Latin American countries have no relatively good room for fiscal and monetary policy adjustment like China, and basically lack the ability for governmental countercyclical adjustment. This is mainly reflected in their room for fiscal and monetary policy.
From a fiscal viewpoint, the taxation ability of Latin American governments is generally weak. Taxation accounts for 16-18% of GDP, which is obviously lower than the 30-35% level of developed countries.
In terms of monetary policy, since the currencies of Latin American countries are directly correlated to the U.S. dollar exchange rate, the dollar fluctuation also entails the reduction of their room for monetary policy adjustment. These countries have continuously borrowed and cut interest rates. Hence there is little room for further steps.
The Federal Reserve has adopted the policy of unlimited quantitative easing which, in practical and easy-to-understand terms, is one of the unconventional ways by which a central bank intervenes in a State’s financial and economic system to increase the amount of debt money in circulation.
Although the U.S. stock market went into a slump several times, it should be noted that Nasdaq reached a new high. Ultimately, money has become more circulating. Interest rates in Latin American countries, however, have become very low and there is little room for further cuts.
At the same time, their foreign debts are also relatively high. For example, Argentina has recently approved a 70billion dollar debt restructuring plan and its debt accounted for over 50% of GDP.
The first solution to the debt crisis is to delay repayment, and the second one is to cancel interest or partly write off the debt. The creditor has no choice but to be forced to agree if one of the counterparts is unable to repay it. This is an endless cycle that, once the debt restructuring plan is approved, will only alleviate and mitigate Argentina’s crisis.
Argentina’s debt crisis occurred nine times in history, and this is the third time in the new century. Inflation in Argentina has caused its currency to depreciate by over 70%. According to statistics from the United Nations Economic Commission for Latin America, over 12 million people were jobless in Latin America in 2020. Poor people in Latin America will increase from 118 to 130 million and the extremely poor people will rise from over 60 million to over 90 million.
Faced with some new difficulties and challenges, we need to explain and assess China-Latin America relations at the current historic juncture. The development of China-Latin America relations has shifted from a period of high-speed growth to a period of stable growth. Quantitative and extensive development is shifting to a qualitative and specific one.
Initially China-Latin America relations took off suddenly and even exceeded expectations. Instead, a steady, efficient, stable and effective approach is currently preferred. The orderly progression of diplomatic and commercial relations is more advantageous than a context of actual speed.
This is especially the case in the context of intensified strategic competition between China and the United States. The political situation in Latin America, and the further impact of the Covid-19 pandemic, mean that certain changes need to be made to China-Latin America relations.
Firstly, the U.S. influence on China-Latin America relations needs to be assessed. Sino-U.S. relations are the most important, sensitive and complex bilateral relations in Chinese diplomacy.
Recently, there have been many major changes in Sino-U.S. relations, but one of them is often overlooked: from the Latin American countries’ perspective, the relationship between Latin America and the United States is the most important one. China’s interests in Latin America have not surpassed the United States’ in terms of political and economic development.
Here are some data. In the field of economy and trade, the United States is still Latin America’s main trading partner. The same applies to investment. The United States has great advantage over China.
In 2017, trade between the United States and Latin America exceeded 760 billion dollars, almost three times the volume of trade between China and Latin America. In 2019, trade between China and Latin America was about 270-280 billion dollars, while the volume of trade between the United States and Latin America was almost 800 billion dollars.
From an investment perspective, U.S.A.’s and Latin America’s direct engagement in 2017 was 45 billion dollars, almost double that of China. Therefore the United States outperforms China in terms of trade and investment.
However, benefiting from the advantage of China’s economic growth and the structural complementarity between China and Latin America, the acceleration of China’s economic and trade investment in Latin America is higher than that of the United States. Therefore, China has an incremental advantage in Latin America, but the United States enjoys an ‘equity’ primacy.
For example, outgoing President Trump has never visited Latin America, but this does not mean that the United States does not pay attention to it. Quite the reverse. If we look at the reports on Sino-Latin American relations issued by U.S. think tanks, scholars and experts are particularly worried.
The U.S. Congress holds several hearings on Sino-Latin American relations every year and invites not only local experts, but also experts from Mexico, Brazil and other countries. We can see that the United States attaches great importance to the development of China-Latin America relations.
We wonder, however, why has the United States not taken propagandistically political positions in Latin America as it does towards China, the Middle East, South-East Asia and the South China Sea.
