[ZEROHEDGE] "The trouble with Socialism is that eventually you run out of other people's money."
When President Nicolas Maduro inherited the Venezuelan Socialist "dream", in April of 2013, just one month after Chavez died, he was facing a mere 53% inflation rate. Today the Venezuelan bolivar is virtually worthless, and inflation is creeping to 500% with expectations of much more. A recent Washington Post report stated:
" ...markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt. It is not easy for a nation to go bankrupt with the largest oil reserves in the world, but Venezuela has managed it. How? Well, a combination of bad luck and worse policies. The first step was when Hugo Chavez's socialist government started spending more money on the poor, with everything from two-cent gasoline to free housing. That may all seem like it's a good idea in general -- but only as long as there's money to spend. And by 2005 or so, Venezuela didn't have any."
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Posted by: Fred ||
09/15/2016 00:00 ||
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#1
Maduro is strongly urging businesses and farmers to sell their goods at severe losses, forcing shut-downs when the cost of doing business becomes prohibitive.
Always with the socialist "Magic Money" tree. When you remove the value of things, things don't happen.
#2
This sort of thing reminds me of when I was in second grade and the teacher assigned us each to write a limerick involving food in some way. Mine ran:
"There once was a fellow named Sam
"Who would only ever eat ham.
"It happened one day
"That he died away [sic].
"And now his wife eats only ham."
I was never happy with this verse, but lately I see a lot of this tendency in politics as in the final line, namely not learning from others' mistakes.
#4
That spiral could continue on until there was literally nothing there but dust, dirt, and wildlife and our (alleged) "media" would STILL NOT cover the story--it doesn't fit THEIR narrative.
#5
The problem many people, including a few R'burgers, have is the "axiom" that the government cares about the people.
In Socialism the system is a success as long as it provides luxury and power for the founders. If in continues to do such for future members of the elite then that's just gravy. It is only for the comfort of the founders that the system is established. Do you really think Obama cares about the future of the Dem party?
#6
Do you really think Obama cares about the future of the Dem party?
Only in how it will benefit him, AlanC.
Posted by: Mullah Richard ||
09/15/2016 13:26 Comments ||
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#7
Socialism might work in theory - and there's a lot of that - but it has never worked in practice. Hayek explains why. It's all pretty obvious once you read The Road to Serfdom.
This is sheer, sad stupidity. Talk about walking away from your core business! Sears (and its rival, the late Monkey Ward) used to be what Amazon is, in pre-technology days. You got their "web site" in the mail every month, and they'd ship you anything from a pair of shoes to a house (you had to put it together yourself). K Mart is the offspring of the Kresge 5 & 10 stores, and were what WalMart perfected. As mail order tanked, K Mart bought Sears, with the holding company in the Sears name. Neither company saw the potential of the internet and neither has a significant internet presence. I guess the Triceratops was a good idea at one time, too.
[BUSINESSINSIDER] Moody's analysts say Sears and Kmart don't have enough money -- or access to money -- to stay in business. In a note published Wednesday, the analysts downgraded Sears' liquidity rating, saying the company is bleeding cash and will have to continue to rely on outside funding or the sale of assets, such as real estate, to sustain operations. The Langston by Sears & Roebuck, circa 1920. Shipped into town by train, pieces numbered with blueprint and assembly instructions. I don't believe the Langston had an indoor privy. Some of the larger models did.
"We recognize the risks associated with relying on these sources and continued shareholder support to finance its negative operating cash flow which is estimated by Moody's to be approximately $1.5 billion this year," the analysts wrote.
Kmart in particular is at risk of shutting down, according to Moody's.
"The ratings... reflect our view on the uncertainty of the viability of the Kmart franchise in particular given its meaningful market share erosion," the analysts wrote.
Sears said in August that its cash and equivalents have fallen to $276 million from $1.8 billion one year ago. As a result, the retailer was forced to accept $300 million in financing from Sears CEO Eddie Lampert's hedge fund, ESL Investments, in the most recent quarter.
