Stage Set for Complete and Total Economic Collapse

Important Takeaways:

  • We Have Never Been More Vulnerable, And The Stage Has Now Been Set For A Complete And Total Economic Collapse
  • In these tough financial times, a new study finds it’s getting harder and harder for people to save any of their money. In fact, seven in 10 Americans say they’re living paycheck to paycheck.
    • Most people do not have a sizable financial cushion to fall back on.
  • In fact, the head commodity strategist for Goldman Sachs just publicly admitted that the world is now facing shortages of virtually all major commodities…
    • “I’ve been doing this 30 years and I’ve never seen markets like this,” Currie told Bloomberg TV in an interview on Monday. “This is a molecule crisis. We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of it.”
  • Tyson Foods just announced that it will be raising prices yet again…
    • According to the report, beef prices jumped by 32% in the quarter, with chicken up ~20% and pork 13%.

Read the original article by clicking here.

With fuel scarce, Yemen’s forests are next casualty of war

By Khaled Abdullah

KHAMIS BANISAAD, Yemen (Reuters) – Yemeni lumberjack Ali al-Emadi spends hours chopping down an acacia tree with an axe as his 12-year-old nephew helps out splitting logs.

In a country blighted by war, Emadi had to turn to logging in his northern al-Mahweet region to eke out a living. An economic collapse has wiped out the farming and building work he used to travel around the country for.

But with demand for firewood soaring due to fuel shortages, there are now concerns that the country’s humanitarian crisis, with millions facing starvation, has compounded the risk of deforestation – threatening both the environment of Yemen and any hope of a long-term livelihood for men like Emadi.

“The owners of bakeries … use wood and stone to heat their ovens. In the past, they used to use gas, but now there is only wood,” Emadi said.

“Should there be good quantity of wood available, we make a living, thank God. But nowadays trees are scarce,” the father of seven said. “If I get something, we eat. At least we live or die together.”

More than six years of war between the recognized government backed by a Saudi-led coalition and the Houthi movement aligned with Iran has killed tens of thousands of people and left 80% of Yemen’s population reliant on aid.

The fuel shortages due to a coalition blockade on Houthi-held areas, including limiting access to the main port of Hodeidah, have led businesses and families to swap diesel and gas for firewood. The alliance says the blockade is needed to foil arms smuggling.

TREES UPROOTED

Around 886,000 trees are felled annually to feed bakeries and restaurants in the capital Sanaa alone, said Abdullah Abul-Futuh, head of biodiversity and natural reserves at Yemen’s Environment Protection Authority in the city, which is run by Houthi authorities along with most of northern Yemen.

Some 5 million trees have been cut down over the past three years across the north, he said.

“That is the equivalent of 213 square km (82 sq miles) of forests, knowing that only 3.3% of Yemen’s total area is classified as forests,” Abul-Futuh said.

The authority could not provide comparative figures, saying this was a recent phenomenon.

After gas was discovered in the Marib region in the 1980s, wood cutting became limited to remote areas but the war has choked Yemen’s energy output, forcing a reliance first on imports and now on wood from trees more usually used to build homes.

Yemen has few woodlands but a relatively rich variety of flora in the oil-producing Arabian Peninsula desert region. In al-Mahweet, known for its thick canopies, several types of acacia, cedar and spruce are vanishing.

Lumberjacks who have the means buy an acacia tree from land owners for the equivalent of around $100 and then sell logs to traders who send them to the cities.

A 5-tonne truck loaded with logs nets the equivalent of $300-$700 in Sanaa, depending on the wood and haulage distance.

“Demand depends on the number of fuel ships that make it to Hodeidah port. These days it (demand) is very high,” said logger Sulaiman Jubran, who scratches a living selling firewood to visiting traders.

“We are scared the country will become a desert, it is already happening … you no longer see the trees that once covered the mountains,” he said.

Forests are largely privately owned and poor families were traditionally allowed to chop wood for free as long as they only cut branches and spared the trunks for regeneration.

“Now, we uproot them with mattocks (pickaxe) .. nothing is left,” Emadi said.

