{"id":27836,"date":"2017-11-11T09:14:03","date_gmt":"2017-11-11T14:14:03","guid":{"rendered":"http:\/\/olduvai.ca\/?p=27836"},"modified":"2017-11-11T09:16:06","modified_gmt":"2017-11-11T14:16:06","slug":"venezuela-officially-defaults-annual-inflation-2689-percent-when-does-the-military-take-over","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=27836","title":{"rendered":"Venezuela Officially Defaults; Annual Inflation 2689 Percent: When Does the Military Take Over?"},"content":{"rendered":"
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Venezuela Officially Defaults; Annual Inflation 2689 Percent: When Does the Military Take Over?<\/a><\/h3>\n<\/div>\n
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Electricidad de Caracas, a Venezuelan state-owned electric company, officially defaulted on a $650 million bond payment. The company was already a month late on its payment before the trustee, Wilmington Trust, issued a statement. Meaanwhile, Professor Steve Hanke notes annual inflation is 2689%.<\/section>\n<\/div>\n<\/header>\n
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CNBC reports Venezuela Utility Defaults as Judgment Day Looms for State Oil Giant<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Venezuela’s Electricidad de Caracas \u2014 a state-owned electric company \u2014 has defaulted on a $650 million bond payment, Wilmington Trust said Friday.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The default comes as the International Swaps and Derivatives Association (ISDA) prepares to decide next Monday whether state-run oil giant Petroleos de Venezuela (PDVSA) experienced a credit event earlier this month.<\/p>\n

PDVSA missed a $1.12 billion bond payment on Nov. 2. If ISDA decides that PDVSA did experience a credit event, that could lead bondholders to declare a default, which could trigger an avalanche.<\/p>\n

“We expect if holders do declare a default then that could be used to trigger cross default across the whole US$28bn of PDVSA bonds,” Stuart Culverhouse, chief economist at Exotix Capital, said in a note. He noted, however, that bondholders “may simply give the government more time to make the payment, as the intention seems to be there, but coordinating a large group of holders with different incentives could prove challenging.”<\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n

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Food Shortages<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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CNN reports Venezuela\u2019s Dreams are Dying<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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President Nicolas Maduro erased any remnants of democracy in late July, stripping political opponents of power and establishing a new legislature filled with his cronies.<\/p>\n

But Maduro\u2019s cemented regime still faces the same problems it started years ago: An exodus of its educated class combined with mass shortages of food, medicine, money and — most importantly — time.<\/p>\n

Shortages of basic medicine and proper medical equipment are common. More than 750 women died during or shortly after childbirth in 2016, a 66% increase from 2015, according to the Venezuelan health ministry.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

Venezuela Officially Defaults; Annual Inflation 2689 Percent: When Does the Military Take Over? Electricidad de Caracas, a Venezuelan state-owned electric company, officially defaulted on a $650 million bond payment. The company was already a month late on its payment before the trustee, Wilmington Trust, issued a statement. Meaanwhile, Professor Steve Hanke notes annual inflation is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7],"tags":[195,200,413,426,14648,13390,851],"class_list":["post-27836","post","type-post","status-publish","format-standard","hentry","category-economics","category-survival-2","tag-debt","tag-default","tag-hyperinflation","tag-inflation","tag-michael-shedlock","tag-mishtalk","tag-venezuela"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27836","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27836"}],"version-history":[{"count":3,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27836\/revisions"}],"predecessor-version":[{"id":27839,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27836\/revisions\/27839"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}