Showing posts with label #Venezuela. Show all posts
Showing posts with label #Venezuela. Show all posts

Thursday, June 17, 2021

Iranian ships once believed to be headed toward Venezuela change course, U.S. officials say

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The Iranian navy ships believed to be originally headed toward Venezuela changed course early this week and are now steaming north up the west coast of Africa, U.S. officials said.

The ships, which U.S. officials believe may have been preparing to conduct an arms transfer, have appeared to change course several times during their journey from Iran — and could do so again. But after the course change early this week, they are likely now headed either into the Mediterranean — potentially planning to sail off of Syria — or north toward Russia, according to a defense official briefed on the situation, who spoke on condition of anonymity to discuss a sensitive subject.

U.S. officials believe the course change indicates that a diplomatic campaign to urge governments in the Western Hemisphere to turn away the ships was successful, the official said. The Iranian frigate Sahand and afloat staging base Makran charted a new course after Biden administration officials publicly and privately urged the governments of Venezuela, Cuba and other countries in the region not to allow them to dock, POLITICO reported.

Spokespeople for the White House, State Department and Pentagon did not immediately respond to requests for comment on Thursday.

But whether the ships cross the Atlantic, their journey is a significant demonstration of the naval capability of Iran, a longtime U.S. adversary that has sought to make inroads in Latin America. Last week marked the first time Iranian warships had rounded the Cape of Good Hope; none has ever successfully crossed the Atlantic or circled around the entire coast of Africa.

U.S. officials began closely monitoring the ships’ progress in mid-May as they left the Gulf and headed down the east coast of Africa. Officials believe they are carrying fast-attack boats and potentially other weapons to fulfill a deal that Iran and Venezuela inked a year ago; satellite images from May 10 show seven such vessels on the Makran’s deck.

Former officials from across the political spectrum urged the Biden administration to seize the ships if they attempted to carry out the transfer.

“They are in effect pirate ships,” said John Bolton, former national security adviser to President Donald Trump, noting that Iran has been designated a state sponsor of terrorism and Washington has levied heavy sanctions on Tehran and Caracas. “The United States has a legitimate right of self-defense against both of them.”

Retired Adm. James Stavridis, the former commander of U.S. European Command and U.S. Southern Command who was considered a possible running mate to Hillary Clinton during the 2016 presidential campaign, wrote that “intervention may be justified” because arms transfers are a potential violation of U.S. sanctions.

“If the U.S. was willing to seize Iranian oil shipments for violating sanctions last year, it should be prepared to take direct action to stop these small but lethal machines of war from being delivered to a corrupt and dangerous regime in Caracas,” he wrote in a Bloomberg op-ed last week.

The website TankerTrackers.com on Monday said it had assessed that the ships are now headed to Syria to participate in naval exercises with Russia. The site estimated the ships will pass Gibraltar on July 4, which is the two-year anniversary of the seizure of the Grace 1 supertanker as it sailed toward Syria.

This is not the first time Iran has been suspected of attempting to send arms to Venezuela. Last summer, Trump administration officials suspected that Venezuela was considering purchasing missiles from Iran, including long-range ones that could reach the United States.

Officials grew so concerned that they discussed options to seize the cargo, including sending Coast Guard cutters to intercept and board Iranian commercial ships that could be carrying weapons, according to two former defense officials with direct knowledge of the discussions. Aides engaged in lengthy discussions about justification, concluding that the administration could use Article II of the Constitution, which gives the president authority to defend against a threat to the homeland, one of the former officials said.

However, the key difference is that last year the discussions involved Iranian commercial vessels, while this year they involve warships. Coast Guard vessels may not be equipped to withstand a kinetic conflict with an Iranian warship, forcing U.S. officials to consider sending in U.S. Navy assets. However, the U.S. military has a limited naval presence in the Latin America region, typically deploying only a few smaller littoral combat ships at one time. The Pentagon would have to pull assets from other regions — a move the Navy is likely to resist.

Another challenge is that warships and other government ships are granted sovereign immunity in international waters by the United Nations Convention on the Law of the Sea, said Cornell Overfield, an associate research analyst at the Center for Naval Analysis. In this case, seizure of the vessels, even if they are found to be carrying arms, would be unlawful, he said.

