Fausta's Blog

American and Latin American Politics, Society, and Culture

October 17, 2017 By Fausta

A primer on Puerto Rico’s debt

Mark DeCambre at Market Watch explains how Puerto Rico has more than $70 billion in debt

Why is Puerto Rico in such bad economic shape?

More than a decade of economic decline and ballooning deficits, amplified by an exodus of the territory’s best and brightest, including doctors, to the U.S. has dealt a heavy blow to the Puerto Rican economy. It has been in a recession, defined as at least two consecutive periods of declining growth, since 2006.

  • The Commonwealth had an unemployment rate of 12% before the hurricanes, compared with an unemployment of 4.4% for the U.S., as of August.
  • 43.5% of its residents live below the poverty line, according to U.S. Census Bureau data, more than double that of Louisiana and Mississippi.
  • Its population is 3.4 million as of July 1, 2016, representing a decline of more than 8% since 2010.
  • [emphasis added] The island’s debt load represents $12,000 per capita, with its debt representing more than three-quarters of its annual gross national product, which would make it one of the most indebted countries in the world.
  • As a U.S. territory, the island uses the U.S. dollar, That means it can’t devalue its currency in a bid to improve competitiveness.

The article was published twelve days ago.

As if things weren’t bad enough, Howard Dean wants to put the Clinton Foundation in charge of Puerto Rico relief. That would make it official for the Clinton political machine, but, on the other hand, Howard ignores the Clinton shenanigans in Haiti. (Related: How the Clinton Foundation Got Rich off Poor Haitians)

Share

Filed Under: economics, Fausta's blog, Puerto Rico Tagged With: Howard Dean, Hurricane Maria

October 3, 2017 By Fausta

Brazil tames inflation

Great news for the largest country in Latin America,
Brazil’s minister says inflation to end 2017 below 3 percent.

Americas Quarterly has a rundown of Pres. Michel Temer’s reform agenda on energy, infrastructure, environment and mining, foreign trade, and project financing. Most aim to reduce the role of government in the economy. Some aim to privatize government-owned companies. Regarding pensions,

Brazil’s severe crisis has been blamed on its ballooning public debt, and pension is the one item where the government believes it can make substantial savings.
. . .
The government wants to create a minimum retirement age of 65 for men and 62 for women and make the system more equal in its treatment of public and private sector workers. Unions have held strikes and protests claiming the government is simply making workers pay for the country’s mismanaged finances.

Coming up:
Brazil Lets In Big Oil Firms After Keeping Them Out for a Decade. The country looks to expand its crude potential and revive its economy with an auction this week

Share

Filed Under: Brazil, economics, Fausta's blog Tagged With: Michel Temer

June 29, 2017 By Fausta

Brazil runs out of money to issue passports

Last year the Rio Olympics were 51% over budget, to the tune of $1.6 billion, the month before they opened. The 2014 World Cup $3 billion stadiums were becoming white elephants a year later.

Now Brazilian authorities have suspended the issuing of new passports because of a budget crisis:

The government said emergency funds for passports would be debated this week.

In a statement late on Tuesday, the federal police said the decision to stop issuing new passports “stems from a dearth of funds earmarked to the activities of migratory control and the issuance of travel documents”.

There’s a lot of finger-pointing, of course, and a long history corruption, and trying to look like a country with strong infrastructure, and whatever, but it all comes down to one thing: overspending.

Cross-posted at WoW! Magazine.

Share

Filed Under: Brazil, economics, Fausta's blog

February 22, 2017 By Fausta

Guatemala: Gloria Alvarez live at Prager U

From Facebook Live,

Guatemalan political activist Gloria Alvarez! Talking about socialism, capitalism, immigration, and more!

Share

Filed Under: economics, Guatemala Tagged With: Fausta's blog, Gloria Alvarez, Prager U

November 29, 2016 By Fausta

Mexico: Unemployment at a 9-yr low

Good news for Mexico:

Unemployment in Mexico fell to its lowest level in nine years in October amid strong private-sector job growth that has supported consumption and helped keep the economy expanding.
. . .
The jobs numbers and an apparent stabilization of the balance of payments suggest the economy may not be performing as far below capacity as generally perceived, although an expected economic slowdown and uncertainty following the election of U.S. President-elect Donald Trump could begin to undermine a so-far resilient labor market, he added.

Share

Filed Under: business, economics, Fausta's blog, Mexico

September 14, 2016 By Fausta

Goodbye, $15/hr; hello Zume pizza

Marta works for free, does not require mandated paid leave, payroll tax paperwork, and you don’t need to worry about checking her credit rating or her criminal record, or spend money on marijuana or drug screening, and never complains.

