When the leading oil producing country of an entire continent begins to implode, it really does behoove us all to take notice. The economic conditions within Venezuela have been rapidly deteriorating for months. In October 2015, NPR.org published an account of what was already becoming a horror story nearly ten months ago. Pictured below is a young couple who was forced to present their baby's birth certificate before they would be allowed to buy diapers for the toddler. Weimar-like reports such as this one preceded those that have emerged recently of the dire food shortages that have prompted the harvesting of zoo animals and family pets by Venezuelan citizens struggling to live through another day.
Thus with some irony to this Diaper-Gate story, a fiasco between the U.S. mega giant and everybody's favorite "Huggies(tm)" producer, and "Pampers(tm)" competitor, Kimberly-Clark, and the President of Venezuela was doomed to play itself out. Just one month ago, Citibank abruptly announced that it would close the Central Bank's and the Bank of Venezuela's accounts in 30 days (so, this is happening now.). President Maduro was furious.
Jim Willie laid out the backstory of this action and revealed the sneaky way that Citibank just absconded with Venezuela's gold reserves, as published in his Global War Hat Trick report for July 2016:
A sequence of events points to Citibank [having] just confiscated $1 billion in official Venezuela gold bullion held in reserve. The deed was boldly done in reaction to strongarm actions by the Caracas officials. Recall the gold swap contract, initiated a little over a year ago. Something curious took place overnight on July 12th, on the same day that [the] Maduro Regime announced it would seize a local Kimberly-Clark factory after the USbased consumer products giant announced it would shutter its Venezuela operations. The company had spent years of grappling with astonishing high inflation and a shortage of hard currency and raw materials, in their words.
Immediately in sequence, beleaguered President Nicolas Maduro revealed that Citibank planned to shut his government's foreign currency accounts within 30 days notice. The Wall Street bank will close the accounts for the Central Bank and the Bank of Venezuela. Maduro denounced the move by its primary foreign financial intermediary. The blockade by Caracas officials badly backfired, as Citibank exercised a contract clause, so it seems....
Here is the key element in the event. Among the central bank accounts closed by Citibank will be the prominent gold swap launched just over a year earlier. To be sure, Citibank has taken a highly aggressive position against Venezuela's monetary authority and the Bank of Venezuela, the country's biggest state retail bank. The biggest OPEC member nation in the American Hemisphere, Venezuela is immersed in crisis, suffering from massive price inflation, enormous shortages, and a fractured economy. It is ripe for a revolt and regime change. The Jackass expects the Chavezites, including the Maduro gang, to escape for their lives soon, and to secure their stolen booty hidden in foreign locations like Panama.
Those of us who have followed the work of former "economic hitman," John Perkins, immediately recognize the stench of Langley on this move by Citibank. How would President Maduro recover from this one-two punch?
THE SILENT COUP THAT WE DIDN'T HEAR ABOUT
At the same time that Citibank made the announcement, President Maduro was forced to appoint a "Food Tsar," his Defense Minister, Vladimir Padrino Lopez, to take charge of the dire food distribution situation and inspire a shred of hope for the people of Venezuela. This was a clever chess move by the Maduro regime who pretty much don't have a snowball's chance in Hades of winning the nation's next leadership referendum. By appointing Padrino, the Maduro party has pre-empted a possible coup and now have their man in place to take over if/when Maduro is forced out. This then prevents the opposition's choice from coming to power, Mr. Aristobulo Isturiz, a man whose sheer incompetence and penchant for bribery would likely make him Washington's choice for Venezuela's next president.
Now we return to the statement made at the beginning of this article, namely, that Venezuela is the top oil producer of South America. Surely we might expect that the other Vladimir, President Putin, would be carefully watching how events play out in Caracas. After all, he does have a $500,000,000 deal between Rosneft and Venezuela's Petroleos Company to defend.
WHO WILL RESCUE VENEZUELA?
In that same Hat Trick Letter report cited above, Jim Willie inserted a comment from his best source, The Voice, about the Venezuelan situation. He expects that China will come to Venezuela's rescue:
As we've tweeted many times, there are plenty of BRICS Welcome Packages to go around. How convenient that China has cozied up to the IMF and is now preparing to launch a recently revitalized financial instrument, the Market SDR Bond, to spur the launching of a radical dollar-killing trade settlement system. We can see how Venezuela's problems could be solved almost overnight if they could just price their #1 export in a currency that wasn't killing their people!
We know that Vladimir Putin is certainly on board with the saving of Venezuela. As this report from Russia-Direct says (and I highly recommend that you read the article linked here) :
Moscow, it goes without saying, does not want to see any radical changes in Caracas’s corridors of power, and has no interest at all in the opposition taking over. Recently, the National Assembly questioned the legality of a deal between Russia's Rosneft and a subsidiary of Venezuelan energy giant Petroleos de Venezuela. The Venezuelan deputies argued that the deal, valued at $500 million, was insufficiently transparent and did not meet their country's interests.
Additionally, should the ruling United Socialist Party of Venezuela be ousted, long-term defense contracts between Venezuela and Russia would also be under threat. The total value of these contracts, signed between 2001 and 2013, amounts to $11 billion. Almost all of Venezuela's military equipment, with the exception of its transport aircraft and naval equipment, is Russian-made.
As if we needed to add any more excitement to the coup-crazy summer of 2016, we now have this additional dessert to add to the tray. One by one, the leaders of suffering nations are "just saying NYET" to any more Dollar Tyranny. A great awakening is taking place to the fact that the American Petrodollar is a weapon of mass financial destruction that masquerades as "money." Presidente Cristina de Kirchner of Argentina understood the game when she decided that Argentina was no longer obligated to repay loans that are denominated by an instrument of fraud and death. Why, in Argentina, the public is welcome to educate themselves on the subject by visiting the Museum of Foreign Debt in Buenos Aires!
Venezuela's Presidente Maduro has now reached his same moment of conversion when he challenged America's banks and corporations. Oh sure, technically, Maduro's seizure of the Kimberly-Clark factory was "illegal" according to the "contract". That is how the Banksters win: by creating their own version of what is legal to use as a noose to strangle an entire nation when the time comes. When a national leader bucks that which is "legal," the Banksters can then pull up the full might and power of the world's strongest military to enforce their contracts. It is a game as old as civilization itself. The Awakening comes when a people realizes that they have been hoodwinked by nothing but an illusion and it is time to rip the skirts off the harlot and throw her down from her pedestal.
Therefore, let's watch Venezuela and observe how China and the IMF tag-team each other to display the beleaguered oil exporter as their first successful Beta Bailout nation. We'd like to keep the Vlads happy. And wouldn't it be just oh too funny if China manages to claim Citibank's gold contracts following the upcoming global economic reset and gets to return that bullion back to Venezuela. What goes around, comes around.
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