International Venezuela, The Socialist Dystopia, v2: The region's worst humanitarian crisis in decades

[Rod1]

You don’t have 800 to spare and you’ve never felt you needed more money? My nine year old has more than that. Yup just checked, 1109 In her savings.

Cool story bro.

$800 is about half my monthly expenses, i do live in Mexico remember?

 

[YaWinSumYaLoseSum]

Cool story bro.

$800 is about half my monthly expenses, i do live in Mexico remember?

if you did really check that's pretty strange that some comment on the internet inquired you to do so lmao. but lets be serious you don't have a daughter, no woman would have sex with you, but just in case.....pics????? or stfu and gtfo

 

[whougonnacall]

Can someone explain to me how this happened? I remember years back the country was doing decently right? How did it get to this point, and how can a country with the most oil to sell fall apart? Where is all that money?

Entire economy focused on oil and oil prices collapsed , instead of diversifying economy beforehand lotta cash spent on a mix of some good and some poorly thought out programmes for poor and incressed military spending to defend vs the u.s boogeyman
Previous sovialist leader was a lot smarter and less of an authoritarian idiot the current one has reacted to an econonomic crisis and threw communist petrol on it vastly worsening it into a downward spiral and never admiting hes wrong just full steam ahead itl all get better !

 

[Arkain2K]

Can someone explain to me how this happened?

We could repeat ourselves from the beginning all over again, but then the answer you seek is already spelled out in great details in the OP if you need to catch up.

Why don't you start from there, like normal people would, and see how it goes.

 

[Rod1]

if you did really check that's pretty strange that some comment on the internet inquired you to do so lmao. but lets be serious you don't have a daughter, no woman would have sex with you, but just in case.....pics????? or stfu and gtfo

$1600 goes a pretty long way where i live, i live in a 3 room, 2 story house and rent is around $150.

As to a pic from me, i just uploaded one of my wife and my daughter on her baptism.

http://forums.sherdog.com/threads/who-here-has-the-guts-to-post-their-pic.3164915/page-356

 

[Arkain2K]

Venezuela secures oil-sector funding from China
July 4, 2018

​

Venezuela's oil sector will get a much-needed injection of cash from China, tightening Beijing's grip on the country's state-owned oil company PDVSA which is struggling to maintain deliveries to the Asian powerhouse.

Venezuela would receive $250 million from the China Development Bank to boost oil production in the Orinoco Belt, the South American country's Finance Ministry said in a statement on Tuesday.

The agreement was reached during ongoing talks between Finance Minister Simon Zerpa and Chinese leaders in Beijing aimed at shoring up production of Venezuela's distressed oil company PDVSA.

"We've received the authorization for a direct investment of more than $250 million from China Development Bank to increase PDVSA production, and we're already putting together financing for a special loan that China's government is granting Venezuela for $5 billion for direct investments in production," the statement quoted Zerpa as saying.

The South American country previously accepted a $5 billion loan from China, which became Venezuela's principal financier over the last decade. The relationship has however cooled recently amid Venezuela's economic crisis that saw oil production decline sharply.

Venezuela's oil output averaged 2.9 million barrels per day (bpd) in 2013, but has dropped to around 1.36 million bpd now, according to data compiled by the International Energy Agency (IEA). IEA blames a mix of underinvestment, theft, a brain drain, and lack of equipment for the slump.

As a result, state-owned oil company PDVSA is struggling to send oil shipments to China. The Asian economic powerhouse has pumped more than $50 billion into Venezuela's coffers through oil-for-loan agreements that helped Beijing secure energy supplies while bolstering the leftist government in Caracas.

But about three years ago Beijing halted its flow of cash when Venezuela asked for a change of payment terms amid falling oil prices. The situation in Venezuela's oil sector worsened earlier this year as US oil major ConocoPhillips won court orders allowing it to seize assets of PDVSA on Caribbean islands, including Curacao. Conoco was granted a $2 billion arbitral award linked to the 2007 nationalization of Conoco assets under late leader Hugo Chavez.

Current Venezuelan leader Nicolas Maduro has vowed to boost production by 1 million additional barrels, but critics rather expect output to plummet to 1 million bpd by the end of 2018.

https://www.dw.com/en/venezuela-secures-oil-sector-funding-from-china/a-44518822

 

[Rod1]

Venezuela secures oil-sector funding from China
July 4, 2018

​

Venezuela's oil sector will get a much-needed injection of cash from China, tightening Beijing's grip on the country's state-owned oil company PDVSA which is struggling to maintain deliveries to the Asian powerhouse.

Venezuela would receive $250 million from the China Development Bank to boost oil production in the Orinoco Belt, the South American country's Finance Ministry said in a statement on Tuesday.

The agreement was reached during ongoing talks between Finance Minister Simon Zerpa and Chinese leaders in Beijing aimed at shoring up production of Venezuela's distressed oil company PDVSA.

