Venezuela, now teetering on the brink of default, is selling off its gold reserves to keep the country going—a telltale sign that things are much worse in Caracas than it seems. Reuters:
Daily newspaper El Nacional said the deal was for $1 billion and was struck with Citibank, which is owned by Citigroup Co. […]
A source at the central bank told Reuters last month it would provide 1.4 million troy ounces of gold in exchange for cash. Venezuela would have to pay interest on the funds, but the bank would most likely be able to maintain the gold as part of its foreign currency reserves.
With nationwide power and energy rationing, goods such as food and medicine, and rising inflation, Venezuela is starting to resemble more a sinking ship than a functional state. If that’s the case, then President Maduro is the captain that orders his crew to throw away anything that isn’t nailed to the floor to keep the ship afloat.