Economic crisis – Water Valley Chamber http://watervalleychamber.info/ Fri, 07 Jan 2022 23:44:35 +0000 en-US hourly 1 https://wordpress.org/?v=5.8.2 https://watervalleychamber.info/wp-content/uploads/2021/11/wat.png Economic crisis – Water Valley Chamber http://watervalleychamber.info/ 32 32 Venezuelans use cryptocurrencies during the economic crisis https://watervalleychamber.info/venezuelans-use-cryptocurrencies-during-the-economic-crisis/ Fri, 07 Jan 2022 20:22:32 +0000 https://watervalleychamber.info/venezuelans-use-cryptocurrencies-during-the-economic-crisis/ 01:07 Cryptocurrencies are gaining ground in Latin America as a means of payment, and one country stands out among them. Venezuela’s economic crisis has caused many people there to turn to crypto to preserve their weakened incomes. Across the country, businesses large and small are increasingly adopting online payment systems to allow customers to pay […]]]>

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Cryptocurrencies are gaining ground in Latin America as a means of payment, and one country stands out among them. Venezuela’s economic crisis has caused many people there to turn to crypto to preserve their weakened incomes. Across the country, businesses large and small are increasingly adopting online payment systems to allow customers to pay using cryptocurrencies. This has benefited both business owners and customers.

Richard Romero, 31, runs a grocery store in Naiguatá, a small town in the state of La Guaira, about 30 kilometers from the capital Caracas. In Romero’s store all kinds of payments are welcome – bolivars, dollars and even cryptocurrencies. For two years, he has been using RESERVE, an online platform that allows him to exchange and save cryptocurrencies which can then be converted into dollars. He says he has found that it helps him protect his daily sales against loss in value.

“It allows me to exchange with different currencies and since many local banks and many people here in the city where I work use the app, I can give them change if needed. Most importantly, I can secure my income on a platform that helps me save my money in dollars, ”he said.

Even street vendors like Rosaura Mejia, 58, are starting to accept digital payments using cryptocurrencies for small purchases like candy or cigarettes. Mejia says adapting to this new technology is helping her survive.

“It’s a solution, because if the customers don’t have the dollars in hand, we open my user ID and they can make the purchase and it ends up in my account,” Mejia said.

Hit by hyperinflation and targeted by US sanctions, Venezuela faces de facto dollarization. The local currency has lost almost all of its value in just over a decade, and in just 13 years the Venezuelan government has removed 14 zeros from the value of the bolivar.

Bolivar banknotes are often scarce. And although the US dollar is widely accepted, not everyone has an overseas bank account. Platforms with blockchain technology work like a virtual exchange.

According to Chainalysis, a New York-based blockchain analytics company, in 2020 Venezuela ranked third in the world for crypto adoption, surpassed only by Ukraine and Russia.

And the trend is developing rapidly. It is often used by some of the five million Venezuelans living abroad. Cryptocurrencies have become a convenient method of sending funds to loved ones still living in Venezuela, and a financial lifeline for those who receive them.

Venezuelan graphic designer Kellyn Maldonado is a crypto enthusiast and an active RESERVE user. He says the process of sending funds using crypto accounts is quick and convenient.

“If someone is in Colombia and wants to send money to their family, if they have an account in Colombia and their family has one in Venezuela, you can do it right away, without having to go to the bank or to look for a third party who is able to send the money, ”said Maldonado.

And for those who stay in the country, peer-to-peer token exchange sites help Venezuelans charge for their services.

Samuel La Rosa is a physical trainer and nutrition consultant. Some of its clients live abroad and pay them through BINANCE, one of the most popular cryptocurrency exchange companies in the country.

La Rosa says at first it seemed complicated, but it’s really a simple process.

“No matter how far away people are, I can do my job and the payment comes right away. It means that I can have an independent source of income, ”he said.

Digital payments are helping alleviate the economic crisis for many in Venezuela, but in most parts of the country people struggle with online infrastructure and chronic power outages. Despite these challenges, Venezuela is emerging as a cashless economy, and crypto coins play a big role in it.

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Experts See North Korea Avoid Nuclear Talks As Economic Crisis Worsens https://watervalleychamber.info/experts-see-north-korea-avoid-nuclear-talks-as-economic-crisis-worsens/ Thu, 06 Jan 2022 06:43:22 +0000 https://watervalleychamber.info/experts-see-north-korea-avoid-nuclear-talks-as-economic-crisis-worsens/ WASHINGTON – Experts see the prospects for nuclear talks between Washington and Pyongyang darken as North Korea struggles to continue its nuclear and missile programs as its economy collapses. North Korean leader Kim Jong Un spoke at a five-day meeting of his Workers’ Party without any mention of engagement with the United States or South […]]]>

Experts see the prospects for nuclear talks between Washington and Pyongyang darken as North Korea struggles to continue its nuclear and missile programs as its economy collapses.

North Korean leader Kim Jong Un spoke at a five-day meeting of his Workers’ Party without any mention of engagement with the United States or South Korea.

Neither the regime’s usual critical tone of “hostile policies” of the United States nor any diplomatic overture was present in Kim’s speech at Party meetings reported by the regime’s state media, the Central Agency. Korean Press (KCNA).