This means that the United States still considerably trust Latin American bonhomie, good nature, patience and tolerance. The U.S. media merely claim that China’s influence in Latin America has increased and its soft power has enhanced but, overall, China’s influence in Latin America is far less than that of the United States.
If we ask in Brazil what they think of U.S.-China, U.S.-Brazil and Brazil-China relations, we get the following answers. The United States is a model for Brazil’s development and the values and ideologies of both Brazil and the United States are close. China is an important trade and investment partner for Brazil. From an economic viewpoint, Brazil’s development should seek to establish a better partnership with China, but in terms of ideology and values, the Forbidden City is further away than the White House.
For Latin America, maintaining stable relations with the United States is a primary interest. After the outbreak of the Covid-19 pandemic in Latin America, China – thanks to some of its medical equipment – did its best to help those countries mitigate the impact of the disease. A Chinese state-owned company responded to the call and promised to build a hospital with an in-patient module in a conference and exhibition centre in Panama to help infected patients, for only a small sum of money from the State.
Panamanian President Laurentino Cortizo Cohen, however, rejected the proposal outright. In the end, Panama spent 12 million U.S. dollars and built 100 hospital beds and 26 intensive care units, without taking advantage of Chinese aid.
On April 16, Cortizo presided over the hospital’s opening ceremony, announcing that it was his own decision. Conversely, when former Panamanian President Juan Carlos Varela (2014-19) was in power, he visited China, and Chinese Foreign Minister and State Councillor Wang Yi reciprocated by travelling to Panama.
At the time, President Varela said that the landmark project for the expansion of the Silk Road passed through Panama, as did the 4 billion dollar plan to expand the canal and railway from Panama to Costa Rica. The new President in power, however, has not followed the philosophy of his predecessor, terrified of displeasing the United States. Unfortunately, this news is not reported in the Italian press.
America’s Two-Tiered Justice System
The Constitution states only one command twice. The Fifth Amendment says to the federal government that no one shall be “deprived of life, liberty or property without due process of law.” The Fourteenth Amendment in 1868, uses the same eleven words, called the Due Process Clause, to describe a legal obligation of all states. These words have as their central promise an assurance that all levels of government must operate within the law and provide fair procedures to all its citizens.
In this politically divisive climate, the central promise has been broken with little to no assurance that one can trust the American democratic system where some courts have disavowed their responsibility to uphold the Constitution’s meaning of the laws passed by Congress. For instance, the Bill of Rights was passed because of concepts such as freedom of religion, speech, equal treatment, and due process of law were all deemed so fundamental to protect every legal resident in the nation; yet we are now witnessing politically charged judicial appointments eradicating these principles under which all persons and entities are accountable to equally enforce and independently adjudicate, as well as being consistent with international human rights.
On the heels of the Chinese coronavirus, there is an escalating epidemic of unequal justice and character assault where much of the news media is politically aligned with the rulers in turning a blind eye or complicit in the coverup; and in some cases, ravenously endorses the demise of what has essentially now become political dissidents falsely accused, intimidated, and jailed. While many Americans are attempting to scrape by in difficult times, they remain astute to the moral failure of the elites in power as well as the tacit elected opposition’s assiduous silence in whitewashing the legal duplicity. Historical trends over centuries of betraying the peasants eventually succumbs to a reckoning where the privileged corrupt politician and their corporate fascists will be exposed and held accountable in some fashion.
Americans are confounded by the coronavirus decrees requiring masks to be worn for thee and not for me double standards. The politicians hammer away at enforcing mask mandates on the common folk, yet they do not adhere to their own edicts while attending fine dining with their elite backers. Speaker of the House Nancy Pelosi, Californian Governor Gavin Newsome, and Chicago Mayor Lori Lightfoot all violated their own mask mandates in public venues while the masked servants waited on them.
President Biden was caught on video walking maskless through a swanky Washington restaurant in violation of the District’s laws on facial coverings, yet regular citizens are subject to civil penalties which result in fines of $1000.00 or revocation of licenses during the COVID-19 emergency. In defending the emperor, White House press secretary Jen Psaki said we should ‘not overly focus on moments in time that don’t reflect overarching policy.’ These double standard by the progressives are a far cry from Americans being punished and ostracized all over the country for not wearing a mask.
