Fausta's Blog

The Economist has a must-read article on Latin American geoeconomics
A continental divide
The region is falling in behind two alternative blocks: the market-led Pacific Alliance and the more statist Mercosur

Cuban prisoner Alan Gross settles lawsuit against Md. company

Lawyers filed a notice of the settlement Thursday in federal court in Washington. The settlement amount was not disclosed, and the agreement only covers Development Alternatives Inc., also known as DAI, not the government.

DAI’s chief executive officer said in a statement that settling the lawsuit, in which neither party admits fault, allows the company to work together with Gross’ family to bring him home.

Gross’ wife Judy, who has traveled to Cuba on several occasions to see her husband, said in the same statement that the family is “very pleased that DAI has committed to help address the injuries sustained by our family.

The $60million lawsuit was settled for an undisclosed amount.

Cuban officials have suggested they would be willing to free Gross in exchange for the men. Four of the men remain in prison in the United States. One man who completed his sentence but was serving probation in the U.S. was recently allowed to return to Cuba permanently.

Since the US is not amiable to releasing the four, will Havana take the cash instead?

[Title typo corrected]

Brazilian medical council condemns plan to bring in 6,000 Cuban doctors
Government’s attempt to source doctors for remote north-eastern regions is irresponsible, says Federal Council of Medicine

Brazil plans to hire 6,000 Cuban doctors to serve in remote parts of the country where medical services are deficient or nonexistent, despite controversy over the quality of their training.

The Brazilian foreign minister, Antonio Patriota, said negotiations were under way involving the Washington-based Pan-American Health Organization (PAHO) to allow the Cuban doctors to practice in Brazil.

Brazilian medical associations have opposed Cuban-trained doctors practicing in their country, arguing that standards at Cuba’s medical schools are lower than in Brazil and equivalent in some cases to a nursing education.

In exchange for the Cuban indentured doctors,

He said Brazil would pay for the modernisation of five airports in Cuba, where Brazilian construction conglomerate Odebrecht is already building a container terminal at the port of Mariel.

On Monday, Brazil’s trade minister Fernando Pimentel signed an agreement in Havana setting conditions for a $176m (£113m) loan from its giant development bank BNDES to upgrade and expand the airports of Havana, Santa Clara, Holguín, Cayo Coco and Cayo Largo.

Sounds to me like the powers that be are counting on an expansion of trade and travel once Fidel & Raul are no longer of this world.

Cristina looks at a specimen

Argentina’s Deadbeat Special: Buy a 4% Bond or Go to Jail

President Cristina Fernandez de Kirchner wants tax evaders hiding about $160 billion in dollars to help finance Argentina’s oil-producing ambitions. Her offer: Buy a 4 percent bond or face the prospect of jail time.

The tax authority announced the plan May 7, highlighting its information-sharing agreements with 40 nations and warning Argentines who don’t use the three-month amnesty window that they risk fines or arrest. Evaders have two options for their cash and the only one paying interest will be a dollar bond due in 2016 to finance YPF SA (YPF), the state oil company. The 4 percent rate is a third the average 13.85 yield on Argentine debt and less than the 4.6 percent in emerging markets.

I’m sure investors will rush to purchase bonds with below-market yields from a government who’s fined economists who dared publish data on Argentina’s real inflation rate of 25%, while

The government’s statistics agency reported Wednesday that annual inflation last month amounted to 10.5%.

That’s been roughly the rate around which the government has been paying on its inflation-linked bonds.

If investors in those securities have accepted the reduced payments based on the official data, workers unions in recent years have not, successfully garnering annual wage increases of 25% or more.

But, hey, the government’s increasing the monitoring of income and spending.

What could possibly go wrong?

Linked by Dustbury. Thank you!

Chronic shortages of consumer goods are a trademark of socialist and communist regimes, so this comes as no surprise:
Venezuela to import 50M rolls of toilet paper after government claims it’s wiped out

Economists say Venezuela’s shortages stem from price controls meant to make basic goods available to the poorest parts of society and the government’s controls on foreign currency.

“State-controlled prices — prices that are set below market-clearing price — always result in shortages. The shortage problem will only get worse, as it did over the years in the Soviet Union,” said Steve Hanke, professor of economics at Johns Hopkins University.

Then the government raised prices by 20%, which will eat up the 20% raise in minimum salary that went in effect on May 1st.

Carlos Eire posts on the Cubanization of Venezuela,

According to the Spanish newspaper ABC, the Maduro dictatorship is blaming its opponents for Caracastan’s toilet paper shortage.
…
“The Revolution will import around 50 million rolls of hygienic tissue… so our people can calm down and realize that they should not allow themselves to be manipulated by media campaigns that speak of shortages,” said Minister of Commerce Alejandro Fleming, through the state-run Venezuelan News Agency.
…
Minister Fleming cited facts and figures to prove that the production and importation of toilet paper was more than adequate in Caracastan, and then claimed that a “sobredemanda” — a sudden spike in demand — fiendishly orchestrated by the government’s opponents had caused the product to disappear from store shelves throughout the country.

