Apr 06

How stupid can they get?


General view of Mario Filho Maracana stadium in Rio de Janeiro, Brazil
General view of Mario Filho “Maracana” stadium in Rio de Janeiro, Brazil.

- Own goal: US senators fail to kick Russia out of 2014 World Cup (RT, April 3, 2014):

Football’s world governing body FIFA, has refused to kick Russia out of the 2014 World Cup in Brazil, after two American senators said the country should be barred due to its actions in Ukraine.

Dan Coats and Mark Kirk wrote a letter to the organization based in Zurich in March asking for Russia’s membership to be suspended, and for the country to be barred from competing in this year’s World Cup in Brazil, as well as losing the right to host the event in four years’ time.

In a letter to the two senators, FIFA said participation in the World Cup is based on sporting merit and only a violation of FIFA statutes and regulations could lead to a suspension from a competition.

Coats, a Republican senator from Indiana, was deeply disappointed by the ruling, saying, “FIFA suggests that outrageous misbehavior by member states does not matter because such decisions are irrelevant to soccer.”

Continue reading »

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Apr 01

Why Did BRICS Back Russia on Crimea

- Why Did BRICS Back Russia on Crimea? (The Diplomat, March 31, 2014):

The BRICS’s support for Russia shows the Western-dominated post-Cold War order is eroding.

There’s been no shortage of reports and commentaries on the crisis in Ukraine and Crimea, and Russia’s role in it. Yet one of the more notable recent developments in the crisis has received surprisingly little attention.

Namely, the BRICS grouping (Brazil, Russia, India, China, and South Africa) has unanimously and, in many ways, forcefully backed Russia’s position on Crimea. The Diplomat has reported on China’s cautious and India’s more enthusiastic backing of Russia before. However, the BRICS grouping as a whole has also stood by the Kremlin.

Continue reading »

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Mar 28

- Brazil’s Federal Public Prosecutor Requests Total Ban of Glyphosate Herbicides (Sustainable Pulse, March 26, 2014):

The Brazilian Federal Public Prosecutor in the Federal District has requested the Justice Department to suspend the use of glyphosate – the most widely used herbicide in Brazil. In addition, the prosecutor wants to challenge 2,4-D and the active ingredients methyl parathion, lactofem, phorate, carbofuran, abamectin, tiram and paraquat.

gmo-brazil-soybeans

Source: www.agrolink.com.br/noticias/minist–233-rio-p–250-blico-quer-proibir-uso-do-glifosato_193190.html

Two actions have been filed. “The first measure seeks to compel the National Health Surveillance Agency (ANVISA) to reevaluate the toxicity of eight active ingredients suspected of causing damage to human health and the environment. On another front, the agency questions the registration of pesticides containing 2,4-D herbicide, applied to combat broadleaf weeds,” explains the prosecutor on his website.

Continue reading »

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Jan 21
The Brazilian ranch where Nazis kept slaves

- The Brazilian ranch where Nazis kept slaves (BBC News, Jan 21, 2014):

On a farm deep in the countryside 100 miles (160km) west from Sao Paulo, a football team has lined up for a commemorative photograph. What makes the image extraordinary is the symbol on the team’s flag – a swastika.

The picture probably dates from some time in the 1930s, after the Nazi Party’s rise to power in Germany – but this was on the other side of the world.

“Nothing explained the presence of a swastika here,” says Jose Ricardo Rosa Maciel, former rancher at the remote Cruzeiro do Sul farm near Campina do Monte Alegre, who stumbled across the photograph one day.