Read my post, Goodbye, $15/hr; hello Zume pizza

Share

Filed Under: business, economics Tagged With: Da Tech Guy Blog, Fausta's blog

September 14, 2016 By Fausta

Mexico: The Trump/peso index, part dos

I posted on Monday on the Trump/peso index, since a Mexican currency analyst found that the peso declines as Trump’s odds for POTUS rise. Yesterday the WSJ picked up the story:
Mexican Peso Recovers After Falling on Clinton News. Higher oil prices and less hawkish outlook for U.S. interest rates helped peso recover lost ground

The news of Mrs. Clinton’s health and comments from several U.S. Federal Reserve officials ahead of next week’s policy meeting contributed to the peso’s roller-coaster ride Monday.

Higher U.S. interest rates would make dollar investments relative more attractive, putting Fed moves among principal risks for the Mexican peso.

Silvio Canto posits,

Is the Mexican peso a poll about the U.S. election?  I don’t think so. It is a statement on concerns about the Mexican economy, such as low oil prices. It is also about exports and having a peso that helps Mexican exporters. That was the consensus of an economic summary that I read a few months ago.

Trump causing a weakening of the Mexico peso? I don’t think so and pray that it is not so. Mexico has been floating its peso since the late 1990s and it’s been good for both sides. Again, I saw a Mexican peso devaluation first hand and it was not fun, even if I went out that weekend and bought some nice business suits suddenly cheaper in dollars!

If Trump wins, it’ll be interesting to see if he’ll push for a renegotiation of the North American Free Trade Agreement, a point Peña Nieto agreed on.

Post re-edited to add missing HTML

Share

Filed Under: business, economics, Mexico Tagged With: Donald Trump, Fausta's blog

July 22, 2016 By Fausta

Ecuador: Correa was not pleased

Prof. Steve Hanke, who masterminded Ecuador’s dollarization several years ago before Rafael Correa came to power, recently visited the country. During his stay, Hanke criticized the electronic currency Correa is imposing on the country:
Ecuador’s Dollarization Architect Doubts Correa’s Pledge

With the country facing a record budget shortfall, a new currency may undermine confidence in the monetary system, said Steve Hanke, a professor of applied economics at Johns Hopkins University, who advised Ecuador on adopting the dollar in the late 1990s and early 2000s. His concerns were echoed by Ruth Arregui, a former general manager at the central bank, and the University of Georgia’s Myriam Quispe-Agnoli, who wrote about dollarization as an economist at the Federal Reserve Bank of Atlanta.

Correa was not amused and took to Twitter:

“Young people: avoid mediocrity like the plague. They bring us Steve Hanke to insult our intelligence . . .”

..https://t.co/17OXYkiAXk
Jóvenes: a huir de la mediocridad como de la peste.
Insultando a nuestra inteligencia, nos traen a Steve Hanke,..

— Visita Ecuador (@MashiRafael) July 19, 2016

“. . . the “gringo Cavallo” (with apologies to Cavallo). His CV: advisor to Abdalá Bucaram, Carlos Menen [sic] and a number of former Soviet republics that . . .”

…el “Cavallo gringo” (con perdón de Cavallo).
Su CV: asesor de Abdalá Bucaram, Carlos Menen y una serie de ex repúblicas soviéticas que…

— Visita Ecuador (@MashiRafael) July 19, 2016

“. . . brutally embraced neoliberalism. His “pearls of wisdom”: “inflation would have been worse if it weren’t for dollarization.” That is, Colombia . . . .”

..brutalmente abrazaron el neoliberalismo.
Sus “genialidades”: “sin la dolarización la recesión hubiera sido peor”. Es decir, Colombia por..

— Visita Ecuador (@MashiRafael) July 19, 2016

“. . . devalues when it feels like it.
It’s really embarrassing.
But this is just the beginning. Let’s strengthen the stomach.
To victory always!
”

…gusto deprecia.
Realmente causa vergüenza ajena.
Pero esto recién empieza. A fortalecer el estómago.
¡Hasta la victoria siempre!

— Visita Ecuador (@MashiRafael) July 19, 2016

About that last tweet, I can’t say that I understand what, if anything, Colombia has to do with Ecuador’s new electronic currency, what Correa is embarrassed about, or what is “just the beginning.”
“A fortalecer el estómago” (Let’s strengthen the stomach) may (or may not) be the equivalent of “gird one’s loins,” but again, what about?

But I do know that ¡Hasta la victoria siempre! is the motto of the Cuban communists, and of Che Guevara.

