Posts Tagged ‘Venezuela’

Money Talks, Google Walks, Other Potpourri

Money Talks, Google Walks, Other Potpourri

Courtesy of Mish 
Glass tube in bowl of dried flowers

Every day there are a number of significant stories that come my way that I do not have time to make in depth comments on. Here is a collection on my stack worth a quick peek.

Google Walks

Google China Threat May Reflect U.S. Companies’ Growing Unease 

Google Inc.’s threat to pull out of China is the most visible reflection of U.S. companies’ growing disillusionment with the country nine years after it joined the World Trade Organization, business groups said.

Washington trade organizations representing companies such as Microsoft Corp., Boeing Co., Intel Corp. and Cigna Corp., which all backed China’s entry into the WTO and fought off legislation to punish Chinese imports, say China is increasingly discriminating against them on government contracts and through unfair subsidies.

Google, owner of the most-used search engine, said Jan. 12 that it would end self-censorship of its product in China after attacks on e-mail accounts of human-rights activists. The Mountain View, California-based company said the move may cause it to close offices in the country.

Such comments from longtime backers of U.S.-China relations represent growing dissatisfaction among U.S. companies, said Susan Aaronson, a professor at George Washington University in Washington who writes about U.S.-China trade relations.

“I see much greater disillusionment as China is promoting its national champion companies,” Aaronson said in an interview. “More and more firms are going to say: I can do without this market.”

This story is far more significant than the play it will get. It signals growing protectionism as well as dissatisfaction with dealing in China. To top things off, Chinese money supply is growing completely out of control and it is only a matter of time before China implodes or explodes. More on that in another post later.

Money Talks With Protest Slogans

In Iran, money talks with protest slogans 

Facing hard-line forces on the streets, Iran’s anti-government demonstrators have taken their protests to a new venue: writing "Death to the Dictator" and other opposition slogans on bank notes, while officials scramble to yank the bills from circulation.

"What did they die for?" asked one message on a bill, referring to the estimated dozens of demonstrators killed in the wake of vote-rigging allegations in last summer’s re-election of President Mahmoud Ahmadinejad.

Others were stamped with the


continue reading


Tags: , , , , , , , , , , , , , ,




Venezuela Approaching Humanitarian Disaster As Chavez Expropriates Food Retailers

Venezuela Approaching Humanitarian Disaster As Chavez Expropriates Food Retailers

Hugo ChavezCourtesy of Vincent Fernando at Clusterstock 

Just after Hugo Chavez devalued the Venezuelan currency by 20%, he declared that companies weren’t allowed to raise their prices. Yet this would be an economic impossibility for any business. No business is sustainable if its profit margins are negative.

As a result of this reality, it appears food retailers were caught in the mix trying to raise prices, and taken over. 

Albuquerque Express: Government inspectors in Venezuela have closed many shops this week after the owners were accused of trying to manipulate last week’s currency devaluation.

A group of supermarkets and other businesses across Venezuela have quickly been taken over by the tax inspectors for allegedly speculating and changing the price of products.

Superstores belonging to the Exito supermarket chain were the first to be acquired by the government.

Given the Venezuelan government’s track record for running companies, expect food shortages ahead. Really. Just look at the energy industry for cues. Oil-rich Venezuela has been forced to impose rolling black outs on itself.

By devaluing its currency while simultaneously preventing commensurate price increases for food, Venezuela has created huge disincentives for production. While Venezuela’s energy shortages are pretty sad already, food shortages would be plain scary. Venezuela continues to read like an Ayn Rand novel.

 


Tags: , , , , ,




Chavez Threatens to Seize Businesses, Devalues Currency by 50%; Chavez vs. Obama, Parallels Greater Than You Think!

Chavez Threatens to Seize Businesses, Devalues Currency by 50%; Chavez vs. Obama, Parallels Greater Than You Think!

Courtesy of Mish

United Nations Climate Change Conference in Copenhagen

Turn out the lights. The collapse of Venezuela is well underway. It will not be long before the country completely stops functioning, assuming you think Venezuela is functioning now.

Please consider Chavez Devalued Bolivar 50 Percent.