“So long as the Iranian warships do not threaten use of force, sovereign immunity protects them wherever they are,” Overfield wrote in Foreign Policy.

Source: https://www.politico.com/news/2021/06/17/iran-ships-venezuela-495013
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The Article Was Written/Published By: Lara Seligman and Nahal Toosi



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Saturday, May 29, 2021

U.S. monitoring Iranian warships that may be headed to Venezuela

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The U.S. national security community is monitoring two Iranian naval vessels whose ultimate destination may be Venezuela, according to three people familiar with the situation, in what would be a provocative move at a tense moment in U.S.-Iran relations.

An Iranian frigate and the Makran, a former oil tanker that was converted to a floating forward staging base, have been heading south along the east coast of Africa, said the people, who spoke on condition of anonymity to discuss a sensitive subject.

U.S. officials do not know for sure the destination of the Iranian ships, these officials said, but believe they may be ultimately headed for Venezuela. Iran’s intent in sending the vessels in the direction of the Western Hemisphere remains a mystery, the people said, as does their cargo.

The two countries — both of them facing severe U.S. sanctions — have developed closer ties over the last few years, with cooperation ranging from gasoline shipments to joint car and cement factory projects.

Senior officials in President Nicolás Maduro’s government in Caracas have been advised that welcoming the Iranian warships would be a mistake, according to a person familiar with the discussions. But it’s not clear whether Maduro has heeded that warning: At one point on Thursday, U.S. military officials understood the ships had turned around, but as of Friday morning they were still steaming south, one of the people said.

Lawmakers privy to the most sensitive intelligence information were informed over the past few days that the U.S. believed the Iranian ships may be heading toward Venezuela, but cautioned that the destination could change, according to a person briefed on the matter.

The mere presence of Iranian warships in America’s backyard would represent a challenge to U.S. authority in the region — and would likely inflame the debate in Washington over President Joe Biden’s decision to re-open negotiations with Tehran.

Iranian media has claimed the 755-foot long Makran, which was commissioned this year, can serve as a platform for electronic warfare and special operations missions, and Iranian officials have boasted of the ship’s missile and weapons capabilities. It is able to carry six to seven helicopters, as well as drones, they have said.

A spokesperson for the Venezuelan Foreign Ministry declined to comment. A spokesperson at the Iranian Mission to the U.N. declined to comment. And White House and Pentagon spokespersons declined to comment.

The timing of Iran’s apparent westward foray is especially inopportune for those hoping for a lowering of tensions with Tehran.

Since entering office, Biden has explored rejoining the 2015 agreement to curb Iran’s nuclear program, the Joint Comprehensive Plan of Action, which his predecessor Donald Trump abandoned in 2018. Those talks are ongoing in Vienna. The recent fighting between Israel and the militant group Hamas, long backed by Iran, also has fueled criticism from Republican lawmakers about the wisdom of re-entering the JCPOA.

Successive governments in Tehran and Caracas have made a habit of defying the United States, with whom each country has a complex history. The Venezuelan government was one of the first to recognize the Islamic Republic after the 1979 overthrow of the shah, a U.S. ally in the Middle East.

Tehran regularly objects to the presence of U.S. warships in the Persian Gulf region, and it has previously threatened to make a similar show of force in America’s backyard but never followed through.

Maduro’s authoritarian regime has been shunned by many countries, including its Latin American neighbors. The United States has imposed successively harsher rounds of sanctions that have punished an economy already wracked by mismanagement, corruption and Covid. Iran is one of Venezuela’s few close allies.

As Venezuela’s oil refining sector has collapsed in recent years, the Islamic Republic has sent multiple fuel tankers to the country to help with crippling gas shortages. In exchange, Venezuela’s government has supplied Tehran with much-needed cash and helped it build relationships in Latin America.

U.S. officials have watched those ties blossom with varying levels of concern.