But this was actually his second puzzling discovery. The first occurred in the pigsty. Continue reading »

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Jan 16

- Who Are The Top Holders Of US Treasurys (ZeroHedge, Jan 16, 2014):

Yesterday, when the Treasury released its TIC data early by mistake, the update that China’s holdings rose to a record $1.317 trillion caused a stir. This was confusing, since while China, which as we reported yesterday, now has a record $3.8 trillion in reserves having grown by $500 billion in 2013, has barely invested in US paper, and in fact going back to 2010, its holdings were a solid $1.2 trillion. In other words, its Treasury holdings have increased by a modest $100 billion in three years. Hardly anything to write home about. And certainly nothing to write home about when one considers the soaring Treasury held by the largest holder of US paper… everyone knows who that is. For those few who don’t, and for everyone else too, here is the most recent breakdown of the top holders of US paper. Continue reading »

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Nov 02

- NSA Spied on World Bank, IMF, UN, Pope, World Leaders, and American Politicians and Military Officers (ZeroHedge, Nov 2, 2013):

It came out this week that the NSA spied on the headquarters of the World Bank, International Monetary Fund, and United Nations.

It was also alleged that the NSA spied on the Vatican and the Pope.

Congressman Rand Paul asks whether the NSA might be spying on President Obama as well.

Congressman Devin Nunes said in that the Department of Justice was tapping phones in the Congressional cloak room.

Sounds crazy …

But it is well-documented that the NSA was already spying on American Senators more than 40 years ago.

Continue reading »

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Oct 30

- Batista’s OGX Files Bankruptcy: Largest Ever In Latin American History (ZeroHedge, Oct 30, 2013):

In line with what we discussed last night, once cajillionaire Eike Batista’s net wealth has now collapsed to less than -$746.5 Million according to Bloomberg as Veja notes, his “take over the world” company OGX has declared bankruptcy following the breakdown of restructuring talks with bondholders:

  • *OGX FILES FOR BANKRUPTCY PROTECTION IN RIO, BATISTA LAWYER SAYS
  • *BATISTA’S OGX EXTENDS DECLINE TO 30% AFTER BANKRUPTCY FILING
  • *BATISTA LAWYER BERMUDES COMMENTS ON FILING BY PHONE FROM RIO

The filing puts $3.6 billion of bonds into default – the largest corporate debt debacle on record for Latin America.

As of this morning his net worth was already -$745 million..

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Oct 29

- Eike Batista’s OGX Said To File For Bankruptcy Tomorrow (ZeroHedge, Oct 29, 2013):

Earlier this afternoon, it was Steve Cohen’s final fall from grace. Now, Bloomberg reports that Brazil’s one time super billionaire, and now negativeworthaire, Eike Batista, whose sprawling petroleum empire was once valued in the tens of billions, is set to file for bankruptcy tomorrow.

  • BRAZIL’S OGX SAID TO PLAN BANKRUPTCY PROTECTION FILING TOMORROW

We are confident that just like in Europe, there is no bank with any exposure to either OGX, Brazil, or whatever potential intercreditor avalanche will tear down many more Brazilian companies once this first insolvent domino finally tips over.

Those who missed the preface to this story, we repost it below.

When on October 1, fallen billionaire Eike Batista’s OGX Petroleo & Gas, missed a $45 million bond coupon payment, some were surprised but most  had seen the writing on the wall. After all, Brazil’s second largest oil company after Petrobras, and the crowning jewel of Batista’s EBX Group, had been under the microscope of investors and certainly creditors (and if it wasn’t it certainly should have been) after oil deposits that Batista had valued at $1 trillion turned out to be commercial failures. And so the countdown to the inevitable bankruptcy filing began. Overnight, Bloomberg reports that the wait should not be long (in fact it may coincide with the default of that other insolvent mega-creditor: the United States), and will mostly certainly take place before the end of the month, following the retention of bankruptcy specialist law firm Quinn Emanuel.

From Bloomberg:

Continue reading »

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Oct 13

- Brazil to host global internet summit in ongoing fight against NSA surveillance (RT, Oct 10, 2013):

Brazilian leaders have announced they plan to host an international conference on internet governance next year, a declaration that comes after the nation has lobbied without success to change NSA policies used by the US to monitor Brazil.

President Dilma Rousseff, after consulting with Fadi Chehade, chief executive of the Internet Corporation for Assigned Names and Numbers (ICANN), announced via Twitter a conference would be held in April.

