Category: Venezuela

And The Inflation Will Deflate Itself

Money from trees;

The new measures are “sufficiently targeted that we are confident they will not contribute to inflation,” Trudeau said Tuesday in St. Andrews, New Brunswick, where his caucus is meeting. “We are retaining fiscal firepower and at the same time ensuring that those who need support don’t get left behind.”

Economists have already begun to warn Trudeau against measures that could worsen inflationary pressures. Since last week, three of the country’s largest commercial lenders — Canadian Imperial Bank of Commerce, Bank of Montreal and Bank of Nova Scotia — have released reports expressing concern over using revenue windfalls for additional spending. […]

The government’s affordability measures come as the central bank aggressively tightens policy, raising the benchmark overnight interest rate by 75 basis points to 3.25 per cent last week. That move gave Canada the highest policy rate among major advanced economies.

Everything is transitory: New Inflation Numbers Mean the U.S. Economy Is Destined for ‘Hard Landing’

How Deep, Señor Maduro?

Saving the planet, one failed socialist state at a time.

Thousands of workers are fleeing Venezuela’s state-owned oil company, abandoning once-coveted jobs made worthless by the worst inflation in the world. And now the hemorrhaging is threatening the nation’s chances of overcoming its long economic collapse, union leaders, oil executives and workers say.

 

Desperate oil workers and criminals are also stripping the oil company of vital equipment, vehicles, pumps and copper wiring, carrying off whatever they can to make money. The double drain — of people and hardware — is further crippling a company that has been teetering for years yet remains the country’s most important source of income.

 

The timing could not be worse for Venezuela’s increasingly authoritarian president, Nicolás Maduro, who was re-elected last month in a vote that has been widely condemned by leaders across the hemisphere. Prominent opposition politicians were either barred from competing in the election, imprisoned or in exile.

 

How deep Señor Maduro?

CNN;

Venezuela, a nation spiraling into a humanitarian crisis, has missed a debt payment. It could soon face grim consequences.
[…]
Venezuela has no other meaningful income other than the oil it sells abroad. The government, meanwhile, has failed for years to ship in enough food and medicine for its citizens. As a result, Venezuelans are waiting hours in line to buy food and dying in hospitals that lack basic resources.
If investors seize the country’s oil shipments, the food and medical shortages would worsen quickly.
“Then it’s pandemonium,” says Fernando Freijedo, an analyst at the Economist Intelligence Unit, a research firm. “The humanitarian crisis is already pretty dire … it boggles the mind what could happen next.”

All is unfolding as predicted.

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