The company is losing cash as sales plunge at its namesake and Kmart stores. Net sales fell 8.8% to $5.7 billion in the second quarter. Same-store sales plunged 7% at Sears stores and dropped 3.3% at Kmart stores.
Posted by: Fred ||
09/15/2016 00:00 ||
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...I'll believe it when I finally see it. The experts have been predicting this for more than a decade. Beginning to think it's the world's biggest money laundering operation.
Mike
Posted by: Mike Kozlowski ||
09/15/2016 4:41 Comments ||
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#2
First of the year. Warranty work is now only 30 days in automotive repair in my store. Quality is disappearing. People don't want to pay too much for anything. Look at food. Fast food sickness is upon us now. Cheep, cheep and more cheep. Less pay more work. Cut hours then what happens, No rotation of anything. Food sits in freezer in the back till pulled for preparation. Food store same thing. Sending our meats to China of all places to be processed. No label of origin. I can tell you auto parts come in nice boxes but product inside is destroyed at factory or poorly manufactured. Garments sent to Vietnam from China leave burn marks after you wear them. Cheap prices + Cheap results = No business. Now at this time when you visit your doctor they will ask you how often do you pee?. People are saying that after eating fast food they have to pee shortly afterward. Doctor said to a patient, yes , "I am seeing this problem increasing among my patients". To make red meats last longer for sale you add red dye. Sub sandwich dated goes out so you take the meat off and make a different sandwich. I can go on and on. Medical?, you would not believe the tricks there to save money.
Posted by: lord garth ||
09/15/2016 9:10 Comments ||
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#4
..same as warranties held by Chrysler and Government Motors vehicle owners after the bailout. And that lifetime guarantee was about their lifetime not yours.
#7
A parallel observation since I do most of the food shopping for the family now, the prices for items have been fairly slow to rise, but the quantity shrinkage is amazing, slowly smaller soda amounts, less net weight in prepackaged foods, quantity of principle ingredients lessened, everything is about max profit and the decline of quality. The exception is the carriage trade stores where the prices are upper tier but the quality is better. The Whole Foods phenomena and high end lunch places. A two-tier working society where one set makes 40-60k in fly over country and is glad for it, and the coastal enclaves where 120k is low end/entry level. That is certainly the case in Northern California, and by hearsay from family in SOCal as well. Can't see how this doesn't fracture soon......
#12
I've dealt with Sears twice. First, I ordered online some clothes, some long underwear. They never arrived. Second, we arranged for a measure and quote for a kitchen renovation. Set a time and nobody showed up. There wont be a third time.
[FREEP] Ford is shifting all North American small-car production from the U.S. to Mexico, CEO Mark Fields told investors today in Dearborn, even though its plans to invest in Mexico have become a lightning rod for controversy in this year's presidential election.
"Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States," Fields said.
Ford isn't the first automaker move small car production out of the U.S. as Mexico has become a mecca for new automotive industry investment and has surpassed Canada in annual automotive production.
Still, the news sparked a fresh round of criticism from Republican Presidential candidate Donald Trump, who was in Flint on Wednesday.
"We shouldn’t allow it to happen. They’ll make their cars, they’ll employ thousands of people, not from this country and they’ll sell their car across the border," Trump said. "When we send our jobs out of Michigan, we’re also sending our tax base."
Fiat Chrysler Automobiles said earlier this year it will end production of all cars in the U.S. by the end of this year as it discontinues production of the Dodge Dart in Belvidere, Ill. and the Chrysler 200 in Sterling Heights, Michigan.
Posted by: Fred ||
09/15/2016 00:00 ||
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They are running from the stupid US government, the EPA, the CAFE standards that are all bullshit, the Goonions, and the PC idiocy that detracts from manufacturing and life in general.
#4
First El Ford models will be called the Ford Enchalata, the 2018 Chimichanga, 2019 Quatro Cylindar El Burrito, just like at Taco Bell. I bet they will be as ugly as a chupacabra, too.
#10
Years ago, gorb, General Motors tried to sell a car in Mexico that had been very popular in the United States. You may have all heard this story but the name of the car was Nova which sounds just fine in English. Unfortunately, they didn't know that "no va" means "no go" in Spanish.
