Posts tagged dollar
By CBC News
Venezuela’s government announced Friday that it is devaluing the country’s currency, a long-anticipated change expected to push up prices in the heavily import-reliant economy.
Officials said the fixed exchange rate is changing from 4.30 bolivars to the dollar to 6.30 bolivars to the dollar.
The devaluation had been widely expected by analysts in recent months, though experts had been unsure about whether the government would act while President Hugo Chavez remained out of sight in Cuba recovering from cancer surgery.
It was the first devaluation to be announced by Chavez’s government since 2010, and it brought down the official value of the bolivar by 46.5 percent against the dollar. By boosting the bolivar value of Venezuela’s dollar-denominated oil sales, the change is expected to help alleviate a difficult budget outlook for the government, which has turned increasingly to borrowing to meet its spending obligations.
Planning and Finance Minister Jorge Giordani said the new rate will take effect Wednesday, after a two-day banking holiday. He said the old rate would still be allowed for some transactions that already were approved by the state currency agency.
Venezuela’s government has had strict currency exchange controls since 2003 and maintains a fixed, government-set exchange rate. Under the controls, people and businesses must apply to a government currency agency to receive dollars at the official rate to import goods, pay for travel or cover other obligations.
While those controls have restricted the amounts of dollars available at the official rate, an illegal black market has flourished and the value of the bolivar has recently been eroding. In black market street trading, dollars have recently been selling for more than four times the official exchange rate of 4.30 bolivars to the dollar.
The announcement came after the country’s Central Bank said annual inflation rose to 22.2 percent in January, up from 20.1 percent at the end of 2012.
The oil-exporting country, a member of OPEC, has consistently had Latin America’s highest officially acknowledged inflation rates in recent years. Spiraling prices have come amid worsening shortages of some staple foods, such as cornmeal, chicken and sugar.
Seeking to confront such shortages, the government last week announced plans to have the state oil company turn over more of its earnings in dollars to the Central Bank while reducing the amount injected into a fund used for various government programs and public works projects.
Giordani said the government had also decided to do away with a second-tier rate that has hovered around 5.30 bolivars to the dollar, through a bond market administered by the Central Bank. That rate had been granted to some businesses that hadn’t been able to obtain dollars at the official rate.
It was the fifth time that Chavez’s government has devalued the currency since establishing the currency exchange controls a decade ago in an attempt to combat capital flight.
Republished with permission
The IMF has confirmed the Yuan/Renminbi is set to become a Global Reserve Currency at an Economic Forum in Hong Kong.
With China’s economy gaining global strength, the renminbi is set to become a global reserve currency, Zhu Min, deputy managing director of the International Monetary Fund, said Tuesday at an economic forum in Hong Kong.
Yesterday I wrote about the crossborder loans China was doing, before the Yuan becomes a Reserve Currency, their saying the “unloved dollar’ and the amount of gold they are importing. Besides the rumors of them backing their currency by gold.
David mentioned that things take time to happen and as I add on the third part of the interview is that it already has been years and maybe the situation will start going faster.
It seems to me with the Yuan being called a Global Reserve currency now even by China itself, they have laid out the ground work for changes to be made in a short amount of time. China does not reveal their hand until everything is already said and done. Considering the dollar has been the only “Global Reserve” currency for decades but this month the Yuan is becoming attached with that name.
The dollar demise has been talked about for years now. Many had been saying “anytime” but it has been long and drawn out. China is very smart as they take their time and put everything in place before they reveal or make their big moves. Has the time now come?
The Premier of China had gone to Saudi Arabi and Dubai a year ago. He stayed a week there having meetings and making agreements.SHARJAH, UAE -
China signed economic and trade agreements worth 100 billion yuan ($16billion) with Saudi Arabia
and the United Arab Emirates (UAE) as Premier Wen Jiabao wrapped up a six-day visit to the Middle East on Thursday.
The first currency swap agreement with Arab nations, worth 35 billion yuan, was also signed inAbu Dhabi, Wen told the Fourth
Arab-China Business Conference in Sharjah on Wednesday.