(Additional reporting and writing by Aziz El Yaakoubi; Editing by Ghaida Ghantous and Alison Williams)

U.S. imposes more sanctions on Venezuela amid humanitarian aid fight

A Venezuelan flag waves above the corporate logo of Banesco bank at one of their office complexes in Caracas, Venezuela May 2, 2018. REUTERS/Marco Bello

WASHINGTON (Reuters) – The United States imposed fresh sanctions on Venezuela on Friday, targeting six Venezuelan government officials tied to President Nicolas Maduro, in its latest move to squeeze the embattled leader.

In a statement, the U.S. Department of Treasury cited the battle over humanitarian assistance and blamed the six current or former security officials, who it said controlled groups that blocked aid from reaching people in the Latin American country.

“We are sanctioning members of Maduro’s security forces in response to the reprehensible violence, tragic deaths, and unconscionable torching of food and medicine destined for sick and starving Venezuelans,” U.S. Treasury Secretary Steven Mnuchin said after deadly violence blocked humanitarian aid from reaching Venezuela over the weekend.

The United States “will continue to target Maduro loyalists prolonging the suffering of the victims of this man-made humanitarian crisis,” Mnuchin added.

Friday’s action is the second set of sanctions this week, after the United States on Monday targeted four Venezuelan state governors allied with Maduro. Washington on Monday also called on allies to freeze the assets of state-owned oil company PDVSA.

U.S. sanctions block any assets the individuals control in the United States and bars U.S. entities from doing any business or financial transactions with them.

(Reporting by Makini Brice and Susan Heavey; Editing by Steve Orlofsky)

U.S. to deliver over 200 tons of aid to Venezuelan border

Sacks containing humanitarian aid are pictured at a warehouse near the Tienditas cross-border bridge between Colombia and Venezuela in Cucuta, Colombia February 14, 2019. REUTERS/Edgard Garrido

MUNICH (Reuters) – U.S. military aircraft are expected to deliver more than 200 tons of humanitarian aid to the Venezuelan border in Colombia, with the shipment likely to take place on Saturday, a U.S. official said on Friday.

The official, who spoke on condition of anonymity, said the U.S. State Department planned to make an announcement about the shipment on Friday but provided no further details. The State Department did not immediately respond to a request for comment.

The U.S. special envoy on Venezuela last week said the aid effort was being coordinated with the opposition team but said the aid would not be forced into Venezuela.

Venezuelan President Nicolas Maduro has overseen an economic collapse in the oil-rich South American country that has left millions struggling to buy food and medicines and has fueled an unprecedented migration crisis in the region.

An aid convoy supplied by the United States and Colombia arrived in the Colombian border town of Cucuta last week, where it is being held in warehouses. Maduro has refused to let supplies in.

Self-declared president Juan Guaido, the opposition leader, told a huge rally of supporters on Tuesday that humanitarian aid would enter the country on Feb. 23.

Guaido invoked constitutional provisions to declare himself interim president last month, arguing that Maduro’s 2018 re-election was a sham. Most Western countries, including the United States and many of Venezuela’s neighbors, have recognized Guaido as the legitimate head of state.

Maduro retains the backing of Russia and China and control of Venezuelan state institutions including the military.

Seeking to strengthen support for Guaido, the United States has said it will try to channel aid to Venezuela via Colombia and possibly Brazil.

Maduro has called the aid a U.S.-orchestrated show and denies any crisis. However, opposition member Gustavo Tarre has said the sole aim is to ease “the suffering of Venezuelans” and has denied any political, economic or military motive. [nL1N2090UC]

(Reporting By Idrees Ali; Writing by Arshad Mohammed; Editing by Jeffrey Benkoe)

Venezuelan opposition envoy urges foreign help to get aid in

Venezuelans line up as they wait for a free lunch at the "Divina Providencia" migrant shelter outskirts of Cucuta, on the Colombian-Venezuelan border, Colombia February 13, 2019. REUTERS/Edgard Garrido

By Luc Cohen and Matt Spetalnick

WASHINGTON (Reuters) – The Venezuelan opposition’s envoy to the United States accused the government of President Nicolas Maduro on Thursday of blocking humanitarian aid to the country and urged the international community to help open “thousands of windows” to let assistance in.

