The Scramble Part Two...

From what I see the process has already begun with the announcement on Friday that Venezuela’s debt paper was being downgraded. Chavez may be right about wanting to escape the "dictatorship of the US dollar" but the man is his own worst enemy when in comes to understanding capital. I guess that's what comes from hanging around with Castro.

The banksters are going to want to get this matter into the courts as quickly as possible, ram it through and wait for gold to go up for all the other intendment reasons so they have to dole out as little as possible of it in whatever "special case" bonds or notes -payable in 10 years of course- to cover any settlements. Throw in the banksters usual "administration fees" and Venezuela is effectively stripped of it's gold.

The only overhanging question I see is if they have the time to put the scenario in place, courts can be frustratingly slow to act and other events accelerating the collapse could outpace their plans. Which then raises the question of war. Given the considerable US military presence right next door in Columbia, no telling what they can cook up. Kill off a couple dozen US soldiers, blame it on Chavez and there you go, the ready-made primary excuse for more uncontrolled printing, war. I here Ben may be backing up the truck loads of lithium grease to lubricate the presses going into hyper drive as we speak!

I can almost hear the propaganda machine at work, “The Polish, err Venezuelan troops crossed the border and attacked our valiant troops defending the Reich, err Columbia. Blah, blah ,blah.

As usual there are bad players on all sides and as usual it’s the troops and innocent civilians who will end up getting it in the neck as the result of the Machiavellian power plays of others.

It’s going to be question of which gets people more riled up first, and who they blame for it; the ongoing financial chaos depriving them of house, home, jobs and food or some cooked up theater of the absurd in the Columbian jungles.