Global Dislocations, Madmen, and Spring Crisis Hot Zones Around the World
As the spring temperatures rise the Venezuelan economy spirals downward continually with no end in sight as debt-laden Venezuelan’s demonstrate in the streets. President Nicolas Maduro’s regime has been accused of using violence against the frequent protesters who find their country in a crisis situation caused by a combination of financial mismanagement and a sharp drop in the price of the countries key export oil.
Maduro’s regime took a “financial lifeline” issuing $2.8 billion in bonds issued by the state oil company Petroleos de Venezuela, or PDVSA, in 2014, and maturing in 2022. Goldman Sachs paid around $865 million or around 31 cents on the dollar and implying an annual yield above 40 percent. A nice deal for Goldman but one that will place added hardships on the Venezuelan people.
To Maduro’s credit, the awful legacy left by many years under Hugo Chavez’s rule did not leave him much to work with. The added burden of the price of oil being cut by more than half just left Maduro having to make the deal with Goldman that today doesn’t sit well with his people.
Across Venezuela’s southern border on the streets of Brazil, the people chant “Fora Temer” (Out with Temer) as the lame duck President of Brazil, Michel Temer has outraged his people who of late have become all too used to political surprises from major corruption probes to last year’s impeachment of Dilma Rousseff. Even for a people that have become immune to this sort of leadership, listening to the leaking of audio recordings where Mr Temer appears to be encouraging bribes has outraged Brazilians to a new level of anger.
North Korea poses one of the greatest security challenges for the U.S. and it’s regional neighbours as it has conducted two nuclear tests since January 2016 and two successful tests of medium to long range missiles in the last two weeks. Images of Kim Jong Un and his military celebrating the successful launches seem surreal and hard to accept.
– Will Pimenta, CAVU Investments