Venezuela devalued its currency by half yesterday, the first such action since March 2005, as President Hugo Chavez seeks to pull the economy from recession amid falling oil revenue.

Chavez said the bolivar will be devalued to 4.3 per dollar from 2.15 per dollar for most imports. A second, subsidized peg of 2.60 bolivars per dollar will be used for importing food, medicine and machinery intended to boost the economy’s competitiveness.

The government, which restricted foreign currency trading in January 2003 following a two-month general strike intended to oust Chavez from power, last devalued the currency by about 11 percent in March 2005. The bolivar was also devalued in 2004.

Chavez Threatens to Seize Businesses

Inquiring minds are reading Chavez Says He’ll Seize Businesses That Raise Prices.

Venezuelan President Hugo Chavez said that businesses have no reason to raise prices following the devaluation of the bolivar and that the government will seize any entity that boosts its prices.

Chavez said he’ll create an anti-speculation committee to monitor prices after private businesses said that prices would double and consumers rushed to buy household appliances and televisions. The government is the only authority able to dictate price increases, he said.

The government also will “attack” the so-called parallel exchange rate, which Chavez called “illegal.”

The bolivar traded at 6.25 per dollar on Jan. 8, traders said.

“They put the value of the dollar at more than 6 in an arbitrary and illegal manner,” Chavez said. “We have to organize to reduce and attack that speculative, illegal dollar that hurts the Venezuelan economy so much.”

Official Rate vs. Black Market Rate

Official Rate: 4.3 bolivar per dollar
Previous Official Rate: 2.15 bolivar per dollar
Black Market Rate: 6.25 bolivar per dollar

Virtually no one in private business will exchange at the rate of 4.3 bolivar per dollar. Banks will not do it either, otherwise there would be no need for a black market.

Massive Shortages Coming

Chavez just effectively…
continue reading


Tags: , , , ,




Venezuelan Tyrant to Debase Currency Ahead of Make Believe Elections

Venezuelan Tyrant to Debase Currency Ahead of Make Believe Elections

Courtesy of Joshua M Brown, The Reformed Broker 

a recent photo of Venzuelan tyrant Hugo Chavez

a recent photo of Venzuelan tyrant Hugo Chavez

The fat, foolish and dangerously ignorant dictator Hugo Chavez* has sent consumers in his Papaya Republic racing to the shops this weekend as the government has decided to "adjust" the local currency lower in a bid to kickstart economic growth.

From Reuters:

CARACAS, Jan 9 (Reuters) – Venezuelans rushed to the shops on Saturday, fearful of price rises after a currency devaluation that will let President Hugo Chavez boost government spending ahead of an election but feeds opposition charges of economic mismanagement.

In a bid to jump-start the recession-hit economy of South America’s top oil exporter, Chavez on Friday announced a dual system for the fixed rate bolivar.

It devalues the currency to 4.3 and 2.6 against the dollar, from a rate of 2.15 per dollar in place since 2005, giving the better rate for basic goods in an attempt to limit the impact of the measure on consumer prices.

The opposition seized on fears that prices for imported goods will double as shoppers formed lines of more than a hundred people outside some stores in the capital Caracas.

Ah so.  It appears that the signature Bernanke Boogie, which has already spread to Japan, will now be featured prominently by some of the most primitve Oil-ocracies in Latin America.  Which country will the Debasement Fairy be visiting next?

Why don’t we all blow up our currencies and go back to getting by on our ability to hunt mammoths and drag ovulating women into secluded fissures in the rocks?  Abolish central bankers and fiat currency, go back to farming and clubbing and spearing.  I feel like I would do pretty well in an economic sitch like that.

* I bet you loved my Chavez descriptors in my opening paragraph…one of the benefits of not being an actual journalist is that I get to call ‘em like we all see ‘em without being called into the editor’s office.

Source:

Devaluation Ups Stakes in Venezuela Election Year (Reuters)

 


Tags: , , ,




 
 
 

Phil's Favorites

Will the Supremes Save Democracy From Minority Rule?

 

Will the Supremes Save Democracy From Minority Rule?

Courtesy of  and

This post first appeared on BillMoyers.com.

