Why Socialism doesn't work: Venezuela Economics
In a Democratic Socialist Government spending on social programs, with little regard to where the money is coming from , constant borrowing and printing money leads to inflation.
This would be, as the saying goes, "too much money chasing too few goods."
Venezuela is now in a state of hyperinflation. They borrowed and borrowed and printed money with little planning on how they would earn the money to pay back those loans . The USA seems to be eager to follow that same economic plan... Pay close attention.. It may be our future....
Here is an article by investigative Reporter, Maibort Petit on when the borrowers of those loan commitments followed....
SATURDAY, AUGUST 7, 2021
Venezuela Drowned in Lawsuits: The Daniel Retter Class Action Lawsuit Breach of contract is the repeated claim that bondholders make to Venezuela in the courts of the United States. By Maibort Petit A Pharo Gaia Fund, Casa Express and Pharo Gaia Fund, among others that we have referred to in these pages, is joined by Daniel Retter, who extends his action to all affected people with International Bonds of the Government of Venezuela 7,750 percent as the yours, both in the United States and elsewhere, and files a class action claim against the Bolivarian Republic of Venezuela for the lack of principal and interest payments on the aforementioned notes.
Not being notified seems to be a strategy of Venezuela in the face of the demands that creditors make in the judicial instances.
Notification and request for payment
On September 25, 2020, Daniel Retter, a citizen of the state of New York and a resident of Bronx County, sent a communication to the Bolivarian Republic of Venezuela, to the attention of the Ministry of Popular Power for Economy and Finance, in Caracas, In order to demand the payment of the principal and interest of the bonds that it owns and that it has not received since October 13, 2009.
Retter refers to the Venezuelan government office that on May 5, 2017, it bought International Bonds of the Government of Venezuela 7,750 percent with a total nominal value of USD 180,000.
Venezuela had to pay interest semiannually on October 13 and April 13 of each year, as of the issue date of October 13, 2009, at a rate of 7,750 percent per year, but in breach of the contract, at no time has made the cancellation of capital, interest or otherwise.
On October 12, 2020, Gregory A. Nahas, of the firm Pardalis & Nohavicka LLP, representing Daniel Retter, individually and on behalf of all others in a similar situation, before the Southern District Court of New York, to sue to the Bolivarian Republic of Venezuela for breach of contract in relation to its obligation to pay the outstanding principal and accrued interest currently owed on the issued bonds held by the plaintiff and the members of the Class.
It is explained in the lawsuit that Daniel Retter, like thousands of people, owns bonds issued by the Bolivarian Republic of Venezuela in accordance with a Fiscal Agency Agreement dated July 25, 2001, according to Amendment No. 1 of September 19, 2003 , Amendment No. 2 of March 25, 2005, and Amendment No. 3 of December 17, 2007.
Pursuant to the Fiscal Agency Agreement and the bond prospectus contract, Venezuela was required to pay Class members interest on the bonds semi-annually at a fixed rate, as well as the outstanding principal owed on the bonds in full in full in the expiration date of the same, but breached this obligation.
Retter seeks damages and equitable relief for himself and the members of the Class of which he is a member. This putative Class includes persons who own one or more bonds issued by Venezuela and did not receive all the interest and principal payments owed.
Daniel Retter purchased International Bonds from the Government of Venezuela, Guarantee Number: P97475AN0 on May 5, 2017.
These notes were issued by Venezuela with Deutsche Bank Trust Company Americas, formerly Bankers Trust Company, acting as fiscal agent.
The Bonds have a total face value of USD 180,000, a coupon rate of 7.75% per annum and matured on October 13, 2019.
The Bonds were issued in accordance with the Fiscal Agency Agreement (FAA) and are governed by it, establishing that it must pay interest semiannually on October 13 and April 13 of each year, as of the date of issuance of the October 13, 2009, at a rate of 7,750 percent per year, but they have breached the contract and have not made any payments.
On September 25, 2020, the plaintiff sent by mail a notice of default and demand for payment to the Defendant for the principal and all accrued interest on the Bonds as of October 13, 2009, demanding the cancellation of the principal and interest due. and owed to date.
On October 8, 2020, Daniel Retter mailed a second notice of default and demand for payment to the Defendant and the Fiscal Agent, but they have not responded.
Daniel Retter files the lawsuit on his behalf and on behalf of the following Classes pursuant to Federal Rules of Civil Procedure 23 (a), 23 (b) (2) and / or 23 (b) (3): First, Class National comprising all persons in the United States who own one or more bonds issued by the defendant and have not received all interest and principal payments due pursuant to the FAA and / or the bond prospectus as of October 12 from 2014 to present and continuing; second, the New York Subclass, which comprises all persons in New York who own one or more bonds issued by the Defendant and did not receive all the interest and principal payments owed pursuant to the FAA and / or the bond prospectus from October 12, 2014, to the present and continuing.
The lawsuit includes a charge for breach of contract on the grounds that Venezuela did not meet its obligations to pay principal and interest in accordance with the terms of the FAA and the bond prospectus contract.
Daniel Retter asks the court to award him compensation for damages, including real, general, special, incidental, legal, punitive, triple and consequential, in an amount to be determined at trial; and requested that a judicial order be issued against the Bolivarian Republic of Venezuela to prohibit it from participating in continuous illicit practices, policies and patterns as established in this document.
In addition, Retter requests that he be appointed as Class representative and his attorney as Class attorney.
It also asks for the pre-trial and post-trial interest to be canceled as provided by law; reasonable attorneys' fees, costs, and expenses; and any other additional reparation that the Court considers fair and adequate.
On February 23, 2021, Daniel Retter, through his attorneys at Parfdalis & Nohavika LLP, filed an amendment to the lawsuit in court in which he is now filing as a trustee on behalf of the Law Offices of Daniel Retter PC Trust of Retirement, individually and on behalf of all others in a similar situation.
Likewise, it extends the Class that will now be National and International.