The Economic Collapse Of South America Is Well Underway - Michael Snyder THE ECONOMIC COLLAPSE

The Economic Collapse Of South America Is Well Underway Posted: 03 Mar 2016   Michael Snyder  THE ECONOMIC COLLAPSE The 7th largest economy on the entire planet is completely imploding.  I have written previously about the economic depression that is plaguing Brazil, but since my last article it has gotten much, much worse.  During 2015, Brazil’s economy shrank by 3.8 percent, but for the most recent quarter the decline was 5.89 percent on a year over year basis.  Unemployment is rising rapidly, the inflation rate is up over 10 percent, and Brazilian currency has lost 24 percent of its value compared to the U.S. dollar over the past 12 months. At this point, Brazil is already experiencing its longest economic downturn since the Great Depression of the 1930s, and things are getting worse for ordinary Brazilians every single day.  The following comes from CNN… But with Brazil plunging into its worst recession in over two decades — hopes for a brighter future are fading. The Brazilian economy shrank 3.8% in 2015, according to government data published Thursday. That’s the biggest annual drop since 1990 and the country is in its longest recession since the 1930s. “I have never seen anything like this,” said Alves, 24, as he stood on his balcony overlooking Rocinha, a massive lower middle class neighborhood or favela in Rio de Janeiro where he grew up. “My parents would tell me about hard times, but today it is really tough. Prices are going up every day.” So how did this happen? Well, there are a couple of factors that are really hurting South American economies. Number one, during the “boom years” governments and businesses in South America absolutely gorged on debt.  Unfortunately, many of those loans were denominated in U.S. dollars, and now that the U.S. dollar has appreciated greatly against local South American currencies it is taking far more of those local currencies to service and pay back those debts. Number two, collapsing prices for oil and other commodities have been absolutely brutal for South American economies.  They rely very heavily on exporting commodities to the rest of the world, and so at the same time their debt problems are exploding they are getting a lot less money for the oil and industrial commodities that they are trying to sell to North America, Asia and Europe. I want you to pay close attention to the following chart and analysis from Zero Hedge.  As you can see, the economic problems in Brazil appear to be greatly accelerating… “The Brazilian economic downturn took a real turn for the worse in February,” according to Markit’s Composite PMI, which collapsed to record lows at 39.0. Despite a slightly less bad than expected GDP print this morning (still down a record 5.89% YoY), hope was quickly extinguished as PMIs showed economic activity continuing to contract at a record pace, job losses accelerating, and manufacturing’s collapse accelerating. As Market sums up, “With the global economy also showing signs of slowing, which will impact on external demand, it looks as if the downturn is set to continueto run its course in the coming months.”              GDP was a disaster (but better than expected)   And of course Brazil is not the only South American economy that is a basket case right now.  In fact, things in Venezuela are far worse.  In 2015, the Venezuelan economy shrunk by 10 percent, and the official rate of inflation was a staggering 181 percent. Could you imagine living in an economy with a 181 percent inflation rate?  As prices have escalated out of control, citizens have attempted to hoard basic supplies in advance, and this has resulted in food shortages that are absolutely frightening… Cardboard signs on the door warning of “No bread” have become increasingly common at Venezuelan bakeries. Venezuela gets 96 percent of its foreign currency from oil exports, and as crude prices have plunged, so have the country’s imports — among them wheat. The leftist government of President Nicolas Maduro has tightly controlled access to hard currency, and this has affected imports ranging from medicine to toilet paper. Now it is seriously affecting imports of wheat, which Venezuela does not grow. Add to this the soaring inflation rate — 181 percent in 2015, the world’s highest — and you see why customers are mainly interested in buying basic food items such as bread. Here in the United States, there are still people who doubt that an economic crisis is happening. But in Venezuela and Brazil there is no debate. Unfortunately, what is happening in Venezuela and Brazil is also slowly starting to happen to most of the rest of the planet as well.  It is just that they are a little farther down the road.  Economic and financial bubbles are bursting all over the world, and I like how author Vikram Mansharamani described this phenomenon during a recent interview with CNBC… Deflationary tides are lapping the shores of countries across the world and financial bubbles are set to burst everywhere, Vikram Mansharamani, a lecturer at Yale University, told CNBC on Thursday. “I think it all started with the China investment bubble that has burst and that brought with it commodities and that pushed deflation around the world and those ripples are landing on the shore of countries literally everywhere,” the high-profile author and academic said at the Global Financial Markets Forum in Abu Dhabi. And of course the evidence of what Mansharamani was talking about is all around us. Just this week we found out that Chinese state industries plan to lay off five to six million workers, U.S. factory orders have now fallen for 15 months in a row, and the corporate default rate in the United States has now risen above where it was at when Lehman Brothers collapsed. There are some people that would like to point to the fact that stocks have bounced back a bit over the past couple of weeks as evidence that the crisis is over. If they want to believe that, they should go ahead and believe that. Unfortunately, the truth is that the hard economic numbers that are coming in from all over the world tell us very clearly that global economic activity is slowing down significantly. A new global recession has already begun, and the pain that is already being felt all over the planet is just the beginning of what is coming.