Are those agreements now coming into fruition? Is Saudi Arabi ready to be one of the last Middle Eastern countries to trade in something other than the “Petrol Dollar?” If Saudi Arabia begins oil trade in something other than the dollar, then it really is game over for the dollar as the Global Reserve Currency and any strength it now has. It only has strength because all of the other countries are devaluing their currencies against the dollar for trade. With the Fed printing the dollar non-stop, currency wars are raging, no one wants to have the strong currency due to trade and their products being un-affordable to other countries.
But once the dollar is no longer a worry or concern for trade then all the other countries will be able to stop their currency devaluations against the dollar because a new Global Currency backed by Gold will be the hero of the world. The only country that will be left all to itself with their inflating currency will be the United States.
It seems the proximity of this occurrence is now much closer with both the IMF and China itself using the words “Global Reserve Currency” for the Yuan.
Spotted on http://www.activistpost.com/
America Sets Its Sights On Controlling African Resources … And Reducing Chinese Influence
The U.S. is sending troops to 35 African nations under the guise of fighting Al Qaeda and related terrorists.
Democracy Now notes:
U.S. Army teams will be deploying to as many as 35 African countries early next year for training programs and other operations as part of an increased Pentagon role in Africa. The move would see small teams of U.S. troops dispatched to countries with groups allegedly linked to al-Qaeda, such as Libya, Sudan, Algeria and Niger. The teams are from a U.S. brigade that has the capability to use drones for military operations in Africa if granted permission. The deployment could also potentially lay the groundwork for future U.S. military intervention in Africa.
[A special American brigade] will be able to take part in nearly 100 separate training and military exercises next year, in nearly three dozen African countries
Glenn Ford writes:
The 2nd Brigade is scheduled to hold more than 100 military exercises in 35 countries, most of which have no al-Qaida presence. So, although there is no doubt that the U.S. will be deeply involved in the impending military operation in Mali, the 2nd Brigade’s deployment is a much larger assignment, aimed at making all of Africa a theater of U.S. military operations. The situation in Mali is simply a convenient, after-the-fact rationale for a long-planned expansion of the U.S. military footprint in Africa.
Timothy Alexander Guzman argues:
AFRICOM’s [the U.S. military's Africa command] goal is to eliminate China and other countries influence in the region. Africa’s natural resources is another important element to consider because it includes oil, diamonds, copper, gold, iron, cobalt, uranium, bauxite, silver, petroleum, certain woods and tropical fruits.
In a must-watch interview, Dan Collins of the China Money Report agrees that the purpose of the deployment is to challenge China’s rising prominence in Africa:
And the U.S. is not shy about backing our “mortal enemies” to topple those standing between us and resources we pine for.
By Patrick Henningsen
21st Century Wire
How does it make you feel when you see people fight like animals – over something like a new iPhone or Samsung mobile phone?
You can tell the health of the tree by the quality of its fruits. America, as is evidenced by this week’s annual materialistic ritual known as ‘Black Friday’, has produced this particularly rotten fruit, consistently. It’s getting way too predictable for our liking.
The name “Black” joined with Friday, in itself, is worth looking at – in all its Satanic symbolism.
Why do they try to market this event as some sort of national holiday and call it “Black”?
It all started with the Cabbage Patch Doll uprisings back in the 1980′s. It seemed like a fluke at the time. But the trend has raged on, and on. An epic battle for a load of cheap plastic made in China and Vietnam, mostly by women and children on a dollar a day.
Quite simply, it’s a victory for worldly goods, over humanity, as people worship brands like gods for sale. The devil’s handiwork, no less.
In reality, Black Friday is nothing more than a collective con – a nonevent, made to appear as an event.
American wage slaves who have witnessed such riots like in the videos below, should know by now that America’s once coveted status as the progressive world’s cultural leader – more and more it’s looking like ‘American exceptionalism’ could be the stuff of 20th century history already.
Those who have taken part in the Black Friday ritual should also know that their rulers are indeed laughing at them right now – as they watch their social engineering master plan come to fruition – reduced to a shallow pulp of mindless consumerism currently in the process of eating itself.
The remaining, mentally challenged chattering classes, will also watch these ugly scenes and then sit and argue whether Black Friday riots are the result of an Obama or Romney victory, as if. This level of sub-intelligence is what killed American democracy – another victory for the elite.
