Venezuela is down to its last $10 billion. - Polidicks

[QUOTE][B]Caracas is running out of cash. [/B] Venezuela only has $10.5 billion in foreign reserves left, according to its most recent central bank data. For rest of the year, Venezuela owes roughly $7.2 billion in outstanding debt payments. In 2011, Venezuela had roughly $30 billion in reserves. In 2015, it had $20 billion. The trend can't persist much longer, but it's hard to know exactly when Venezuela will run completely out of cash.[/QUOTE] [URL]http://money.cnn.com/2017/03/01/news/economy/venezuela-cash/[/URL]

So what happens when they default?

[QUOTE=ferrus;51898016]So what happens when they default?[/QUOTE] The people suffer even more.

How is this different from the US being in debt over 17 trillion? Can't they just do what we do and not default?

[quote]Venezuela only has $10.5 billion in foreign reserves left, according to its most recent central bank data. For rest of the year, Venezuela owes roughly $7.2 billion in outstanding debt payments.[/quote] So really they only have $3.2 billion left then? Not like they're going to pay up but I mean, if I have a loan for $3000 and I have $4000 in the bank I don't really have $4000, I have $1000.

[QUOTE=Killer900;51898053]How is this different from the US being in debt over 17 trillion? Can't they just do what we do and not default?[/QUOTE] Well, I think the point is that Venezuela has no more money. Not just debt, no money in government coffers. In other words, they can no longer run the country at even a basic level soon, and they're royally fucked. Military coup almost guaranteed.

[QUOTE=ferrus;51898016]So what happens when they default?[/QUOTE] Government loses ability to pay it's men, and factions begin to take hold as generals/officers fall into warlordism via drug/arm trafficking. Venezuela might as well be named the Black Market for the next few years. :v:

Maduro is a fucking disgrace. Filling his family's pockets and continuing to drive his country into the ground

I want to see trump buy venezula for 10 billion, sell it for 50.

[QUOTE=Killer900;51898053]How is this different from the US being in debt over 17 trillion? Can't they just do what we do and not default?[/QUOTE] The US still has plenty of liquid assets. You can have debt and still have cash.

The US debt is much different. It's not that we borrowed trillions and have no way to pay it back. It's more like investment that foreign entities and regular US citizens have made to the country that will undoubtedly be reimbursed.

[QUOTE=F.X Clampazzo;51898058]So really they only have $3.2 billion left then? Not like they're going to pay up but I mean, if I have a loan for $3000 and I have $4000 in the bank I don't really have $4000, I have $1000.[/QUOTE] They effectively have $10b. No way they will actually pay their debtors.

[QUOTE=download;51898269]They effectively have $10b. No way they will actually pay their debtors.[/QUOTE] The phrase "If you owe the bank 100 dollars, you have a problem. If you owe the bank 100 million dollars, the bank has a problem" comes to mind. When it comes to debt, the more of it you have, the bigger of a headache it becomes for everyone you owe.

Again, the reason why US has so much debt is because it's virtually the only country in existence which paid its debts on time, hence having a superb credit score. While Venezuela does not even come close in this matter.

[QUOTE=Killer900;51898053]How is this different from the US being in debt over 17 trillion? Can't they just do what we do and not default?[/QUOTE] That's not how international debt works.

[QUOTE=Killer900;51898053]How is this different from the US being in debt over 17 trillion? Can't they just do what we do and not default?[/QUOTE] Debt =/= Lack of funds.

[QUOTE=archangel125;51898060]Well, I think the point is that Venezuela has no more money. Not just debt, no money in government coffers. In other words, they can no longer run the country at even a basic level soon, and they're royally fucked. Military coup almost guaranteed.[/QUOTE] How will a coup help? I mean if they aren't generating enough money now, how will someone new in power change that? Or is it just because as Maduro is taking money for himself that's hurting the country?

[QUOTE=Gnime;51898560]How will a coup help? I mean if they aren't generating enough money now, how will someone new in power change that? Or is it just because as Maduro is taking money for himself that's hurting the country?[/QUOTE] the new government would find a way to run the country in a way that isn't completely retarded

[QUOTE=ferrus;51898016]So what happens when they default?[/QUOTE] Here come the vulture funds for "their" money! Likely similar to past happenings in Argentina. [URL]https://en.wikipedia.org/wiki/Argentine_debt_restructuring#Background_and_holdout_problem[/URL] [QUOTE]Upon default, Argentina's bondholders sued to be repaid 100% of their bonds' face value.[SUP][URL="https://en.wikipedia.org/wiki/Argentine_debt_restructuring#cite_note-Benson-6"][SIZE=2][6][/SIZE][/URL][/SUP][SUP][URL="https://en.wikipedia.org/wiki/Argentine_debt_restructuring#cite_note-yahoo-20"][SIZE=2][20][/SIZE][/URL][/SUP][SUP][URL="https://en.wikipedia.org/wiki/Argentine_debt_restructuring#cite_note-cepr-21"][SIZE=2][21][/SIZE][/URL][/SUP] Among the bondholders were [URL="https://en.wikipedia.org/wiki/Vulture_funds"]vulture funds[/URL], who had [URL="https://en.wikipedia.org/wiki/Speculation"]speculatively[/URL] acquired US$1.3 billion of the bonds' total value on the [URL="https://en.wikipedia.org/wiki/Secondary_market"]secondary market[/URL] for cents on the dollar after the 2001 default.[SUP][URL="https://en.wikipedia.org/wiki/Argentine_debt_restructuring#cite_note-ips-5"][SIZE=2][5][/SIZE][/URL][/SUP][SUP][URL="https://en.wikipedia.org/wiki/Argentine_debt_restructuring#cite_note-crazy-22"][SIZE=2][22][/SIZE][/URL][/SUP] Vulture funds also owned a large quantity of [URL="https://en.wikipedia.org/wiki/Credit_default_swap"]credit default swaps[/URL] (CDS) against Argentine bonds. This created a further incentive to not only trigger a default against Argentina; but also to undermine the value of the bonds themselves, as the CDS would pay out at a higher rate if the defaulted bonds decline to extremely low values.[SUP][URL="https://en.wikipedia.org/wiki/Argentine_debt_restructuring#cite_note-crazy-22"][SIZE=2][22][/SIZE][/URL][/SUP][/QUOTE]

