The Secretive Gold Deal Keeping Venezuela Afloat

The Secretive Gold Deal Keeping Venezuela Afloat


Day-to-day life for the average
Venezuelan is a struggle, from the moment you wake up to the moment you go to sleep. From waking up and trying
to turn the lights on, to finding out that the
power went out overnight, and then trying to take
your morning shower, to find out that you
have no water at home. Then paying for everything has become increasingly
complicated, there’s no cash. Venezuela finding itself
without access to dollars, without access to banks, without access to avenues of
finance, even for their oil, came to the realization, I
guess, that it needed money, and it needed to find a way to get cash when most of the world didn’t want to give ’em access to cash. All assets of Maduro,
subject to U.S. jurisdiction, are frozen. So now that U.S. sanctions
have effectively cut off Maduro’s access to a
global financial network, gold is the last lifeline that Maduro has. [Television Announcer] Reports
claim the Maduro regime is selling out the country’s gold reserves to ease the pressure of
international sanctions. In the last couple of years, on the side, and sort of in secret, the Venezuelans and the
Turks started setting up a pretty sophisticated web of trade of food and gold between
the two countries. We’re not sure who’s winning from the sale of Venezuela’s gold, but what’s clear is that the
Venezuelan people are losing. My name is Michael Smith, and I’m a reporter for the
project and investigations team here at Bloomberg News. My name is Patricia Laya, and I’m Bloomberg’s
Venezuela bureau chief, and I write about Venezuela’s
clandestine gold sales. So the situation in
Venezuela is really bad, and there’s currently sort
of two worlds in Venezuela, one world is for the people
who have access to dollars. You can probably afford to
have a power generator at home in case the power goes out, and you can probably have
a water tank installed for when there’s shortages of water. Now there’s the second
world, that’s the world that the vast majority
of Venezuelans live in, and it’s the world where
you live in bolivares. There’s shortages of food, inflation runs in the
thousands, tens of thousands, hundreds of thousands
percent, nobody really knows. Which means, your savings
have long been gone. There’s extreme levels of crime that makes life extremely difficult for anyone who’s just
sort of living there. You have a whole population
that’s subdued by hunger, and that’s also under the
control of the government, who’s become their sole provider. People who can’t really
think of an economic future because they can’t think beyond
the day that they’re living. Nicolas Maduro is a former bus driver and a former union leader. Maduro came to power in
2013, when Hugo Chavez died. And he was basically Chavez’s
handpicked successor. Outwardly, their message was that they wanted to spread
the country’s oil wealth fairly among the poorest Venezuelans. And for a while, they were able to, when oil prices were really high, they funneled much of that money through social programs in Venezuela. But they’ve been heavily corrupted in so many different ways,
and bungled, and misapplied, that they’ve really turned into something that has just had an
incredibly detrimental effect on the people of Venezuela
in many, many different ways. And when oil prices crashed, the whole economy came crashing down, ’cause Venezuela depends on
95% of its revenue on oil. How bad is it, and is
there any end in sight? It’s terrible, it’s getting worse, basically Maduro is
waging economic warfare against his own people, his own country. An abuse of power that
started with Chavez, that allowed him to not just change the country’s constitution, but also fill the country’s courts and the electoral authority with people that were loyal to him, and that allowed the country to completely eliminate any
sort of democratic institution. Maduro has given most of
the government’s control to the military, so the feeling is that, if
Maduro falls, they fall. So, they have formed a bond
through money laundering, fraud, and all sorts
of illegal businesses. [Television Reporter] A
first shipment of gold bars has arrived in Venezuela
after President Hugo Chavez recalled almost all the country’s
foreign bullion reserves from western banks. So in 2011, shortly after
the US economic crisis and the European debt crisis, Chavez basically used that as an excuse to have about 11 billion worth of Venezuela’s gold repatriated
from banks in North America, banks in Europe, back to Venezuela. He said that it was a measure to safeguard against financial
instability around the world. And that move by Chavez
almost a decade ago is what’s keeping Maduro
selling gold nowadays. It’s legal for Maduro to sell his gold, but what’s happened is
that after U.S. sanctions, a lot of the buyers have been spooked. So what’s happened is that they’ve begun to sell the gold in secrecy. [Reporter] On Venezuela, you did the tough sanctions and you sent the aid, but it seems like Maduro
is no closer to leaving. We really haven’t done the
really tough sanctions yet. We can do the tough sanctions
and all options are open. We want Maduro to leave so there can be free and fair elections, with the ultimate goal of ensuring that there’s democracy
and freedom in Venezuela. The U.S. has imposed sanctions on Venezuela more than a decade ago, but they never went further than individual targeted
sanctions until 2017. We have our eye very closely on Venezuela, Since President Trump took office, they were just accelerated
to cover hundreds of people and companies and government entities and that sort of thing. We have continued to expose the corruption of Maduro and his cronies
and today’s action ensures they can no longer loot the
assets of the Venezuelan people. US sanctions can be
devastating for the people and companies that are targeted, they’re listed and targets of sanctions. You become a pariah in the
system of commerce and finance. Unless you’re in a country that will allow you to do
business despite US sanctions, and that’s what’s going on with Turkey. [News Anchor] Let’s get straight to the
breaking news overnight. An attempted coup leading to chaos, death, and instability in Turkey. In July of 2016, there was a coup attempt in Turkey against the government President Erdogan, and it was a serious material threat to the Erdogan government. The US watching this sudden uprising with concern. Erdogan felt isolated, he wasn’t getting much support from anyone in the world that day, and one of the first calls he got was from a representative of
the Venezuelan government, who contacted the Turkish
embassy in Venezuela, and said, “We’re with you, we know what it’s like to be
a victim of a coup attempt, we’re pretty sure the U.S.
government was behind it somewhat, we’re with you.” And that contact, which went all the way up to
the president of Venezuela and the president of Turkey, was really sort of the seed that turned into a conduit
for the Venezuelans to get their gold out of the country, and to turn it into money. There’s been a tremendous trade of gold, tons and tons and tons and tons of it, that has left Venezuela, a lot of the national
reserves have been sold off. He still has this lifeline
that’s available to him, and that he’s clearly been
able to get away with. We’ve seen him do a multitude
of gold sales this year, despite the sanctions that are in place, so they realized that he still has a way to prop up his regime
and to stay in power. There is an estimated eighty tonnes
left at the central bank. That’s about $3.5 billion worth. What’s left right now is only
enough for six more months of food subsidies for Venezuela’s people, so if Venezuela runs out of gold, we don’t really know
what’s going to happen. What we do know is that they
are feeling the pressure, and this pressure of knowing
that gold can soon run out is what’s bringing them to
negotiate with the opposition. To predict where things
are going in Venezuela is a dangerous game in my experience. You could always find people saying, “Oh, this can’t go on any longer, it’s gonna collapse,” but I think it’s a very
complex crisis there and it’s gonna be very
difficult to find a solution that really works quickly, I think.