Identity politics has resulted in two systems of justice – one where BLM rioting and looting is described by the media as peaceful demonstrations and where assaulting police has no criminal consequences; yet the January 6th actions at the Capital has resulted in the largest round up of protesters ever seen in America. It is estimated that the Federal Government has upwards to 70 rioters/trespassers in solitary confinement and they are only let out in a larger area for one hour at 2 am due to COVID. Some of those being held in detention have been charged with trespassing on restricted grounds, others with assault and obstruction, and some haven’t been charged with anything. There are no bail hearings for these political activists yet BLM and Antifa rioters typically spend one night in the brig and let out the next day to rejoin the frontlines of carnage.
Senate Majority Leader Chuck Schumer has vocally pushed for the January 6th ‘insurrectionists’ to be added to the TSA no-fly list. Civil liberties are being trampled by exploiting insurrection fears with people in attendance no longer permitted to take a flight in their own country and they have not been convicted of a crime. This action by the government had previously only happened to suspect foreign terrorists, and now it is happening to Americans under suspicion. We see no similar actions taken against the militant Antifa anarchists who attacked and torched federal buildings in Portland.
Washington DC has essentially been abusing these inmates in captivity. There have been complaints on the nourishment of their fellow Americans where they are served white bread and a packet of tartar sauce. This is ultimately a violation of the 8th Amendment that prohibits the federal government from imposing excessive bail, nor cruel and unusual punishments, and from inflicting unduly harsh penalties. Some judges are expressing concern at the length of these pretrial incarcerations, however they’ve largely deferred to the Justice Department. Meanwhile anarchists who burn down buildings and shoot projectiles at police officers and federal buildings have charges dismissed. Justice is not equal.
One female trespasser was shot dead by police during the Capital unrest and there was no outcry or charges against the officer. She was white and a Trump supporter. Federal prosecutors are not seeking criminal charges against the police lieutenant whose single shot killed Ashli Babbit, the 14-year veteran who served four tours with the US Airforce. If the unarmed Babbit committed any crime, it would have been for trespassing, a misdemeanor that should have seen her arrested and not slain. The lieutenant’s life was not at risk nor was he saving the lives of others as he stood with numerous police officers in riot gear and strapped with submachine guns. If a member of BLM was shot dead by police during an unlawful riot, there would have been an immediate racial outcry from political elites and from across the news media for justice followed by looting local retailers and ransacking a police precinct. The action by BLM is considered righteous violence whereas the slain Babbit had it coming to her.
On a very disturbing and new level of injustice is the threatening actions being taken against parents of schoolchildren by the Department of Justice. Most Americans are familiar with the Patriot Act following 9-11 where the National Security Division conducts counterterrorism operations against foreign adversaries planning suicide bombings and stealing nuclear secrets. Now the Biden Administration, under Attorney General Merrick Garland, has turned the NSD’s crosshairs against everyday Americans conducting their civil duties and free speech as school board meetings.
Garland’s actions followed the National School Boards Association’s (NSBA) claim that American public schools and its education leaders are under immediate threats and intimidation as parents grow frustrated over the divisive neo-Marxist Critical Race Theory being injected into their children’s curricula. This is clearly an injustice to weaponize the DOJ and FBI investigators to intimidate and arrest parents under the same counterespionage to that of Al Qaeda and ISIS. Parents may be angry, but they are certainly not domestic terrorists in taking on the powerfully partisan school unions who somehow believe they are justified to influence civilization by indoctrinating their children.
Garland’s poster boy for his hideous partisan support of the NSBA is a Virginia father who was arrested at a school board meeting when he attempted to raise the alarm over his young daughter being raped in the school washroom. The father became the symbol of angry parents confronting school officials when he was taken down by several police officers and apprehended for disorderly conduct and resisting arrest. He became vocally upset when school officials denied the attack on his daughter, but he was not physically confrontational.
The father said it is scary that our government will weaponize themselves against parents and they’re using my video across the nation to spread fear; while the school officials did not seem to want to listen to him regarding his daughter being assaulted by a boy wearing a skirt who took advantage of transgender rules to access the girl’s washroom. The boy has now been charged with two counts of forcible sodomy, one count of anal sodomy, and one count of forcible fellatio related to the incident at that school. At a later date, the same boy was charged for a similar attack at neighboring school where he allegedly forced a victim into an empty classroom where he held her against her will and inappropriately touched her. Regardless of the raped daughter, Garland and the NSBA still have their video of the father being wrestled down to support the use of the FBI against parents and send a chilling effect on harmless dissent.