Related:
Steve H. Hanke: ‘La dolarización funciona en Ecuador, pero el dinero electrónico no’

Share

Filed Under: economics, Ecuador, Rafael Correa Tagged With: Fausta's blog, Steve Hanke

  • 1
  • 2
  • 3
  • …
  • 67
  • Next Page »
Tweets by @Fausta
retirees_raise-2015_300x250

Pages

  • About
  • Email

Meta

  • Register
  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Previous Posts

  • Mrs. Maisel goes full Alinsky on Mrs. Schlafly
  • Venezuela: Did the Minister of Defense back out at the last minute?
  • You need to unfriend me
  • Go ahead and Kiss the Girl, if you dare
  • Ashamed

Recent Comments

  • John on Mrs. Maisel goes full Alinsky on Mrs. Schlafly
  • Today’s hot topics: Democrats’ collusion shift, tax-return rift, Venezuela drift, and more! – PoliticalWitchDoctor.com on Venezuela: Did the Minister of Defense back out at the last minute?
  • Today’s hot topics: Democrats’ collusion shift, tax-return rift, Venezuela drift, and more! - AmericanTruthToday on Venezuela: Did the Minister of Defense back out at the last minute?
  • Did Venezuela’s Minister of Defense Back Out At The Last Minute? on Venezuela: Did the Minister of Defense back out at the last minute?
  • Roseanne Not Back, Khan not Invited, Operaman’s back, Jobs back, Fausta’s back (but not here yet) Thoughts under the fedora – Da Tech Guy Blog on Venezuela: Did the Minister of Defense back out at the last minute?

Archives

  • 2019
    • December 2019
    • May 2019
    • January 2019
  • 2018
    • December 2018
    • October 2018
    • July 2018
    • June 2018
    • April 2018
    • March 2018
    • February 2018
    • January 2018
  • 2017
    • December 2017
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    • July 2017
    • June 2017
    • May 2017
    • April 2017
    • March 2017
    • February 2017
    • January 2017
  • 2016
    • December 2016
    • November 2016
    • October 2016
    • September 2016
    • August 2016
    • July 2016
    • June 2016
    • May 2016
    • April 2016
    • March 2016
    • February 2016
    • January 2016
  • 2015
    • December 2015
    • November 2015
    • October 2015
    • September 2015
    • August 2015
    • July 2015
    • June 2015
    • May 2015
    • April 2015
    • March 2015
    • February 2015
    • January 2015
  • 2014
    • December 2014
    • November 2014
    • October 2014
    • September 2014
    • August 2014
    • July 2014
    • June 2014
    • May 2014
    • April 2014
    • March 2014
    • February 2014
    • January 2014
  • 2013
    • December 2013
    • November 2013
    • October 2013
    • September 2013
    • August 2013
    • July 2013
    • June 2013
    • May 2013
    • April 2013
    • March 2013
    • February 2013
    • January 2013
  • 2012
    • December 2012
    • November 2012
    • October 2012
    • September 2012
    • August 2012
    • July 2012
    • June 2012
    • May 2012
    • April 2012
    • March 2012
    • February 2012
    • January 2012
  • 2011
    • December 2011
    • November 2011
    • October 2011
    • September 2011
    • August 2011
    • July 2011
    • June 2011
    • May 2011
    • April 2011
    • March 2011
    • February 2011
    • January 2011
  • 2010
    • December 2010
    • November 2010
    • October 2010
    • September 2010
    • August 2010
    • July 2010
    • June 2010
    • May 2010
    • April 2010
    • March 2010
    • February 2010
    • January 2010
  • 2009
    • December 2009
    • November 2009
    • October 2009
    • September 2009
    • August 2009
    • July 2009
    • June 2009
    • May 2009
    • April 2009
    • March 2009
    • February 2009
    • January 2009
  • 2008
    • December 2008
    • November 2008
    • October 2008
    • September 2008
    • August 2008
    • July 2008
    • June 2008
    • May 2008
    • April 2008
    • March 2008
    • February 2008
    • January 2008
  • 2007
    • December 2007
    • November 2007
    • October 2007
    • September 2007
    • August 2007
    • July 2007
    • June 2007
    • May 2007
    • April 2007
    • March 2007
    • February 2007
    • January 2007
  • 2006
    • December 2006
    • November 2006
    • October 2006
    • September 2006
    • August 2006
    • July 2006
    • June 2006
    • May 2006
    • April 2006
    • March 2006
    • February 2006
    • January 2006
  • 2005
    • December 2005
    • November 2005
    • October 2005
    • September 2005
    • August 2005
    • July 2005
    • June 2005
    • May 2005
    • April 2005
    • March 2005
    • February 2005
    • January 2005
  • 2004
    • December 2004
    • November 2004
    • October 2004
    • September 2004
    • August 2004
    • July 2004
    • June 2004
    • May 2004
    • April 2004
    • March 2004
Content Copyright Fausta's Blog

Site Developed and Managed by 300m.com