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)

Lights back on in Venezuela after five-hour blackout

Lights back on in Venezuela after five-hour blackout

By Alexandra Ulmer and Fabian Cambero

CARACAS (Reuters) – A power outage hit parts of the Venezuelan capital Caracas as well as the nearby states of Miranda and Vargas for around five hours on Monday, in what critics said was another sign of the oil-rich nation’s economic meltdown.

Authorities blamed the outage, which began around noon (1600 GMT), on the collapse of an important cable linking a power plant and a transmission tower.

The fault affected some phone lines, parts of the Caracas metro, and the main Maiquetia airport just outside the capital.

Many workers had no choice but to walk home, shops and restaurants closed, and Venezuelans grumbled that another day was disrupted by tumult.

The country is already grappling with the world’s fastest inflation, rising malnutrition, and disease as the state-led economic system grinds to a halt.

“Venezuela has fallen apart,” said David Garcia, 38, as he queued for a hotdog at a stand in the wealthier Chacao neighborhood. He had spent two hours looking for an open restaurant because he could not cook at home.

Venezuela has in recent years suffered frequent blackouts that critics attribute to insufficient investment following the 2007 nationalization of the electricity sector.

“This is a symptom of a country collapsing due to the negligence of those in power,” tweeted opposition lawmaker Tomás Guanipa.

The government has in some cases attributed the blackouts to sabotage or accused critics of exaggerating problems.

Energy minister Luis Motta on Monday tweeted articles on a recent power outage at Atlanta airport in the U.S. state of Georgia, adding: “It happens there too.”

He did not provide details on the magnitude and effects of Monday’s blackout.

Shopkeepers complained that the outage had hurt business.

“It’s a lost day,” said Armindo Gomes, 24, whose Portuguese family runs two bakeries, as he pointed at dough, cheese and meat that should have been refrigerated.

(Reporting by Fabian Cambero and Alexandra Ulmer, Editing by Rosalba O’Brien)

Doctors turn militant over Venezuela’s health crisis

Patients lie in hospital beds in the hallway of Venezuelan hospital

By Corina Pons

MERIDA, Venezuela Reuters) – A dozen doctors hold a hunger strike in the corridors of an Andean city hospital. In another provincial city, hundreds of protesting medics suspend appointments.

In the capital, staff from a pediatric hospital wave placards at the entrance to a hospital pleading for aid.

Not usually active in politics, many of the OPEC nation’s 40,000 doctors are becoming increasingly militant over drastic shortages of medicines, equipment and personnel amid a punishing economic crisis.

With eight out of 10 medicines now scarce, according to the main pharmacy group, protesting doctors are demanding that President Nicolas Maduro’s socialist government declare a national health crisis and allow foreign humanitarian aid.

“I started to see patients, both in the operating theater and in the emergency ward, dying for lack of medicines,” said David Macineiras, a 30-year-old orthopedic surgeon and one of 12 doctors who went on hunger strike at the main state hospital in the western highland city of Merida.

“They arrive in bad conditions and we can’t even get adrenaline to deal with a cardiac arrest,” he said, describing the case of a woman who died for lack of adrenaline. Macineiras himself was hospitalized for four days after his hunger strike.

The protests involve a small percentage of doctors, in part because medics – especially younger ones – depend on the state to complete their residencies and studies and so have good reason to avoid conflict.

Doctors who hold high-ranking positions in public health acknowledge there are problems, but insist that none are sufficiently severe as to put patient lives at risk.

Christian Pino, a surgeon at the Merida hospital who also joined the strike, insists the opposite is true.

He recently operated on an elderly woman who due to chronic hospital shortages had to bring her own supplies, including saline solution. It ran out before the operation finished.

“In post-op, we didn’t have any serum to hydrate her, so the patient died,” he said at the hospital where stretchers packed corridors and incubators stood abandoned with handwritten signs saying they were out of service.

In June, Pino read a list of doctors’ demands in Venezuela’s National Assembly before the opposition-led legislature declared a state of medical emergency and approved channels for foreign humanitarian aid.

“I prefer to raise my voice with my colleagues than be an accomplice to this,” Pino said.

But the government-leaning Supreme Court shot down the assembly’s proposal. Government officials deny Venezuela is facing a humanitarian crisis and say there is no need for humanitarian assistance.

