Thursday, June 16, 2016

New Tropical Paradise #Siberia As Temperatures Soar



Polar bear in Novosibirsk zoo

Weather turns tropical across Siberia as abnormal summer heat roasts six regions


Temperatures of up to 35C force exodus to river and lake beaches. 

Monkeys in Novosibirsk zoo


The abnormally hot weather has seen temperatures some 8C above average across a vast swathe of southern Siberia. 
On 12 June - Russia Day - new records were set in Novosibirsk (30.4C) and  Tomsk (31.5C), and in Tuva Republic (31.7C).
The Saudi Arabian-like heat wave, still ongoing, has stretched to the east of Krasnoyarsk region, with the highest temperature being 35C.
Over the next two days southern Siberia will remain abnormally hot, some 7C higher than average. 




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The Disaster of De-industrialization



once a nation no longer produce essential goods and services, it becomes vulnerable to collapse.
By now, we all know what's happening in Venezuela: hyperinflation, empty stores, a regime in denial. The Trajectory of Venezuelan Hyperinflation Looks Frighteningly Familiar... (Zero Hedge)

My contacts in Venezuela tell me that merely posting the black market exchange rate of bolivars to USD can get you arrested. So yes, Venezuela's regime has gone full Orwell-1984: whatever is true is outlawed.
Venezuela is imploding not because of hyper-inflation, but as a result of policies that led to hyper-inflation: policies that generate perverse incentives, disincentives to produce goods and services and incentives to depend on government subsidies.
But one of my correspondents nailed a key cause that is rarely discussed: Venezuela has been effectively de-industrialized. Capital that should have been invested in the electrical grid and the oil industry has been diverted to other pet projects (and the pockets of regime insiders).

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