In December, the top commander of U.S. troops in Central and South America described Iran’s growing military presence in Venezuela as “alarming.” In comments reported by The Wall Street Journal, Adm. Craig Faller, the commander of U.S. Southern Command, said the presence of personnel from Iran’s elite Islamic Revolutionary Guard Corps’ Quds Force is particularly concerning.

The Trump administration designated the Revolutionary Guards a terrorist organization in 2019, and killed its Quds Force commander, Gen. Qasem Soleimani, last year in an airstrike in Iraq.

Last summer, U.S. authorities seized four ships carrying cargo from Iran to Venezuela, as the Journal reported. At one point on their journey, those ships and five others were traveling with an Iranian naval intelligence ship, U.S. officials told the paper. The ships did not reach Venezuela.

Source: https://www.politico.com/news/2021/05/29/iranian-warships-venezuela-491414
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The Article Was Written/Published By: Betsy Woodruff Swan, Lara Seligman, Andrew Desiderio and Nahal Toosi



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Thursday, October 1, 2020

Venezuela receives gasoline from Iran amid surge in protests

Three ships loaded with gasoline from Iran have started to reach fuel-starved Venezuela amid simmering social unrest across the South American country

Source: https://www.independent.co.uk/news/world/americas/venezuela-receives-gasoline-iran-amid-surge-protests-venezuela-goods-ships-unrest-nicolas-maduro-b725034.html
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Sunday, August 23, 2020

Venezuela buying missiles from Iran a 'good idea', Maduro says

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US senator brands move ‘dangerous escalation’ amid deepening ties between two nations

Source: https://www.independent.co.uk/news/world/americas/venezuela-iran-missiles-maduro-trade-us-sanctions-colombia-duque-a9684151.html
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Friday, August 14, 2020

DOJ confirms ‘largest-ever US seizure of Iranian fuel’ on 4 ships bound for Venezuela

The US has seized some 1.116 mn barrels of Iranian fuel aboard 4 ships headed for Venezuela, the Justice Department has confirmed, hinting at “assistance” from “foreign partners” and declining to reveal where the grab took place.

The agency hailed what it called the largest-ever US seizure of Iranian fuel in a statement on Friday, revealing Washington had nabbed the sanctions-skirting cargo en route to Venezuela with the assistance of unspecified “foreign partners.”

The statement appeared to confirm a Wall Street Journal report, citing anonymous government and shipping sources, that claimed four tankers loaded with Iranian fuel had recently seen their cargo confiscated “without the use of military force.” The vessels were said to be re-routed to Houston, Texas, where they will reportedly be met by senior Trump administration officials.

Also on rt.com

FILE PHOTO: An oil tanker is seen in the sea arriving at Puerto La Cruz refinery in Venezuela.US seizes 4 Iranian gas tankers en route to Venezuela after threatening to disrupt deliveries – WSJ

Washington’s high-seas score stems from a July court complaint demanding the four tankers in question “forfeit all petroleum-product cargo” due to its having been shipped by the Islamic Revolutionary Guard Corps, according to the statement. The US designated the IRGC a terrorist organization last year at the behest of Israel as it ramped up its “maximum pressure” campaign against Tehran. 

Since pulling out of the JCPOA nuclear deal in 2018, the Trump administration has leveled a bewildering array of sanctions against Iran, flooded the Persian Gulf with US military assets, and offered millions of dollars in bribes to Iranian ship captains to deliver their oil tankers into the hands of Uncle Sam.

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Source: https://www.rt.com/usa/498038-doj-confirms-iranian-tankers-seized/?utm_source=rss&utm_medium=rss&utm_campaign=RSS
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Sunday, May 24, 2020

Iranian ships approach Venezuela with no sign of US threat

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First of five tankers loaded with gasoline from Iran reaches Venezuelan waters.