We have decided that Brazil will host in April 2014 an international summit of government, industry, civil society and academia,” she wrote tweeted Wednesday.

The ongoing leaks from whistleblower Edward Snowden revealed that Brazil has become a favorite target of the National Security Agency since the US intelligence program launched the PRISM electronic surveillance program in 2007. Along with monitoring the online activity of Brazilian citizens, the NSA has quietly kept watch on diplomatic activity and the South American nation’s oil giant Petrobras.

Continue reading »

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Oct 10

- How Brazil’s Middle Class Dream Became A Debt-Fuelled Nightmare (ZeroHedge, Oct 9, 2013):

Quick: which BRIC nation has the highest consumer loan default rate?

If you said China, India or Russia, you are wrong. Actually, if you said China you are probably right, but since absolutely all economic “data” in China is worthless, manipulated propaganda, only a retrospective post-mortem after the Chinese credit, housing, commodity, consumption bubbles have all burst will we know the answer. So excluding China, which country’s consumers after a multi-year shopping spree funded entirely on credit, are suddenly suffering the epic hangover of soaring non-performing loans as they suddenly find themselves unable to even pay the interest on the debt? Just ask former billionaire Eike Batista whose OGX oil corporation is days away from filing bankruptcy. The answer, with 5.6% of all loans in default, above Russia, South Africa, Mexico, Turkey and India, is Brazil.

It is this same Brazil, where years of credit-driven expansion have resulted in rampant, 6% inflation, which moments ago forced the central bank to once again hike its key policy rate by another 50 bps to 9.50% in an attempt to halt surging prices and contain the flood of liquidity, both foreign and domestic. Continue reading »

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Sep 17

- Brazil Bails On US State Visit Over Illegal Spying; Demands “Full Public Apology” (ZeroHedge, Sep 17, 2013):

While the White House is trying to play this down currently in the press conference, Brazil’s President Rousseff has issued a statement postponing her trip to the US due to the illegal espionage of the Americans:

  • *BRAZIL SAYS U.S. HASN’T PROVIDED ADEQUATE EXPLANATION ON SPYING
  • *BRAZIL’S SAYS IT NEEDS U.S. EXPLANATION BEFORE STATE VISIT
  • *BRAZIL SAYS U.S. ILLEGAL MONITORING OF GOVT, COS. IS ‘SERIOUS’
  • *BRAZIL PRESIDENT ROUSSEFF POSTPONES STATE VISIT TO THE U.S.

According to AP, Obama spoke to Rouseff on the phone but that didn’t do it as the Brazilian President demanded a full public apology.

Via AP,

Brazil’s president has postponed a state visit to Washington in response to U.S. spying.

President Dilma Rousseff says Tuesday she’s not making the trip next month, which was to include a state dinner.

Rousseff has been angered reports based on leaked National Security Agency documents. They’ve shown that her communications with top aides were intercepted.

Continue reading »

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Sep 06

- Russia will help Syria in case of external aggression (Itar Tass, Sep 6, 2013):

The United States, Turkey, Canada, France, Saudi Arabia and Britain back the strike on Syria at the G20 summit, Russian President Vladimir Putin said.

Speaking at a final press conference, Putin said Russia, China, India, Indonesia, Brazil, South Africa and Italy came against military actions in Syria.

Continue reading »

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Sep 03

- US-Brazil tensions rise after new NSA spy report (AP, Sep 2, 2013):

RIO DE JANEIRO  — The Brazilian government condemned a U.S. spy program that reportedly targeted the nation’s leader, labeled it an “unacceptable invasion” of sovereignty and called Monday for international regulations to protect citizens and governments alike from cyber espionage.

In a sign that fallout over the spy program is spreading, the newspaper Folha de S.Paulo reported that President Dilma Rousseff is considering canceling her October trip to the U.S., where she has been scheduled to be honored with a state dinner. Folha cited unidentified Rousseff aides. The president’s office declined to comment.