Kim said North Korea will continue to strengthen its military capabilities to respond to “the growing instability of the military situation on the Korean Peninsula and international circumstances,” which KCNA reported on Saturday.

In response to Kim’s speech, the US State Department told VOA’s Korean service on Tuesday that Washington would continue efforts to engage Pyongyang.

“The United States remains committed to achieving lasting peace on the Korean Peninsula through dialogue and diplomacy with the DPRK,” a State Department spokesperson said, using the acronym for Korea’s official name. of the North, the Democratic People’s Republic of Korea.

“To this end, we will continue to seek engagement with the DPRK as part of a calibrated and practical approach in order to achieve tangible progress that strengthens the security of the United States, our allies and our deployed forces,” he said. declared the spokesperson.

The State Department spokesman also said that the United States has no hostile intentions towards North Korea, is ready to reunite without preconditions and hopes that the DPRK responds positively to its sensitization.

Nuclear talks between the two countries have been deadlocked since October 2019.

Prospects for talks darken

Robert Manning, Principal Investigator at the Atlantic Council, said: “[Kim’s] message does not suggest any new openness to nuclear diplomacy.

Joshua Pollack, senior research associate at Middlebury Institute of International Studies in Monterey, said North Korea’s main nuclear reactor at Yongbyon “appears to be operating right now, which isn’t usually a sign that executives are eager to negotiate “.

Washington’s efforts to start nuclear talks with Pyongyang could become more difficult as North Korea continues to develop its nuclear and missile capabilities, according to Soo Kim, political analyst at the RAND Corporation.

Kim’s emphasis on building North Korea’s military capability “suggests [he] remains on the path to strengthening its nuclear influence over its counterparts – if and when another negotiating opportunity presents itself, ”said Soo Kim.

“In fact, it may become increasingly difficult for the United States and South Korea to negotiate as North Korea continues to expand its range of nuclear and missile capabilities. Kim has a vested interest in the weapons program and is therefore unlikely to abandon them on Washington’s terms, ”Soo Kim continued.

North Korea tested a ballistic missile on Wednesday, according to the South Korean and American military.

North Korea conducted a series of advanced missile launches in September and October, including its rail and submarine missiles.

Economic challenges

North Korea’s first launch in 2022 comes even as Kim said in his speech that his diet will focus on improving its economy, marked by severe food shortages.

Kim promised “to increase agricultural production and completely solve food problems, according to the KCNA on Saturday.

Evans Revere, a former State Department official with extensive experience in negotiations with North Korea, said North Korea’s economic and food situation may be “more unfavorable and critical” than the speech describes. by Kim.

“If things in North Korea are as serious as [his speech] implies, he is actually arguing for North Korea to reach out to the United States, the Republic of Korea and the international community in an attempt to resolve its economic problems and its food situation, ”Revere said.

“But the price Kim Jong Un would have to pay for such a commitment would be the willingness to put its nuclear and missile programs on the table and address the concerns of the United States and others about these programs,” Revere added. .

Revere, however, said there was no indication Kim was ready to trade off his nuclear and missile programs because he emphasized self-sufficiency rather than seeking outside help.

Harry Kazianis, senior director of Korean studies at the Center for the National Interest, said Kim was not eager to further overburden the already fragile economy by testing a nuclear weapon or long-range missile that could reach the United States.

“Right now, I see no chance of Kim testing any substance weapons America is worried about, like an ICBM [intercontinental ballistic missile] or a nuclear weapon, ”Kazianis said. “Kim doesn’t want any more economic pressure on him, neither does he want to endanger any [economic] help from China it needs more than ever.

Ken Gause, director of the Adversary Analysis program at CNA, said Kim is unlikely to test weapons that elicit strong reactions from the United States and China “unless [he is] ready to use as a gateway into engagement.

Jiha Ham, Korean service reporter for VOA, contributed to this report.

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Sri Lankan President Blames COVID-19 for Economic Crisis https://watervalleychamber.info/sri-lankan-president-blames-covid-19-for-economic-crisis/ Wed, 05 Jan 2022 03:42:45 +0000 https://watervalleychamber.info/sri-lankan-president-blames-covid-19-for-economic-crisis/ Addressing a meeting of selected media editors last week, Sri Lankan President Gotabhaya Rajapakse said last week that his government would realize its “prospects of prosperity and splendor” over the next three years. He blamed his government for failing to deliver on bogus promises made in the November 2019 election over “pandemic-induced setbacks.” Rajapakse was […]]]>

Addressing a meeting of selected media editors last week, Sri Lankan President Gotabhaya Rajapakse said last week that his government would realize its “prospects of prosperity and splendor” over the next three years.

He blamed his government for failing to deliver on bogus promises made in the November 2019 election over “pandemic-induced setbacks.”

Rajapakse was addressing a meeting of selected media editors to gain their support in deflecting the growing anger of workers and the poor over rising prices and shortages of basic necessities, and to prepare for the ground for more austerity measures.

