The Cartel Strikes Back: S&P Downgrades Venezuela to B+

The New Revolucion is GOLD

You didn’t think that the cartel would just sit there and politely hand Mr. Chavez his 210 tons of gold back now, did you?

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.
S&P cut Venezuela’s long-term sovereign rating to B-plus from BB-minus. The outlook on the new rating is stable.

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.”

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Comments

  1. Anonymous says:

    My thoughts are if it belongs to Chavez he has the right to store it himself. Besides, if he owns that much gold plus oil he don't need credit.

  2. spiteful bastards!

  3. They sensed it earlier, & ordered their Gold out of London triggering a mini gold mania,

  4. 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.

  5. The worry is "they might be next Libya" as Libya had exactly the same oil & gold

  6. exactly, Chavez, is not part of the cartel, they will 'create' a reason to 'regime change'

  7. this is probably the begining of World War 3 (the same rule book of Great Depression is being repeated)

  8. During ww2, when FDR took gold from drunken WSC, that excuse was also tried [ie U boats sinking ships taking British gold to USA] FDR solved that easily, sent ocean liners to Cape Town [Union of South Africa, British Colony back then] and loaded it himself [ as fresh as fish from the ocean] where theirs a will, theres a way

  9. Prize Fighter says:

    What's the big deal S&P? Hugo is just moving around some traditional trinkets. Ask Ben, he'll tell ya.

  10. Prize Fighter says:

    "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."

    Uh, and where exactly is USA gold? What level of transparency has zero audits of our domestically stored tungsten brought us?

    Enough of this bullshit. Someone please bang the gong and bring on the dancing monkeys.

  11. Anonymous says:

    this is ww3 chavez has been on the chopping block for a long time. it all depends on if putin lets them do it.. putin has a naval base in venezueal i think .. they are going for syria so i think too so putin has a base there also.. ww3 by 2012 imo
    gold silver wont matter then.. get food and bury your metals somehwere

  12. bankstercrusher says:

    anyway the bernank must be getting confused now.. why do people all want their metal and not his lovely green bits of paper??

  13. Anonymous says:

    Lack of transparency, thats really funny. Like the lack of transparency of Fort Knox, allowing an audit. So people can know how much gold is there. Double standards big time. Idiots in the US Government

  14. Anonymous says:

    "S&P "expressed concern" that Venezuela's gold will no longer be held at The Morgue."
    "Bwahahaha!" is right! Venezuela should have been upgraded for that.
    And
    "When you have the reserves held abroad, you do have some level of confidence," Oh is that so? Where? "JP Morgan and friends," BOE? More Bwahahaha!
    And
    "…lack of transparency that everything else has in Venezuela." Aahhh…I see…and BOE and JP Morgan and friends are paragons of transparency are they. Bwahahahack oh I think I just split my gut!

    OK, So let's walk around this thing to see what we can see.

    As I said in the comment section to the original SilverDoctors article when someone implied he won't get it. "Don't you think Hugo already knows this. It's about throwing crowbars in the spokes."

    I also said he would be ready for retaliation.

    Has he lost anything? Did he have anything to begin with? Well, previously he had about 210 tons of imaginary gold, and now he has nothing, if they don't deliver. He knew that. What has he lost? Gold that he and many others will never get anyway? A credit rating? So what? And who's credit rating really, hmm? I mean If THEY don't deliver. What happens to all this alleged confidence, and confidence in who, if they don't deliver? What happens to that claim of transparency? What happens to the bank's other clients' thought process if they don't deliver. (And pay attention to who actually made those statements too. More on that later.)

    If a miracle happens and he gets his gold, he scores, the same as we are trying to. I suppose we could get a surprise and they deliver, but if so it's just more "extend and pretend" that will just cost someone else later. In the meantime, take advantage and BTFD (Buy The F****** Dip) that I think would likely occur. Oops, whadaya know, that's more gold out of the system. The odds though? Naw.
    BTFD originates from a vid. that showed up on ZeroHedge.