Maduro is fiercely proud of health advances under the 1999-2013 rule of socialist leader Hugo Chavez, and he says adversaries are exaggerating the problems now.

“There is no humanitarian crisis, I say it with absolute responsibility,” Foreign Minister Delcy Rodriguez recently told an Organization of American States meeting on Venezuela.

DEPRESSING DATA

Up-to-date data is hard to find, but what little is available points to a severe deterioration.

Health ministry statistics show that in 2015 for every 100 people discharged from state hospitals, 31 died – a rate six times higher than the previous year. Infant mortality was 2 percent of births last year, 100 times worse than 2014.

It is a huge challenge for the ruling Socialist Party which, under Chavez, ran enormously popular free health projects such as Cuban-staffed clinics in the slums but is now finding its welfare programs stretched.

According to the World Health Organization (WHO), Venezuela and Guyana were the only countries in South America to see maternal death rates worsen last year.

Health Minister Luisana Melo recently recognized health sector problems but said authorities are working to reduce the rates of infant mortality and death during childbirth.

She said shortages only affect around 15 percent of medicines and that Venezuelans tend to consume more medicine than they need to.

The government says a U.S.-backed “economic war” by political opponents and hostile business groups has caused the crisis, exacerbated by a plunge in the price of oil, which accounts for 95 percent of export revenues.

Huge lines snake around most pharmacies from before dawn, with some people staying all night to stake a place. Rowdy scenes are common, and soldiers guard the crowds.

In Merida, orthopedic surgeon Carlos Hidalgo said he joined the hunger strike after a patient arrived with an open fracture of the tibia and femur and there was no saline solution to clean the wound.

“They went to a kiosk and bought water to wash him with that,” he said. An infection set in and the patient’s leg was amputated.

“That’s why we protested, not because of our working conditions,” said Hidalgo, who makes 16,000 bolivars a month, equivalent to about $25 at the weaker of two official exchange rates and just $16 on the black market.

Some doctors are also worried about their legal liability. Medics in the city of Barquisimeto decided to ask patients’ relatives to sign a permission slip acknowledging the poor conditions they were working under.

At hospitals there, medics have held two strikes this year. Surgeries were halted on a recent day due to lack of gloves.

Idabelias Arias, the head of the emergency ward at a pediatric hospital in Barquisimeto, has had to use basic CPR (Cardiopulmonary resuscitation) to revive children for lack of adrenaline. “Doctors are doing war medicine here.”

(Writing by Andrew Cawthorne; Editing by Kieran Murray)

Wall Street slightly lower as crude oil slips

By Abhiram Nandakumar

(Reuters) – Wall Street edged lower on Wednesday as oil prices slipped after data showed U.S. crude stockpiles touched record highs.

U.S. crude fell about 1 percent after a report from the American Petroleum Institute (API) showed that an increase in crude stockpiles was way above estimates. [O/R]

Wall Street closed sharply higher on Tuesday, helping the S&P 500 claw back most of its losses in the last two months. The index, which had fallen as much as 10.5 percent, is now down only about 3 percent for the year.

“The market got severely overbought yesterday,” said Jeffrey Saut, chief investment strategist at Raymond James Financial in Florida. “It would not be surprising to see stocks pull back a little bit here.”

At 9:41 a.m. ET, the Dow Jones industrial average <.DJI> was down 34.25 points, or 0.2 percent, at 16,830.83.

The S&P 500 <.SPX> was down 2.64 points, or 0.13 percent, at 1,975.71 and the Nasdaq Composite index <.IXIC> was down 1.29 points, or 0.03 percent, at 4,688.31.

Eight of the 10 major S&P sectors were lower, led by the utilities sector’s <.SPLRCU> 1.3 percent decline. The materials sector <.SPLRCM> fell 0.65 percent.

Shares of Monsanto <MON.N> were down 5 percent at $87.85 after the company slashed its 2016 profit forecast. The stock was the second biggest drag on the S&P 500.

Data on Wednesday showed the U.S. private sector added a higher-than-expected 214,000 jobs in February, suggesting solid job growth despite market turmoil and worries about a slowing global economy.

The report serves as a precursor to the more comprehensive monthly jobs report by the U.S. Labor Department on Friday.