The Foreign Ministry called in U.S. Ambassador Thomas Shannon and told him Brazil expects the White House to provide a prompt written explanation over the espionage allegations.

Continue reading »

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Aug 26

- All GMO approvals in Brazil are illegal, says whistleblowing regulator (Natural News, Aug 25, 2013):

It may not come as much of a surprise to our regular readers, but the biotechnology industry as we currently know it is intrinsically corrupt. And a government official-turned-whistleblower from Brazil recently admitted in a government report that every single industry-prompted approval for genetically-modified organisms (GMOs) in his country has taken place outside the realm of sound science and without proper legal precedent, which means all current plantings of GM crops in Brazil are illegal.

These are sweeping claims, but they are backed by a lengthy report recently published by Brazil’s National Council for Food and Nutrition Security. In this report, a man by the name of Leonardo Melgarejo divulges key information about how GMOs have never lived up to the promises made about them by their creators, nor have any of the studies used to back their approval proven to be legitimate. To the contrary, most of the currently accepted safety data on GMOs is utter rubbish, he claims, because it relies on flawed methodologies and dishonest protocols.

Continue reading »

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Jul 16

- US hacked top Bolivian officials’ emails: President Morales (PressTV, July 14, 2013):

Bolivian President Evo Morales says US intelligence has hacked into the email accounts of senior Bolivian officials amid growing concerns about Washington’s secret surveillance programs.

“Those US intelligence agents have accessed the emails of our most senior authorities in Bolivia,” Morales said in a Saturday speech.

“It was recommended to me that I not use email, and I’ve followed suit and shut it down,” the Bolivian president added.

Continue reading »

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Jul 14

- Latin American Countries Recall Ambassadors From Spain, France, Italy And Portugal Over Snowden “Neo-Colonial” Flap (ZeroHedge, July 13, 2013)

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Jun 23

- New study links over 7,000 cancer deaths to cell phone tower radiation exposures (Natural News, June 22, 2013):

Could exposure to radiation from cell phone towers really responsible for over 7,000 cancer deaths? According to research findings from Brazil, the facts speak for themselves. The study established a direct link between cancer deaths in Belo Horizonte, Brazil’s third largest city, with the cell phone network.

What does this direct link stem from?

Over 80 percent of those who succumbed to certain types of cancer resided approximately a third of a mile away from one of the hundreds of cell phone antennae that populate the city.

These cancers, primarily found in the prostate, breasts, lungs, kidneys, liver, are the ones associated with exposure to electromagnetic fields (EMFs).

This is a real concern for cell phone users and even non- cell phone users. Those who shun mobile phone technology still suffer the consequences of cell phone tower radiation. Continue reading »

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Jun 19

From the article:

“Then again, at least the Brazilians are protesting for change: in the US, one only has to consider the epic indignation that the recent NSA spying scandal has unleashed and the mass throngs of people demanding a return of their constitutional rights. Oh wait…”


- Brazilian Protests Succeed In Reversing Bus, Subway Fare Hike (ZeroHedge, June 19, 2013):

The Brazilian protests, which swept through the country with the raging bear market (and the pulled mega-IPO) over the past week, and which had the goal of reducing a recent bus-fare increase among other assorted protest goals, appear to have succeeded. At least when it comes to the fare increase. As for the other protester demands, listed below, it may take a little longer.

AP reports:

Brazilian leaders in Sao Paulo say they are reversing a 10-cent hike in bus and subway fares that has sparked widespread protests across the nation.