    (foul language alert)

    This is a can't loose move: If he takes delivery, he scores, if they don't deliver, he knee-caps his nemesis' con game.

    OH OH OH But wait, there's more -
    Who made that downgrade? Who made those statements? Oh yaa, so who's stickin' it to whom here? Isn't that the same S&P that downgraded the U.S. credit rating? Then the U.S. gov't goes "la la la la we can't hear you," and then launches an investigation on S&P. And now they are cooperating? This smells more like the S&P strikes back at the empire, and says thanks Hugo for the opening, and hugo tips his hat.

    And maybe you say Huh? but they downgraded Hugo not the banks, and I reply reread starting at: And who's credit rating…

    It's Sun Tzu: The art of war.

    It's either gold out off the system, or a serious exposure and stealth downgrade on the cartel's con game. Those statements through their obvious and humorous hypocrisy help spotlight the cartels problem.

    And now I'm going to stretch it a bit.
    It makes one wonder if Bix Weir is correct and in this case John Galt has allies imbedded at S&P, among many places. If so, the cartel has a problem.

    Again, Sun Tzu: Either more gold comes out of the system, or the cartel's con is exposed more.

    And Sterling says: Mmm munch munch, Mmmm munch munch.

    And I say: Oh look, another Obama add, Click Click, Clickity Click Click

    Ennis

  15. Anonymous says:

    Part 1

    "S&P "expressed concern" that Venezuela's gold will no longer be held at The Morgue."
    "Bwahahaha!" is right! Venezuela should have been upgraded for that.
    And
    "When you have the reserves held abroad, you do have some level of confidence," Oh is that so? Where? "JP Morgan and friends," BOE? More Bwahahaha!
    And
    "…lack of transparency that everything else has in Venezuela." Aahhh…I see…and BOE and JP Morgan and friends are paragons of transparency are they. Bwahahahack oh I think I just split my gut!

    OK, So let's walk around this thing to see what we can see.

    As I said in the comment section to the original SilverDoctors article when someone implied he won't get it. "Don't you think Hugo already knows this. It's about throwing crowbars in the spokes."

    I also said he would be ready for retaliation.

    Has he lost anything? Did he have anything to begin with? Well, previously he had about 210 tons of imaginary gold, and now he has nothing, if they don't deliver. He knew that. What has he lost? Gold that he and many others will never get anyway? A credit rating? So what? And who's credit rating really, hmm? I mean If THEY don't deliver. What happens to all this alleged confidence, and confidence in who, if they don't deliver? What happens to that claim of transparency? What happens to the bank's other clients' thought process if they don't deliver. (And pay attention to who actually made those statements too. More on that later.)

    If a miracle happens and he gets his gold, he scores, the same as we are trying to. I suppose we could get a surprise and they deliver, but if so it's just more "extend and pretend" that will just cost someone else later. In the meantime, take advantage and BTFD (Buy The F****** Dip) that I think would likely occur. Oops, whadaya know, that's more gold out of the system. The odds though? Naw.
    BTFD originates from a vid. that showed up on ZeroHedge.

    (foul language alert)

    This is a can't loose move: If he takes delivery, he scores, if they don't deliver, he knee-caps his nemesis' con game.

    Ennis
    Continued

  16. Anonymous says:

    Continued part 2

    OH OH OH But wait, there's more -
    Who made that downgrade? Who made those statements? Oh yaa, so who's stickin' it to whom here? Isn't that the same S&P that downgraded the U.S. credit rating? Then the U.S. gov't goes "la la la la we can't hear you," and then launches an investigation on S&P. And now they are cooperating? This smells more like the S&P strikes back at the empire, and says thanks Hugo for the opening, and hugo tips his hat.

    And maybe you say Huh? but they downgraded Hugo not the banks, and I reply reread starting at: And who's credit rating…

    It's Sun Tzu: The art of war.

