Latin America

Venezuela’s Central Bank to Trade Gold with Goldman Sachs

"Venezuela's Central Bank and Goldman Sachs are ready to sign an agreement to swap or exchange international gold reserves, with a start date in October, as stated in the contract, and until October 2020. The negotiated amount, equivalent to 1.45 million ounces of gold, are deposited in the Bank of England and the transfers are made directly to Goldman Sachs once delivery times are stipulated. The operation involves the delivery of gold from the central bank, which will receive dollars from the U.S. firm. Economist Jose Guerra explains that this operation is being undertaken because of the fall in international reserves, on Nov. 15 totaled $20.6 billion, a loss of $9.9 billion in 11 months." Continue reading →

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Black Market Dollar Exchange Sparks Argentina Luxury Sales Crackdown

"Argentines who buy a car valued at more than 350,000 pesos ($58,600) will now be required to justify the transaction with the Financial Information Unit, the nation’s money-laundering watchdog, according to a Nov. 11 decree. Argentina is boosting its currency controls as consumers faced with 25 percent annual inflation turn to everything from luxury cars to gold and bitcoins as a store of savings. With the black market offering holders of undeclared U.S. currency 3.8 pesos more than the official exchange rate of 5.9764 pesos per dollar, demand for premium cars from Volkswagen AG’s Porsche and Bayerische Motoren Werke AG is causing a 33 percent jump in imports this year." Continue reading →

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Argentine Stocks Rise on Speculation Country to Boost Reserves

"The central bank’s board approved a resolution to restrict local lending to the seven largest grains exporters, forcing them to obtain foreign currency financing, which may bring $2 billion into Argentina by year end, said two people familiar with the plan, who asked not to be named because the resolution hasn’t been made public. Reserves have tumbled $10 billion to $33.3 billion this year to a six-year low as the nation increases energy imports and uses the funds to pay foreign debt. Banks will only be able to lend 0.3 percent of their total lending portfolio to companies that export 75 percent of their output and have more than 200 million pesos of outstanding bank loans, the people said." Continue reading →

Continue ReadingArgentine Stocks Rise on Speculation Country to Boost Reserves

Farmers help bitcoin grow organically in Argentina

"Organic farmers in Argentina are finding bitcoin to be a compelling solution when selling their produce through a website called Tierra Buena. The website has been highlighted in a new short film by Jacob Hansen. The film tells the story of how Nubis Bruno (one of the people behind the exchange site, Conectabitcoin) helped local farmers by creating the website as a means to sell their produce online in exchange for bitcoin or litecoin (and Pesos). The existence of Tierra Buena doesn’t signal a pending economic revolution in Argentina, or anywhere else. However, it is a great anecdote of how digital currencies can be genuinely helpful." Continue reading →

Continue ReadingFarmers help bitcoin grow organically in Argentina

Venezuelan Inflation Rate Tops 49 Percent

"Venezuela's Central Bank says prices have risen nearly 50 percent since last September as the country struggles to rein in a quickening rate of inflation and widespread shortages. The country's leftist government has spent heavily on social programs, rapidly increasing the amount of currency in circulation. It also tries to control prices while restricting access to bolivars at the official rate of exchange of 6.3 per dollar. That leads many to pay seven times as much for dollars on the black market. Officials say speculators are to blame for soaring prices and shortages. The inflation rate for 2012 was 20.1 percent." Continue reading →

Continue ReadingVenezuelan Inflation Rate Tops 49 Percent

Bill Bonner: Watch the Parking Meters

"'What does Cristina [Cristina Fernández de Kirchner, Argentina’s president] get paid for? Lying to us. Stealing our money. Generally making a mess of the economy. But at least she puts on a good show. You turn on the TV, and there she is – with more lies. The amazing thing is that everybody knows they are lies. We all know the cost of living is going up three times faster than she admits. We all know the country is headed for bankruptcy. We all know the central bank is printing up funny money to pay her bills. But nobody cares about that. She’s just doing her job. Just like you and me. My job is to drive a taxi. Her job is to lie to me.'" Continue reading →

Continue ReadingBill Bonner: Watch the Parking Meters

Man killed by half-ton of marijuana

"A man carrying 500 kilos of pot in his car lost his life when the illegal merchandise in the back of the vehicle slammed into him during an auto accident. The victim was traveling from the Brazilian state of Mato Grosso do Sul to Sao Paulo this past Saturday when he refused to stop at a Federal Highway Patrol roadblock. A chase ensued over a three mile stretch of road, which ended with a fatal crash against a tree after the man lost control of his car. The impact resulted in the man being crushed against the steering wheel by the bricks of marijuana he was transporting." Continue reading →

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Brazilian district bans sales of toy guns to ‘change the culture of violence’

"A Brazilian territory is believed to have become the first region in Latin America to ban the sale of toy guns as the country attempts to staunch an epidemic of firearm-related crime. The initiative to ban the sale and manufacture of toy guns was part of a government program to protect victims of violence. Children were asked to turn over their toy guns in exchange for a book. Local authorities set a four-month deadline and provided trade incentives to stores saddled with stocks of toy guns they can no longer sell. In 2005, the government of then president Luiz Inacio Lula da Silva (2003-2010) called a referendum to ban the sale of firearms nationwide, but 64 percent voted against." Continue reading →

Continue ReadingBrazilian district bans sales of toy guns to ‘change the culture of violence’

Even When Politicians Are Right, They’re Still Wrong

"'Brazil’s president, Dilma Rousseff, has launched a blistering attack on US espionage at the UN general assembly, accusing the NSA of violating international law by its indiscriminate collection of personal information of Brazilian citizens and economic espionage targeted on the country’s strategic industries.' Dilma is furious because the NSA spied on her personally as well as on Brazil’s 'state oil corporation.' Her solution to the NSA’s snooping? The United Nuts should 'oversee a new global legal system to govern the internet.' Whoa! Just when you thought the panopticon couldn’t possibly get any worse, this dingaling manages to conjure an even more frightening scenario." Continue reading →

Continue ReadingEven When Politicians Are Right, They’re Still Wrong

BitPagos Uses Merchant Processing To Bring Bitcoin To Argentina

"Argentina’s currency troubles have been well documented for years. With inflation between 10 and 11% per year for most of the past decade, Argentinians have actively looked to subvert the country’s strict capital controls and obtain alternative stores of value. Historically, that has meant underground dealing in USD and EUR, but more recently has led to interest in the largely-unregulated world of bitcoin. BitPagos, a Latin American payment processing company in the latest class of the Boost.vc Accelerator, is capitalizing on that interest by adding bitcoin to their processing options." Continue reading →

Continue ReadingBitPagos Uses Merchant Processing To Bring Bitcoin To Argentina