Vietnam Report - Morris Ruddick

Morris Ruddick Vietnam is emerging from the catastrophic economic conditions  of the eighties and nineties into a time marked by a mix between  much growth on a macro-level; that offers opportunity for some,  but still is not more than slim survival for far too many others.  Despite the odds, the ratios of new startup successes for those  following God's ancient pathways far exceed those of the  general population. Simultaneously, the uncertainty and change, along with the pathway  modeled by God's entrepreneurs has provoked unusual spiritual hunger  among the people. Pre-revival stages are being witnessed across Vietnam  as the general population seeks the meaning and purpose that is lacking  in Vietnam's spiritual void. In keeping with our plans to offer briefings to Western  churches who have a connection with and are praying  for the church in Vietnam, this trip report will be an attempt  to capture highlights from not only our most recent efforts,  but to describe the dynamic emerging within the settings of  Vietnam's committed and faithful brethren. In the Face of an Ancient Stronghold Recent months have seen widespread increases in the persecution against the home church movement. Upon  arriving, we traveled to an area where these pressures  have been severe. As we prepared to leave for our first  meeting, I began discerning that in this locale was the seedbed of the hidden power of darkness that has long  been gripping this land. With centuries of devastation  and turbulence; this was its place of entrance. It is the  launch pad of the centuries-long spiritual turmoil over  this land. Despite our having to come in and leave under the cover the darkness, this gathering reflected a cross-section  of respected pastoral and business leaders, as well  some young adults from the emerging generation. Some  traveled as far as 200 kilometers to attend. What was most significant was that these leaders were from both the registered and unregistered segments of  the church; doctrinally diverse people who not unlike  those in the West don't normally relate very well, no less  come together for a gathering. Yet, here they were  together, as one, hungry for the message of God's economy. An Emerging Unity Some have concluded the upswing in persecution to be tied to an increase of a strategy of security police: of  promises to one Christian group who betray another.  The premise being that in return for informing on the  activities of "other Christian groups," the betrayers' activities  would not be monitored. In other words, it's been a game of dividing and conquering. One respected pastor has recently lost his passport because  of this. Jesus warned His followers about betrayers.  Regardless, those who compromise for their own benefit  and gain are dancing with the devil; where there is no back door. Despite these attempts to divide, our strategic gathering saw a very healthy number of leaders from diverse groups  come together without incident, as they eagerly and joyfully  embraced a meaty message that taps the reasons the Jewish people have not only survived, but have excelled against adversity. This is the message of God's economy that restores the model and the mandate that have been in operation by God's people  since the days of Abraham. At the core of this message is the  wisdom needed to employ righteous power in corrupt settings. It embraces the wisdom that God always has a strategy for  His people, who don't compromise, even under the most  impossible of situations. One pastor summed it up this way: that our message was like heavy artillery against the difficult odds of the strongholds they  have had to contend with. Before leaving, each one eagerly  committed to being a part of our return for more of our foundational message of God's ancient paths; the pathways God has used  to make His people to be the head and not the tail. Strangely, within two days of our departure, a huge typhoon erupted, centered over this very area. It was almost as if, in  our slipping past the enemy's gatekeepers and imparting this  strategy and evoking this unity, that the enemy suddenly awoke  to roar his confusion and displeasure. Orphans for Jesus Later in this mission, in getting reacquainted with a leader we worked extensively with in 2008 and 2009; we were able to  witness some unexpected collateral fruit from our efforts. This  man's activities have included a small home for orphans. Some  of these orphans, all raised as believers, are starting to assume their roles in the workplace. Six of them have been training at a very successful beauty  shop in their community. They have advanced in their trade and trust to the level, that  they are actually running the shop in the owner's absence.  The owner, who has plans to immigrate to the West, has made  the decision to sell them the shop. Although they are all yet teenagers, they are competent and confident, knowing that the Lord will be their Senior Partner.  