Source: https://abcnews.go.com/International/wireStory/iranian-ships-approach-venezuela-sign-us-threat-70853937
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Friday, May 8, 2020

Inside the operation to overthrew Maduro that Venezuela thwarted

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Donald Trump and other US officials deny any knowledge of the operation

Source: https://www.independent.co.uk/news/world/americas/venezuela-nicol-s-maduro-juan-guaid-a9505336.html
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Wednesday, May 6, 2020

Trump administration threatens Venezuela's Maduro with 'every tool' US has to free two Americans

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Donald Trump has denied any US involvement in operation

Source: https://www.independent.co.uk/news/world/americas/us-politics/trump-maduro-venezuela-coup-pence-jailed-americans-a9502096.html
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Tuesday, May 5, 2020

Venezuela arrests two Americans for failed 'invasion' by sea, Maduro says

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‘They were playing Rambo,’ he tells nation in TV address

Source: https://www.independent.co.uk/news/world/americas/venezuela-arrests-americans-invasion-sea-nicolas-maduro-a9499126.html
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Thursday, February 20, 2020

Venezuela’s Juan Guaido blasts search of detained uncle’s home

Venezuela’s opposition leader Juan Guaido condemned a raid by military intelligence agents who searched his detained uncle’s home on Thursday, and vowed he would not bow to government “repression.” His uncle, Juan Marquez, was arrested February 11 on his return to Venezuela with Guaido at the end of an international tour to drum up international […]

Source: https://www.rawstory.com/2020/02/venezuelas-juan-guaido-blasts-search-of-detained-uncles-home/
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Wednesday, February 12, 2020

Woman 'escapes after being held captive as sex slave for 31 years' in Venezuela

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Matias Salazar charged with sexual slavery, sexual violence and psychological violence

Source: https://www.independent.co.uk/news/world/americas/woman-captivity-sex-slave-man-arrest-venezuela-maracay-a9331096.html
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Sunday, January 5, 2020

U.S. plans for Venezuela hit turbulence as Maduro tries Assembly takeover

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President Donald Trump’s campaign to oust Nicolas Maduro hit a major snag on Sunday as supporters of Venezuela’s authoritarian president tried to politically sideline the man whom Trump has recognized as the country’s legitimate leader.

The troubles underscored the difficulties in the U.S. strategy toward Venezuela nearly a year after Trump demanded that Maduro leave office and ramped up sanctions on his government. The strongman remains ensconced in power, with backing from U.S. adversaries Russia and Cuba.

On Sunday, the U.S. expected Juan Guaido, 36, to be re-elected as the head of Venezuela’s opposition-controlled National Assembly. That position gave Guaido grounds to make the legal claim that he is Venezuela’s “interim president” because Maduro’s last election victory was marred by fraud.

But, according to media reports, security forces loyal to Maduro blocked Guaido and many of his allies from entering the building. One video showed Guaido trying to scale the gate and being pulled down by security forces, some of whom carried shields to push back the crowd.

The vote that followed gave the Assembly leader’s post to Luis Parra, a rival of Guaido’s, according to media reports. In the extraordinary confusion, some observers insisted there was no quorum for a vote. Parra, described in some accounts as a “dissident opposition politician,” has been accused in a recent corruption scandal, and U.S. officials suspect he is allying himself with Maduro.

U.S. officials denounced the events and said they would not recognize Parra’s claim.

Guaido “remains #Venezuela’s interim president under its constitution,” tweeted Michael Kozak, the State Department’s acting assistant secretary for Western Hemisphere Affairs. “This morning’s phony National Assembly session lacked a legal quorum. There was no vote.”

Guaido’s claim to be “interim president” of Venezuela is recognized by the U.S. and more than 50 other countries, many of them in Latin America. The coalition has been alarmed by Venezuela’s descent into autocracy and economic despair under Maduro.

U.S. officials say they retain confidence in Guaido, notwithstanding fractures and scandals in the Venezuelan opposition and despite widespread frustration that a year’s worth of pressure, including a failed high-profile uprising attempt, has not led to a change in government in Caracas.

In an interview ahead of Sunday’s vote, Elliott Abrams, the Trump administration’s special representative for Venezuela, stressed that Guaido is the Venezuelan opposition’s choice for interim president and that the U.S. backs him as a result.

“We continue to support him fully,” Abrams said. “There is no reduction in support at all in the United States.”

He also confirmed that the Trump administration intends to ramp up the economic pressure on Maduro and his allies in the months ahead. That will primarily involve imposing more economic sanctions on individuals, companies and other entities linked to the Maduro government.