Continue reading »

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Jun 19


YouTube Added: 17.06.2013

Description:

This video was recorded right before the recent protests started, but with all of this going on, it becomes even more evident that the World Cup and the Olympics should not be our priority. The world has to know about what’s really going on. Continue reading »

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Jun 18

- 200,000 Take To Brazil’s Streets In Largest Protest In Two Decades (ZeroHedge, June 18, 2013):

It started off a simple protest in Sao Paulo as a demonstration by students against an increase in bus fares from R$3 to R$3.20, and then quickly morphed into general demonstration of discontent with the nation’s political classes on both sides of the spectrum involving over 200,000 across the country, with those marching on Monday holding placards decrying everything from the enormous sums spent on the World Cup to the treatment by police of protesters last week. It got to the point where protesters invaded and occupied, peacefully, the roof of the national Congress complex in Brasilia. Then things turned less peaceful when a breakaway group from the main rally in Rio de Janeiro attacked the state legislative assembly building and attempted to set it on fire.

From Reuters:

As many as 200,000 demonstrators marched through the streets of Brazil’s biggest cities on Monday in a swelling wave of protest tapping into widespread anger at poor public services, police violence and government corruption.

The marches, organized mostly through snowballing social media campaigns, blocked streets and halted traffic in more than a half-dozen cities, including Sao Paulo, Rio de Janeiro, Belo Horizonte and Brasilia, where demonstrators climbed onto the roof of Brazil’s Congress building and then stormed it.

Monday’s demonstrations were the latest in a flurry of protests in the past two weeks that have added to growing unease over Brazil’s sluggish economy, high inflation and a spurt in violent crime.

Continue reading »

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Jun 02

Full article here:

- It’s A “0.6%” World: Who Owns What Of The $223 Trillion In Global Wealth (ZeroHedge, June 2, 2013):

Back in 2010 we started an annual series looking at the (re)distribution in the wealth of nations and social classes. What we found then (and what the media keeps rediscovering year after year to its great surprise) is that as a result of global central bank policy, the rich got richer, and the poor kept on getting poorer, even though as we predicted the global political powers would, at least superficially, seek to enforce policies that aimed to reverse this wealth redistribution from the poor to the rich (a doomed policy as the world’s legislative powers are largely in the lobby pocket of the world’s wealthiest who needless to say are less then willing to enact laws that reduce their wealth and leverage). Now that the topic of wealth distribution (or rather concentration) is once again in vogue, below we present the latest such update looking at a global portrait of household wealth. The bottom line: 29 million, or 0.6% of those with any actual assets under their name, own $87.4 trillion, or 39.3% of all global assets.

Here are the key highlights via Credit Suisse:

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May 23

- Hyperinflation – 10 Worst Cases (ToTheTick, May 22, 2013):

I have a neat little app on my smartphone that I like to look at when I’m feeling bored. It won’t change anything in my life, but it makes me think as I see the numbers clocking up, and then suddenly stopping for a few seconds. It’s the app that tells me the how much the National Debt of each country stands at in real-time. As I sit down at my computer screen the USA National Debt amounts to $17 041 241 xxx xxx. Forgive the x’s…they’re not kisses…I tried to get the last six digits, but, there’s no point, they’re moving too fast! Speedie Gonzalez has got into that app! It works out to $54 087 per person. That’s the same value as 3 408 248 816 XXX Big Mac Meals.

Inflation is hot property today, hyperinflation is even hotter! We think we are modern, contemporary, smart and ready to deal with anything. We’ve got that seen-it-all-before, been-there-done-it attitude. But, we are not a patch on what some countries have been through in the worst cases of hyperinflation in history. Here’s the top 10 list of worst cases in history. We’ll start with the worst first…let’s think positive! Continue reading »

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May 09

Watch closely at 0:28 into the video. See that cyclist?

What are these cops thinking? (Rhetorical question.)



YouTube Added: 07.05.2013

Description:

Video has emerged showing police in Brazil shooting rounds from a helicopter at an accused drug trafficker on the run. The car eventually stopped and was surrounded by people in the area.

The alleged drug trafficker Marcio Pereira did manage to escape but was found dead the next day in a parked car.

Since the video aired on BrazilianTV, police have launched an investigation to see if the officers involved used excessive force in their pursuit. Report by Sarah Johnston.