Carlos Vecchio, opposition leader Juan Guaido’s representative in Washington, spoke to an international aid conference hosted at the Organization of American States (OAS) headquarters in Washington as a deadlock persisted in delivering aid to the crisis-stricken South American country.

Guaido invoked constitutional provisions last month to declare himself interim president, arguing that Maduro’s re-election last year was a sham.

Most Western countries, including the United States and many of Venezuela’s neighbors, have recognized Guaido as the country’s legitimate head of state, but Maduro retains the backing of Russia and China as well as control of Venezuelan state institutions including the military.

Guaido told a huge rally of supporters on Tuesday that humanitarian aid would enter the country on Feb. 23, setting the stage for a showdown with Maduro.

“They are blocking humanitarian aid that’s being sent,” Vecchio told the conference, which was attended by diplomats and representatives from dozens of countries. “We must open thousands of windows to bring humanitarian aid to Venezuela … Here we are creating an international coalition to bring in food and medicine.”

Lester Toledo, the opposition’s humanitarian aid coordinator, recounted an incident in 2016 when protesters marched to the border with Colombia where aid was being held up.

“That’s exactly what we’re going to do next Saturday,” he told the conference, suggesting how aid might make its way into Venezuela. “With people, people and more people working peacefully.”

Maduro has called the aid a U.S.-orchestrated show and denies there is an economic crisis, despite a widespread lack of food and medicine and hyperinflation.

But Gustavo Tarre, the opposition’s OAS representative, insisted the only objective is “to relieve the suffering of Venezuelans” and that there no political, economic or military motives.

Last week, the United Nations warned against politicizing aid in Venezuela after the United States accused Maduro of preventing the delivery of food and medicine.

An aid convoy supplied by the United States and Colombia arrived in the Colombian border town of Cucuta last week, where it is being held in warehouses.

The United States has said it will try to channel aid to Venezuela, via Colombia and possibly Brazil.

Elliott Abrams, Washington’s special envoy on Venezuela, said last week the aid effort was being coordinated with Guaido’s team but that the aid would not be forced into Venezuela.

Maduro has overseen an economic collapse that has left millions struggling for food and fueled an unprecedented migration crisis in the region.

An estimated 3 million Venezuelans have left the oil-rich OPEC country since 2015, some 800,000 of whom have ended up in Colombia.

(Reporting by Luc Cohen and Matt Spetalnick in Washington; Editing by Alistair Bell and James Dalgleish)

Starving girl shows impact of Yemen war, economic collapse

The sister of malnourished Fatima Ibrahim Hadi, 12, who weighs just 10 kg, carries her at a clinic in Aslam of the northwestern province of Hajjah, Yemen February 12, 2019. Picture taken February 12, 2019. REUTERS/Eissa Alragehi

HAJJAH, Yemen (Reuters) – Displaced by war, starving and living under a tree, 12-year-old Fatima Qoba weighed just 10kg when she was carried into a Yemeni malnutrition clinic.

“All the fat reserves in her body have been used up, she is left only with bones,” Makiah al-Aslami, a doctor and head of the clinic in northwest Yemen. “She has the most extreme form of malnutrition.”

Qoba’s slide into starvation is typical of what is happening in much of Yemen, where war and economic collapse have driven around 10 million people to the brink of famine, according to the United Nations.

The sister of malnourished Fatima Ibrahim Hadi, 12, who weighs just 10 kg, carries her at a clinic in Aslam of the northwestern province of Hajjah, Yemen February 12, 2019. Picture taken February 12, 2019. REUTERS/Eissa Alragehi

The sister of malnourished Fatima Ibrahim Hadi, 12, who weighs just 10 kg, carries her at a clinic in Aslam of the northwestern province of Hajjah, Yemen February 12, 2019. Picture taken February 12, 2019. REUTERS/Eissa Alragehi

Aslami said she is expecting more and more malnutrition cases to come through her door. This month she is treating more than 40 pregnant women with severe malnutrition.

“So in the coming months I expect I will have 43 underweight children,” she said.

She said that since the end of 2018, 14 deaths from malnutrition had occurred at her clinic alone.

Qoba, her 10 siblings and father were forced from their home near the border with Saudi Arabia and forced to live under a tree, Qoba’s older sister, also called Fatima, told Reuters.

