Yearly Archives: 2013

Venezuela’s Inflation Rate Hit 19.9%

"Venezuelan inflation reached 19.9 percent in 2012, the central bank said in a preliminary estimate on Saturday, beating its official target thanks to strict price controls that business leaders say are unsustainable in the long term. The government of President Hugo Chavez has capped prices for a wide range of consumer goods, helping contain inflation that has traditionally been the highest in Latin America. The 2012 target had been between 22 and 25 percent. But inflation is seen accelerating in 2013 because Venezuela is expected to devalue the bolivar currency after heavy campaign spending this year that helped ensure Chavez's re-election." Continue reading →

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Detlev Schlichter: It’s a mad mad mad mad world

"Shinzo Abe, Japan’s new prime minister, has some exciting new ideas about how to make Japan’s economy grow. How about the government borrows a lot of money and spends it on building bridges and roads all over the country? If that doesn’t sound so new, it is because it isn’t. It is what Japan has been doing for 20 years, and it is the main reason why Japan is now the most heavily indebted nation on the planet. But never mind. The Keynesians agree that this policy was a roaring success, and that this is why the country needs more of it. Mr. Abe also plans to force the Bank of Japan into printing more money, and this is surely going to be a great success, too." Continue reading →

Continue ReadingDetlev Schlichter: It’s a mad mad mad mad world

Japan lashes out over depreciating dollar and euro

"Japan's new finance minister upped the ante in the country's war of words against the strong yen, lashing out at the U.S. and Europe for letting their currencies weaken dramatically and calling on the U.S. to strengthen the dollar. The dollar has recently staged a sharp recovery, as Mr. Abe's pledge to strong-arm the Bank of Japan into easing monetary policy to weaken the yen has driven investors to sell off the yen. While that has cheered Japan's struggling exporters, Mr. Abe's drive toward a weaker currency has also raised concerns abroad that it could risk triggering a devastating global race to undercut currencies to protect export competitiveness." Continue reading →

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Germany ‘exporting’ elderly to foreign retirement homes

"Growing numbers of elderly and sick Germans are being sent overseas for long-term care in retirement and rehabilitation centres because of rising costs and falling standards in Germany. The move, which has seen thousands of retired Germans rehoused in homes in eastern Europe and Asia, has been severely criticised by social welfare organisations who have called it 'inhumane deportation'. But with increasing numbers of Germans unable to afford the growing costs of retirement homes, and an ageing and shrinking population, the number expected to be sent abroad in the next few years is only likely to rise. Experts describe it as a 'time bomb'." Continue reading →

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Beijing spends a billion to get China’s music industry rocking

"From the top of a hillside in Pinggu village, an hour’s drive from central Beijing, the future of China’s music industry doesn’t look like much – just a vista of Mao-era farmhouses and parched cabbage fields. Yet Beijing officials have announced plans to spend more than 10 years and £1.4bn turning the area into the 'China Music Valley', a sprawling compound that will be home to recording studios, instrument makers, music schools, five-star hotels and an arena in the shape of a peach." Continue reading →

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Emerging China, Brazil and India agree to increased United Nations dues

"China, Brazil, India and other emerging powers agreed to major increases in their United Nations payments as the global body hammered out a new budget deal this week to avoid its own fiscal cliff. The boom countries will pay more as economic crisis allows European nations, such as Britain, Germany and France and Japan to cut their contributions. UN contributions are worked out according to a country’s share of global gross national income (GNI). China will pay an extra 61 percent in UN fees, taking its share of the budget from 3.2 to 5.1 percent. It will overtake Canada and Italy to become the sixth biggest UN contributor." Continue reading →

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World’s longest bullet train service launched in China

"The opening of the new 2,298-kilometre (1,425-mile) line between Beijing and Guangzhou means passengers will be whisked from the capital to the southern commercial hub in just eight hours, compared with the 22 hours previously required. Trains will travel at an average speed of 300 kilometres per hour over the line, which includes 35 stops in major cities such as Zhengzhou, Wuhan on the Yangtze River and Changsha. China’s high-speed rail network was established in 2007, but has fast become the world’s largest. Xinhua said that China now operates 9,300 kilometres of high-speed railways." Continue reading →

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Russia unveils $25 billion oil pipeline to the Pacific

"The East Siberia – Pacific Ocean (ESPO) link is also expected to expand sales to the United States and fulfil Putin’s dream of cementing Russia’s place as a dominant force on international crude markets. Moscow hopes to make ESPO into a benchmark in the Asia Pacific region that competes with WTI — the US oil standard whose price some traders believe is too heavily based on domestic political factors. The port — previously connected to East Siberian crude by rail — also provides Russia with quick access to Japan and South Korea. The head of the Transneft state oil pipeline operator said most of the crude from the final leg would in fact be destined for the U.S." Continue reading →

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Rich Chinese and Russians Flock to Germany to Spend

"Travelers from non-EU countries can receive a refund for the value-added tax they've paid on items they buy, generally 19% of the purchase price. There are days when the customs officers are barely able to cope with the flood of heavily laden tourists. Long lines often form at the customs counters shortly before flights leave for Moscow, Beijing or Dubai. The same is true for incoming flights, when arriving passengers must declare cash amounts over €10,000. A golden age has also begun for businesses that specialize in refunding value-added tax. The companies pay tourists the bulk of the refund, but the company retains a percentage as a 'service charge.'" Continue reading →

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India’s ultra rich: younger, richer and buying gold

"India’s community of high net worth individuals is growing fast and, for them, the most favoured form of investment is gold. The HNI population in India rose by around 20.86% in 2010, and their wealth is estimated to have grown by more than 11%, to $530 billion. India is one of the fastest growing HNI segments in the world, currently contributing approximately 1.2% to the global HNI wealth. And, importantly, while their assets are growing the members of this class are also getting younger. The average age of Indian high networth individuals (HNIs) has fallen to the mid-40s from the early 50s in just five years." Continue reading →

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