People wait since early in the morning to buy gas cylinders in Mahabage, a suburb of Colombo, on January 4, 2022 (Photo: WSWS Media)

Just a week earlier, the President had sacked the Secretary of the Department of Agriculture, Professor Udith Jayasinghe, for warning: “It is possible that food shortages will occur due to the current economic and social problems we face.

In December, the official year-on-year inflation rate reached 12 percent and food inflation rose to 22 percent. The government removed almost all price controls in October, giving big business free rein to raise prices. Now he is desperately trying to make arrangements to purchase essentials from India and Pakistan.

Populations face shortages of powdered milk, sugar, cooking gas, kerosene and medicines. Long queues have appeared in all parts of the country. A wave of strikes and protests by private and public sector workers erupted throughout the past year over demands for wage increases. Farmers continue to agitate this year to demand compensation for the devastation in agriculture caused by the government’s ban on fertilizer imports.

However, during his meeting with the editors, Rajapakse did not say a word about the intolerable conditions of the masses. Neither has any of the docile establishment media editors questioned, let alone challenged, the dire situation facing workers.

The president said his government had “succeeded” in implementing its vaccination campaign and “avoiding the worst disaster”, implying that the coronavirus has been brought under control. However, even according to underestimated and unreliable official figures, the total number of infections reached 600,000 and the death toll topped 15,000 on Sunday.

Rajapakse has not said anything about the dangers of the new, highly infectious variant of Omicron which has now been detected in many parts of the country. Health officials admitted yesterday that “there may be more undetected Omicron patients in the community.”

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Stanphyl Capital: the economic crisis is looming, and the electric vehicles that beat Tesla https://watervalleychamber.info/stanphyl-capital-the-economic-crisis-is-looming-and-the-electric-vehicles-that-beat-tesla/ Tue, 04 Jan 2022 05:39:00 +0000 https://watervalleychamber.info/stanphyl-capital-the-economic-crisis-is-looming-and-the-electric-vehicles-that-beat-tesla/ Stanphyl Capital’s remark for the month ended December 2021, discussing the economic situation in the United States and their long positions in NuScale Power, Volkswagen AG (OTC 🙂 (OTCMKTS: VWAPY) and General Motors Company (NYSE: NYSE :). Stanphyl Capital Performance For December 2021 the fund increased by approximately 15.3% net of all fees and expenses. […]]]>

Stanphyl Capital’s remark for the month ended December 2021, discussing the economic situation in the United States and their long positions in NuScale Power, Volkswagen AG (OTC 🙂 (OTCMKTS: VWAPY) and General Motors Company (NYSE: NYSE :).

Stanphyl Capital Performance

For December 2021 the fund increased by approximately 15.3% net of all fees and expenses. For comparison, the S&P 500 was up 4.5% while the was up 2.2%. For 2021, the fund grew 25.9% net, while the fund was up 28.7% and the Russell 2000 was up 14.8%.

Since inception on June 1, 2011, the fund is up 71.3% net while the S&P 500 is up 338.1% and the Russell 2000 is up 205.4%. Since inception, the fund has compounded at 5.2% net per annum compared to 15.0% for the S&P 500 and 11.1% for the Russell 2000. (The performance of the S&P and the Russell is based on their “Total Returns “which include reinvested dividends. Fund performance results are approximate; investors will receive exact figures from the outside administrator within a week or two. Please note that the returns of individual partners will vary based on their high levels.)

In November and December, the Market Sanitation Department finally arrived to pick up trash, and at the top of its list of non-recyclable (i.e. suitable for landfill only) items was the ETF innovation ARK (NYSE :), a giant collection of stock bubbles that we’ve been short of for much of 2021 (and remain short of somewhat small, though still significant) size. Thanks, Crazy Crooked Cathie, for helping give us a decent halfway year.

Our short position in Tesla (NASDAQ 🙂 also contributed a bit to this month’s gains. ultimately appears to be ‘losing the story’ as an attack of formidable new electric vehicles gains both market share and investor opinion shares, while another headwind from Tesla has been setting the tone. to death (for now, at least) from the planned extension of the U.S. electric vehicle tax credit, thanks to Manchin’s opposition to Biden’s spending boondoggle. (Please watch my twitter thread Why all VE credits are a massive waste of money compared to their immeasurable effect on “climate change”. )

On the long side, the novelty of the fund this month is a position on NuScale Energy, a designer of safe small modular nuclear reactors that is made public via a SPAC with the ticker SV; more on that later.

We are entering a stagflationary rehearsal of the 1970s

Meanwhile, I still believe that we are entering a stagflationary repeat of the 1970s which is why we own several high value stocks and remain sellers of high PE bubbles like Tesla and ARKK.. Even if the failure (for now anyway) of the “BBB Bill” removes some short-term inflationary pressures, this can be offset by the possible cancellation of $ 1 trillion in student debt and increasing demands for cost of living clauses from workers. (I suspect the new Omicron COVID variant won’t change that outlook, as patients seem to get much less sick than they would be with previous versions of the disease.)

The Fed’s new slightly less accommodative stance (i.e. printing tens of billions of dollars a month through March instead of June while predicting three tiny rate hikes in 2022 totaling less than 1%) is ridiculous compared to the rate of, even if this inflation were to ease considerably in 2022 to reach the range of 4% compared to the 6% and above that we see now.