Considering the disastrous state of what’s left of the Venezuelan economy, it’s no wonder people may have the runs,

Finance Minister Nelson Merentes said the government was also addressing the lack of foreign currency, which has resulted in the suspension of foreign supplies of raw materials, equipment and spare parts to Venezuelan companies, disrupting their production.
“We are making progress … we have to work very hard,” Merentes told reporters Wednesday.

Many factories operate at half capacity because the currency controls make it hard for them to pay for imported parts and materials. Business leaders say some companies verge on bankruptcy because they cannot extend lines of credit with foreign suppliers.

Speaking of runs, consumers who had spent hours waiting in line were stampeding in Caracas when they heard chicken parts and flour were finally available,

Nicolás Maduro tried to intimidate Empresas Polar president Lorenzo Mendoza,

accusing him of hoarding products as part of an “economic war” on the state by private business.

Mendoza, whose company is Venezuela’s biggest beer- and flour-maker, denied that and pointedly challenged the government to sell production plants nationalized under Chavez back to the private sector to boost efficiency.

Mendoza would not be intimidated, and at least for now, Maduro backed off.

Toilet paper buyers continue to wait in line,

Fleming, the commerce minister, said monthly consumption of toilet paper was normally 125 million rolls, but that current demand “leads us to think that 40 million more are required.”

“We will bring in 50 million to show those groups that they won’t make us bow down,” he said.

Hmmm… 125 + 40 – 50 still leaves you 115 million rolls short, Minister Flemimg.

Lloré escuchándolo.

1a parte:

2a parte:

3a parte:

4a parte:

1. First, Prince Harry went to Mantoloking and got a fleece jacket,

Greeting Prince Harry at the Jersey Shore the best way I know how; with his own Royal Fleece: twitter.com/GovChristie/st…

— Governor Christie (@GovChristie) May 14, 2013

Chris Christie gives Prince Harry his own ‘Royal Fleece’ on N.J. tour
Christie had joked that he would make sure Prince Harry stayed clothed during his trip to the Jersey Shore. He followed through on his vow by giving the visiting royal a version of his famous blue fleece.

Maybe there’s something to the fleece,

2. In case you were looking, Napoleon’s penis is in New Jersey. Jimmy Hoffa’s whereabouts are yet to be confirmed.

Ponder that disquieting thought while you read Drudge’s roundup: The governmental agency that did this will have full access to all your medical records, in addition to your financial records.

CLAIM: OBAMA CAMPAIGN CO-CHAIR ATTACKED ROMNEY WITH LEAKED DOCS…

W.H. Blames Treasury Dept for IRS Scandal…

CARNEY: Just because IRS apologized doesn’t mean it did anything wrong…

POLL: Most Want IRS Officials Fired or Jailed… Developing…

REPORT: Agency demanded list of students trained by conservative group…

FRANKLIN GRAHAM: WE WERE TARGETED…

Rev. Billy Graham Endorsed Romney…

‘Special unit’ went after pro-Israel Jewish groups…

Official speedily approved exemption for Obama’s brother’s ‘charity’…

Agency won’t say if it will comply with congressional demand…

Forty miles southeast of Mexico City, Popocatepetl is acting up:
Mexico’s ‘Popo’ volcano spews ash, molten rock

“Popo,” as the volcano is known, has displayed a “notable increase in activity levels” in the last few days, including tremors and explosive eruptions, according to a statement from the federal government.

Webcams have shown large chunks of molten rock spewing from the crater, and ash has rained down on the nearby city of Puebla. On Sunday, Mexico’s National Center for Disaster Prevention elevated its warning level to “Yellow Phase 3,” the fifth stage of a seven-stage warning scale.

“Don Goyo”, Popo’s other name was throwing red rocks.

Popo’s twin, Iztaccihuatl, remains dormant.

And, no, don’t ask me how to pronounce Iztaccihuatl.

1. Last weekend Mariela Castro was in Philadelphia, where she received an award for her gay rights advocacy. Cashing in on the occasion, over in La Habana, the Communist regime allowed a calculated, state-sponsored rally to coincide with Mariela’s award.

2. Guillermo Fariñas is now traveling through the US and Europe to talk about human rights abuses in Cuba.

3. Six-day event in Pittsburgh targets discrimination in Cuba
Fidel Castro declared it nonexistent, but racism is still pervasive in a country known more for its rich culture

A group of Cubans attending AfricAmericas, a six-day event being held here through today, told stories that most U.S. blacks would find familiar, “but it is not like here,” said Manuel Cuesta Morua, who has been a tour guide, history teacher and a museum director whose political activism cost him his job. “In Cuba, we are all equal, but [blacks] can’t be in the media. We have the same education, but we can’t have that job.

“Here there are civic tools” and a justice system that can work, he said. “We have no political or symbolic representation, no access to the emerging economy” and no avenues to leadership positions.

4. Barbara Walters is retiring. Back in 1977 she spent 10 days in Cuba as Fidel Castro’s guest.

She came back with an interview that aired on TV, and a very persistent rumor that she boinked the dictator. Then she went back 25 years later, asked the same questions and got the same BS answers, like “we [Cuban Communists] don’t have the same notion of freedom as you”,

Since Fidel’s not available for interviews, but the regime needs money, expect more dissidents being allowed to travel abroad and that Mariela will get more awards.

The real test comes when the dissidents return to the island-prison. So far, it does not bode well.