It was a great joy to pray together with them, as they become  one more example of the Lord making His own, even the most  unlikely, to be the head and not the tail. The Convergence of Light and Darkness Going back to the stronghold unmasked, at senior government levels today there is a great struggle taking place between the  progressives who have opened the doors to the West and the  old-guard whose abuse of power was the foundation for the  years when 70 percent of the boat people fleeing their oppression  were from the Northern provinces. It is the age-old stronghold of  corrupt power that oppresses and results in operating essentially like the old middle-ages, feudal type of society. Yet, Light displaces darkness. So it was that as these leaders we ministered to, joined their hearts as one, that the prevailing principality began losing it grip. Indeed, it is the simple things  that confound the wise. So it has been that as this program has  been implemented in locale after locale, that everyday people  are witnessing the reality of God operating within their midst and  are unleashing the faith and the hope that redefines their pathway. Navigating the Turbulence After another of our workshops, the mix of pastoral and business participants organized to employ our strategy of small groups that  nurture and incubate small businesses, while mentoring the  spiritual maturity needed to become spiritual community-builders.  Our follow-up strategy parallels the role of the Jewish minyon in providing a means of prayer, helping its participants become  successful and serving to proactively help the broader community. In short, a very real thrust of our program has been to open the gates to a higher order of things spiritually. Our agenda consistently  has been releasing and setting things in motion across the many  locales we have served in this nation. Yet there's been a strong witness in our hearts that the Lord has even more, in terms of new dimensions for us and for those we serve.  Grasping and setting in motion these new dimensions has been at  the heart of some stretching-level turbulence that we've been  navigating on this trip. Indeed this trip has been filled with the unexpected. That is the reality when you venture into new territory. Some of the unexpected things have been challenging. Still, they've also seen glimmers  emerging, unexpected surprises from the Lord. New Gateways First, we unexpectedly were connected to a wonderful Indonesian church in Vietnam. Even more so, the ones we met at this vibrant  fellowship come from the ranks of those called as modern Josephs  and Daniels; an incredible group of brethren poised and prepared.  This dovetails with a very key part of the turning underway and the  unexpecteds, which has been landing on this key marketplace  leadership dynamic. In still another unexpected, a modern-day Vietnamese Josephina has not only graciously hosted us for two nights at her "to dream-for"  facilities, but has connected us with a local university interested in  employing our talents. While this opportunity didn't quite align with our  "next-steps" goal to put together a business-with-values school, for the  broader community of Vietnamese hungry for "something more" with  entrepreneurship; the exchange with this university director triggered  something I've long desired to master: sharing deep spiritual truths  with non-Christians. The idea that began germinating was very simply to put an article together for one of the respected English-language Vietnamese  economic magazines. Our program has matured to a level that  putting together a scholarly article on "enduring economic dynamics"  for what's emerging in Vietnam is not beyond the realm of possibility. As we began wrapping things up, while visiting a restaurant, I experienced one of those deja vu's that seemed to accentuate  a reality tied to our quest for "something more," the new dimensions  that God has before us. In this restaurant was a passage with a  transparent glass you had to walk over, which traversed a two story  drop. The deja vu was an image from the movie "Raiders of the Lost Ark."  There is a scene in which the next steps in the "quest" appear to be an  impossible precipice, but when taken by faith and acted on, the impossible  hurdle was really an illusion and turned out to be a glass walkway. Having spent more than a year in Vietnam since Easter of 2008, we have a tangible track record, fruit that is replicating itself; and  in fact is bearing fruit. So it is that there are steps that lie before us, unexpected dimensions from the Lord  that are only on the threshold of our ability to see them. Indeed, we're poised, prepared and praying. We likewise very  much need your prayers. We also need invitations to speak at  churches praying for Vietnam. There was an unusual joy that accompanied our departure; a joy tied to unseen foundations being established; a joy of  expectation. Despite the challenges, the twists and the turns;  before us lies the turning that carries a parallel to the turning  for the Vietnamese believers we've been working with, as they  employ the ancient strategies needed to make them the head  and not the tail. It is a turning into dimensions that ONLY GOD  could bring to pass. Again, thank you so much for praying and  making this all a reality. Gratefully in Him, Morris Ruddick Global Initiatives Foundation www.strategic-initiatives.org www.strategicintercession.org