Even at today’s absurdly low rates, interest on the nearly $ 30 trillion in federal debt costs about $ 400 billion a year. Does anyone seriously think that this Fed has the courage to face the political storm of Congress that has to slash medicare, defense budget, etc. in order to pay the costs of higher interest created by breeding these rates at a level corresponding to 4% + inflation? Powell doesn’t have the guts for this, nor does anyone else in Washington; so this Fed will be behind the inflation curve for at least a decade.

Meanwhile, the generalized increases in CPI, IPP and even the Fed’s nonsense Basic PCE continue to indicate that this inflation is not “transient.” (Nor is it limited to the United States; at 4.9%, the euro area recently reported its since its inception, and is highest since 1992.)

Despite all of this evidence, courtesy of Bank of America, we can see that the majority of investors – perhaps conditioned by 40 years of disinflationary complacency (the average portfolio manager is only 44) – still don’t believe that l inflation is a problem. (which probably explains why gold has yet to take off):

Inflation expectations

And thanks to University of Michigan survey, we can see that although short term consumer inflation expectations have flew

Expected price change over the next year

Expected price change over the next year

this fear is right departure slip into:

Meanwhile, the similarities between the stagflation of the early 1970s and the ‘now’ remain troubling:

What was the economic situation in the United States like in 1973?

  1. Soaring energy costs
  2. Soaring public deficits
  3. Soaring labor costs
  4. CPI> 6%
  5. Stocks on the verge of entering a bear market as inflation was about to crush PE ratios
  6. The price of gold on the verge of skyrocketing

What does the economic situation look like in the United States? today?

  1. Soaring energy costs (such as developed countries “Make war” on fossil fuels)
  2. Soaring public deficits
  3. Soaring labor costs
  4. Low-cost China cut off from supply chains (an inflationary factor not found in the 1970s)
  5. CPI> 6%

So just like in the 1970s I believe actions enter a bear market as inflation crushes their PE ratios, while deeply negative real interest rates will eventually push up the price of gold.

Meanwhile, stock indexes are so extended that a myriad of exogenous events (both “known unknowns” and “unknown unknowns”) could shatter this market even independent of inflation or Fed actions. Courtesy of @MichaelAArouet & Top-down charts we can see that the real return on S&P 500 CAPE earnings has fallen to levels seen only before previous crashes…

Actual profit return

… while CurrentMarketValuation.com we can see that the valuation of the US stock market as a percentage of GDP (the so-called “Buffett indicator”) is unbelievably high

… as is (courtesy of @ISABELNET_SA & @LanceRoberts) the price / sales ratio of the S&P 500:

Price table for sale

Long positions

So here are some additional comments on some of the fund’s positions; please note that we may increase or decrease these positions at any time …

NuScale Power

New to the fund this month is a long position in NuScale Power, which will go public in the first half of 2022 by merging into a SPAC with the (temporary) ticker SV. I believe the world will soon recognize that the alone The practical way to decarbonize is nuclear power, and NuScale designs small modular reactors (SMRs) using passive safety that have the only design (so far) approved by the Nuclear Regulatory Commission.

This is a light investment firm (NuScale only provides engineering services), and although the first reactors in the pipeline were not commissioned until the end of this decade, the cash flow starts much earlier because the business is paid as construction progresses.

With a pro forma enterprise value of just $ 2 billion with excellent strategic owners and (according to management) enough liquidity to grow into positive cash flow, I think this is an interesting speculation. in a very “sexy” story, with the added bonus that the pre-merger price should have a floor of around $ 10 as this is where holders are allowed to buy back their shares, thus making this trade rather skewed for a while. at least the next few months.

Volkswagen

We continue to hold a long position in Volkswagen AG (via its ADR, which represent “preferred shares” which are identical to “ordinary” shares, except that they do not have voting rights and therefore sell at a discount), because the share was recently sanctioned due to short-term chip shortages and short-term uncertainty about the future of its current CEO.

However, Volkswagen controls a lot of great brands whose electric vehicles (many of which are more technologically advanced than Tesla’s) combine to outperform Tesla in Europe and are expected by the end of 2022 to match Tesla’s electric vehicle sales in China. (Thanks to the introduction in October of the $ 25,000 ID.3 there, VW’s T4 EV sales in China will be at least 60% of Tesla’s.)

In total, VW sells around 10 million cars a year (plus many trucks), compared to around 1 million a year for Tesla. Yet Tesla’s diluted market cap is over 9 times that of VW, meaning an investor pays over 90 times as much for every Tesla sold as for every VW sold! And VW is selling for less than 6 times the estimated profits in 2022!

General Motors

We continue to hold a long position in General Motors (GM), which currently only sells about 8.5 times profit estimates for 2022. GM does everything in electric cars, autonomous driving (via its Cruise property) and software, yet it is extremely cheap because, as with other established car manufacturers, investors have (for now) abandoned it in favor of “pure-plays of the electric car”, a sector which thus became the biggest valuation bubble in history.