The U.S. economy continues to show signs of recovery even as China and euro-zone countries struggle to spark their sputtering economic growth engines, pushing central banks to adopt diverging monetary policies.

Investors are increasingly facing the prospects of higher interest rates from the U.S. Federal Reserve, while also expecting more monetary stimulus from the European Central Bank and the People’s Bank of China.

Zynga <ZNGA.O> was up 6.9 percent at $2.31 after the “Farmville” creator named a new chief executive and said founder Mark Pincus would be executive chairman.

The Fed will also issue its Beige Book report of anecdotes on business activity at 2 p.m. ET. San Francisco Fed President John Williams is slated to speak later in the day.

Declining issues outnumbered advancing ones on the NYSE by 1,361 to 1,271. On the Nasdaq, 1,102 issues fell and 1,057 rose.

The S&P 500 index showed two new 52-week highs and no new lows, while the Nasdaq recorded nine new highs and six new lows.

(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Anil D’Silva)

Special Taping with Michael Snyder: Could WWIII Happen This Month?

Could the beginning of WWIII be setting up right at this very moment?  Michael Snyder believes that this might be the case. We will get the chance to hear his thoughts on Thursday, February 18th when Morningside welcomes him back to the Jim Bakker Show.  The following is from a recent article he posted on The Economic Collapse Blog dated February 14, 2016:

50,000 soldiers, 20,000 tanks, 2,450 warplanes and 460 military helicopters are massing in northern Saudi Arabia for a military exercise that is being called “Northern Thunder”.  According to the official announcement, forces are being contributed by Saudi Arabia, the United Arab Emirates, Egypt, Jordan, Bahrain, Sudan, Kuwait, Morocco, Pakistan, Tunisia, Oman, Qatar, Malaysia and several other nations.  This exercise will reportedly last for 18 days, and during that time the airspace over northern Saudi Arabia will be closed to air traffic.  This will be the largest military exercise in the history of the region, and it comes amid rumors that Saudi Arabia and Turkey are preparing for a massive ground invasion of Syria.

If you were going to gather forces for an invasion, this is precisely how you would do it.

Michael Snyder is best known for his work as the publisher of The Economic Collapse Blog. He is also the author of the book The Beginning of the End and Get Prepared Now!: Why a Great Crisis Is Coming & How you Can Survive It.

Michael is an attorney and economic specialist who feels that a great awakening is coming.

Taping will begin on February 18, 2016 at 11:30am.  This taping will not be live streamed, so be sure to make plans to be a part of our studio audience. If you’re unable to join us, you can view it before it airs on TV via Roku or the Video On Demand section of our website.

Goldman Sachs: The Third Wave of 2008’s Financial Crisis is Coming

In 2008, the U.S. real estate and investment banking collapsed, resulting in a financial disaster that is returning in a third wave.

Goldman Sachs analysts led by Peter Oppenheimer stated that the new crisis is characterized by a triple-whammy of rock bottom commodities prices, China’s stalling growth and other emerging markets economies, and low global inflation. The triple-whammy is a result of the banking collapse and European sovereign debt crisis, what experts call a debt supercycle that has taken place over the last few decades.

During the first two debt-fuelled crises, central banks all began to lower interest rates, encouraging investors to lend in emerging markets like China for a decent return. However, now that interest rates may be on the rise, lenders are pulling out of commodities.

During the first wave in 2008, the same situation happened along with the crash of the U.S. housing market. The low interest rates were put into place to grow credit and increase leverage, particularly in China. Combine this with China trying to escape the middle-income trap and the plunge of global commodity prices, and a new crisis is not very far away. At best, the situation would be a painful readjustment period for China.

The global economy will soon slow down thanks to developed economies raising interest rates. The raised rates will also apply to safer assets such as government bonds, which gives investors less incentive to take risks overseas in emerging markets. Without the investments, emerging market companies can’t fund big projects, which in turn, slows down the global economy.

What makes the situation even worse, is that recovery from the crisis is continuously stalled due to the different stages of the economy interacting with each other. In 2010 and 2011, the EU sovereign debt crisis derailed the U.S. economic recovery.

What will it take for the world to recover from the financial crisis? All excess lending in emerging markets have to be worked through, and investors will have to take losses.