Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Currency

Venezuela’s Collapse: Horror Beyond Belief

This article appeared online at TheNewAmerican.com on Tuesday, October 18, 2016:  

The Coat of arms of Venezuela

When Matt O’Brien updated his previous article on the slow-motion collapse of Venezuela on Monday for the Washington Post, he reviewed the symptoms achingly familiar to those following the events: the collapse of oil prices; the incompetence of the cronies running the state-owned oil company (former Marxist Hugo Chávez replaced the workers who knew what they were doing with political cronies who didn’t); the inflation of the currency followed as night follows day, with price controls to mask the resulting inflation; inflation, as measured by the black market’s pricing of the Venezuelan bolivar, causing the bolivar to lose more than 90 percent of its value in just two years; the empty supermarket shelves; the oppression by police of those standing in long lines to purchase whatever might be left in those stores; and on and on. As O’Brien lamented:

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Venezuelan Exodus Accelerates

This article appeared online at TheNewAmerican.com on Wednesday, August 24, 2016:  

Prison 015

Since early July an estimated 300,000 Venezuelans have crossed the border into Colombia seeking to purchase basic necessities. Some decided to stay.

Eduardo (not his real name) used to make $18 a month as a systems engineer in Venezuela, but that wasn’t enough to feed his family. With inflation reducing the purchasing power of the Bolivar Fuerte by half nearly every month, he fled to Bogota to stay with a friend. Eduardo told the Financial Times: “At least I can find food here. Back in Venezuela we all lacked anything to eat. I’d rather stay here doing whatever [I can], rather than heading back while [Venezuela’s Marxist President Nicolas] Maduro and his cronies are there.”

An accountant who crossed the border into Colombia told the Times that he is going to stay even if “I have to stand at a corner all day selling arepas [a cheap food made from corn meal].”

Families of those who are staying in Colombia are hoping they will receive funds from the border-crossers in order to stay alive. Otherwise, they are likely to starve.

Most of those who can afford to leave the country have already left. The problems in Venezuela started with the takeover of the government by Marxist Hugo Chavez in 1999: First to feel the crunch were many of the 20,000 oil men that Chavez fired from their positions at the state-owned oil company. (Chavez replaced them with incompetent political cronies.) Then businessmen left the country to escape the currency controls imposed by Chavez. They were followed by students who saw the handwriting on the wall. In the last 17 years, an estimated 1.8 million Venezuelans have left the Chavez/Maduro socialist paradise.

Tebie Gonzalez and Ramiro Ramirez cashed out their emergency savings account in order to buy life’s essentials in Colombia in July. They returned home only to face the existential question: What happens when those staples — food and medicines — run out? What will they do?

Daya Silva, a native of Caracas, used a vacation in Buenos Aires to find a job. She found work and returned to Venezuela briefly, carrying a suitcase full of much-needed items for her friends and family: drugs to treat high blood pressure, essential kitchen supplies, and paper goods. But what happens to her friends and family when these run out?

The vast majority of Venezuelans are today facing the same question. Although the number of Venezuelans requesting refugee status has jumped from 127 in 2000 to 10,300 last year, according to the UN, that is a tiny fraction of the 30 million people remaining in the country. With unemployment at 17 percent (government figures are no longer available), with between 76 and 80 percent of the population living in poverty (again, no government numbers are available so these are estimates from independent sources), and with inflation destroying what’s left of the purchasing power of the local currency (inflation is expected to exceed 2,000 percent next year) the average Venezuelan has almost run out of options.

Relocating to nearby Colombia is an option, but Guyana, which borders Venezuela on the east, is having its own set of problems and is deporting Venezuelans back home as fast as they arrive. Brazil, on the south border, is no mecca either, with its own economy being wrecked by socialist policies.

In short, the average Venezuelan lives in a prison forged by the socialism imposed by Chavez and Maduro. The country more and more resembles a concentration camp where the guards are deliberately starving the inmates.