You can read an overview of GM’s future plans (given on an Investor Day in early October) in this press release. And when it comes to “autonomy,” keep in mind that unlike Tesla, which sells Rubes a fraud without LiDAR, Cruise is already manage a fleet of fully self-driving cars in San Francisco; you can see many videos of this on his YouTube channel.

I therefore consider these positions (GM and VW) as “autonomous value share purchases” and “Relative Value Paired Trades” against our Tesla Short Sale.

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Sri Lanka faces economic crisis and high food inflation due to COVID-19 https://watervalleychamber.info/sri-lanka-faces-economic-crisis-and-high-food-inflation-due-to-covid-19/ Mon, 03 Jan 2022 07:41:30 +0000 https://watervalleychamber.info/sri-lanka-faces-economic-crisis-and-high-food-inflation-due-to-covid-19/ Sri Lanka is facing an acute economic crisis due to job and income losses, high food inflation and shrinking finances in the country, according to Sri Lanka’s Development Update (SLDU) of the World Bank. Inflation was stimulated by the government printing money to repay domestic loans and foreign bonds. The World Bank has also said […]]]>

Sri Lanka is facing an acute economic crisis due to job and income losses, high food inflation and shrinking finances in the country, according to Sri Lanka’s Development Update (SLDU) of the World Bank. Inflation was stimulated by the government printing money to repay domestic loans and foreign bonds.

The World Bank has also said that the share of people living below the poverty line has likely increased by 11.7% or more than half a million people since the start of the coronavirus pandemic. “The impact was disproportionate among those working in more urbanized areas such as the Western Province, likely due to the large impact on industry and places that had high numbers of poor people before the pandemic. , such as North, East, Uva and Sabaragamuwa. provinces, ”reads the World Bank update.

Districts like Kandy and Ratnapura, which are very rural, also account for a large portion of the new poor after the COVID-19 pandemic, according to the global financial institution. He further added that the vulnerability of the workforce was very high due to high informality and weak safety nets, thus reducing their ability to cope with economic shocks.

“The COVID-19 pandemic has not affected all economic sectors in the same way. Sectoral GDP data and the analysis in Chapter 1 reveal that industries have been more affected than services and agriculture, but there are large variations between sub-sectors. Weak external demand has had an impact on export-oriented sub-sectors. Among industrial sub-sectors, construction and textile manufacturing, which are sensitive to demand shocks and require the physical presence of workers, suffered the largest decline, ”according to the World Bank update.

As a result, credit rating agencies like Moody’s, S&P and Fitch downgraded their respective sovereign ratings of Sri Lanka. Moody’s downgraded its Sri Lankan sovereign rating two notches to Caa1 with a stable outlook in September while S&P downgraded its rating to B- in September and CCC + with a stable outlook in December. Fitch also downgraded Sri Lanka’s sovereign rating to B- in April and CCC in November.

These rating agencies have identified three key factors for which Sri Lanka’s economy is booming. These are increased external vulnerabilities, limited financing options and low budget balances.

The only good thing about this whole scenario is that it can be improved. The World Bank suggested that the government focus on “four priorities for Sri Lanka to further transform its economy, create more jobs and achieve a sustainable path towards poverty reduction and shared prosperity.”

The priorities listed by the World Bank for the Sri Lankan government’s post-COVID recovery efforts are:

  • Increase agricultural productivity and income by supporting farmers’ transition to higher value-added and export-oriented crop mixes.
  • Address barriers to accessing remunerative non-farm employment in rural areas, as they are an increasingly important and potentially productive source of livelihoods.
  • Support broader reforms to increase labor productivity and create jobs that could help improve the quality of jobs.
  • Promote spatial transformation and strengthen inclusion. World Bank Country Director for Sri Lanka and Maldives Chiyo Kanda said: “Investments in human capital – health, education and social protection – are essential to unlock the potential of Sri Lankan children and boost the future productivity and economic growth. “

Also Read: Meet Technician of Indian Descent Ashok Elluswamy, Elon Musk’s First Recruit for the Tesla Autopilot Team

Also Read: Indian Manufacturing PMI Falls to 55.5 in December

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Economic crisis: new year, new queues https://watervalleychamber.info/economic-crisis-new-year-new-queues/ Sun, 02 Jan 2022 11:10:01 +0000 https://watervalleychamber.info/economic-crisis-new-year-new-queues/ COLOMBO (New 1st); The government has not been able to curb the queues that are growing in the country, said Samagi Jana Balawegaya MP Tissa Attanayake. Expressing his views on the economic crisis at a press conference in Colombo on Sunday 02, the MP said the government has given people the opportunity to queue for […]]]>

COLOMBO (New 1st); The government has not been able to curb the queues that are growing in the country, said Samagi Jana Balawegaya MP Tissa Attanayake.

Expressing his views on the economic crisis at a press conference in Colombo on Sunday 02, the MP said the government has given people the opportunity to queue for essential items as the crisis dawns. new Year.

Speaking at the press conference, the MP said the government brought about this situation, especially in 2022 when the people had high hopes that the country would be able to curb the economic crisis and start a comfortable life.