[QUOTE=ferrus;51898016]So what happens when they default?[/QUOTE] They rely on imports for quite a few basic things, so they probably go a bit crazy. [QUOTE=Killer900;51898053]How is this different from the US being in debt over 17 trillion? Can't they just do what we do and not default?[/QUOTE] The USA doesn't need any foreign reserves to import anything because people love having USD. Venezuela's currency is less sought after, so they've been relying on foreign reserves to import goods. [QUOTE=archangel125;51898060]Well, I think the point is that Venezuela has no more money. Not just debt, no money in government coffers. In other words, they can no longer run the country at even a basic level soon, and they're royally fucked. Military coup almost guaranteed.[/QUOTE] They still have their own currency. Problem is they can't really leverage their messed up currency for basic imports that they rely on. So yeah, coup.

As many people have said already, international debt doesn't quite work like your credit card debt. What's important is that this is the lowest the foreign reserves of Venezuela have ever been in 20 years, and considering it was at $20bn on 2015, when oil prices were much higher. Massive overspending with no chance of rectification as the executive now approves their own budget, rampant corruption, low oil prices, means that Venezuela is basically on a death spiral. I tbh don't care anymore, there is no hope for that country, I just wanna take my family out of there while I can. [QUOTE=ferrus;51898016]So what happens when they default?[/QUOTE] Seeing how the Venezuelan government doesn't believe in the IMF, it means basically that the country's economy will systematically collapse, banks have to make write downs to the state which means possible insolvency, businesses will leave the country as investors will not put their money in a country that can't pay its foreign debt, and the black market value of the Venezuelan bolivar will drop even further in the ensuing panic, resulting in less and less products being available, further scarcity, and the decimation of most markets in the country. Nobody was expecting Venezuela to reach rock bottom, but that would be it.

[QUOTE=JeSuisIkea;51898412]That's not how international debt works.[/QUOTE] Especially considering the American people are the primary debt holders, followed by the Government itself.

[QUOTE=Killer900;51898053]How is this different from the US being in debt over 17 trillion? Can't they just do what we do and not default?[/QUOTE] I'm sorry, since when does the meaning of debt include 'not having money'?

[QUOTE=Dolton;51899148]Especially considering the American people are the primary debt holders, followed by the Government itself.[/QUOTE] Wait, i'm not really versed in all that stuff, but how can american citizens as well as the government itself be the primary holders of the country's [I]international[/I] dept?

[QUOTE=antianan;51899206]Wait, i'm not really versed in all that stuff, but how can american citizens as well as the government itself be the primary holders of the country's [I]international[/I] dept?[/QUOTE] where does the government get its funding from?

There is people who have higher net worth than this.

[QUOTE=Sam Za Nemesis;51899720]Venezuela is on track of becoming the first Ancap nation in the world, how ironic[/QUOTE] Somalia beat them to it.

[QUOTE=RenegadeCop;51899997]They straight up just don't believe in the IMF? The only possible thing that could have gotten them out of this situation, if only for a few more years?[/QUOTE] One of the key things they blame the 4th Republic (read: the Venezuelan government before Chavez and after the dictatorship of Marcos Perez Jimenez) of being guilty of, is selling the country out to the neoliberal policies the IMF bailout package included, which lead to tough austerity measures being taken just to keep the country afloat. Then again they're ideologically so weak they would recur to the IMF if they're desperate. The root of the problem is how Chavez basically destroyed political representation in Venezuela, to the point where an insanely unpopular, openly hated leader like Maduro rules unopposed. The situation last year deteriorated so rapidly from a massive opposition victory, to the Parliament basically being dismantled and the dictatorship consolidating its grasp in power, that I think I can't even document it properly. Literally the moment I left Venezuela, 6 months ago, the economic and political crisis intensified to the point where Venezuela is at its poorest and most unstable its ever been in its entire modern history. The breakneck speed of the deterioration of quality of life in the country is just hard to describe. The government is literally delusional, a narco-state through and through.

And it used to be a such a nice country too before idealism trumped realism. Chavez and Maduro carry a good deal of the blame but I guess so do the venzeulan people. Too much time sitting on their laurels and letting ideologues drown out the sensible narrative.

[QUOTE=Meester;51901368]And it used to be a such a nice country too before idealism trumped realism. Chavez and Maduro carry a good deal of the blame but I guess so do the venzeulan people. Too much time sitting on their laurels and letting ideologues drown out the sensible narrative.[/QUOTE] Do you hold any opinions that aren't shit? How the fuck is it the fault of the Venezuelan people that they were deceived by their leaders? The system failed them.