100 Comments

  1. biased report..without analysising the real background and economic war..just showing what is happening on the surface…
    Very stupid reporters! Sold journalism.
    By the way I am not fan of socialism..but still u have to stay objective

  2. You can’t impose sanctions on a country and then get mad at them for conducting businesses in shady areas as a means to fund the state due to survival.
    The dude is acting up way to hard. Time for another round of musical chairs and todays lucky winner is Venezuela 🎶!!!

  3. Warning everybody must swipe they faces just if you have some oil on your face otherwise U.S Is gonna take care of you.

  4. Yea let’s talk like it’s not the terrorist state of America’s fault that they are suffering through illegal sanctions

  5. See what happen to Libya when U.S TOLD THEM their president is dictator and they need to throw him away.. well they Libyans trusted U.S and did throw their president. .. see what happen after that….
    Leave other countries alone ..

  6. U r putting pressure on the people of Venezuela and you wanna tell me they r in trouble… well leave them and their president its simple

  7. The US should be ashamed of itself the way they treat other countries. Sanctions are never ever about, democracy, protecting our freedoms, international threats or dictators. This is only ever about money and power. The US wants to control all the oil and has even pushed Venezuela and Iran out of the oil market so that is has room to sell it's own oil. The behavior of the US is of the same nature of Al Capone and the era of gangsters and the US continues to spread lies and deception to hide their behaviour. The UN charter states that all countries have a right to self govern how they like and yet the US denies them that right all because of greed, money and power of which the US feels it should all be theirs.
    They have become the most disgraceful government on the earth acting in ways that kill millions all for greed. Shame on you and you will all be judged !!

  8. BOLSHEVIC SATANIC AMERICA PISSED ON CAPITALIST CHRISTIAN GREECE AND THREW GREECE AWAY FOR RADICAL ISLAM FACIST TURKEY.
    DEATH TO NEW WORLD ORDER SATANIC AMERICA.

  9. Founder of Israel banksters from uk nurtured by bankster mafia religious luciferian race occult fanatic slytherin caucasian bastards robbing the american economy with scandal scam federal reserve bankster uk controling usa threw debt and taking over after jfk assassination

  10. maduro is elected you cunts
    leave latin america you scum
    strange every country close to the usa borders are all trash …
    as usa are destroying them all the time
    washington are scum

  11. America put sanctions against Cuba , it was wrong but it was done . But now Cuba is finding how to get by on there own . Now america could take lessons from Cuba how ironic. Venezuela may outgrow their masters also . 2 cool

  12. Two reasonable, informed people sincerely saying what they see in Venezuela. Yet the US role in de-stabilizing the economy there began with the election of Chavez. This direct foreign policy effort has been the dynamic mover that has brought about the current condition. Blaming Maduro alone– or oil prices is distorting reality.

  13. How tf does sanctioning countries hurt the leaders! IT DOESN'T! It only hurts the people who built their own countries, those who are not in charge!