However, the government has not been able to end the era of queues in the New Year, the MP said, adding that instead new queues have been introduced. created.

Pointing out that at present the queue for milk remains the same, the queue for gas the same and the queue for cement remains the same, the MP said this was not the economy people wanted.

Economic crisis: new year, new queues
If the reserves increased, why not issue dollars? – Deputy Dr Harsha de Silva
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Jet fuel will be imported as an alternative to kerosene: Ministry of Energy
NO defection from SLPP, says Shan Wijelal

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The worsening economic crisis in Turkey: inflation at 30% https://watervalleychamber.info/the-worsening-economic-crisis-in-turkey-inflation-at-30/ Thu, 30 Dec 2021 19:30:00 +0000 https://watervalleychamber.info/the-worsening-economic-crisis-in-turkey-inflation-at-30/ Turkey’s annual inflation rate topped 30 percent in December, thirteen economists estimate interviewed by Reuters. Economists’ forecasts varied widely, ranging from a low of 26.4% to a high of 37.3%. Taken together, however, their estimates provided an average inflation rate of 30.6 percent. If correct, that figure equates to Turkey’s highest inflation rate since 2003, […]]]>

Turkey’s annual inflation rate topped 30 percent in December, thirteen economists estimate interviewed by Reuters.

Economists’ forecasts varied widely, ranging from a low of 26.4% to a high of 37.3%. Taken together, however, their estimates provided an average inflation rate of 30.6 percent. If correct, that figure equates to Turkey’s highest inflation rate since 2003, when the Turkish parliament agreed to reassess the lira, a reform that took place in 2005.

Turkey’s high inflation rate came after the country’s interest rates were cut by the central bank under pressure from President Recep Tayyip Erdogan. Although interest rates are recognized to be inversely related to inflation among economists – meaning that low interest rates lead to high inflation, and vice versa – Erdogan argued that the opposite is true and pushed for lower and lower interest rates with the belief that inflation should also come down.

So far, the opposite has happened and observers have criticized the Turkish leader for jeopardizing the independence of the central bank. Turkey’s inflation rate has exceeded twenty percent in the past three months, causing huge price increases in the country. In December alone, food prices across the country rose 25.75 percent, a 55 percent increase since the start of the year, according to a report released by the Confederation of Turkish Trade Unions, the oldest trade union association in the country.

The central bank claimed that this inflation was due to temporary factors and that it would return to normal over time. He predicted that the country’s year-end inflation rate would be 18.4% in October. The Turkish Statistical Institute, which also tracks the country’s inflation data, is expected to release its estimate of the December inflation rate on January 3.

Erdogan’s government was able to briefly halt the depreciation of the pound by guaranteeing Turkish citizens’ bank deposits, stabilizing their value by promising to protect their parity against other currencies. This guarantee caused a massive increase in the value of the lira from around 6 cents on the dollar to 9 cents, although it has since started to depreciate again. On Wednesday, it fell a further 2% against the dollar, according to Reuters report.

Trevor Filseth is a current affairs and foreign affairs writer for the National interest.

Image: Reuters

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Lebanon campaigns to revive tourism amid economic crisis https://watervalleychamber.info/lebanon-campaigns-to-revive-tourism-amid-economic-crisis/ Thu, 30 Dec 2021 13:34:37 +0000 https://watervalleychamber.info/lebanon-campaigns-to-revive-tourism-amid-economic-crisis/ BEIRUT – The Lebanese Newspaper An-Nahar, in cooperation with Lebanon Economic and social council, launched on November 30 on #GiveLebanonABreak campaign, calling on Lebanese officials to end their political wrangling and give the Lebanese people a break in December to spend the holidays in peace. However, this campaign has been widely criticized. Campaign organizers say […]]]>

BEIRUT – The Lebanese Newspaper An-Nahar, in cooperation with Lebanon Economic and social council, launched on November 30 on #GiveLebanonABreak campaign, calling on Lebanese officials to end their political wrangling and give the Lebanese people a break in December to spend the holidays in peace.

However, this campaign has been widely criticized.

Campaign organizers say its aim is to give the Lebanese a chance to catch their breath, away from political clashes and tense sectarian rhetoric, in light of the high cost of living, declining trade and production, increase in poverty and exacerbation of various crises.

Faraj Obaji, writer and journalist at An-Nahar, told Al-Monitor, “We wanted to have some kind of calm and stop the political quarrels that stress everyone. “

He said: “We got this idea because we thought Lebanon needed a break; all sectors, professions and individuals need a break in order to be able to work. Politicians need to cut back on statements and focus more on serving the interests of the country and saving it from the overwhelming economic crisis. “

Artists, journalists and actors took part in the campaign, some of whom appeared in the promotional video, including Al-Nahar editor-in-chief Nayla Tueni. They adopted the “time out” sign and thousands of people shared the video online.

Participants stressed the need to allow Lebanese, especially expatriates, to spend the holidays with their family and friends, to allow traders and industrialists to work and produce more, and for the tourism movement to return this month. , so that life can flourish again in Lebanon.

Some Lebanese were happy with the campaign, sharing the promotional video and using the hashtag, demanding a “break” from the holidays.