Anyway, the United Auto Workers have always demanded more and more and more money. They have always been one of the leading causes of inflation. Now they have priced themselves out of the market.
Stupid, stupid, stupid.
But Ford, GM and Chrysler management went merrily along. They were always happy to pass the cost increases to the consumer. Now just ask yourself, if you have a choice between a car made in Mexico and a car made in Japan, which one are you going to buy?
Posted by: Abu Uluque ||
09/15/2016 16:11 Comments ||
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#11
I'm sticking with my Honda CRV, at 230,000+ miles so far.
When I HAVE to replace it, another CRV.
All the American car "manufacturers" can go to hell. There's nothing patriotic about buying junk at a premium price.
Posted by: Barbara ||
09/15/2016 16:27 Comments ||
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"I'm sticking with my Honda CRV, at 230,000+ miles so far. When I HAVE to replace it, another CRV."
We are on our 3rd CRV now (4th Honda).
Posted by: Bangkok Billy ||
09/15/2016 17:03 Comments ||
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I'm sticking with my Honda CRV, at 230,000+ miles so far.
Same here. And likely (33+ percent probability) manufactured in Ohio.
#14
On my second Accord that should be my last car unless the wife demands we switch to one since we're now both retired.
I'd still be on the first one that only had 120k on it 'cept a 90' pine triee fell on it in a wind storm and turned it into a really low rider. Even after they chainsawed it out and pried open the door and hood they jumped it and drove it onto the tow truck. Heck of a car.
During an often-contentious hearing Wednesday, Sen. Ted Cruz, R-Texas, took on the B.O. regime for what has become his latest signature issue: internet oversight.
The B.O. regime is due to relinquish U.S. control Oct. 1 over a private-sector, nonprofit organization that administers internet domain names and designations. Cruz warned that the Internet Corp. for Assigned Names and Numbers will not on its own honor U.S. protections of free speech, and he is leading an effort to delay or stop the transfer.
"Under the guardianship of the United States and the First Amendment the internet has become truly an oasis of freedom, but that could soon change," Cruz said at a hearing of the Senate Judiciary Committee’s Subcommittee on Oversight, Agency Action, Federal Rights and Federal Courts, which he chairs.
"It is not a democratic body," Cruz said of the organization, which includes such internet stakeholders as Google and Facebook and is based in Los Angeles. And he warned that authoritarian countries such as China, Russia and Iran could exert control over the organization and censor internet use in their countries.
Posted by: Fred ||
09/15/2016 00:00 ||
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Tell your CEO that you are turning the company network over to the United Nations and see how long it takes for security to escort you straight to the parking lot.
#5
I'd be perhaps more concerned about it being used a tax revenue source, and the potential to seriously break the global internet by distributing what ICANN currently does, both for censorship and financial purposes.
It could end up like Libya where everyone is fighting to get their hands on the oil (internet) revenues.
#7
Buh bye, Internet. You were cool for a while. Hell, you were super cool. But now the Russians and Chinese have taken over. And google. Ick. I'm all for going back to modems or X.25 over private phone lines. Anybody remember SNA?
Posted by: Abu Uluque ||
09/15/2016 12:11 Comments ||
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#8
can you say Dark Net?
Posted by: Frank G ||
09/15/2016 21:44 Comments ||
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A multi-volume chronology and reference guide set detailing three years of the Mexican Drug War between 2010 and 2012.
Rantburg.com and borderlandbeat.com correspondent and author Chris Covert presents his first non-fiction work detailing
the drug and gang related violence in Mexico.
Chris gives us Mexican press dispatches of drug and gang war violence
over three years, presented in a multi volume set intended to chronicle the death, violence and mayhem which has
dominated Mexico for six years.
Rantburg was assembled from recycled algorithms in the United States of America. No
trees were destroyed in the production of this weblog. We did hurt some, though. Sorry.
[ZEROHEDGE] "The trouble with Socialism is that eventually you run out of other people's money."
