Venezuela In Chaos After Maduro Announces Massive 95% Devaluation, New FX Rate Tied To Cryptocurrency
Chaos and confusion erupted across Venezuela, and most stores were shuttered on Saturday, after president Nicolas Maduro announced that the government would enact a massive currency devaluation, implement a new minimum wage, hike taxes, and also raise gasoline prices for most citizens even as the country struggles with the greatest hyperinflation on record, surpassing even that of the Weimar Republic.
As a result of the enacted actions, the new version of the bolivar will be pegged to the value of the state cryptocurrency, the etro, which according to Bloomberg amounts to a 95% devaluation of the official rate, and will trade in line with where the black market was; the government will also raise the minimum wage more than 3,000 percent, which works out to about $30 a month.
Maduro said the new currency, set to enter circulation on Monday, will be called the “sovereign bolivar” and will be based on the petro, which is valued at $60 or 3,600 sovereign bolivars, after the redenomination planned for August 20 slashes five zeroes off the national currency. The minimum wage will be set at half that, 1,800 sovereign bolivars. The government would cover the minimum wage increase at small and medium-size companies for 90 days, Maduro added. It was not clear what happens after
— Read on www.zerohedge.com/news/2018-08-19/venezuela-chaos-after-maduro-announces-massive-95-devaluation-new-fx-rate-tied
Can the incompetence and mismanagement get any worse?
In Surprising Reversal, Pace Of Global Rate Hikes Approaches Pre-Lehman Period
Most of the post-Lehman era has been characterized by unprecedented easy monetary policy meant to inflate asset prices, and sure enough after 705 rate cuts, and $12.4trillion in QE, the S&P is just shy of its all time highs. However, over the past year, a different dynamic has taken place: the Fed’s tightening cycle and ongoing rate hikes have resulted in a sharp drain of USD-liquidity across the globe.
Meanwhile, with the ECB set to end its QE and the BOJ taking tentative steps toward tightening while engaging in a shadow taper of its own QE, central bank balance sheets are set to shrink for the first time since the financial crisis.
It is this tightening in financial conditions in general, and dollar liquidity in particular that ultimately has been the catalyst that led to a near record divergence in FX volatility between emerging markets and developed nations, incidentally that last time we saw such deltas was just after 9/11 and the great financial crisis.
— Read on www.zerohedge.com/news/2018-08-18/pace-global-rate-hikes-approaches-pre-lehman-period
It will probably come as no surprise that Paul Krugman is a cryptocurrency critic. The Nobel-winning economist and New York Times columnist is a known skeptic of laissez-faire alternatives to government interventions, and it makes sense that this doubt would carry over to distributed digital money.
Source: Hey, Paul Krugman: Here’s What Bitcoin Is Good for
Want A Socialist Society? First, Abandon Your Hopes And Dreams
The debate on socialism has surfaced yet again with the recent congressional primary election victory of 28-year-old Alexandria Ocasio-Cortez, a member of the Democratic Socialists of America, to New York’s 14th Congressional District.
Socialism is often held in contempt over its many failures, yet it still maintains support from young and old minds for being “great in theory, but not in practice.” This old quip is represented by the generations of thinkers that have tried to improve the economic system, but it ignores the undeniable truth: that socialism, in all of its manifestations, is untenable both in theory and in practice.
— Read on www.zerohedge.com/news/2018-08-06/want-socialist-society-first-abandon-your-hopes-and-dreams
My question is if the UBI is so good then why are all the areas that are trying ending the program?
There is one main reason that most robbery crimes are happening that often, people have no access to basic survival money. Of course, there are thefts and criminals which do that anyway, that’s why with UBI we should have more strict laws for criminals, but the majority of the everyday thefts are poor people who just can’t afford to survive. 40% less crime With a UBI in place, the amount of people who are forced to steal or even kill for money will be dramatically decreased.
Source: Basic Income caused crime to drop by 40% and strengthened workforce
- China’s ruling Communist Party’s tightened control over think tanks and a crackdown on extravagance could be having an impact on how the leadership handles foreign affairs – and weakening Beijing’s understanding of US politics under President Donald Trump.
Source: Did China think Trump was bluffing? How Beijing got it wrong