|Trump’s Restrictions on Venezuela’s Financial Access Strikes Against Maduro’s Dictatorship|
|02/22/2018||American finance||Benjamin Roussey|
|keywords: Trump administration Venezuelan government Venezuela Financial Access Maduro|
Donald Trump’s move to restrict Venezuela’s access to American financial aid is one of the least talked about actions of the Trump administration. But this is a significant move aimed to curb the quasi-dictatorship of the Venezuelan President, Nicolas Maduro.
Trump’s restriction strikes at the oil-based economy which is Venezuela’s vital export. Too bad this country kicked out Exxon Mobile years ago and all that expertise. Hugo Chavez was a terrible person and terrible leader. He was a dictator who allowed his narcissism to define him much to the dismay of his beleaguered populace.
Chavez will not be missed. He led his country down the tubes.
An executive order by the job creating and fantastic American President signed last year made it impossible for stocks and bonds issued by either the Venezuelan government or Petroles de Venezuela – the country’s government owned oil firm – to bought by American firms. American banks are also prevented from lending money to the Venezuelan government or their oil firm.
In other words, the American President has done everything except introducing a complete oil embargo on this pitiful country.
Whenever a country nationalizes an entity that entity will most likely fail. Bureaucrats are nothing special – they work for the government. If they had any real skill they probably would not even work for the government. By nationalizing the oil company Petroles de Venezuela Venezuela squashed innovation and this is the reason why this country has not developed its vast resources of fossil fuel energy wealth.
Curbing Maduro’s Dictatorship
Maduro, who used to serve as the Minister of Foreign Affairs under the previous President Hugo Chavez took the helm in 2013. However, instead of supporting democracy, Maduro’s governing philosophy is a dictatorship. Maduro is an idiot too.
This has attracted retributions from many nations across the world, including the US. And by introducing the restrictions, President Trump has put his money where his mouth is.
In fact, the action from Trump came at a crucial juncture in Venezuelan politics – when Maduro decided to hold a special assembly that could potentially rewrite Venezuela’s constitution and thereby lead to Maduro gaining multiple powers in the government.
In this context, Trump had joined the leaders of many Latin American leaders in proclaiming that Maduro was moving to dictatorship.
Now, Trump’s restrictions have ensured that American finance wouldn’t be used to aid Maduro’s anti-people rule. Among other things, the restrictions would prevent Goldman Sachs from extending $2.8 billion as part of a bond deal they had reached with Venezuela in 2017.
Venezuela’s Financial Position
Venezuela has been reeling under financial pressure for quite some time now. Since 2014, the country’s economy has been reduced by 35 percent. The Goldman Sachs deal was considered a much-needed help to the country.
With America and other nations pulling back from helping this disgraceful and egotistical so called leader Maduro, Venezuela is increasingly seen as a risky destination by investors. Also, debt markets are now far out of Venezuela’s reach. Another failed Latin American country – like Puerto Rico.
Another thing to note is that the restrictions were imposed by Trump, in addition to already existing US sanctions on Maduro and other key officials of the pitiful Venezuelan government.
Trump has previously said that to help steer Venezuela back to democracy, he may even consider military intervention.
While the question of whether such an intervention would be a good idea or not is open for debate, there’s no doubt that the financial restrictions the Trump administration has put in place would have a slowing effect on Maduro’s plan to expand his power in the country.
Having said that, it must also be pointed out that the penalties the US has imposed are not as extreme as the measures the Venezuelan President’s critics had asked for.
For instance, since many American refineries have mechanisms in place specifically meant to handle Venezuelan crude oil, a complete restriction of oil imports from the country may not be feasible for America at the moment.
Another fact is that at the present time – or at least since the middle of last year – there hasn’t been any significant economic loans issued from America to that sad state of Venezuela which has continued to shoot itself in the foot.
The pull-back from the world’s largest economy is a huge blow for them. America now supports good people, not dictators. The fact that Obama gave billions of dollars to a terrorist state in Iran proves Obama’s evil intentions.
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