has been going on since at least WWII.
Correct you are JRS –
What we are seeing in Venezuela, is the direct results from US Foreign Policy. US Government intervention put their economy in this dire strait declining motion.
SS
There are a couple things you can do.
#1 Put in 12 volt lighting in your trailer, and set up 12 volt deep cycle batteries to use on the lighting of the trailer. This will be a back up system for lighting in the house. I have a 25X15 foot cabin I wired 110 and 12 volt, and it works great. I just use two deep cycle batteries with one 20 Watt solar panel and it gives me all the power I need for 12 lights and 5 fans.
#2 Put up the panels you need on the ground. Easier to take care of and keep clean. You will need a battery pack for this and inverters or a large enough inverter to handle the load. You can use this as you main system, and use the Electric system that is there already as a back up. You can flip a simple switch to go back and forth.
I would contact Solar Solution and they will give you all the info you need and they have some great products. There are other out there So Shop Around. I bet you could do this your self. I did.
Sgt.
On the topic at hand, I really don’t feel sorry for the Venezuelan government. They are nothing but thieves and they are getting their comeuppance. I only feel bad for the people of Venezuela who have no means of revolt to rid themselves of this failed government. It’s a reminder of why we Americans have guns.
No way to revolt yet….
A civil war is coming, that is for sure.
When people are starving they quickly choose sides.
Madurao will be dead by Christmas, or about 100,000 Venezuelans will be dead.
Question: What is the difference between Hilary, Maduro, Robert Mugabe in Zimbabwe, Mao or Cristina Kirchner in Argentina?
Answer: Not much
Venezuela= rich country run by idiots.
OT- but, does anyone know if refrigerators or freezers act as Faraday enclosures? I know that microwaves do because they are built that way for safety.
To Sgt Dale,Winston Smith,and WIprepped. Thanks for the info. I’ve always wondered why I keep coming back to this site regardless of some obnoxious posts. You guys are the reason why. I’m calling Solar Solutions as soon as I finish this posting.Sarge,I figure I don’t need much in the way of lighting.Only if I’m reading at night,otherwise here in Tucson we get enough light to do things even in winter.Still a lamp or two would”nt hurt.WS, I like that idea of gas/12v fridge. I live simple and don’t splurge on things I don’t need.I think my landlord would like the idea since it would mean a less electric bill
I’ll agree with you about the obnoxious posts. They irritate me too as I tend to be very rational in my approach and see the emotional/hate filled/all caps posts by some as an annoyance and sign that they lack the capacity for nuance. I see no reason to hate but plenty of reason to be wary of the hatred of others that may be directed my way due to the color of my skin, especially in these troubling times. It’s sad that we live in a time of incredible technological advances but still can’t seem to get beyond skin color when dealing with each other.
I blame SGT Dale for all the BS the US Government has done to destroy Ameeica. You are all Turds. You deserve what you get. Go play tough guy Cop at one of these black lives matter protests will ya.
-WWTI…
Winston, well said.
Remember there are still many people who “judge a person by the content of their character.”
G
Thing is, getting to know someone like that takes time and that seems to be in short supply these days!
I prefer judging people by the color of their skin.
And I am a good judge of character!
As a white guy who has mostly non white friends, I would disagree with you. From my experience, socio-economic class is a far better (but still quite imperfect) determinant of the kind of person you may be dealing with. People who have something to lose typically do not become criminals and this is the same for all races. So, I am far more likely to trust the black guy living in the suburbs than the white guy living in a run down trailer, at least until I get to know them. This sort of knee jerk reaction is what I think of as prejudice. We are ALL prejudiced towards those who are easily identifiable as not from whatever group we perceive ourselves as being from. Prejudice can be overcome though if you are willing to put it aside until you can determine the content of a person’s character.
Racism, on the other hand, is a matter of irrational hatred and close-mindedness and is far more difficult to overcome. Racism is an easy way for a limited mind to deal with the world around them because it limits the amount of stimulus that needs to be processed by that person. Thus racism (that is not born of a lifetime of negative experiences) is one of those things I use to delineate between intelligent people and not so intelligent people as most of the smart people I have met in my life were not racists.