A Bald-faced Daylight Robbery in Massachusetts

This article was published by The McAlvany Intelligence Advisor on Wednesday, August 24, 2016:  

One has to give Massachusetts Governor Charlie Baker credit: he has devised a plan to punish ride-sharing newcomers, save the state’s failing taxi cartel, and fund much-needed “infrastructure improvements,” all with free money: a new tax on ride-sharing customers that won’t be paid by either the driver or his customers. Instead, it will be levied on those evil newcomers – Uber, Lyft, and the like – who dared to innovate and take business away from the existing cartel.

Here’s how it works:

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A Lesson in Free Market Economics – from Venezuela?

This article was published by The McAlvany Intelligence Advisor on Monday, August 15, 2016:  

Over the weekend, some 54,000 Venezuelan citizens living near the country’s border with Colombia poured over the Simon Bolivar Bridge so they could buy toilet paper, cosmetics, vitamins, and tires. Many brought empty suitcases, others brought packets of the nearly worthless Venezuelan bolivar currency, still others brought gold earrings, necklaces, and other personal valuables to exchange in local pawn shops for Colombian currency so they could spend it.

They were there to buy. And the merchants were ready to sell. As they exited the bridge on foot (cars won’t be allowed for at least another month) they were greeted with friendly Colombians

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Oil Price Rise Only Temporary; Could Drop Back to Low $20s

This article appeared online at TheNewAmerican.com on Wednesday, August 10, 2016:  

On November 17, gas prices had dropped to $1.9...

In light of record supplies of gasoline and crude oil, why are prices rising? After hitting a low of $26 a barrel in January, crude oil topped $52 a barrel in early June, only to drop below $40 a barrel last week. The recent rise back above $40 is a head fake, according to oil analyst Stephen Schork, editor of the daily subscription Schork Report. The recent bounce forced massive short covering by traders convinced oil was headed back down to the $20s and had nothing to do with the fundamentals.

The fundamentals, according to Schork, are bearish for oil (and gasoline) prices, and not likely to change any time soon. Even the Energy Information Administration (EIA), the government’s watchdog agency in charge of predicting the future, has been forced to

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Production Freeze Main Topic at OPEC Late September Meeting

This article appeared online at TheNewAmerican.com on Monday, August 8, 2016: 

OPEC’s current president, Qatar’s energy minister Mohammed bin Saleh Al Sada (shown at center, above), announced Monday that the oil cartel will hold “informal” side meetings at the International Energy Forum in Algeria in late September. Not surprisingly, the topic will once again be “cooperation” among the disparate and increasingly desperate members to restrict production in efforts to force oil prices higher.

Al Sada, who holds a Ph.D. from England’s University of Manchester’s Institute of Science and Technology, asserted,

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A Tipping Point in Texas? It’s Building Its Texas Bullion Depository Bank

This article was published by The McAlvany Intelligence Advisor on Friday, May 6, 2016:  

Description: Newspaper clipping USA, Woodrow W...

Description: Newspaper clipping USA, Woodrow Wilson signs creation of the Federal Reserve. Source: Date: 24 December 1913 (Photo credit: Wikipedia)

A modest bill, getting little press and clothed in innocuous terms, could spell the end of the Federal Reserve’s monopoly on its “federal reserve note” currency. When Texas Governor Greg Abbot signed it into law almost a year ago, he said:

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Texas Contracts to Build Nation’s First State Gold Bullion Depository

This article appeared online at TheNewAmerican.com on Thursday, May 5, 2016:  

The Texas Comptroller’s Office has begun to receive bids from private contractors interested in building the country’s first state gold storage facility, the Texas Bullion Depository (TBD). When Texas Governor Greg Abbott signed into law the bill providing for it last July, he said it was all about saving fees being paid to store the state’s gold in New York banks:

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What Happens After Venezuela Destroys its Currency?

This article appeared online at TheNewAmerican.com on Friday, April 29, 2016:  

English: THE KREMLIN, MOSCOW. At a joint press...