"We've received the authorization for a direct investment of more than $250 million from China Development Bank to increase PDVSA production, and we're already putting together financing for a special loan that China's government is granting Venezuela for $5 billion for direct investments in production," the statement quoted Zerpa as saying.

The South American country previously accepted a $5 billion loan from China, which became Venezuela's principal financier over the last decade. The relationship has however cooled recently amid Venezuela's economic crisis that saw oil production decline sharply.

Venezuela's oil output averaged 2.9 million barrels per day (bpd) in 2013, but has dropped to around 1.36 million bpd now, according to data compiled by the International Energy Agency (IEA). IEA blames a mix of underinvestment, theft, a brain drain, and lack of equipment for the slump.

As a result, state-owned oil company PDVSA is struggling to send oil shipments to China. The Asian economic powerhouse has pumped more than $50 billion into Venezuela's coffers through oil-for-loan agreements that helped Beijing secure energy supplies while bolstering the leftist government in Caracas.

But about three years ago Beijing halted its flow of cash when Venezuela asked for a change of payment terms amid falling oil prices. The situation in Venezuela's oil sector worsened earlier this year as US oil major ConocoPhillips won court orders allowing it to seize assets of PDVSA on Caribbean islands, including Curacao. Conoco was granted a $2 billion arbitral award linked to the 2007 nationalization of Conoco assets under late leader Hugo Chavez.

Current Venezuelan leader Nicolas Maduro has vowed to boost production by 1 million additional barrels, but critics rather expect output to plummet to 1 million bpd by the end of 2018.

https://www.dw.com/en/venezuela-secures-oil-sector-funding-from-china/a-44518822

At first i was like fuck China and fuck Maduro, but at this point id rather see Venezuela turn into a Chinese colony as long as people get food.

 

[Arkain2K]

Venezuela returned to barter economy now that their currency is virtually worthless:



Exactly how worthless, you ask?

 

[cincymma79]

Are you sending your money down there to help like he does?

No?

Then your pointless post is simply wasting bandwidth, for it contributed absolutely nothing to the subject of discussion.

I’ve used my house to put up family during hurricanes last year. Offered the same to some phillipinos I know but no I won’t send money to anyone. I even offered to buy the ticket. That’s all I’ll do.

What have you done except for attack me for making Venezuela a hell hole because it’s obviously my fault

 

[cincymma79]

Venezuela returned to barter economy now that their currency is virtually worthless:



Exactly how worthless, you ask?

I have a couple trillion dollar bills from Zimbabwe. Getting it sent to me cost more than it’s worth

 

[cincymma79]

Cool story bro.

$800 is about half my monthly expenses, i do live in Mexico remember?

Arent you like 35? You should have quite a bit more than that in savings not counting retirement.

 

[Rod1]

Arent you like 35? You should have quite a bit more than that in savings not counting retirement.

I do, just not in liquid assets, nor in a disposable way that i can justify.

 

[cincymma79]

I do, just not in liquid assets, nor in a disposable way that i can justify.

Hmm. Wel let’s not derail this thread but I think we disagree on how to handle money. Hope those people you know evacuate. I wouldn’t give hem anything more than a ticket put and a place to stay

 

[Rod1]

Arent you like 35? You should have quite a bit more than that in savings not counting retirement.

I dont get your point though. Are you trying to claim that im poor or that i am cheap. I dont get it.

I live in a country with a GDP per capita that is 1/7th that of the USA, so if you want to understand a good comparison it would be like me having to shed $5,600 USD for a guy that i met playing online and try to sell that to the wife.

 

[Arkain2K]

Can China Save Venezuela’s Collapsing Oil Industry?
By Nick Cunningham - Jul 04, 2018

China is throwing Venezuela a lifeline, although it is unlikely to pull the country back from the abyss.

China Development Bank will reportedly invest $250 million in Venezuela’s Orinoco Belt in an effort to stave off the decline of the country’s heavy oil production. That comes as China is also mulling a much larger $5 billion investment plan in Venezuela.

Venezuela’s oil production has fallen by more than half in the last few years, with output down to just 1.36 million barrels per day in June, according to the IEA.

The investment from China does not come from mere altruism. Venezuela has been sending China several hundred thousand barrels per day of oil for several years as repayment for past loans. But the catastrophic decline of Venezuela’s oil production threatened those shipments. China was in danger of never being paid back for the tens of billions of dollars that it loaned to Venezuela.

The crisis rose to a new level the last two months. The seizure of PDVSA’s assets on several Caribbean islands by ConocoPhillips deepened the problems for Venezuela. Unable to process heavy crude on those islands, PDVSA tried to bring operations back to the country.

But Venezuela lacks adequate infrastructure to export oil at levels it had been when PDVSA operated the Caribbean facilities, so the loss of those assets meant that PDVSA could not load enough oil onto ships. As a result, a backlog of ships sat idle off the coast, and PDVSA was under pressure to declare force majeure on oil shipments.

Ultimately, that means that Venezuela does not have enough oil to meet all of its contractual obligations. And the inability to load oil onto very large crude carriers from Venezuelan ports threatens to interrupt long distance shipments to customers around the world – including China.

