Found hidden deep within a “for your eyes only-double-secret” web site is an article that probably was supposed to have been published during the “One Belt, One Road” forum in Beijing two weeks ago. The author and intended publication are unknown.
“The greatest calamity to ever strike the human race started in October 1347, when trading ships docked in Sicily. These vessels were carrying cargo that had traveled from China on the Silk Road.”
The goods from China carried a deadly secret; the oriental rat flea infected with the Yersinia pestis bacterium that causes Bubonic plague. The science is settled in that 97 percent of all scientists agree that this deadly bacteria probably first developed in or around China.
The “Black Death”, caused by a Chinese bacterium in the rat fleas from China, collapsed the European economies, not to mention also killing tens of millions. Note that the Chinese economy flourished during this period with massive infrastructure projects, including the Grand Canal connecting the Yellow and Yangtze rivers to Beijing.
Had the Europeans avoided buying and instead rejected Chinese silk, porcelain and totally unnecessary Chinese umbrellas, how much better would the world be today?
In 2010 Venezuela borrowed billions of dollars from China. Today Venezuela cannot afford food, medicines, even toilet paper. For two months the people have been protesting with dozens killed by the government, which has been trying to reasonably explain why it is not their fault that people have had to eat their household pets to survive.
The 14th-century Silk Road from China was the Highway of Death for Europe. Now we have another “Road” from China. Venezuela borrowed money from China and looked what has happened since then.
The recent hysteria—and that is the only word to describe it—that the Philippines will become the next Venezuela is inexcusable. To call it “black propaganda” is an insult to genuine black propaganda. While everyone might be entitled to his or her own opinion, sound opinion should be based on fact. We can excuse the ignorant, but not those who deliberately distort the truth.
Venezuela and China cut a lending program in 2010 for $10 billion immediately, and $10 billion later that might have made economic sense. Venezuela borrowed money to upgrade its failing oil industry by monetizing future production. China was to be paid in Venezuelan oil, a necessary commodity and with interest.
Venezuelan oil was selling for $70 per barrel in 2010, and the country owed China 200,000 barrels per day in 2010, moving to 300,000 in 2012 out of a 2009 production of about 3 million per day. In 2012 96 percent of the country’s exports and 50 percent of government revenue were from oil sales.
But the borrowed funds were not spent on improving PDVSA (Petróleos de Venezuela SA, the state-owned oil company). By 2016 daily production dropped by 27 percent to 2.15 million barrels. The oil price fell to $35 per barrel. As recently as 2015, Venezuela was shipping 23 percent of its production to pay China. In 2017 PDVSA is so broke that it cannot even afford to export oil through international waters, which requires safety inspections and clearing under maritime law.
The loan terms were never disclosed, the spending was never part of the national budget, and Congress never approved the loan. There were railways that were announced but abandoned and manufacturing plants that never went beyond the ribbon-cutting ceremony. But it is China’s fault that Venezuela’s economy is dead. So, tell me, how exactly is the Philippines going to become the next Venezuela?
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E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.
3 comments
VENEZUELA
Start 2014, Venezuela’s GDP = $371.34 billion (1/2 oil= 100% of exports). But after a year-high of $105.54 in June, crude plummeted by more than 50% to $48.51 by end 2014 (now steady @ $50-a-barrel range since, allowing the country’s socialist policies to materialize without the guise of high crude–and economic disaster has ensued.
PHILIPPINES
@ >$28billion annual remitance, Philippines main Export commodity are OFW (modern day hero? or a form of slavery?)
FILIPINOS around the world is vital to growth & development of OTHER NATIONS especially in U.S., Europe, Japan, Middle East, etc.
US President Barack Obama has hailed Filipino-Americans “for the many ways they have enriched our society.”
“They have been the artists who challenge us, the educators who keep us informed, and the laborers of our growing economy,” Obama said in a special message dated October 1 in celebration of the Filipino-American History Month.
“And throughout our history, they have served as members of our Armed Forces, helping safeguard our Nation and the values upon which we stand,” he added.
https://www.gmanetwork.com/news/story/583945/news/pinoyabroad/despite-duterte-tirades-obama-hails-filipino-americans
total speculation, but one thing is clear, Goldman Sachs just bought black market bonds backed by Venezuela’s oil reserves.
so the question is, who gets paid first when Venezuela defaults?
Taking loans is fine only if you know how to use it properly. Venezuela would still be where they are if they take the loan from other than China. Not that they have any choice as most countries that have the capability to lend don’t trust the current administration. To add their seizing of international businesses like General Motors also complicate matters. There is also public sentiments toward helping the Venezuela government.