DJCNEWS 12/08/2014
Brazil’s newest refinery to reduce the nation’s dependence on imported gasoline and signal a new era in Latin American energy independence. The Abreu e Lima will ramp up to 230,00 barrels a day 70 % of which will be diesel. PBR refinery has now capacity of 3.3 million barrel per day. A separate refinery is under construction in Rio de Janeiro, the Comperj facility, will complete in 2016 this will give PBR and Brazil total independence on imports of gasoline. Refinery will help South America overcome Imperialisms of North. Go PBR Go $100.00 a share in les then two year. Yes!
China Overtook The US As The World's Largest Economy REUTERS/Shannon Stapleton Sorry, America. China just overtook the US to become the world's largest economy, according to the International Monetary Fund
China, Russia, and the End of the Petrodollar
Say you’re an up-and-coming superpower wannabe with dreams of dominating your neighbors and intimidating everyone else. Your ambition is understandable; rising nations always join the “great game”, both for their own enrichment and in defense against other big players.
But if you’re Russia or China, there’s something in your way: The old superpower, the US, has the world’s reserve currency, which allows it to run an untouchable military empire basically for free, simply by creating otherwise-worthless pieces of paper and/or their electronic equivalent. Russia and China can’t do that, and would see their currencies and by extension their economies collapse if they tried.
So before they can boot the US military out of Asia and Eastern Europe, they have to strip the dollar of its dominant role in world trade, especially of Middle Eastern oil. And that’s exactly what they’re trying to do. See this excerpt from an excellent longer piece by Economic Collapse Blog’s Michael Snyder:
China And Russia Are Ruthlessly Cutting The Legs Out From Under The U.S. Dollar
China and Russia are not the “buddies” of the United States. The truth is that they are both ruthless competitors of the United States and leaders from both nations have been calling for a new global currency for years.
They don’t like that the United States has a built-in advantage of having the reserve currency of the world, and over the past several years both countries have been busy making international agreements that seek to chip away at that advantage.
Just the other day, China and Germany agreed to start conducting an increasing amount of trade with each other in their own currencies.
You would think that a major currency agreement between the 2nd and 4th largest economies on the face of the planet would make headlines all over the United States.
Instead, the silence in the U.S. media was deafening.
However, the truth is that both Russia and China have been making deals like this all over the globe in recent years. I detailed 11 more major agreements like the one that China and Germany just made in this article: “11 International Agreements That Are Nails In The Coffin Of The Petrodollar”.
A few of the things that will likely happen when the petrodollar dies….
-Oil will cost a lot more.
-Everything will cost a lot more.
-There will be a lot less foreign demand for U.S. government debt.
-Interest rates on U.S. government debt will rise.
-Interest rates on just about everything in the U.S. economy will rise.
So enjoy going to “the dollar store” while you can.
Will turn into the “five and ten dollar store” soon enough.
Some thoughts
Snyder goes on to note that both China and Russia are accumulating gold, which will protect them from the coming currency crisis and give the ruble and yuan greater legitimacy in global trade. In Jim Rickards’ book Currency Wars, he tells the story of financial war games conducted by the US military, in which one of the scenarios was a Russian gold backed currency that challenged the dollar. We’re apparently not far from that plan becoming feasible.
The US spends a big chunk of its $700 billion a year defense budget on dominating the Middle East in order to force the trading of oil in dollars. Let that trade be diversified into several currencies and the demand for petrodollars goes way down. Central banks and global corporations will sell part of their dollar holdings, sending the dollar’s exchange rate into a tailspin. This in turn will make it harder for the US to finance its military empire/welfare state.
The net result: America becomes Spain, no longer able to simply whip out the monetary credit card to cover its overspending. We’ll have to live within our means, cutting maybe $3 trillion a year in government largesse (including the growth in unfunded entitlements liabilities).
Cuts on this scale can’t be accomplished smoothly, as Europe is discovering. So in this scenario the coming decade will be even messier than the last one, with “Occupy” movements shutting down cities and every election producing incumbent massacres. A combination of higher prices for necessities and lower wages will demote much of the middle class to “working poor.”
Meanwhile, China and Russia will reap the rewards of stronger currencies, and will divide (or share) control over their part of the world. It’s hard to know who to feel sorrier for, Americans who thought they could depend on government programs for a middle class lifestyle, or the neighbors of China and Russia who will see the relatively light hand of the American empire replaced with something far more atavistic.
On 09/17/2014 The Federal Reserve remained on its easy-money course Fed renews vow to hold rates low for 'considerable time' Considerable, meaning 'forever'. Because we have so much debt, and the Fed is now sitting on $6T of its own from money printing and buying our debt. Last year the Fed bought 80% of our deficit with newly printed money. If they stop printing money and buying our debt, interest rates will go way up. We will have $20T in debt in 2 years - at 5% interest that will suck $1T of our $3T in tax revenue away just to service the debt. So they are stuck for infinite now - they are beyond the point of no return and can never stop printing money. I'm not sure why anybody trusts the US Dollar now...
USA economy is on steroids BRIC countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. "Building Better Global Economic BRICs."[1][2][3][4] The acronym has come into widespread use as a symbol of the apparent shift in global economic power away from the developed G7 economies towards the developing world. Projections on the future power of the BRIC economies vary widely. Some sources suggest that they might overtake the G7 economies by 2027.[5] More modestly, Goldman Sachs has argued that, although the four BRIC countries are developing rapidly, it was only by 2050 that their combined economies could eclipse the combined economies of the current richest countries of the world.
PBR pays an annual dividend of $0.74 and, at its current price, yields 7.29%, a level that is in-line with the Oil, Gas & Consumable Fuels industry average but above that of the S&P 500 which yields 1.92%. Additionally, this company is in the minority as most others in this industry do not pay a dividend. PBR is doing a fair job in comparison to its peers with a Return on Assets, Revenues per Employee, and Return on Equity of 2.55%, $1,636,864, and 5.53% respectively. Despite average performance at managing their owner's equity and at generating revenues from employees, the company is above average at managing their resources compared to other companies in the Oil, Gas & Consumable Fuels industry.
PBR has typical profitability characteristics for a company in the Oil, Gas & Consumable Fuels industry. While it does a better than median job converting revenues to profits on a net margin basis, its operating margin is on par with the industry norm.
Because PBR is in the Oil, Gas & Consumable Fuels industry and has positive earnings, the PEG, PE, and Price to Book ratios are the most appropriate valuation measures. The Price to Sales ratio is less instructive than the PEG or PE since the company has positive earnings. Therefore PBR seems valued at a discount with a PEG value of 0.4201, one of the lowest in the Oil, Gas & Consumable Fuels industry PBR is oversold and undervalue
PBR is nothing but a BUY candidate BUY…BUYS…BUY