The Russian collusion narrative against then President Donald Trump may seem dated, however it can never be swept aside or forgotten in what may well have been the biggest political scandal and injustice to a man in American history. The country endured four years investigating Russian collusion into the legitimacy of Trump’s 2016 presidential win with senate and congressional impeachment hearings over a Clinton-paid-for fake dossier, the biased Obama hatchet men overseeing the FBI and CIA shirking the law, a frenzied media that never let up on Trump’s guilt, and a special counsel comprised of Clinton partisans that turned over every leaf that eventually found the nearly crucified Trump to be innocent of the false charges. The former president had to withstand an incessant blitzkrieg of injustice through his entire presidency while leading the most powerful country in the world.
On the hand, there is compelling evidence that President Joe Biden spent years while in government enriching himself through family ties, specifically his son Hunter, to the tune of millions of dollars in foreign money from China, Russia, and Ukraine. The foreign players simply used the unqualified son to leverage access to Biden while satisfying Hunter’s greed and questionable lifestyle. Biden has little to no ability to stand up to China or Russia knowing they are holding damaging transactions over his head. There have been no investigations into Biden’s quid-pro-quo against Ukraine or the transfer of tens of millions of dollars to Biden family members, no impeachments, and the news media buried these stories; including damaging information found on Hunter’s laptop during the 2020 presidential election. Had Trump and his sons engaged in these activities, there would have been a very different level of justice.
What of this injustice that is making its mark on history? If we take a moment to think through the confusion of the moment and see the morale issue involved, then one may refuse to have this sense of justice distorted to grip power rather than for the good of the country. Those who have sown this unjust wind may eventually reap a whirlwind that provokes reform by convulsion of the people instead of a natural order of business. We must all remember that democracy lies with the people of this land and whether the nation will be stirred to stand for justice and freedom in this hour of distress and go on to finish in a way worthy of its beginning.
Biden’s Department of Justice: parents as domestic terrorists
In recent developments in the United States, US Attorney General, Merrick Garland, and the FBI have put under the FBI radar parents as potential domestic terrorists. You heard it right. This is now a new formal legal policy contained in memos of the Department of Justice trying to reign in parents discussions on Biden’s new school curricula. They are not going after potential outbursts but outright terrorism.
This is an attack on freedom of speech in the sense that parents have the right to discuss and disagree with the new Biden school curricula. This is where the issue originated: parts of Biden’s new school curricula are not accepted by many parents and if they disagree, the FBI treats them now as potential domestic terrorists as a matter of policy. Apart from a First Amendment case, this is also a case for international human rights law and I reported the development to the UN Special Rapporteur on freedom of speech this week hoping to get a statement.
The Department of Justice is referring to some constitutional provision on “intimidation of views” to override and take down one of the most firmly established rights, the right to freedom of speech, in quite frankly a ridiculous interpretation. Those parents that dare to speak up against controversial parts in the new text books could be investigated for domestic terrorism. This is the most incompetent interpretation on limitations of freedom of speech I have seen in awhile.
Garland and the FBI have totally lost their marbles. The woke discussion is not funny to me anymore. It increasingly looks like a woke tyranny that has nothing to do with rights and equality anymore but simply serves as a vehicle to empower the FBI to run wild against regular people. This lunacy needs to be stopped.
Iran poll contains different messages for Biden and Raisi
“It’s the economy, stupid.” That is the message of a just-published survey of Iranian public opinion.
However, the substance of the message differs for newly elected hardline Iranian President Ebrahim Raisi and the Biden administration as Mr. Raisi toughens his negotiating position and the United States grapples with alternative ways of curbing the Islamic republic’s nuclear programme should the parties fail to agree on terms for the revival of the 2015 international agreement.
Iranians surveyed last month by Iran Poll and the University of Maryland’s Center for International and Security Studies were telling Mr. Raisi that they are looking to him to alleviate Iran’s economic and other problems and have little hope that a revived nuclear agreement will make the difference, given lack of trust in US and European compliance with any agreement reached.
The Iranians polled seemed in majority to endorse some form of Supreme Leader Ayatollah Ali Khamenei’s notion of a “resistance economy” as a way of blunting the impact of the US sanctions imposed by former President Donald J. Trump after he walked away from the nuclear agreement in 2018. Some 65 per cent of the responders said they favoured a self-sufficient economy; 54.2 per cent expected the economy to at least improve somewhat in the next three years.