Hugo Chavez and Vladimir Putin

Venezuela is unable to pay its currency printers. Those printers have been flying in planeloads of currency in the middle of the night, landing at airports where it is offloaded onto trucks to be dispersed to banks throughout the country. In other words, Venezuela doesn’t have the money to pay for its money.

The destruction of the currency, the bolivar fuerte (“strong bolivar”), has been documented at The New American and elsewhere. When oil prices dropped, so did revenues to fund the various socialist welfare schemes put in place by the communist Hugo Chávez and continued by his protégé, Nicolás Maduro, at Chavez’s passing in March 2013. Instead of reining in those unaffordable programs, socialist economists instead decided to print their way out of the crisis.

The results were predictable, and catastrophic.

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Iranian Complaints Prompt Obama Administration to Soften Sanctions

This article appeared online at TheNewAmerican.com on Friday, April 1, 2016: 

Anonymous sources told the Wall Street Journal on Friday that the U.S. Treasury Department is developing plans to allow Iran a “workaround” on sanctions imposed because of Iran’s support of terrorist groups.

These are separate from the sanctions lifted following the seven-nation agreement signed last July in which Iran agreed to scale back its nuclear development program. U.S. Treasury Secretary Jack Lew (pictured) made clear the difference then:

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Standard & Poor’s Downgrades Chinese Sovereign Debt

This article appeared online at TheNewAmerican.com on Thursday, March 31, 2016: 

Cover of "Coming Collapse of China"

The last of the three credit rating agencies to recognize China’s ongoing economic implosion, Standard & Poor’s, downgraded its rating on Chinese debt modestly on Thursday. The agency maintained its AA rating (one notch below its highest) but changed its outlook to “negative,” meaning another downgrade is possible within the next 12 months. It said:

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Wall Street Pouring Billions Into Oil Companies

This article appeared online at TheNewAmerican.com on Tuesday, March 8, 2016:  

English: Logo of the Hess Corporation

Wall Street investors have started pouring billions into the energy sector, persuaded that prices not only of crude oil but stocks of energy companies have hit bottom. They just might be premature.

Pioneer Natural Resources has sold $1.6 billion in new stock since the first of the year, while Devon Energy has sold $1.5 billion. Hess Corporation and Marathon Oil have each enjoyed an influx of

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Investigators Circling Brazil’s President; “Sudden” Regime Change Likely

This article appeared online at TheNewAmerican.com on Monday, March 7, 2016:  

On March 4, more than 200 police officers and 30 tax auditors raided the homes and offices of numerous Brazilian officials involved in the Petrobras money-laundering scandal in an investigation dubbed “Operation Car Wash.” The biggest fish caught in their net was none other than Brazil’s former President Luiz Inácio Lula da Silva (shown above), known as “Lula.” If he is charged and convicted, it will represent a serious breach in the wall of innocence surrounding Brazil’s current President Dilma Rousseff, who has declared from the beginning that she knew nothing about the pay-to-play scheme.

Brian Winter, vice president of Americas Society/Council for the Americas, said this of Lula’s arrest:

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Maduro’s Venezuela: Proof that Socialism is a form of Mental Illness

This article was published by The McAlvany Intelligence Advisor on Friday, February 19, 2016:  

Craig Andresen, writing for the National Patriot, described socialism as a mental disorder:

Socialism is a disease. It’s a mental affliction and it causes those infected with it to lose their minds.

 

It’s also contagious.

Now there’s proof positive:

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Question: What Happens when Socialists and Marxists Are Put in Charge?

This article was published by The McAlvany Intelligence Advisor on Friday, February 5, 2016:  

Nicolas Maduro

Nicolas Maduro (Photo credit: Wikipedia)

Answer: Venezuela.