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Apr 15

- China Takes Another Stab At The Dollar, Launches Currency Swap Line With France (ZeroHedge, April 13, 2013):

One more domino in the dollar reserve supremacy regime falls. Following the announcement two weeks ago that Australia And China will Enable Direct Currency Convertibility, which in turn was the culmination of two years of Yuan internationalization efforts as summarized by the following: “World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter System“, “India and Japan sign new $15bn currency swap agreement“, “Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says“, “India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees“, and “The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap, China has now launched yet another feeler to see what the apetite toward its currency is, this time in the heart of the Eurozone: Paris. According to China Daily, as reported by Reuters, “France intends to set up a currency swap line with China to make Paris a major offshore yuan trading hub in Europe, competing against London.” As a reminder the BOE and the PBOC announced a currency swap line back in February, in effect linking up the CNY to the GBP. Now it is the EUR’s turn.

More on this curious move by the Bank of France and the PBOC from Reuters: Continue reading »

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Mar 30

- BRICS Nations Plan New Bank to Bypass World Bank, IMF (Bloomberg, March 26, 2013):

The biggest emerging markets are uniting to tackle under-development and currency volatility with plans to set up institutions that encroach on the roles of the World Bank and International Monetary Fund.

The leaders of the so-called BRICS nations — Brazil, Russia, India, China and South Africa — are set to approve the establishment of a new development bank during an annual summit that began today in the eastern South African city of Durban, officials from all five nations say. They will also discuss pooling foreign-currency reserves to ward off balance of payments or currency crises.

Continue reading »

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Feb 17

- Currency Wars Are Trade Wars (Azizonomics, Feb 16, 2013):

Paul Krugman is all for currency wars, but not trade wars:

First of all, what people think they know about past currency wars isn’t actually true. Everyone uses some combination phrase like “protectionism and competitive devaluation” to describe the supposed vicious circle of the 1930s, but as Barry Eichengreen has pointed out many times, these really don’t go together. If country A and country B engage in a tit-for-tat of tariffs, the end result is restricted trade; if they each try to push their currency down, the end result is at worst to leave everyone back where they started.

And in reality the stuff that’s now being called “currency wars” is almost surely a net plus for the world economy. In the 1930s this was because countries threw off their golden fetters — they left the gold standard and this freed them to pursue expansionary monetary policies. Today that’s not the issue; but what Japan, the US, and the UK are doing is in fact trying to pursue expansionary monetary policy, with currency depreciation as a byproduct.

There is a serious intellectual error here, typical of much of the recent discussion of this issue. A currency war is by definition a low-level form of a trade war because currencies are internationally traded commodities. The intent (and there is much circumstantial evidence to suggest that Japan at least is acting with mercantilist intent, but that is another story for another day) is not relevant — currency depreciation is currency depreciation and still has the same effects on creditors and trade partners, whatever the claimed intent. Continue reading »

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Jan 27

- ‘Complete panic’ as 232 killed in Brazil nightclub fire (USA Today, Jan 27, 2013):

A blaze at a Brazilian nightclub left 232 dead early Sunday morning, in what appears to be the world’s deadliest nightclub fire in more than a decade.

More than 100 were injured when the fire broke out at 2 a.m. in Santa Maria, Brazil, at a nightclub called Kiss, which was hosting an event for a local university. Most of the attendees were students of that school, the Federal University of Santa Maria.

Continue reading »

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Nov 28

- The Giant Currency Superstorm That Is Coming To The Shores Of America When The Dollar Dies (Economic Collapse, Nov 27, 2012):