She said they were fleeing bombardment from the Saudi-led coalition, which intervened in Yemen in 2015 to restore the internationally recognized government of Yemeni President Abd-Rabbu Mansour Hadi after the Houthi-movement ousted it from power in the capital Sanaa in 2014.

“We don’t have money to get food. All we have is what our neighbors and relatives give us,” the sister said. Their father, in his 60s, is unemployed. “He sits under the tree and doesn’t move.”  

“If we stayed here and starved no one would know about us. We don’t have a future,” she said.

After trying two other hospitals which could not help, a relative found the money to transport Qoba to the clinic in Houthi-controlled Aslam, one of Yemen’s poorest districts with high malnutrition levels.

Lying on green hospital sheets, Qoba’s skin is papery, her eyes huge and her skeletal frame encased in a loose orange dress. A health worker feeds her a pale mush from a bowl.

Aslami said the girl needed a month of treatment to build up her body and mind.

The United Nations is trying to implement a ceasefire and troop withdrawal from Yemen’s main port of Hodeidah, where most of Yemen’s imports come from. But violence continues to displace people in other parts of the country, and cut access routes for food, fuel and aid.

There is food in Yemen, but severe inflation has eroded people’s ability to buy it, and the non-payment of government worker salaries has left many households without incomes.

“It’s a disaster on the edge of famine … Yemeni society and families are exhausted,” Aslami said. “The only solution is to stop the war.”

(This version of the story has been refiled to remove extraneous word “they” in paragraph six)

(Reporting by Reuters team in Yemen; Writing by Lisa Barrington; Editing by Alison Williams)

U.S. military ready to protect diplomats in Venezuela: admiral

People attend a protest against Venezuela's President Nicolas Maduro's government at Plaza Bolivar in Lima, Peru February 2, 2019. REUTERS/Guadalupe Pardo

WASHINGTON (Reuters) – The U.S. military is prepared to protect U.S. personnel and diplomatic facilities in Venezuela if needed, the U.S. admiral in charge of American forces in South America said on Thursday.

“We are prepared to protect U.S. personnel and diplomatic facilities if necessary,” Navy Admiral Craig Faller, the head of U.S. Southern Command, said during a Senate Armed Services Committee hearing.

He did not provide any details on how the U.S. military might respond.

Venezuela’s collapse under President Nicolas Maduro, with the country, plunged into poverty and driving some 3 million people to flee abroad, has forced nations worldwide to take a stance, particularly after opposition leader Juan Guaido declared himself president last month.

Major European Union nations have joined the United States, Canada and a group of Latin American countries in recognizing Guaido as the rightful interim ruler of the South American nation.

Faller said Venezuela had about 2,000 generals and the majority of them were loyal to Maduro because of the wealth they have amassed from drug trafficking, petroleum revenue and business revenue.

Still, he said, rank-and-file soldiers were starving “just like the population” of Venezuela.

“The legitimate government of President Guaido has offered amnesty, and a place for the military forces, most of which we think would be loyal to the Constitution, not to a dictator, a place to go,” Faller said.

He added that the Venezuelan military was degraded.

(Reporting by Idrees Ali and Phil Stewart in Washington; Editing by Chizu Nomiyama and James Dalgleish)

Venezuela’s Guaido declares himself president, Maduro under pressure

Opposition supporters take part in a rally against Venezuelan President Nicolas Maduro's government and to commemorate the 61st anniversary of the end of the dictatorship of Marcos Perez Jimenez in Caracas, Venezuela January 23, 2019. REUTERS/Carlos Garcia Rawlins

By Corina Pons, Angus Berwick and Mayela Armas

CARACAS (Reuters) – Venezuelan opposition leader Juan Guaido declared himself interim president on Wednesday, while hundreds of thousands of Venezuelans poured onto the streets to demand an end to the socialist government of President Nicolas Maduro.

Opposition supporters take part in a rally against Venezuelan President Nicolas Maduro's government and to commemorate the 61st anniversary of the end of the dictatorship of Marcos Perez Jimenez in Caracas, Venezuela January 23, 2019. REUTERS/Carlos Garcia Rawlins

Opposition supporters take part in a rally against Venezuelan President Nicolas Maduro’s government and to commemorate the 61st anniversary of the end of the dictatorship of Marcos Perez Jimenez in Caracas, Venezuela January 23, 2019. REUTERS/Carlos Garcia Rawlins

In a statement minutes later, U.S. President Donald Trump recognized Guaido as Venezuela’s legitimate interim president.