Companies in other countries that do business with the Maduro government may face new U.S. sanctions, too. Venezuela is a top oil producer, making it a tempting partner for nations seeking energy resources. The U.S. has sanctioned PDVSA, a major Venezuelan state-owned oil firm.

Abrams dismissed claims that the United States is running out of targets to sanction, saying that the Trump administration keeps getting “more and more information from cooperative governments and individuals” about new targets tied to the Maduro government.

The U.S. also hopes to see the European Union and other Latin American countries step up their own imposition of sanctions on Maduro. Abrams downplayed frustrations with the lagging international sanctions effort, noting that unlike the U.S., many other countries have not traditionally used sanctions and thus lack the necessary expertise and architecture.

“It’s slow because it’s new,” he said.

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Guaido’s ambassador to the United States, Carlos Vecchio, echoed Abrams’ assertions that U.S. support for Guaido remains strong nearly a year into the anti-Maduro campaign. Guaido remains a popular figure across Venezuela despite the fact that he has little access to the media institutions under Maduro’s thumb, Vecchio said.

He and others further pointed to what’s being called “Operation Scorpion” — an effort to bribe, imprison and otherwise cajole National Assembly members not to back Guaido — as a sign of Maduro’s feelings of insecurity. The brute force used to block Guaido from the Assembly on Sunday suggests that Maduro knew the opposition leader had the votes he needed.

“If Guaido was weak, the question would be why Maduro is doing everything to interfere with Guaido’s reelection” as assembly leader, Vecchio said.

Under Maduro, who took power in 2013, Venezuela’s economy has crumbled amid allegations of graft and drug trafficking in the government’s top echelons. A humanitarian crisis — people can barely afford food — has led millions of Venezuelans to flee to nearby countries.

One reason Maduro remains in power is support from Venezuela’s military, whose senior ranks have stuck by him despite entreaties from Maduro opponents.

Abrams acknowledged that past outreach by the U.S. and the opposition to Venezuelan military officers and soldiers “obviously was not sufficient.” The trick is figuring out who will have the most impact in such outreach, he said, pointing to potential liaisons such as retired military officers from Latin American countries.

Another group that the United States wants to peel away from Maduro are the “Chavistas.” These are Venezuelans who support the left-wing, socialist ideology that kept Maduro’s predecessor, the late Hugo Chavez, in power for years. Chavez, who died in 2013 while battling cancer, endorsed Maduro as his successor.

Abrams argued that many Chavistas recognize that Maduro’s corruption and economic mismanagement have badly damaged their movement’s reputation. And while Abrams stressed that the United States does not believe a socialist approach will rebuild Venezuela, he added that what matters is to have a legitimate political process.

“Venezuelans need to have the chance to vote,” he said. “If Chavistas win a free election, we will respect the outcome of that election. We’re not trying to destroy their future. We’re trying to create a future for Venezuela.”

While U.S. interests in Venezuela are many — including its oil — Trump administration officials have also said Washington has an interest in ensuring that the Western Hemisphere remains a stronghold for democracy. Trump’s dislike of Maduro strikes an odd note, however, given his affinity for strongmen in other countries, including President Vladimir Putin of Russia.

Former U.S. officials who have dealt with Venezuela said it was clear that the Trump administration’s hopes that Maduro would quickly resign have been tempered over the past year, and that it is still trying to properly calibrate its policy toward the Latin American nation.

Trump himself appears less interested in the issue than in early 2019, when on Jan. 23 he dropped his recognition of Maduro as Venezuela’s true leader. Back then, Trump even nodded to the idea of U.S. military action in Venezuela.

As the months have worn on, the U.S. has sent mixed messages about whether it backs the opposition’s attempts to negotiate a political solution with Maduro, former U.S. officials said.

Now, “the trend lines point toward increasing authoritarian consolidation, a stronger Nicolas Maduro and a more fragmented opposition,” said Michael Camilleri, who served in the State Department and the National Security Council during the Obama administration. “Those in the opposition who had deluded themselves into thinking Trump was going to invade and solve all their problems are coming to the realization that’s not going to happen.”