By recklessly printing, borrowing and spending money, our authorities are absolutely shredding confidence in the U.S. dollar.  The rest of the world is watching this nonsense, and at some point they are going to give up on the U.S. dollar and throw their hands up in the air.  When that happens, it is going to be absolutely catastrophic for the U.S. economy.  Right now, we export a lot of our inflation.  Each year, we buy far more from the rest of the world than they buy from us, and so the rest of the world ends up with giant piles of U.S. dollars.  This works out pretty well for them, because the U.S. dollar is the primary reserve currency of the world and is used in international trade far more than any other currency is.  Back in 1999, the percentage of foreign exchange reserves in U.S. dollars peaked at 71 percent, and since then it has slid back to 62.2 percent.  But that is still an overwhelming amount.  We can print, borrow and spend like crazy because the rest of the world is there to soak up our excess dollars because they need them to trade with one another.  But what will happen someday if the rest of the world decides to reject the U.S. dollar?  At that point we would see a tsunami of U.S. dollars come flooding back to this country.  Just take a moment and think of the worst superstorm that you can possibly imagine, and then replace every drop of rain with a dollar bill.  The giant currency superstorm that will eventually hit this nation will be far worse than that. Continue reading »

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Jul 18

- 11 International Agreements That Are Nails In The Coffin Of The Petrodollar (The Economic Collapse, July 18, 2012):

Is the petrodollar dead?  Well, not yet, but the nails are being hammered into the coffin even as you read this.  For decades, most of the nations of the world have used the U.S. dollar to buy oil and to trade with each other.  In essence, the U.S. dollar has been acting as a true global currency.  Virtually every country on the face of the earth has needed big piles of U.S. dollars for international trade.  This has ensured a huge demand for U.S. dollars and U.S. government debt.  This demand for dollars has kept prices and interest rates low, and it has given the U.S. government an incredible amount of power and leverage around the globe.  Right now, U.S. dollars make up more than 60 percent of all foreign currency reserves in the world.  But times are changing.  Over the past couple of years there has been a whole bunch of international agreements that have made the U.S. dollar less important in international trade.  The mainstream media in the United States has been strangely quiet about all of these agreements, but the truth is that they are setting the stage for a fundamental shift in the way that trade is conducted around the globe.  When the petrodollar dies, it is going to have an absolutely devastating impact on the U.S. economy.  Sadly, most Americans are totally clueless regarding what is about to happen to the dollar. Continue reading »

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Jul 16

- After Creating Dollar Exclusion Zones In Asia And South America, China Set To Corner Africa Next (ZeroHedge, July 15, 2012):

By now it really, really should be obvious. While the insolvent “developed world” is furiously fighting over who gets to pay the bill for 30 years of unsustainable debt accumulation and how to pretend that the modern ‘crony capitalist for some and communist for others‘ system isn’t one flap of a butterfly’s wings away from full on collapse mode, China is slowly taking over the world’s real assets. As a reminder: here is a smattering of our headlines on the topic from the last year: World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter System“, “India and Japan sign new $15bn currency swap agreement“, “Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says“, “India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees“, ‘The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap“, and finally, Chile Is Latest Country To Launch Renminbi Swaps And Settlement“, we now get the inevitable: Central bank pledges financial push in Africa.” To summarize: first Asia, next Latin America, and now Africa.

Yep: the Yuan may not be the reserve currency by default, but at this rate China will have bilateral, read USD-bypassing relations, with all countries in Asia, South America and shortly Africa (where none other than Goldman Sachs has been pushing harder than anyone). Once the entire world is trading in CNY, it will be merely a matter of flipping the switch and all those fancy three-letter economic theories that explain why the uber-welfare state works just becayse the US can print an infinity+1 in debt, will all suddenly find themselves completely and totally bidless.

From China Daily:

China is to promote the yuan’s use in settling trade and investment with Africa, and encourage the more active development of Chinese financial institutions across the continent, a senior central bank official said on Friday.

Li Dongrong, assistant governor of the People’s Bank of China, said Africa has the capability of becoming a new hub of international capital flow, and the yuan’s use there should be further improved in accordance with rising demand for the currency there.

“We will continue to encourage domestic financial institutions to increase their presence and business across the continent,” Li told delegates at the Forum on China-Africa Financial Cooperation in Beijing, adding that the cooperation potential between the two sides is huge, as Africa’s economy continues to take off. Continue reading »

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