    It's either gold out off the system, or a serious exposure and stealth downgrade on the cartel's con game. Those statements through their obvious and humorous hypocrisy help spotlight the cartels problem.

    And now I'm going to stretch it a bit.
    It makes one wonder if Bix Weir is correct and in this case John Galt has allies imbedded at S&P, among many places. If so, the cartel has a problem.

    Again, Sun Tzu: Either more gold comes out of the system, or the cartel's con is exposed more.

    And Sterling says: Mmm munch munch, Mmmm munch munch.

    And I say: Oh look, another Obama add, Click Click, Clickity Click Click

    Ennis

  17. I got a chuckle out of this story. As the system unwinds all the vultures are feeding on each other and it's a beautiful thing to witness. S&P has no more credibility than Chavez, and Chavez is just as much of a crook as the S&P.

  18. mainstreeteconomist says:

    "S&P "expressed concern" that Venezuela's gold will no longer be held at The Morgue.
    Bwahahaha!"

    That is hilarious.. it brings Orwell to mind.

    "War is peace; freedom is slavery; ignorance is strength." –George Orwell

  19. Disgusting, is but an euphemism

  20. Finally, Chavez has done something I agree with. I hope his actions expose the fact that there is no gold in England and there has been a huge precious metals Ponzi scheme perpetrated on the world. Maybe as a result paper currency wil once again be backed with something tangible and politicians will be held accountable for their monetary policies.

  21. Viva Hugo. hacer a que le den su oro.

  22. The fiat money days are gone I think! Gold wont work. Need USA Glass-Steagal type legislation re-introduced solve the current problems and to control things under a Government 'credit' system perhaps!?

  23. so milton, what do you see gold going to. There are those saying if it 'reintroduced as the base', it could be in 2 years time, and at $25k per oz, but would the scum allow this to happen, or, is this why they are after everyones gold {see PIGGS} Italy has second biggest reserves in Europe [2400 tons] Germany has 3000 tons [USA allegation has the most some 7000 tons????

  24. Gee, I thought 'Private Property' was anathema to the Marxies. Surely ol' Hogo the Bozo wants the world commune to benefit from that gold, no? Is it not the zenith of hypocracy to exercise 'sovereign initiative' at the detriment of the whole of the proletariat? Isn't it quintessentially Capitalist to even conceive of that gold as uniquely the 'property' of 'Venesuela'? How blatant do the lies and prevarication have to become before The People see what a convoluted joke government is when left to its own designs.

  25. Anonymous says:

    More Obama ads!! Click click click!!

  26. Control could be taken back at the stroke of a pen, by nationalizing the private banks of the Federal Reserve, taking their operations out of private hands and back into the Treasury; that transfers the interest payable on the debt (and ownership of the debt) to the people, and out of the pockets of the fecal matter families who have owned the financial system since 1784. Will it happen? laugh.

  27. Steve, I see what you mean about these deranged TEA Baggers, all supporters of WALL street, I am waiting to post the web's latest 'on the edge' with max keiser on Presstv.ir. He says it, exactly as you have been, These TEA party people are dangerous fools [red necks?] supportng something that they dont even understand is the scourge of the world (WALL STREET]

  28. Milton, because of the structural collapse inherent in virtual 'money', 'Glass-Steigal' types of 'controls' are illusory. All notion of 'control' is futile, once we grasp the present origins of monetary inflation. The very existence of the current monetary scheme used worldwide wholly depends on currency inflation commensurate with compounding interest on the existing float. That inflation is systemically infinite. The entire thing has to be scrapped in toto by a reversion to metallic money so that value ratios on the grand spectrum of goods can be accurately re-assessed.

  29. Anonymous says:

    No Gold in the vaults. If Jpmorgan does have to give his gold back and they do not have it. Lets say they are gonna have to pay top dollar (excuse the pun) to buy it. Looks like the shit is about to hit the fan big time! Lets hope this manipulation ends now.

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