,/A>Posted on 04/05/2022 2:21:12 PM PDT by blam
Inflation poses severe challenges for emerging market economies. The latest example is in Peru, where social unrest spreads across the country, forcing the government to impose a curfew in the capital, Lima, on Tuesday, according to Reuters.
“The cabinet has agreed to declare a ban on the mobility of citizens from 2 a.m. through 11:59 p.m. of Tuesday, April 5, to protect the fundamental rights of all people,” Peruvian President Pedro Castillo said in a live broadcast last night.
The South American country was already struggling before commodity prices jumped to record highs because of the Ukraine invasion and virus pandemic supply chain disruptions. Social unrest began last month as demonstrations led by farmers and truckers have intensified over soaring food, fuel, and fertilizer prices.
Days ago, Peru Finance Minister Oscar Graham reduced the consumption tax for fuel and basic food items, hoping it would quell protests.
This all comes as Peru’s annual inflation hit 6.82% in March from a year earlier, the most since August 1998. April’s number is expected to top 7%.
Higher commodity prices, pushing up overall inflation, is metastasizing into a political crisis for Castillo, whose slumping popularity could fall even faster. Castillo has also called in the military to control violent protests.
“This strike isn’t happening just here, it’s all over Peru,” one unnamed protester told Reuters.
Peru’s president declared a state of emergency in the capital Lima as violent protests over inflation led to clashes with police, blocked highways and food shortages https://t.co/95yYfgMgFs pic.twitter.com/gwzVCpJyGm
— Bloomberg Quicktake (@Quicktake) April 5, 2022
PERU: The country has declared a state of emergency, mobilized the military to support riot police, and issued several cities a curfew after nationwide protests against inflation, fuel prices and the government spread for a week. pic.twitter.com/W2v18kNDK9
— Apex World News (@apexworldnews) April 5, 2022
,/A>
Dmonstrators clash with riot police during a partial strike of cargo and passenger carriers in Peru. A partial strike of cargo and passenger carriers caused road blockades and suspension of classes in Peru.#Peru #Clash #Police #Strike #Demonstrator (Photo by Gian MASKO / AFP) pic.twitter.com/IGIKv5oS50
— Bishesh News (@BisheshNews) April 5, 2022
Besides tax cuts, the government has desperately raised the minimum wage by about 10% to about $322 per month.
As the situation worsens in Peru, none of this should be surprising to readers. We’ve explained that social unrest in emerging market economies was inevitable due to the rapidly rising cost of everything.
… and it’s just not Peru that is being impacted by inflationary forces on the continent but every country in South America. The continent is a ticking time bomb for unrest.
We’ve also outlined countries outside South America that could be prone to unrest due to inflation and food shortages.
Coming to America.
Our inflation is even worse and they’re the ones rioting.
I have to wonder if we’re the ones who should be rioting?
Absolute collapse.
It’s well known that Peru has its “estacion de huelgas”
Americans are broke ti the yoke
Let’s import them to protest the White Basement for the same offenses.
My wife are trying to set ourselves up to not need to buy much for the next few years. Seriously, that is part of our strategy.
As long as the EBT cards are filled, the orcs won’t come boiling out of the cities.
If you have a lot of stuff that has resale value, it is all potential inflation hedge. Imagine runaway inflation allowing you to sell a classic Beatles album to buy a house, cash...
Ping
We’re doing the same thing.
We’re taking an inventory of everything we use and need. The latest is chainsaw parts.
Be sure to get the rubber membrane that goes in the carburetor. That seems to be the first to go. And yes....even during good times they'll charge you to much for it.
Could we please have the Biden “I did this” sticker?
He and his insane advisors have destroyed the entire world economy.
Interesting that all over the planet crowds have been out there protesting things like inflation, etc...
Meanwhile, here in this country (excluding communists like BLM & Antifa), the sheeple are grazing relatively blissfully...
-Inflation
-Empty shelves
-Masks for young children
-17,000 new IRS employees
-Average taxpaying, religious, free-thinking citizens tracked &
registered as potential domestic terrorists
-Daily, new tyrannical rules & regulations issued by an administration led by two communist morons...
Yes indeed, even here on FR, many citizens say things are looking positive because polls indicate GOP retaking the Congress in 2022...
Hmmm... Just a couple of questions:
-Isn’t winning back the house & senate in 2022 just very important triage, just to slow or stop some of the bleeding?
-How do things look for the 2024 elections (which are, possibly, the final battle for control of the Nation)?
-Is the GOP united in their resolve to undo the damage the communists have done for the past 60-years?
-Will the money that President Trump has been siphoning from my bank acct since April or May 2020 have to be used just to keep the stinking communists from their goal of jailing him?
Trump did a pretty good job. We need him for a lot longer.
Yes indeed!
Very sad, and none of it needed to happen, if we could only keep our noses out of what goes on halfway around the world.
We’ve been doing the same, I have a small scale 4 acre farming operation, June-July is when the crap storm will begin. Our suppliers are saying that’s when fertilizer will become scarce and unaffordable. Hellen Keller could have seen this coming, prepare now.
Sri Lanka as well.
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