Gold News Daily
7.23.18 – Venezuela Inflation to Reach 1,000,000%
Gold last traded at $1,225 an ounce. Silver at $15.52 an ounce.
NEWS SUMMARY: Precious metal prices traded steady Tuesday on a flat dollar. U.S. stocks rose after upbeat earnings from Google-parent Alphabet led a swell in technology stocks.
Chinese Gold Market: Still In The Driving Seat –Zero Hedge
“As a reminder, China is the largest gold producer in the world, the largest gold importer in the world, and China’s Shanghai Gold Exchange is the largest physical gold exchange in the world….Around the world, monetary gold (i.e. central bank gold) is exempt from customs and trade reporting when it moves across borders. Given this exemption, it is difficult to really know how much gold central banks (including the Chinese central bank, the PBoC) actually have at any given time….The 2017 gold output total of 426.14 tons was itself 27.3 tons, or 6%, less than in 2016, it looks like 2018 will see another year of reduced gold production from the world’s number one gold producer. With continued buoyant demand from the Chinese gold market, these relative production shortfalls will have to be made up by larger gold imports or increased volumes of gold recycling.”
Venezuela’s Inflation to Reach 1 Million Percent, IMF Forecasts –Bloomberg
“Venezuela’s inflation will skyrocket to 1 million percent by the end of the year as the government continues to print money to cover a growing budget hole, the International Monetary Fund predicted on Monday. The crisis is comparable to that of Germany in 1923 or Zimbabwe in the late 2000s, said Alejandro Werner, head of the IMF’s Western Hemisphere department….’The collapse in economic activity, hyperinflation, and increasing deterioration in the provision of public goods as well as shortages of food at subsidized prices have resulted in large migration flows, which will lead to intensifying spillover effects on neighboring countries,’ Werner wrote in a blog post….While hundreds of thousands of Venezuelans flee hunger and surging prices, President Nicolas Maduro has maintained that the crisis is a result of an ‘economic war’ waged by his political opponents at home and abroad. As the economy unraveled, authorities stopped regularly publishing economic indicators. Economists now rely on independent estimates provided by international organizations, banks and even Venezuelaâ€™s congress to track the country’s economic meltdown.”
Socialist Country That Doesn’t Believe in Inflation to Hit 1 Million Percent Inflation –FrontPageMag
“The left-wing sociologist running the Venezuelan economy doesn’t believe in inflation. Last year he wrote a pamphlet in which he insisted that ‘Inflation does not exist in real life.’….The Socialist government tried to solve its money problem by printing more money. But it wasn’t able to pay for the money it wanted to print because of the inflation which officially did not exist….The once wealthy oil-producing nation of Venezuela is in the grips of a five-year crisis that leaves many of its people struggling to find food and medicine, while driving masses across the border for relief into neighboring Colombia and Brazil. Shortages in electricity, domestic water and public transportation plague millions of Venezuelans, who also confront high crime, the IMF noted. IMF economist Alejandro Werner says that if the prediction holds, Venezuela’s economy will contract by 50 percent over five years. Werner says it would be among the world’s deepest economic falls in six decades.”