Demonstrators clogged avenues in eastern Caracas, chanting “Get out, Maduro” and “Guaido, Presidente,” while waving national flags. Police fired tear gas to disperse protesters in several areas. A rally the night before left four people reported dead, an echo of tumultuous riots two years ago.

The opposition has been energized by young congress chief Guaido, who has led a campaign to declare Maduro a usurper and has promised a transition to a new government in a nation suffering a hyperinflationary economic collapse.

Guaido, in a speech before a cheering crowd, took an oath swearing himself in as interim president.

“I swear to assume all the powers of the presidency to secure an end of the usurpation,” he said.

He has said he would be willing to replace Maduro with the support of the military and to call free elections.

The Trump administration told U.S. energy companies it could impose sanctions on Venezuelan oil as soon as this week if the political situation worsens, according to sources.

Maduro was inaugurated on Jan. 10 to another term in office following a widely boycotted election last year that many foreign governments described as a fraudulent. His government accuses Guaido of staging a coup and has threatened him with jail.

ARMED FORCES

Any change in government in Venezuela will rest on a shift in allegiance within the armed forces. They have stood by Maduro through two waves of street protests and a steady dismantling of democratic institutions.

“We need freedom, we need this corrupt government to get out, we need to all unite, so that there is peace in Venezuela,” said Claudia Olaizola, a 54-year-old saleswoman near the march’s center in the eastern Chacao district, a traditional opposition bastion.

In a potent symbol of anger, demonstrators in the southern city of Puerto Ordaz on Tuesday toppled a statue of late socialist leader Hugo Chavez, broke it in half and dangled part of it from a bridge.

A 16-year-old was shot to death at a protest on Tuesday in western Caracas, according to rights group Venezuelan Observatory of Social Conflict. Three people were shot dead on Tuesday night in southern Bolivar City during a looting of a grocery store that followed a nearby protest, Bolivar state governor Justo Noguera said in a telephone interview.

Maduro has presided over Venezuela’s spiral into its worst-ever economic crisis. His re-election in 2018 was widely viewed as a sham due to widespread election irregularities.

“We’ve come out to support the opposition and preserve the future of my son and my family, because we’re going hungry,” said Jose Barrientos, 31, an auto parts salesman in the poor west end of Caracas.

(Reporting by Corina Pons, Angus Berwick, Mayela Armas, Vivian Sequera, Deisy Buitrago and Brian Ellsworth in Caracas; Additional reporting by Francisco Aguilar in Barinas and Maria Ramirez in Puerto Ordaz, and Matt Spetalnick in Washington; Editing by Rosalba O’Brien and Alistair Bell)

Dentists, soldiers mix cocktails to leave crisis-hit Venezuela

Carlos Alzaibar takes documents as he packs his suitcase at his home in Caracas, Venezuela March 14, 2018. REUTERS/Marco Bello

By Andreina Aponte and Liamar Ramos

CARACAS (Reuters) – Like many young Venezuelans in recent years, dentist Carlos Alzaibar felt forced to leave the country when he could scrape together only a few dollars equivalent each month doing two jobs.

So on a recent day, just before flying to Madrid, he was sadly packing a red suitcase – while stacking diplomas from a half a dozen trades he picked up in the last year from bakery and bartending to photography and burger-flipping.

Those, he hoped, would help him find work in Spain and fund the medicines his mother needs for a kidney transplant.

“If not, she’s going to die,” Alzaibar, 28, said, folding socks and shirts in his family’s middle-class Caracas apartment.

Droves of Venezuelans, including professionals like Alzaibar and even retired soldiers and prosecutors, have been taking short courses to prepare for life abroad.

Suffering a severe economic crisis that has left many people short of food and basics, nearly a million Venezuelans have departed since 2015, according to the United Nations.

The U.N. refugee agency, UNHCR, calls it one of the biggest population flows in its nearly 70-year history.