    Does anyone else see the irony here by outsiders like Trump? He's more responsible for this than Venezuela's damn tyrants

  14. Public is boss ,public should be the first and last beneficiary of any resource of thier country . . this is called real democracy

  15. Maduro, Jiping, and Putin "own" the currency and control the value of it. They in turn print more money to buy gold through hyperinflation, and the poor and middle class ultimately pay for their unbridled power by starving to death. Turkey's inflation is at 15% compared to the US of 1.5% in 2018. The rise of Populism around the world is set to destroy this Mafiosa counterfeiting scheme. Venezuelans have to revolt against the corruption. Fiat currency is like fire and must be controlled, but these three currencies aren't. Vote for popular govt and rid your states of the corrupt elite. Trump 2020! What will happen in 6 months is always what happens with S American dictators who run out of gold, there is a coup by the military who won't be getting their checks in the mail. I see Maduro being strung up on a light pole on a public street in Caracas.

  16. Wow, can anyone say "propaganda" 😂
    America has been attempting a coup there and are who to blame for the citizens suffering. We don't bring democracy to anyone and never have. All we bring is regime change and theft

  17. US is trying to do the same what he has been doing always…install a puppet goverment which will let explotation of resources by US companies…Look what happened the brazil..They were doing very well until a judical cue…They did in egypt, urkrain thi same..They did everthinğ to overthrow erdogan…Erdogan is standing and helping…

  18. just send some of the best trained marines to Maduro's house and that's how you put an end to all of our problems. The guy is worse than Pablo Escobar for christ sakes at least he was a thug chased by the law… now Maduro IS a thug but IS also the law so we have to dispose him and his people. clean the whole country of the cancer that socialism is and in a year we'll become a normal country since we still have private companies such as Empresas Polar that are waiting to resume operations as soon as all chavez/maduro imposed sanctions are lifted. Trust me, I was born and lived 19 there and I recently fled to the US surviving 2 kidnapp attempts. these socialist thugs are like cockroaches we have to exterminate them.

  19. Sanction america but thats a pipe dream and most likely the americans would declare it as an act of war and bomb you Boycott all american shite

  20. Why aren't all these people that are complaining about Venezuela go to the cause of the problem which are the United States sanctions against Venezuela instead of blaming Maduro

  21. What these two reporters are implying that a people elected government must bow down to imperialists because they r unable to polish their interests …

  22. How curious that the US only cares after people starving in places where there’s oil or something else they want. Freedom and Democracy my ass.

  23. SAME SOB STORY LIKE UKRAINE LIBYA SYRIA YEMEN
    SAME CRIMINAL USA
    ONLY LEAVES BEHIND DEATH AND DESTRUCTION AND LATER COMES AND PRETENDS TO BE THE HERO TO SAVE THEM

  24. If you selfrighteous people behind this propaganda are so righteous and if you care so much about the Venezuelan people, then stop the senctions.

  25. Is there any evidence provided to support theses allegations? Sounds like a lot of people questionable intentions endeavouring to manufacture consent for “freedom” to be brought over to the people

  26. Tell the demons stop putting sanctions on Venezula n infiltrating the country to destroy it. Its all from the demons in power n we all know who that is.

  27. If it's really be then give Venezuela their mony bk so they can eat who are u hold their money and then write about their hunger???

  28. Everything thanks to many years of US sanctions. White House cares less about average people in Venezuela. Same with Colombia, Honduras, Haiti where life is also difficult. But MSM doesn't want to talk about it. US has long history of meddling with foreign countries governments. All dictators in South America was protected by US.

  29. One thing i know. You can't eat Gold to survive in safe keeping it, so it needs to sell it's Gold to live another day and think how to overcome the problems within the country.

  30. One thing i know. You can't eat Gold to survive in safe keeping it, so it needs to sell it's Gold to live another day and think how to overcome the problems within the country.

  31. Venezuela's biggest problem is, it refuses to wear American chains and shackles….if they did they would live a life of high comfort like the Afghan's, Iraq's, Syrian's and Libyan's

  32. The problem is not Nicolas Maduro, the problem is the USA, now in decadency, but still willing to rob other countries, shame on you.

  33. Never let US step in ur country u gonna end up like Lybia Iraq and other countries where Infected by the Satanic Zionist people

  34. What about the secret corporate ambitions that drive the US govt to terrorize a sovereign nation into poverty while trying to install is own regime in place of the democratically elected officials?
    Whatsfreemasondicktastelike, bloomberg?

  35. "Create nukes and they will beg you for negotiation, stop bending to us and we gonna bring you down,or regime change, sanctions".North Korea

  36. Its just all about oil. If the US think about innocent people dying do something in Yemen when there are hundred thousands of innocent are losing their lives in civil war that were created by US ally Saudi Arabia.

  37. If you will not show servitude to the liberal tyrant in the west you will become a victim of their viciousness.

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