The Supreme Court now has the power to put a decisive end to extreme gerrymandering — if Justice Anthony Kennedy and the four liberal-leaning justices can craft a clear and manageable standard to identify when partisan mapmakers go too far.

But what if it doesn't? What happens if Kennedy sides with the conservative justices, who in the oral arguments for ...



more from Ilene

Zero Hedge

One River CIO "We're Willing Participants In Our Own Demise"

Courtesy of ZeroHedge. View original post here.

With the world's focus falling on Beijing this week, where president Xi Jinping give a glowing account of China's future during the 19th Party Congress, boasting that “the banner of scientific socialism with Chinese characteristics is now flying high and proud for all to see," not all are impressed by China's vision of the world in which China sees itself as increasingly taking over from the US as the world's superpower. And it's not just stories about China's neverending behind the scenes bailouts of anything that may telegraph a hard landing for...



more from Tyler

ValueWalk

Moody's Says Hartford Could Default As Early As November

By Gary St. Fleur. Originally published at ValueWalk.

The historic headquarters of insurance giants like Aetna, and Cigna, Hartford Connecticut now faces a potential financial catastrophe.

On Thursday, October 19, it was announce that the likelihood of Hartford Connecticut, to meet its obligations for the month grows continually bleak. Moody’s has produced a press release stating their position that Hartford Connecticut is likely to default by month’s end.

]]> Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

...

more from ValueWalk

Digital Currencies

An Evening in Wonderland

 

An Evening in Wonderland

Courtesy of 

 

 

You walk halfway across Rivington Street and in the middle of the block there’s an alley leading north, and then, inexplicably, it curves northwest. It’s remarkable in that on the Isle of Manhattan there aren’t any alleys. And this one is whimsical. Lights are strung overhead and artwork decorates the sides of the buildings as you make your way through. And then, at the end of Freemans Alley, you come to a tucked away restaurant in the back corner. It’s called Freemans (what else?).

If the setting for last night&rs...



more from Bitcoin

Chart School

Gold Cycle Update

Courtesy of Read the Ticker.

Why has gold not fallen below $1000 (well so far), what is the golden canary telling us?

Previous Posts:
SP500 Kitchin Cycle says trouble brewing - Update
SP500 How much higher ?

In short, the old heads out there know there is a ying for a yang! Currently the SP500 screaming higher, massive debt, low very !VIX. But as well all know this wont last forever, and the flip side could be very scary. Hence the hedge into metals, and building of the 4.5 year gold base, and as a ...

more from Chart School

Insider Scoop

There Could Be 109% Upside In uniQure As Company Advances Gene Therapy Into Clinical Trials

Courtesy of Benzinga.

Related QURE 32 Stocks Moving In Friday's Mid-Day Session Wall Street's M&A Chatter From October 19: Uniqure, Ulta, Sally Beauty,...

http://www.insidercow.com/ more from Insider

Mapping The Market

Puts things in perspective

Courtesy of Jean-Luc

Puts things in perspective:

The circles don't look to be to scale much!

...

more from M.T.M.

Biotech

Circadian rhythm Nobel: what they discovered and why it matters

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

Circadian rhythm Nobel: what they discovered and why it matters

Courtesy of Sally Ferguson, CQUniversity Australia

Today, the “beautiful mechanism” of the body clock, and the group of cells in our brain where it all happens, have shot to prominence. The 2017 Nobel Prize in Physiology or Medicine has been awarded to Jeffrey C. Hall, Michael Rosbash and Michael W. Young for their work on describing the molecular cogs and wheels inside our biological clock.

In the 18th century an astronomer by the name of Jean Jacques d'Ortuous de Ma...



more from Biotech

Members' Corner

Day of Last Dances

News today has been relentlessly terrible. A horrific mass murder happened last night in Las Vegas. (Our politician's abject failure to address gun control is beyond sickening.) And today, reports that Tom Petty died of a heart attack, followed by reports that Tom Petty is not dead, and now reports confirming that Tom Petty has passed away. 

...

more from Our Members

OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



more from OpTrader

Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



more from Promotions

Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



more from Kimble C.S.

All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

more from David



FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>