However, many criticized it, as they believed it was a naïve and superficial campaign. Some have even said that it was only aimed at wealthy families who have the luxury of weathering crises, and they have become very rare in Lebanon.

The backlash stems from the terrible reality and the frightening crisis experienced by the Lebanese, the majority of the population living in extreme poverty, to the point that some of them are unable to meet basic needs, let alone those who can no longer afford to put food on the table or heat their homes due to the high cost of fuel.

Deputy Assem Araji, head of the parliamentary health committee, said on November 19 that 70% of Lebanese were unable to guarantee the cost of their medical treatment.

Hana Saad, who works in a hospital in Lebanon, told Al-Monitor: “The countryside is good, and maybe we can say that it is beautiful because it calls for living in peace during the holidays. At the same time, she wondered: “Why a month’s break? Don’t we have the right to take a break for a whole year without clashes? “

Researcher and political activist Nizar Ghanem told Al-Monitor: “I don’t understand – who is the campaign aimed at? The main problem in Lebanon is how the wealthy elite took control of the state as a whole, and in order to save themselves, they decided to take the whole country hostage and make everyone pay.

Obaji noted, “Some people don’t understand the purpose of the campaign. The main goal is to achieve calm and live in peace, and this is the best gift the Lebanese can receive at this time. It’s not about celebrating the holidays.

On November 4, the Ministry of Tourism launched the “winter tourism package“, bearing the slogan” Crazy Love “to stimulate tourism in Lebanon in cooperation with travel agencies, aiming to attract expatriates and tourists during the winter season, by offering packages that include the cost of the hotel, tickets, etc., at a reduced price.

The general secretary of the Federation of Tourism Unions, Jean Beyrouth, told Al-Monitor: “The campaign, which lasted a month, was good, but it did not achieve the desired results.

He said: “Personally, I think the campaign was not marketed enough overseas; it was too short and didn’t have much exposure. But better results can be expected if it is revived and well promoted, especially since Middle East Airlines ticket prices were very encouraging for once.

Beirut noted: “We do not yet have a clear idea of ​​the tourist movement in Lebanon during the holidays. Many resort to last minute bookings given the volatile situation in the country. “

But Ghanem said: “Such campaigns are incompatible with the current reality in Lebanon. We have no electricity; we lack the minimum requirements of life. Why would tourists want to come to Lebanon? The solution is to carry out structural reforms that restore state sovereignty and improve the financial situation.

These initiatives come at a time when Lebanon is grappling with an unprecedented economic and political collapse. Meanwhile, the government is disrupted as the Amal movement and Hezbollah refrain from attending Cabinet sessions until Tarek Bitar, the judge investigating the devastating Beirut port explosion. , or dismissed, accusing him of political bias.

Despite the challenges and in light of all the ongoing nationwide campaigns and advertisements from local hotels, restaurants and tourist spots, the airport appears to be busy with nearly full flights to Lebanon.

In recent days, thousands of Lebanese and foreigners have taken the plane, while others plan to spend their vacations in Lebanon in the coming weeks.

Reem Selim, an Egyptian economic researcher who visited Lebanon on December 5 to attend a research conference at the American University of Beirut, told Al-Monitor: “I have visited many tourist areas in Lebanon. , including Raouche and Harissa, and I went on the cable car. [in Jounieh]. I was able to buy gifts and food at relatively inexpensive prices.

Selim said: “I was very excited to come to Lebanon despite the difficult conditions. Lebanon is a tourist country par excellence, and Arab tourists are able to adapt quickly to the prevailing crises.

Ziad Alam, a young Lebanese who went to work in Côte d’Ivoire two years ago, told Al-Monitor: “I arrived on December 22. Whenever I get the chance, I come to Lebanon and will continue to do so even without electricity, no security or the minimum requirements of life.

Alam noted, “I must be here for my family and friends, given the horrible conditions they are going through.”

Meanwhile, Amani Zeaiter, a Lebanese woman who lives in Belgium, told Al-Monitor via WhatsApp: “I always feel like I need to go back to the house where I grew up. I arrived on December 24 to spend the holidays with my family. . “

Zeaiter pointed out, “Considering the current situation, many people ask me to bring medicines and goods that are no longer available in Lebanon, so this is another reason why I am visiting.

Even if this is a ray of hope, the attachment the Lebanese have to Lebanon and the resilience they share is somehow enough to believe that things could still improve.

Beirut International Airport Director Fadi al-Hassan told Al-Monitor: “The number of arrivals in Lebanon during the holidays is more than excellent. Since the beginning of this month and until today [Dec. 23] 180,000 passengers arrived in Lebanon, the same number as in 2019, that is to say before the coronavirus pandemic.

He said: “Many visitors arrive from Dubai, Iraq and European countries, and flights to and from Istanbul [transit hub] are full. “

Hassan stressed that the numbers exceeded expectations, noting: “We did not expect these [high] numbers, in light of the news [coronavirus] change and the unprecedented economic and living situation in Lebanon.

He said he hopes this increase in the number of visitors will reflect positively on the country, with the hard currency they are spending in Lebanon.

