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GatoGordo

(2,412 posts)
5. The reckoning is coming
Fri Jun 2, 2017, 07:31 AM
Jun 2017

Maduro needs two things. Time and money. This money buys him another couple of months, so that he can pay of the interest on his other loans that he took out to pay the interest on his other loans. Think "check kiting".

Goldman Sachs needs a quick profit. And that they can get 48% interest rate for pennies on the dollar? What payday lender, or loan shark would pass up that kind of deal? There is no other way to describe what GS has done. (And they have the chutzpah to insist that they are making this loan to Maduro.... for the sake of ordinary Venezuelans?)

The problem is, October is coming. And Maduro has a WHOPPING multi-billion dollar debt payment coming due, with no way to make that payment. The has already mortgaged everything of value. The Russians and Chinese are not going to float him any more loans (cash for oil), because he doesn't have the oil infrastructure to make good on those payments in oil.

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