In a sense, the status quo works for Trump politically.

As long as he maintains pressure on Maduro, he can use that to gain votes in Florida, a key 2020 swing state where many Venezuelan and Cuban exiles live, even if nothing changes on the ground in Caracas. Sen. Marco Rubio (R-Fla.) has been particularly influential in urging Trump to stay tough on Maduro.

The Venezuelan autocrat, meanwhile, is outwardly striking a confident pose despite the sanctions and rhetorical fury from his giant neighbor in the north.

“I’m a man of dialogue!” Maduro tweeted on Thursday. “With Donald Trump or whoever governs the US: whenever, wherever and however [they] want, we’re ready for dialogue with respect, pride and dignity, to establish new basis of relations that will contribute to the stability of the region.”

But opposition leaders say they cannot see a viable Venezuelan future with Maduro in charge.

“He is in power, but he is far from governing,” Vecchio argued. “He is surviving and is unable to solve any problems, not even the basic ones. … He doesn’t have the support of the people.”

Article originally published on POLITICO Magazine

Source: https://www.politico.com/news/2020/01/05/trump-venezuela-maduro-assembly-takeover-094257
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Sunday, November 3, 2019

El Salvador expels Venezuelan diplomats, recognizes Juan Guaido as ‘president’

Venezuelan diplomats were told to leave El Salvador within 48 hours, according to a statement released through the Twitter account of the country’s president, Nayib Bukele. The announcement cited the “systematic violations of human rights” by the government in Caracas as one of the reasons leading to the expulsion. 

It also said the decision is “consistent” with El Salvador’s policy of rejecting the legitimacy of Venezuelan President Nicolas Maduro. Simultaneously, Bukele’s statement recognized US-backed opposition leader Juan Guaido as Venezuela’s president, inviting him to send his own envoys.

Source: https://www.rt.com/newsline/472500-salvador-expels-venezuelan-diplomats/?utm_source=rss&utm_medium=rss&utm_campaign=RSS
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Wednesday, October 9, 2019

In Venezuela's former oil capital, there's poverty in life and death

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‘If a family member dies, we can’t even bury him with dignity… how can this be our reality?’

Source: https://www.independent.co.uk/news/long_reads/world/venezuela-oil-capital-poverty-life-death-maduro-a9116661.html
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Tuesday, October 1, 2019

Venezuela reportedly wants its central bank to hold bitcoin

dims?crop=4928%2C3279%2C0%2C0&quality=85Venezuela may not just be using its own cryptocurrency to dodge the consequences of international sanctions. Bloomberg tipsters say the country’s central bank is testing the possibility of holding on to cryptocurrencies in order to help the state-co…

Source: https://www.engadget.com/2019/09/29/venezuela-wants-central-bank-to-hold-bitcoin/
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Monday, July 22, 2019

Venezuela blames nationwide blackout on ‘electromagnetic attack’

Preview Massive blackouts across Venezuela were likely caused by an “electromagnetic attack,” the government of President Nicholas Maduro said, stressing that authorities are working to bring back power as soon as possible.
Read Full Article at RT.com

Source: https://www.rt.com/news/464803-venezuela-new-power-outage/?utm_source=rss&utm_medium=rss&utm_campaign=RSS
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Friday, June 21, 2019

Trump is losing interest in Venezuela because it is no longer an 'easy win', sources say

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President believes national security adviser John Bolton ‘got played’ by key Maduro officials, according to sources

Source: https://www.independent.co.uk/news/world/americas/trump-bored-maduro-guaido-cuba-foreign-policy-john-bolton-a8969231.html
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Wednesday, June 19, 2019