A large number expressed confidence that Mr. Raisi would significantly lower inflation and unemployment, increase Iran’s trade with other countries, control the pandemic and root out corruption.
Meanwhile, 63 per cent suggested that Iran’s economic situation would be the same, if not better, if there were no return to the agreement and the government continued to pursue a civil nuclear programme. The figure seemed at odds with the 80 per cent who said Iran’s economic situation would improve if Iran and the United States returned to the agreement and both fulfilled their obligations under the deal.
The divergence may be a function of the fact that the poll, unsurprisingly, indicated that Iranians (64.7 per cent) had little trust in the United States living up to its commitments even though they expected the Biden administration to return to the deal (57.9 per cent). As a result, 73.1 per cent of those surveyed said Iran should not make concessions given that world powers would not live up to commitments they make in return.
At the same time, 63 per cent blamed the troubled state of the economy on domestic mismanagement rather than US sanctions. Only 34.4 per cent believed that the sanctions were the main cause of their economic difficulty. Iranians pointing the finger at the government rather than external forces was also reflected in the 60.5 per cent of those polled blaming Iran’s water shortages on mismanagement and bad policies.
The poll suggested that by emphasising domestic mismanagement, Iranians were going to judge Mr. Raisi on his success or failure in countering the debilitating effect of the sanctions even though 77.5 per cent of those surveyed said that the sanctions had a negative or somewhat negative impact on the economy.
Implicitly, Iranians were holding former Iranian President Hassan Rouhani responsible for the mismanagement given that Mr. Raisi only took office in August. Rated very favourable by 61.2 per cent of Iranians surveyed in 2015, Mr. Rouhani’s favorability dropped to 4.6 per cent in the most recent poll. By contrast, the favourable views of Mr. Raisi soared from 38.3 per cent in 2014 to 77 per cent last month. IranPoll and the Center have been conducting annual of surveys since 2014.
Mr. Raisi may have taken pleasure from that but more importantly, the poll implicitly suggested that he does not have much time to produce results before his significant public support starts to wane.
Of those polled, 66.7 per cent expected Mr. Raisi to improve Iran’s international standing, 55.7 per cent said he would be in a better position to negotiate with world powers, and 45.2 per cent predicted that he would enhance Iran’s security. Those expectations may have been to some degree validated in the public’s mind by last month’s acceptance of Iran’s application for membership in the Shanghai Cooperation Organization (SCO) that groups China, Russia, India, Pakistan and several Central Asian states.
The survey results seemed to suggest that ordinary Iranians were framing their message to the United States differently from the assessment of prominent scholars and analysts. The divergence may well be one primarily of timing but nonetheless has implications for policymaking in Washington. The message of the respondents to the poll was one of immediate impact while analysts and scholars appear to be looking at the middle term.
Without referring to the poll, Vienna-based economist and strategic consultant Bijan Khajehpour argued this week, seemingly contrary to the poll, that “mismanagement and the Covid-19 pandemic have both contributed to Iran’s poor economic performance in recent years, but it remains that US sanctions…will be the key factor in determining Iran’s future prospects.”
Mr. Khajehpour went on to say that “high inflation, capital flight and the erosion of household purchasing power alongside mismanagement of resources and the deterioration of the country’s infrastructure have the potential to spark more protests and further undermine the already faltering legitimacy of the Islamic Republic in the eyes of the public.”
No doubt, the jury is out on how Iranians respond if and when Mr. Raisi fails to live up to their expectations. If the past is any indication, Iranians have repeatedly taken to the streets at often substantial risk to liberty and life to make their discontent with government performance evident as they did with the low turnout in this year’s election that brought Mr. Raisi to power.
The risk of renewed protests was reflected in the fact that responses to various questions regarding the electoral system, the limited number of presidential candidates (because many were barred from running), and the public health system showed that it was often a slim majority at best that expressed confidence in the system.
Add to that the fact that 68 per cent of respondents to the poll said that the objectives of past protests had been a demand that officials pay greater attention to people’s problems.
Yet, at the same time, they were telling the United States that its efforts to generate pressure on Iranian leaders to moderate their nuclear and regional policies by imposing harsh sanctions had for now backfired. Iranians were backing a tougher negotiating position by the Raisi government.
Ultimately that could be a double-edged sword for Mr. Raisi. He has to prove that he can be tough on the United States and simultaneously improve the lives of ordinary Iranians. Failure to do so could have in Mr. Khajehpour’s words “unpredictable consequences.”
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