As Venezuela's Financial Crisis Deepens, President Maduro Travels To China Seeking Help

Financial Times: Venezuela's Maduro off to China as crisis deepens

WNU Editor: I am not surprise that Venezuelan President Nicolas Maduro is ignoring the IMF/World Bank, etc. .... my guess is that with U.S. sanctions now being imposed coupled with Venezuela's hostile history of treating international firms .... even he realizes that his "credit" with these institutions is no longer any good. The real solution to the crisis is devaluation .... but it looks like he is not willing to accept the costs that would be associated with a collapsing currency and hyperinflation ... so it is off to China in the hope of getting some money. What's my take on the trip itself .... my prediction is that he will be disappointed. The Chinese will give him a deal .... but knowing the Chinese as well as I do .... they are going to ask for terms that Venezuelan President Nicolas Maduro would not have even pondered about a year ago .... but today .... beggar bowl in hand .... his options are either to accept these terms, or declare his nation bankrupt. As to visiting OPEC countries to develop a plan of action on oil production and pricing .... I say good luck .... OPEC's members are now focused on keeping their market share, and are not interested in helping Venezuela.

More News On Venezuela's Deepening Economic/Financial Crisis

Venezuela's Maduro to visit China, OPEC nations amid cash crunch -- Reuters
Venezuela's Maduro heads to China to seek financial aid -- AFP
Maduro Travels to China for Financing, Oil Nations for Plan -- Bloomberg
Venezuelan leader Maduro seeks economic help on tour -- BBC
Venezuela Braces For A Tough Year Ahead -- NPR

Update: Talk about bad timing .... Oil Extends Drop From 5 1/2-Year Low on Supply Glut Speculation (Bloomberg)