The Marxist president (and student of Venezuela’s previous president Hugo Chavez) Nicolas Maduro has just administered the coup d’état: ordering the printing of so many bolivars that his own country’s printing presses could not handle the order. So he went to Germany, France, Canada, and the United Kingdom to place it. The initial supply – five billion of them! – arrived late last year in the holds of 36 Boeing 747 cargo jets, with another

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Venezuela Could See Hyperinflation, Economic Collapse

This article appeared online at TheNewAmerican.com on Thursday, February 4, 2016:  

In December 2014 citizens of Venezuela paid 2,632 bolivars for a pound of meat. A year later they paid 14,138 bolivars, a 537-percent increase. They paid 3,066 bolivars for a supply of fruits and vegetables a year ago; last month they paid 12,118 bolivars, a 395-percent increase. For milk and cheese, prices increased 371 percent, from 2,084 bolivars to 7,735.

For fish they paid 1,408 bolivars a year ago; a year later the price of fish jumped to 5,940, an increase of 422 percent. Fats and oils: 335 bolivars to 1,340, an increase of 400 percent. Non-alcoholic beverages were 409 bolivars a year ago; today, 1,123 bolivars, a 275-percent increase.

A year from now, Venezuelans will look back fondly

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Brazil’s Petrobras Scandal Widens, Threatens President Rousseff

This article appeared online at TheNewAmerican.com on Friday, November 27, 2015:  

On Wednesday three top people in the Operation Car Wash/Petrobras Oil scandal were arrested in Brazil, possibly signaling the beginning of the end of the reign of Brazilian President Dilma Rousseff (shown above with former President Lula).

Ever since businessman Hermes Magnus told police in 2008 that a gang of criminals was trying to launder money through his electronics company, using the Tower Gas Station (and car wash and currency exchange) as the center, the investigation has grown ever wider.

Massive sums from Petrobras executives were transferred to overseas bank accounts using

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Brazil Teetering on the Edge of Recession, or Worse

This article appeared online at TheNewAmerican.com on Monday, September 28, 2015: 

English: Official photo of President Rousseff,...

President Dilma Rousseff

Brazilians are facing a bleak future. The combination of last week’s downgrade of the country’s government debt to junk, along with downgrades on the debt of many of its major industries, and the unfolding “Operation Car Wash” scandal at Petrobras (the massive government-owned oil company), all spell trouble for an economy already in decline.

Brazil’s currency, the real, was once pegged to the dollar, but

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The Biggest BRIC is Falling

This article was published by The McAlvany Intelligence Advisor on Monday, September 14, 2015:  

Collection of Chinese renminbi yuan banknotes....

Collection of Chinese renminbi yuan banknotes.

In his 2001 paper “Building Better Global Economic BRICs,” chairman of Goldman Sachs Asset Management Jim O’Neill developed the acronym for Brazil, Russia, India and China. He made the case that the BRICs symbolized the shift of global economic power away from developed nations, estimating that they might overtake the G7 nations – Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States – as early as 2027.

Modifications were necessary to dampen O’Neill’s enthusiasm, with GS recalculating that it wouldn’t happen before 2050. By December 2012 the Council on Foreign Relations, in itsForeign Affairs publication, was forced to refute even that modest projection:

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Chinese Economy, Stock Market Continue to Crater

This article appeared online at TheNewAmerican.com on Monday, September 14, 2015:  

News that China has offloaded more than $100 billion of U.S. Treasuries in August to support its currency and its cratering stock market caused many observers to raise concerns about China waging an “economic war” against the United States. It’s a threat the Chinese last expressed during the 2012 presidential election, that Beijing would “use its financial weapon to teach the U.S. a lesson” if it insisted on flouting Chinese interests, i.e., by selling arms to Taiwan, for example.

It now appears that the shoe is on the other foot. The Asian tiger is now a pussy cat, as its economy continues to crater and the Chinese central bank moves to weaken its currency and shore up its stock markets.

In the days following Beijing’s surprise announcement on August 11 that it was devaluing its currency by two percent, the yield on the U.S. 10-year Treasury note jumped 10 percent, from

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.
Copyright © 2021 Bob Adelmann