Reuters reports that Venezuela’s shipments to India declined by 21 percent in the first half of the year compared to a year earlier, presenting problems for Indian refiners who are also under pressure to curtail imports from Iran because of sanctions.

The IEA estimates that Venezuela’s production could fall close to the 1 mb/d mark by the end of this year, implying a loss of around 600,000 bpd since the start of 2018. “As for 2019, it is hard to see a recovery and output is likely to fall further,” the IEA said in June. “For now, we estimate an additional loss of around 200 kb/d over the course of next year, to around 800 kb/d – but the decline could be far steeper.”

China hopes to stem the losses at Venezuela’s Orinoco heavy oil belt. “Upgraders operated by foreign joint-venture partners in the vast Orinoco heavy oil belt are breaking down and running below capacity due to the stress associated with sourcing diluents, payment and corruption issues and staff security,” the IEA said. “Flows from Venezuela’s ageing conventional oil fields are falling fast.”

But it isn’t at all clear that China’s investment will slow the decline. For one, the sum is too small to have a significant impact. But in a broader sense, Venezuela has been taking out loans from China for years and it hasn’t led to economic progress. A report earlier this year from the Center for Strategic & international Studies argued that far from being an economic boon to Venezuela, China’s financial assistance has kept Venezuela hopelessly dependent on oil, while other sectors of the economy have been entirely hollowed out.

Moreover, as Venezuela racks up debt defaults, as seems unavoidable, China will be there to pick up the shattered pieces. The state-owned oil companies from China and Russia “will probably market a significant share of PDVSA’s exports and operate an increasing share of its production, guaranteeing the repayment of their loans,” Francisco Monaldi wrote in a report from the Atlantic Council in March. While China may offer some financial assistance, but it probably won’t lead to a rebound. The most likely outcome will be Venezuela continues to decline and is forced to hand over slices of the country’s assets to China.

Venezuelan officials may sell the latest loan from China as a sign that things are turning around, but that is unlikely to be the case.

https://oilprice.com/Energy/Energy-General/Can-China-Save-Venezuelas-Collapsing-Oil-Industry.html

 

[cincymma79]

I dont get your point though. Are you trying to claim that im poor or that i am cheap. I dont get it.

I live in a country with a GDP per capita that is 1/7th that of the USA, so if you want to understand a good comparison it would be like me having to shed $5,600 USD for a guy that i met playing online and try to sell that to the wife.

If 800 is half your living expenses, depending on your lifestyle, it’s the equivalent of around twice that to me or 1600ish. I have rental propert too so that account has 2 months rent in it, should be three honestly. I have 1000 in an emergency fund. 1100 in my kids account. 2500 in a vacation fund. 2000 in a medical expense fund plus of course an hsa to refund money I pay and have to get reimbursed from. I also have no debt escort a mortgage. So I can spare 1600. The goal is to get six months of expenses in that emergency savings account next.

 

[Arkain2K]

What have you done except for attack me for making Venezuela a hell hole because it’s obviously my fault

Don't be daft. I curb-stomped you because you came in here for the sole purpose of derailing my thread with your entirely off-topic and utterly useless "contribution" about your personal finance, as if it has fuck all to do with the crisis in Venezuela, but looks like you're too dumb to take the hint.

And yes, this derailment is your doing. If you have the audacity to start it, at least own up to it.

 

[cincymma79]

Don't be daft. I curb-stomped you because you're derailing my thread with your entirely off-topic and utterly useless "contribution".

And yes, this is your fault.

You cried yes. We saw it

Again when are you leaving to help

 

[Rod1]

If 800 is half your living expenses, depending on your lifestyle, it’s the equivalent of around twice that to me or 1600ish. I have rental propert too so that account has 2 months rent in it, should be three honestly. I have 1000 in an emergency fund. 1100 in my kids account. 2500 in a vacation fund. 2000 in a medical expense fund plus of course an hsa to refund money I pay and have to get reimbursed from. I also have no debt escort a mortgage. So I can spare 1600. The goal is to get six months of expenses in that emergency savings account next.

As i said, liquidity is the issue, i work (and own shares) in the family company and pretty much all our disposable income gets reinvested and a lot of the expenses are billed back to the company. I have a few saving accounts but those are mainly for my daughter.

Its not like i cant produce the cash, its just that i need to justify it to my family and they will certainly say no if the answer is "helping a guy i used to play online with".

Not to mention, it isnt as easy as just "buy a ticket" they use hunger to control people, so the government is trying to limit foreign cash flows.

 

[cincymma79]

As i said, liquidity is the issue, i work (and own shares) in the family company and pretty much all our disposable income gets reinvested and a lot of the expenses are billed back to the company. I have a few saving accounts but those are mainly for my daughter.

Its not like i cant produce the cash, its just that i need to justify it to my family and they will certainly say no if the answer is "helping a guy i used to play online with".

I’ll grant you that but I made he same offer to an online buddy in Manila. We’re just in different places I guess.