Venezuela Is Now Awash in U.S. Dollars

Venezuela Is Now Awash in U.S. Dollars(Bloomberg) — Editors Note: There are few places as chaotic or dangerous as Venezuela. “Life in Caracas” is a series of short stories that seeks to capture the surreal quality of living in a land in total disarrayWe used to catch only rare glimpses of them in public. A waiter willing to risk jail time might be persuaded to accept them for the right price. Amateur tourists would flash them at the airport. Shady street hawkers made offers for them under their breath.Now, U.S. greenbacks are everywhere. They’re stacked high in cashiers’ drawers at supermarkets and bodegas and even make their way into panhandlers’ cups. The wealthy tip parking valets with singles and pull out wads of twenties to pay for buckets of beer. Currency traders casually set up on busy street corners in slums and shout, “Compro dolares, compro dolares”—“I buy dollars.”With the bolivar all but worthless, devalued into irrelevance by the autocrat Nicolas Maduro, the cash printed by the gringos he rails against has become king. It is beyond ironic that Washingtons and Benjamins—and not the domestic notes named for the South American independence hero—are keeping the consumer economy afloat.Until recently, using foreign money was a crime the government enthusiastically threatened to prosecute. After the ruling socialists established currency controls back in 2003, they began patrolling for transactions that ran afoul of their Kafkaesque rules about money. Plain-clothed inspectors ran stings and raided businesses.While very few people actually ended up behind bars, the government definitely succeeded in spooking everybody. We kept the bills tucked away for fear of sending signals to kidnappers and cops. We talked in code, calling them “lettuces” and “greens.” I conducted a few transactions in dollars in those days, swapping cash on a stove in a restaurant kitchen or in an empty office backroom. The recipients of my treacherous bills would nervously shut windows and doors as they led me away from prying eyes.It took inflation hitting six digits and widespread hunger for the regime to finally begin dismantling the complicated mess of controls. Now the authorities don’t blink when they see dollars bandied about. Their government is too broke and too dysfunctional to try to dictate the terms of commerce anymore. Their 21st Century socialism has given way to savage capitalism.The unwinding of the rules that began last August was welcome for anyone tired of dealing with the dizzying amount of zeros involved in bolivar prices, hauling around bundles of all-but-worthless notes and praying the credit-card reader would, just this once, work. Now we could use real money. It isn’t terribly hard for anyone, rich or poor, to get their hands on dollars. People bring them into the country from visits to border towns in Colombia and Brazil or from travels further abroad.It was the great blackout, when most of Venezuela was without power and a functioning banking system, that accelerated the de facto dollarization of the economy. In the darkness, toting around hard currency was the only way you could be certain you’d manage to do any form of shopping.Once the lights finally—and mercifully—came back on, some stores and restaurants kept displaying prices in dollars. Now at the specialty shops that have been popping up in eastern Caracas, offering everything from Fruit Loops to homemade cookies to bottles of Budweiser, the clerks will tell you they’ll gladly accept an electronic transfer via Zelle or PayPal if you don’t have the cash.According to the calculations of one top bank executive, about 30% of all transactions are made in dollars these days. I’d be shocked if that percentage didn’t keep growing. Which seems to be making moot one of the big theoretical debates in opposition circles: whether to adopt the dollar as Venezuela’s currency if they finally manage to take power from the socialists. The people already have.–With assistance from Fabiola Zerpa and Daniel Cancel.To contact the author of this story: Andrew Rosati in Caracas at arosati3@bloomberg.netTo contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net, Anne ReifenbergFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Source: https://news.yahoo.com/once-forbidden-u-dollar-suddenly-090041583.html
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Wednesday, June 5, 2019

Deutsche Bank confiscates 20 tons of Venezuelan gold after default on swap agreement

Preview Germany’s biggest lender, Deutsche Bank, has taken control of 20 tons of gold belonging to Venezuela as collateral after Caracas defaulted on a gold swap agreement valued at US$750 million.
Read Full Article at RT.com

Source: https://www.rt.com/business/461111-venezuela-gold-deutsche-bank/?utm_source=rss&utm_medium=rss&utm_campaign=RSS
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Monday, May 13, 2019

Guaido asks US military for meeting to plan ‘restoring democracy’ in Venezuela

Preview Officials loyal to the US-backed self-proclaimed president Juan Guaido have requested a meeting with US Southern Command to begin planning a military intervention in Venezuela, after multiple failed attempts to take power.
Read Full Article at RT.com

Source: https://www.rt.com/usa/459248-venezuela-southcom-meeting-intervention/?utm_source=rss&utm_medium=rss&utm_campaign=RSS
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