By John Rubino – Re-Blogged From Dollar Collapse
About a year ago, Argentina – which has inflated away and/or defaulted on its currency every few decades for the past century – issued 100-year government bonds. And the issue was oversubscribed, with yield-crazed developed-world institutions throwing money at the prospect of a lifetime of 7% coupon payments.
A contemporaneous media account of the deal:
Argentina sees strong demand for surprise 100-year bond
By John Rubino – Re-Blogged From Dollar Collapse
In interviews, whenever I try to make the case that US policies are leading to the kinds of currency disruptions common in developing countries, I say something like, “For a glimpse of America’s future, take a look at Argentina, where they’re eating cats and dogs because of hyperinflation … wait, no, I meant Venezuela.”
Mixing up countries kind of dilutes the power of the statement, but for some reason I can’t seem to help it.
Re-Blogged From Stratfor
Analysis Highlights
South America is a strong base of operations for the Lebanese militant group Hezbollah, which has had a presence in the continent dating back to the 1980s. The group established finance and logistical networks, which it used to facilitate two bombings in Argentina in the 1990s. The first bombing in 1992 targeted the Israeli Embassy in Buenos Aires, killing 29 people and injuring 242 more. A second bombing in 1994 targeted the Asociacion Mutual Israelita Argentina (AMIA), a Jewish community center in Buenos Aires, killing 85 and injured over 300. Since then, Hezbollah has shifted its operational focus from terror attacks to criminal activity to raise money, entering South America’s lucrative drug-trafficking business and dealing primarily with cocaine and heroin. Previously, we explored what Hezbollah now does in South America, and where it does it. Here, we will explore the threat Hezbollah poses to businesses in South America.
(Stratfor)
By Mark Svoboda – Re-Blogged From International Man
Over the course of the last several months, we’ve followed the journeys of Mark Svoboda as he’s traveled from Singapore to Tanzania, Malaysia to Colombia. Today Mark stops off in Paraguay, where he and his wife traveled to start their residency process…
In April of 2012, my wife and I traveled to Paraguay to start our residency process in the so-called “heart of America.” Our hope is to eventually receive a citizenship in the country without actively residing there. Since I suspect many International Man readers are, like me, interested in 1) obtaining Paraguayan residency in hopes of eventually receiving a citizenship, and 2) buying some of that cheap productive land, I thought it was high time I report on the country.
By Nick Giambruno – Re-Blogged From International Man
Doug Casey, Jeff Thomas, and Nick Giambruno recently discussed a topic they all think about often—pulling the trigger and leaving your home country to sit out an economic or political crisis.
Nick Giambruno: It seems like each week there’s a new attack or mass shooting. Racial tensions are on the rise. Europe is experiencing a migrant crisis that’s tearing the continent apart.
There’s no doubt the world has become a crazier place in the past couple of years. Unfortunately, I think it’s only going to get worse.
At what point do you decide that conditions at home are likely to worsen and set up an escape route with the intention of moving to another country?
By Doug Casey – Re-Blogged From International Man
Editor’s Note: Brazil is in crisis once again.
This time, Brazil’s president, Michel Temer, has been accused of corruption, bribery, and obstruction of justice.
When news of this scandal broke, it triggered a huge selloff in Brazilian stocks. The iShares MSCI Brazil Capped ETF (EWZ), which tracks Brazil’s stock market, plummeted 18% in one day. It was the fund’s worst day since the 2008 financial crisis.
Most investors now want nothing to do with Brazilian stocks. But we’re not like most investors. We understand crises can actually lead to huge moneymaking opportunities.
The last two years have been hard on Argentina and Brazil. A sweeping corruption investigation and the impeachment of President Dilma Rousseff have sent Brazil’s currency tumbling. The country’s economy contracted by 3.8 percent in 2015 and by another 3.6 percent the following year. The Argentine peso, meanwhile, fell 40 percent against the U.S. dollar after the government lifted currency controls in late 2015. But for foreign investors, the two South American nations’ economic hardship presents an opportunity. The depreciated currencies in both countries, combined with their governments’ need for investment, has enabled Chinese companies to buy up cheap assets and launch major infrastructure projects in Argentina and Brazil alike. The electricity sector in particular has been a focus of their activities.
