Tag Archives: Latin America

After Greece & China, the next domino to fall: Latin America

The next domino to fall: Latin America

Greece needs a bailout and China’s stock market is in meltdown mode. But the global economy has another rising red flag: Latin America.

  @CNNMoney

Every major Latin American economy is slowing down or shrinking. The World Bank predicts this will be Latin America’s worst year of growth since the financial crisis. As if that’s not dire enough, the world’s two worst performing stock markets are in the region as well.

And things could get even uglier later this year for Latin America, a region which is double the economic size of India.

“The weakness in Latin America is reflecting the weaker global outlook,” says Win Thin, senior economist at Brown Brothers Harriman.

The ‘most vulnerable’: After years of checkered progress, Latin America is the “most vulnerable” region to China’s sputtering economy and market meltdown, experts say. It’s become a trade battleground area between the United States and China.

China is the biggest trade partner to many Latin countries, but the U.S. has tried to reassert its presence in recent months. Still, China’s sluggish growth is pulling Latin America down with it.

“We’re expecting very, very weak growth,” says Eugenio Aleman, senior economist at Wells Fargo Securities. “Brazil is in bad shape. Argentina isn’t much better. Chile has slowed down to a trickle…Peru is slowing down considerably.”

That’s just the beginning. Venezuela is arguably the world’s worst economy with sky-high inflation. Next door, Colombia has the world’s worst stock market this year. Its index is down 13% so far this year. The second worst is Peru, down 12.5%. By comparison, America’s S&P 500 is flat this year. (Argentina has the world’s best stock market, but that’s more a reflection of politics than economics).

While many are focused on Greece right now, “a deeper downturn in China remains the key external risk for Latin America,” says Neil Shearing, chief emerging market economist at Capital Economics.

The big problem: The three “C’s” are weighing down Latin America: China, commodities, and currency.

Read more » CNN
Learn more » http://money.cnn.com/2015/07/09/news/economy/warning-sign-latin-america-economy/index.html

Putin Writes Off $32 Billion of Cuba’s Debts to Russia

 

By Polly Mosendz | The Atlantic Wire

Russian President Vladimir Putin is currently on a grand tour of Latin America. His first stop is in Havana, Cuba. Ahead of arriving in Cuba, Putin decided to bestow a gift upon the Cuban government. With one swift signature, he eliminated $32 billion of Cuba’s debt, left over from the Soviet era.

Read more » Yahoo News
https://ca.news.yahoo.com/putin-writes-off-32-billion-cubas-debts-russia-150048853.html

I Wear the Badge of Socialist With Honor

The full text of the new Seattle city council member’s inauguration speech.

By Kshama Sawant

Editor’s note: At a ceremonial swearing-in on Monday, Kshama Sawant became Seattle’s first socialist city council member in almost a century. The full text of her inauguration speech is below.

My brothers and sisters,

Thank you for your presence here today.

This city has made glittering fortunes for the super wealthy and for the major corporations that dominate Seattle’s landscape. At the same time, the lives of working people, the unemployed and the poor grow more difficult by the day. The cost of housing skyrockets, and education and healthcare become inaccessible.

This is not unique to Seattle. Shamefully, in this, the richest country in human history, fifty million of our people—one in six—live in poverty. Around the world, billions do not have access to clean water and basic sanitation and children die every day from malnutrition.

This is the reality of international capitalism. This is the product of the gigantic casino of speculation created by the highway robbers on Wall Street. In this system the market is God, and everything is sacrificed on the altar of profit. Capitalism has failed the 99%.

Despite recent talk of economic growth, it has only been a recovery for the richest 1%, while the rest of us are falling ever farther behind.

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Francis Jorge Mario Bergoglio of Argentina elected pope

Jorge Mario Bergoglio of Argentina elected pope

VATICAN CITY: (Reuters) – Jorge Mario Bergoglio of Argentina was elected pope on Wednesday to lead the Roman Catholic Church, a prelate announced to huge crowds gathered in St. Peter’s Square.

He took the name Pope Francis, the cardinal said.

Cardinals elected Bergoglio on just the second day of a secret conclave to find a successor to Pope Benedict, who abdicated unexpectedly last month.

(Reporting by Crispian Balmer)

Courtesy: Reuters
http://www.reuters.com/article/2013/03/13/us-pope-succession-idUSBRE92808520130313

Canadian giant Goldcorp has been repeatedly accused of damaging the environment and violating human rights in countries where it operates

Canada’s Goldcorp operations in Guatemala under the microscope

By Cecilia Jamasmie

Canadian giant Goldcorp (TSX:G) (NYSE:GG) has been repeatedly accused of damaging the environment and violating human rights in countries where it operates, particularly Guatemala. …

Read more » Mining
http://www.mining.com/canadas-goldcorp-operations-in-guatemala-under-the-microscope-10946/

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More details » Is Canada’s Gold Corp. Good for Guatemala? Pt2

Lyuba Zarsky: Environmental and health effects are a violation of human rights Watch full multipart Gold and Latin America

Canada is not doing better

Ed Broadbent: Inequality’s a problem for Canada, too

By: ED BROADBENT, The Globe and Mail

I don’t know whether it’s smugness or indifference, but we Canadians can be a self-deluding lot. Growing inequality, portrayed recently in The Economist as a global scourge, when viewed from Canada, seems to be a problem only for others.

After all, it was other countries’ banks that crashed in 2008. It’s in southern Europe that tens of thousands are taking to the streets. And it was in France and the United States that recent elections were fought over the fact that those who created the mess, the top 1 per cent, are still getting big bonuses and low tax rates.

Well, guess what? Canada is not doing better. From 1982 until 2004, almost all growth in family income went to the top 20 per cent, with much of that going to the top 1 per cent, while the bottom 60 per cent saw no growth at all. The increase in inequality in Canada since the mid-1990s has been the fourth highest in the Organization for Economic Co-operation and Development.

But does this matter? Yes, the evidence is in, and the conclusion is clear: Inequality does matter. In terms of social outcomes, more equal societies do better for everyone, not just for the poor, in almost every respect: health outcomes, life expectancy, level of trust in society, equality of opportunity and upward social mobility. A recent study showed that if Americans want to experience the American Dream of upward mobility, they should pack up and move to Sweden. They would have to leave the most unequal democracy and move to the most equal.

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The dream of a better world is back

globeBy Alain Gresh + By Omer Khalid

Courtesy: Liberation, Jun 2nd, 2009

For two decades, from the sierras of Latin America to the paddy fields of Asia and the mountains of North Africa, a single hurricane seemed to be sweeping away the old colonial order and the economic dominance of the North. As the title of a 1977 documentary by Chris Marker depicting revolutionary struggles from Paris to La Paz put it: “Deep down the air is red” (Le fond de l’air est rouge).

For full article, click here

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Ecuador: Firmly Left

By John Cherian

Courtesy: Frontline,  Rodrigo Buendia/AFP

Rafael Correa’s emphatic victory makes him the first Ecuadorian President since 1972 to win a re-election.

THE leftward swing in Latin America is being further consolidated. The avowedly socialist President Rafael Correa of Ecuador again won an emphatic victory at the polls in the last week of April. The other Latin American countries to have elected leftist governments are El Salvador, Venezuela, Bolivia, Nicaragua, Argentina, Honduras, Guatemala and Brazil. It is the first time in many decades that a President has been re-elected for a second consecutive term in office in Ecuador.

For full story, please click here

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