On a foreign policy note, if you are an Arab watching these scenes below, you might want to ask yourself, if this is what Barak Obama and Hillary Clinton were talking about when they waxed lyrical during your Arab Spring (that wasn’t) about the virtues of exporting ”American values of freedom and democracy”?
Imagine when the dollar collapses – how ugly would that look. Empty supermarket shelves. How would Americans treat each other then?
It’s become a pathetic tradition, in what is way past the point of national embarrassment, but it’s not – instead, they promote it…
Watch as it gets even uglier…
Ron Paul’s stance on sound money and the gold standard is resonating more and more among Americans. In a recent interview with Fox Business, State Rep. Jerry O’Neil, (R-Mont.), explains why he wants the state legislature to pay him in gold coins.
A true statesman and humanitarian, Dr. Ron Paul, simply states the road we are on verses the road we should be on, explaining both consequences and rewards. I feel no individual in office can fill his mighty shoes, but that is not necessary, as the time is now to advance the cause of Freedom and Personal Liberty and the person to carry that cause is you and I, as individuals uniting to create a critical mass, so often mentioned by Bob Schultz and others. The revolution is now in our hands and we each will decide how best to promote the battle for Liberty!
Transcript Location: http://www.campaignforliberty.org/national-blog/transcript-of-farewell-address/
Congressman Paul’s final speech on the House floor before leaving Congress
Below is the transcript of Ron Paul’s farewell address to Congress:
Farewell to Congress
This may well be the last time I speak on the House Floor. At the end of the year I’ll leave Congress after 23 years in office over a 36 year period. My goals in 1976 were the same as they are today: promote peace and prosperity by a strict adherence to the principles of individual liberty.
It was my opinion, that the course the U.S. embarked on in the latter part of the 20th Century would bring us a major financial crisis and engulf us in a foreign policy that would overextend us and undermine our national security.
To achieve the goals I sought, government would have had to shrink in size and scope, reduce spending, change the monetary system, and reject the unsustainable costs of policing the world and expanding the American Empire.
The problems seemed to be overwhelming and impossible to solve, yet from my view point, just following the constraints placed on the federal government by the Constitution would have been a good place to start.
How Much Did I Accomplish?
In many ways, according to conventional wisdom, my off-and-on career in Congress, from 1976 to 2012, accomplished very little. No named legislation, no named federal buildings or highways—thank goodness. In spite of my efforts, the government has grown exponentially, taxes remain excessive, and the prolific increase of incomprehensible regulations continues. Wars are constant and pursued without Congressional declaration, deficits rise to the sky, poverty is rampant and dependency on the federal government is now worse than any time in our history.
All this with minimal concerns for the deficits and unfunded liabilities that common sense tells us cannot go on much longer. A grand, but never mentioned, bipartisan agreement allows for the well-kept secret that keeps the spending going. One side doesn’t give up one penny on military spending, the other side doesn’t give up one penny on welfare spending, while both sides support the bailouts and subsidies for the banking and corporate elite. And the spending continues as the economy weakens and the downward spiral continues. As the government continues fiddling around, our liberties and our wealth burn in the flames of a foreign policy that makes us less safe.
The major stumbling block to real change in Washington is the total resistance to admitting that the country is broke. This has made compromising, just to agree to increase spending, inevitable since neither side has any intention of cutting spending.
The country and the Congress will remain divisive since there’s no “loot left to divvy up.”
Without this recognition the spenders in Washington will continue the march toward a fiscal cliff much bigger than the one anticipated this coming January.
I have thought a lot about why those of us who believe in liberty, as a solution, have done so poorly in convincing others of its benefits. If liberty is what we claim it is- the principle that protects all personal, social and economic decisions necessary for maximum prosperity and the best chance for peace- it should be an easy sell. Yet, history has shown that the masses have been quite receptive to the promises of authoritarians which are rarely if ever fulfilled.
Judge Napolitano Takes On The Fed ‘Not Federal, Not A Reserve,’ Designed To ‘Make Pres. Look Good’
Judge Napolitano agrees with George Will that the Fed has become the 4th branch of government, unelected and no oversight over incredible powers.
Arguing that it is neither federal nor a reserve, the Judge noted that the job of the Fed is to make the president — no matter who the president may be — look good.