The OPEC nation sits on the world’s largest oil supplies, but has seen annual production slump to a three-decade low, along with a four-year economic recession.

COCKTAILS AND COFFEE

Valentina Maggi, 22, studied graphic design and dreams of illustrating children’s stories, but has followed in friends’ footsteps to learn how to mix cocktails at the National Bartender Academy.

“I have many friends who have left the country and have told me to do this type of course because when you get there, you have more work options,” she said in a room with a long table where she had just completed her final test: a Gin Fizz made from gin, lemon, sugar and soda water.

At the academy, 6,000 students are expected to graduate this year – up from 4,500 a couple of years ago.

With Maggi were a 60-year-old retired military officer and a 52-year-old former Supreme Court prosecutor, both hoping to land work at bars in the United States and Argentina respectively.

Asking not to disclose his name for fear of reprisal, the former soldier said his monthly pension of some $5 at the black market exchange rate, left nothing for food after paying for his two sons’ schools.

Venezuela’s economic meltdown is one of the worst slumps in modern Latin American history.

Gross domestic product is shrinking on a scale akin to that of the United States during the Great Depression and inflation is the highest in the world, nearly 9,000 percent annually, according to National Assembly data.

A monthly minimum wage is worth less than a carton of eggs.

While critics lambaste President Nicolas Maduro for failed socialist economic policies and corruption, he says a U.S.-led “economic war” including financial sanctions are to blame.

“From six or eight months ago, everyone’s getting ready to go,” said Pietro Carbone, surrounded by the aroma of freshly crushed coffee beans at his barista training center where places are fully booked for the next three months.

(Reporting by Andreina Aponte and Liamar Ramos; Additional reporting by Efrain Otero; Writing by Girish Gupta; Editing by Andrew Cawthorne and Peter Cooney; Twitter: @ReutersVzla, @jammastergirish)

Lootings, scattered protests hit Venezuelan industrial city

A general view of the damage at a mini-market after it was looted in Puerto Ordaz, Venezuela January 9, 2018.

By Maria Ramirez

CIUDAD GUAYANA, Venezuela (Reuters) – A second day of lootings and scattered street protests hit the Ciudad Guayana in southeastern Venezuela on Tuesday, as unrest grows in the once-booming industrial city plagued with food shortages and a malaria outbreak.

At least five food stores were looted overnight, with police sources saying some 20 people had been arrested. Angry Venezuelans also blocked three major roads to demand anti-malaria medicine, food, cooking gas and spare parts for trucks.

There has been increasing unrest around the South American OPEC member in the last few weeks as a fourth straight year of painful recession and the world’s highest inflation leaves millions unable to eat enough.

Erika Garcia tearfully recounted how looters ransacked her food shop and home just 10 minutes after National Guard soldiers who had been patrolling the area withdrew late on Monday night.

“They stole everything. They broke off the water pipes, they ripped off the toilet bowl, they took away the windows, the fences, the doors, the beds. Everything. They did not kill us because we ran, but they did beat us up,” said Garcia, 38, who planned to sleep at a relative’s house on Tuesday night

She said there was no way she could reopen her store.

The overnight lootings follow at least four similar in the early hours of Monday. Around 10 liquor stores were also looted on Christmas day in southeastern Bolivar state, according to the local chamber of commerce head Florenzo Schettino.

Critics blame President Nicolas Maduro and the ruling Socialist Party for Venezuela’s economic mess, saying they have persisted with failed statist policies for too long while turning a blind eye to rampant corruption and suffering.

The government says it is the victim of an “economic war” by political opponents and right-wing foreign powers, intent on bringing down Maduro in a coup. The Information Ministry did not respond to a request for comment about the lootings on Tuesday.

The wave of plunder has spooked many in Ciudad Guyana, leading more people to stay indoors come nightfall and dissuading some stores from opening.

Metal worker Alvaro Becerra lives near a store that was ransacked overnight.

“We lived a night of terror,” said Becerra, 52, adding he heard gunshots and saw people carrying a freezer full of food.

“Today everything is closed. There’s no place to buy. The only people who are working are those who sell vegetables,” he said.

(Reporting by Maria Ramirez; Writing by Alexandra Ulmer; Editing by Lisa Shumaker)