Does this mean I am going to walk into the middle of a KKK, BLM or La Raza protest and expect to be treated fairly? No. That would be stupid. Choosing to love others who are different than yourself does not mean surrendering common sense and keeping yourself out of dangerous situations where reason may give way to strong negative emotions like hatred, envy, fear or greed. After all, the only fight you are guaranteed to survive is the one you never have.
Solar advice. Its like assholes.
BuY 4 x 300 watt panels, Approx $1200, 8 duracel 6 Volt batteries. 1x Outback80 controller and a 3000 watt 6000 peak inverter $300 Harbor Freight. Hook 2 6v batts in series, then parallel them to give you a true 12 Volts. The Inverter will change it to 110 power. The controller takes the power from the panels and charges the batteries. Cost? About $3500 for the while system. Build your own mounts for the panels. Never buy low watt BS from big box stores like dufass dale says. I live off the grid and that system runs my AC fridge lights and power tools. So 1200 watts of panels will do everything you need. The Outback 80 is like $500. Don’t get ripped off.
-WWTI…Good Luck. Panels are now like .65 a watt. That where the biggest rip off takes place in a Solar system.
Perhaps the over reaction to Friday has more to do with keeping Americans from watching the bankster destruction of Venezuela. It is working… Americans cannotkeep their eye on the bankster magicians.
Most people don’t even realize that a magic show is going on in the first place. There are just too many shells in motion in the giant shell game of life right now to be able to keep track of, even for the well informed. For the not so well informed… well, there’s always Pokemon GO.
Pokemon GO.
Classic….. you have been paying attention to the news this week.
Had a thought, and figured I would pass it on. I’m in the process of losing some weight, and amped up my protein intake to avoid muscle loss. I’ve Been drinking premier protein shakes. 30 grams of protein in one shake. Another one is muscle milk. I looked at the ingredients and the added protein comes from whey protein. I think in going to get a couple of jugs of whey protein powder to add to dry milk when shtf for extra protein.
Do you guys prep anything like that.
I tend to stock up on brewer’s yeast. I posted a while back on it. Not for everyone, it’s an acquired taste, best mixed in orange juice, but the vitamin and mineral content and protein levels are very good. Price is good and all brands taste a little different.
You can buy it at supermarkets that carry grains, etc. in bulk. Look for nutritional yeast.
Really don’t like the list of chemicals in things like Muscle Milk and the rest. Brewer’s yeast comes from beer although grown on sugar beets nowadays.
I tried the Muscle Milk. I gutted it down but it tasted like chalky wallpaper paste. The various meal replacement enteral formula brands all have different qualities for differing nutritional needs. Some supermarkets have a staff dietitian you can talk with (try hannafords ). Taste and storability will also be factors for you to consider.
A chocolate Fribble (shake) from Friendly’s trumps all that crap though.
Southside…
Hope all is well.
Get two deep cycle 6 volt batteries. Depends on the room you have. Try L16’s if they will fit somewhere. Get AGM’s if you can afford the extra cost. They don’t need monthly watering and don’t off-gas like flooded lead acid do.
Two or three 200-250W modules would be a great start. Connect all (3 or two) in series but make sure your charge controller has a DC input of 150V and has MPPT. (Maximum power point tracking). I would get an Outback FM60. It can handle max of 900W at 12V. Another option is MidNite Solar the Kid, it’s a 30amp MPPT controller.
As for an inverter make sure it’s pure sine wave. Go with Magnum or Outback if you can. I suggest a magnum MS2812 or MS2012.
Hope this helps.
SolarGuy out…
Was the paper gold or real gold and not just tungston bars that have been gold plated.
Venezuela’s should had just hung all the bankers before they left the country but maybe now they will build a system that works for the people like the rest of us should be doing instead of waiting for it all just to go bang.
A deal between bankers and politicians?
I see the regular display of ostentatious ignorance on this site. “Globalism”, “Jews”, “banksters”, etc. are not responsible for the plight of Venezuela. The stupidity of Socialism is what we are witnessing. No one but Venezuelans are responsible for their situation. Venezuelans have shown repeatedly they are stupid and now they are reaping the reward.
As for Citibank, I have no love for the large institutions who regularly abuse their power, but in this case Venezuela made a secured loan. Venezuela defaulted on that loan and Citibank in entitled to seize the security. All is as it should be.