Venezuela becomes next country to ban its own money, citing vast conspiracy

“The announcement set off panic, as millions of people scrambled to round up their 100-bolivar bills and deposit them in bank accounts ahead of the arbitrary deadline. Everyday life — already disastrously precarious for many — was thrown into complete disarray as everyone from bus drivers to shop owners refused to accept the bills, realizing that there’s no point accumulating banknotes that will be worth nothing by the end of the week.”

Read more: https://www.washingtonpost.com/news/global-opinions/wp/2016/12/15/declaring-war-on-common-sense-venezuela-bans-its-own-money/#pt0-721087

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Bill Bonner: Funny Money Is Getting Funnier

“Funny money is getting funnier and funnier.  Our challenge is to figure out who’s the butt of the joke.”

Read more:

Funny Money Is Getting Funnier

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The Secret, Dangerous World of Venezuelan Bitcoin Mining

“The main factor driving Venezuelans to take up bitcoin mining is a price control put in place by the socialist government: Electricity is virtually free. In Venezuela, the government has turned bitcoin mining into something akin to owning a home mint.  Since bitcoin mining is a process, in effect, of converting the value of electricity into currency, Venezuelan miners are engaging in a form of arbitrage: They’re buying an underpriced commodity and turning it into bitcoin to make a profit. The miners have turned socialism against itself.”

http://reason.com/archives/2016/11/28/the-secret-dangerous-world-of

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US Immigration Outlook: From Uncertainty To Panic

Tends of thousands of desperate refugees from Guatemala, El Salvador, and Honduras are pressured by ‘coyotes’ to fast-forward their plans so as to reach the US before Trump’s inauguration:

Since Trump’s victory, the number of people flocking north has surged, Central American officials say, contributing to a growing logjam along the southern U.S. border.

“We’re worried because we’re seeing a rise in the flow of migrants leaving the country, who have been urged to leave by coyotes telling them that they have to reach the United States before Trump takes office,” Maria Andrea Matamoros, Honduras’ deputy foreign minister, told Reuters, referring to people smugglers.

Carlos Raul Morales, Guatemala’s foreign minister, told Reuters people were also leaving Guatemala en masse before Trump becomes president.

“The coyotes are leaving people in debt, and taking their property as payment for the journey,” he said in an interview.

Last week, U.S. Customs and Border Protection opened a temporary holding facility for up to 500 people near the Texan border with Mexico, in what it said was a response to a marked uptick in illegal border crossings.

U.S. Department of Homeland Security Secretary Jeh Johnson said earlier this month immigration detention facilities were holding about 10,000 more individuals than usual, after a spike in October of migrants including unaccompanied children, families and asylum seekers.

And Trump’s nominee for Attorney General, Jeff Sessions, is an opponent of the H1-B work visa program, leaving tech companies worried about a brain drain:

Sessions, however, has long sought to curtail the program and introduced legislation last year aiming to make the visas less available to large outsourcing companies such as Infosys. Such firms, by far the largest users of H-1B visas, provide foreign contractors to U.S. companies looking to slash information technology costs.

“Thousands of U.S. workers are being replaced by foreign labor,” Sessions said at a February hearing.

[..]

Sessions last year urged then-Attorney General Eric Holder to investigate Southern California Edison’s use of H-1B visas in a letter than was also signed by Democratic Sens. Bernie Sanders, Richard Durbin and Sherrod Brown.

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Amid food crisis, Venezuelan president Maduro launches “Salsa Hour” radio show

“Tensions have been mounting in Venezuela, which is edging closer to a breaking point as it faces a recession, soaring food prices and broken hospitals. Opponents have pushed for a recall referendum to remove Maduro from power, but courts shot down the effort last month, alleging voter identity fraud.”

http://www.cnn.com/2016/11/03/americas/venezuela-nicolas-maduro-salsa-show/

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Brazil’s latest WhatsApp ban pushes users to other encrypted messaging apps

“Even during the short time that Brazil’s ban on the Facebook-owned app was in effect, people still found other ways to access the type of encrypted messaging features that triggered the block in the first place.   Several rival apps that offer encrypted messaging services reported a surge in Brazilian sign-ups, which highlights how the growing ubiquity of private messaging apps makes it hard to stop people from using them.  U.S. legislation introduced by senators Dianne Feinstein (D-Calif.) and Richard Burr (R-N.C.) last month would require companies to help to unscramble encrypted communications for the government if passed.”

https://www.washingtonpost.com/news/the-switch/wp/2016/05/03/brazils-latest-whatsapp-ban-is-pushing-users-to-other-encrypted-messaging-apps/

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Corporate-Credit Outlook at Worst Since Crisis, S&P Says

“Potential downgrades at the ratings company exceed possible upgrades by the most since 2009, in percentage terms, according to a Jan. 11 report. The difference widened the most since the financial crisis in the past six months, S&P said.  The corporate-debt outlook has darkened, particularly in Latin America, because of slower growth in China and a commodity rout that’s cut prices to the lowest since at least 1991. Company defaults have already risen to the highest since 2009 and investors are demanding the biggest yield in four years to hold junk bonds. On a regional basis, Latin America had the biggest gap, with possible downgrades exceeding potential upgrades by about 35%.”

http://www.bloomberg.com/news/articles/2016-01-12/corporate-credit-outlook-weakens-to-worst-since-crisis-s-p-says

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U.S. bailout places ‘Puerto Rico’s democracy at risk’

“The U.S. Senate is considering a bill called the Puerto Rico Assistance Act of 2015. It offers minor assistance: a temporary reduction in payroll taxes and a ‘development fund’ of $3 billion.  But the real purpose of this bill is the installation of a six-member Financial Control Authority. That authority, if it gets the chance, will rule over Puerto Rico. Completely. What this legislation contemplates is beyond extraordinary; it is essentially the destruction of whatever semblance of genuine democracy currently rules the island. According to the bill, five members will be appointed by the U.S. President. The sixth will be the Secretary of the U.S. Treasury, who will also serve as Chairman.”

http://www.nydailynews.com/opinion/nelson-denis-puerto-rico-democracy-risk-article-1.2498482

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Only in Argentina: Where Minus 3% Bond Yields Are All the Rage [2015]

“While the bonds yield minus 3.1 percent, it’s a small price to pay in a country where capital controls have caused multiple black-market exchange rates to proliferate and rampant inflation has eroded the value of peso deposits. Foreign companies, prevented from repatriating dividends because of the controls, are also buying the securities as a hedge against a potential devaluation, which has become more likely as trading partners from Brazil to China weaken their own currencies, said Eduardo Levy-Yeyati, director of economic consultant Elypsis. The government sold the equivalent of $1.1 billion of dollar-linked bonds due in 2017 on Tuesday, the first such sale in nine months.”

http://www.bloomberg.com/news/articles/2015-08-20/only-in-argentina-where-minus-3-bond-yields-are-all-the-rage

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Chris Hedges, The American Empire: Murder Inc.

“‘In Afghanistan, Iraq and Syria, it’s reached the point of political and social breakdown,’ Nairn said. ‘There’s no stopping it. It’s out of control. There are not two sides. It [has fractured into] many sides. It’s analogous to what happened in Cambodia, with the massive U.S. bombing of Cambodia, which paved the way for the rise of the Khmer Rouge. [It has destroyed] any semblance of normal politics or even society. In that kind of environment the most evil, the most violent, have a better chance to rise and prevail.’  Ceaseless war and indiscriminant killing define the U.S. imperial power. But this policy, he said, has backfired.”

http://www.truthdig.com/report/print/the_american_empire_murder_inc_20160103

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