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Mini-budget will worsen economic crisis, warns Shehbaz https://watervalleychamber.info/mini-budget-will-worsen-economic-crisis-warns-shehbaz/ Wed, 29 Dec 2021 00:41:45 +0000 https://watervalleychamber.info/mini-budget-will-worsen-economic-crisis-warns-shehbaz/ ISLAMABAD – PML-N chairman and opposition leader in the National Assembly, Shehbaz Sharif, has warned that if the mini-budget is approved, the new year will be the worst inflation year for the country. In a statement, Shehbaz said the government wanted to make parliament a buffer to meet IMF demands. The mini-budget and accompanying legislation […]]]>

ISLAMABAD – PML-N chairman and opposition leader in the National Assembly, Shehbaz Sharif, has warned that if the mini-budget is approved, the new year will be the worst inflation year for the country.

In a statement, Shehbaz said the government wanted to make parliament a buffer to meet IMF demands. The mini-budget and accompanying legislation was in fact an attack on the sovereignty of parliament, the State Bank of Pakistan, economic sovereignty, national interest and security. He said that if the parliament did not defend the interests of the people, then it would not be considered a representative body of the people.

This mini budget was a practical interpretation of taking the whole ship to the bottom of the sea just because there was a fear of drowning. The government itself had drowned in the flood of public hatred and was now imprisoning the country in the IMF cage, he added.

Shehbaz said upon seeing the performance of the government; the majority of people were completely disgusted and disappointed with the team present. This year, the government’s “mere increase” in petroleum prices by over Rs 39, was an injustice. The price of drugs has been rising steadily over the past three years of the PTI plan.

The PML-N chairman said the PTI government’s recognition of the reduction in sugar production in the National Assembly was a refutation of his earlier claims. The government’s recognition of the closure of 2% of textile factories due to the gas shutdown confirms the concerns and warnings issued by the opposition beforehand. Shehbaz said all facts, information and documentary evidence recognized that the economy was in shambles.

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Barcelona’s latest initiative to get out of its economic crisis which has Messi as its protagonist https://watervalleychamber.info/barcelonas-latest-initiative-to-get-out-of-its-economic-crisis-which-has-messi-as-its-protagonist/ Sun, 26 Dec 2021 10:30:05 +0000 https://watervalleychamber.info/barcelonas-latest-initiative-to-get-out-of-its-economic-crisis-which-has-messi-as-its-protagonist/ Home »Health» Barcelona’s latest initiative to come out of its economic crisis that has Messi as protagonist December 26, 2021 Barcelona has had a striking initiative to raise funds. Photos: REUTERS / Albert Gea The negative impact of the release of its maximum emblem, Lionel messi, to Paris Saint Germain (PSG) in the past the […]]]>

Home »Health» Barcelona’s latest initiative to come out of its economic crisis that has Messi as protagonist December 26, 2021 Barcelona has had a striking initiative to raise funds. Photos: REUTERS / Albert Gea

The negative impact of the release of its maximum emblem, Lionel messi, to Paris Saint Germain (PSG) in the past the European pass market has generated Barcelona a negative impact of 137 million euros between the fall of sponsors, the sale of annual tickets to Camp Nou or the marketing of t-shirts.

The consultant “Brand financing” He felt that with the departure of the star from Rosario (forced by the club, as the player did not want to leave and agreed to cut his salary in everything the club offered), Barcelona have lost as much as 11% of the mark, estimated at € 1,266m, still in second place among all the football teams in the world and just behind Real Madrid (1,276 million).

In this context, the Catalan entity has had a significant initiative to increase its portfolio during the period of Christmas. It is that on the official website of the institution they were put on sale the old products you used The chip during his glory days in Barcelona. The most striking element is the shirt the Rosario star wore during the 2013/14 season with the autographs of Leo, Xavi e Iniesta. It’s a resource that appeals to the nostalgic value of the institution’s best times, when Blaugrana were the lord and ruler of the soccer world. The price? 2,950 euros. A figure much higher than current clothing which is between 90 and 145 euros.

In addition, supporters can also buy a 2020/21 edition jersey (the last the striker was at the club before leaving for France) which also bears the signature of the best player on the planet. 1,170 euros. And as if that wasn’t enough, in the official store you can buy the captain’s armbands that Messi wore with the footballer’s autograph. 643.50 euros.

The old products that Barcelona sells

By the sole heading of commercial income, the Barcelona suffered a loss of 77million, as well as an additional 17million due to the loss of match-day sales (an item known as Match day) and an additional 43 million, in t-shirt sales, of which 80 percent corresponded to Argentina.

On the other hand, The Catalan entity is estimated to have lost 40 million subscriptions to see the team in the stadium as 26,238 members withdrew after Messi left..

On Christmas days, Barca had an initiative that revealed their economic crisis. The club needs the money. And to start charging, he looked to his glory days. When Messi wore the Blaugrana jersey.

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The Christmas celebration of Cristiano Ronaldo, Haaland and the main stars of world football The ranking of the 50 best coaches in the world: two Argentines in the Top Ten and three others on the list The seven stars who could leave PSG in the current transfer market


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