Venezuela’s Maduro to Present Evidence of US Economic Sabotage as Gold Tumbles

Santa Elena, August 11th, 2015. (venezuelanalysis.com)- Venezuelan President Nicolas Maduro pledged yesterday evening to share evidence in the coming days of the United States’ “Plan Vulture”, which he claims is currently destabilizing leftist Latin American governments through economic sabotage. 

“I have proof of how the [US] Southern Command, personally, has placed functionaries in the US embassy in Venezuela to direct the Vulture Plan,” Maduro said during a council meeting of the ALBA trade bloc.

The Venezuelan leader called upon the thirteen Latin American and Caribbean countries represented in the ALBA bloc to “unite to defend themselves” against the plan, which “tries to destroy…progressive, revolutionary processes from the inside” by “creating criminal groups and attacking national currencies.”

The accusation echoed similar claims made by Argentine President Christina Fernandez last month. 

Undoubtedly, Venezuela finds itself in a vulnerable financial moment. Despite a debt payment from Jamaica and a new loan from China injecting new funds into foreign reserves after they hit a twelve-year low low last month, the South American nation is struggling in the face of sliding oil prices. 

Additionally, as the Latin American country with the largest gold reserves, Venezuela is under more pressure than most from the 5% drop in the metal’s value in the past month.

Descending steadily since January at an accumulated 15%, the latest tumble in gold prices has further increased the country’s yields on state and PDVSA bonds, as investors speculate on its ability to service its debts. 

Compiled data reports show the South American nation is due to pay US $6.3 billion in bonds for the remainder of this year and over $10 billion in 2016.

Despite accusing the United States of sabotage, President Maduro has showed no signs of rebelling against or refusing to pay these debts. 

Still, with 97% of its income dependent on the price of crude, Venezuela is having to draw on its reserves by approximately $1 billion per month to counter the drop in the global market while conserving its ample social investments. 

Although economists at home and abroad have emphasized the need for bold action to reverse this downward trend, the Bolivarian government has indicated it will wait until after the Dec 6 National Assembly elections before taking measures. 

In the next couple of days, Maduro said yesterday, a special congress including representatives from Washington will be held, upon which the Venezuelan leader will present evidence of the Vulture Plan.