The horizon is not so far as we can see, but as far as we can imagine

Category: Latin and South America Page 1 of 3

America Psychopathy Continues To Stun (Cuba Edition)

So, as you probably know America is stopping all fuel from reaching Cuba. They’ll be out in days. Tomorrow the jet fuel runs out, so no more international flights.

But the real issue is that no fuel means no diesel tractors, no distribution of food, not enough refridgeration: in a word, famine.

This is deliberate US policy. Mexico has a sent a couple of ships full of food with a military escort, but that’s irrelevant: without fuel the food will not get where it needs to go and cannot be preserved. She doesn’t have the guts to send oil, which is understandable.

This is the problem with the fall of the USSR. No one these days has the balls, desire and ability to stand up to the US when it pulls shit like this. Russia’s busy and a lot weaker than it used to be, plus they’re basically just off-brand capitalists now, China doesn’t care and doesn’t have a navy with enough projection power yet, and the EU are spineless (that may be changing somewhat, but not fast enough.) Everyone else is too weak and too scared.

An international convoy system, with each convoy guarded by military ships from multiple countries might work, but I see no sign anyone is even talking about it, let alone organizing.

So Cubans will starve if Trump keeps this up and Cuba doesn’t capitulate and let America choose its government.

This is a direct result of Trump getting away with his naval blockade on Venezuela: in that case not letting them send oil out. No one did anything to stop America or to even impose a cost, so on to Cuba.

China could simply cut off all access to some key manufactured goods like magnets or any of hundreds of other goods where they’re the only supplier, including goods that the US has to have to make weapons. But this doesn’t really matter to them, so they aren’t. Or a coalition of other countries could all sanction the US at the same time, but again, no.

Perhaps your question is “why should they?”

I’m glad you asked, imaginary but helpful reader.

Because Trump started with Venezuela, then went to Cuba. Who will he go to next? There are four strategies for dealing with bullies:

  1. Join them and beat up their victims. (We’ll call this the NATO strategy.) If you help them, and kiss their ass enough, maybe they won’t attack you. Works surprisingly well, until it doesn’t. Ask Denmark about that. Or Canada. Or, well, the EU as a whole.
  2. Fight back. If you’re too weak, get together with your friends. Even if you lose, make them hurt. And you might win (Vietnam says “Hi! America still cringes every time they hear our name!”)
  3. Scurry like rats into corners and hope they don’t pick you as their next victim.
  4. Ignore them if you’re as strong or stronger than them. Bullies only attack those weaker than them. You aren’t. Who cares who they beat up as long as it isn’t you?

Most of the world is picking : “scurry like rats!” China isn’t, they’re picking “Who cares if they beat someone else up, they can’t do it to us!”

There’s a lot to be said for , as long as you’re sure you’ll never be weaker than the bully (a safe bet for China right now) and don’t give a damn about anybody but yourself.

But , “scurry like rats, hoping you aren’t the next victim” is stupid. Each successful victimization just whets the bully’s appetite and the more cowardice he sees, the more he pushes people around. Victims multiply.

Don’t want America, under Trump or another President to revisit the Greenland situation with an amphibious assault one fine morning?

Send those convoys to Cuba or find some other way to hurt America in general and Trump in specific. Not because you care about Cubans or, heck, human welfare. Gaza has revealed you don’t give a shit. But because you’re protecting yourself by protecting others, setting the precedent that the powerful can’t just pick you off one by one.

But that would require statesmen with guts, wouldn’t it?

Ain’t none of them in the EU with any power.

So I guess the Cubans will starve, just like the Palestinians, in a 100% manmade famine which the US either caused (Cuba) or which couldn’t have happened without American assistance (Palestine.)

Remember, the Athenians in the Melian dialogue were right “The powerful do what they will, the weak suffer what they must” but so were the Melians when they pointed out that with every atrocity the Athenians were alienating others, and that they, too, would suffer.

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Maduro Kidnapped

Didn’t expect this. Guess enough of the military wasn’t loyal or competent. Won’t work out well for the US in the longer run, but here we go again. Hell of a precedent to set. If I were Mexico’s President I’d be very worried. Hope she can trust enough of her military.

A lot will depend on if a new leader not approved by the US steps up, ideally a military man. Don’t know enough about Venezuela to have an opinion on this. Decapitation strikes don’t work on real movements (see Ansar-Allah.)

However, more likely a “unity government” will be announced, the US oil majors will be let back in and so on. It’ll be interesting to see if an insurgency springs up or not. If I were China (I’m not, and they tend to be more passive than I think is wise) I’d happily supply any insurgency that does happen.

Anyway, discuss here.

Update: US President #DonaldTrump said in a press conference that the US is going to “run #Venezuela.” Trump added that the #US will run the country until it decides a “safe, proper, and judicious” transition is in place. He said that the US does not want to be involved with “having somebody else get in and we have the same situation that we had for the last long period of years.”

Update 2: Could be that the kidnapping did nothing but replace Maduro with someone more competent. Alternatively Delcy, whom the US has acknowledged as head of state, lead the negotiations to sell out Maduro. We’ll see.

 

American Will Try To Maintain The Monroe Doctrine. Can It?

The Chief of Staff hints as much:

Chairman of the Joint Chiefs hints at military combat deployment “in our own neighborhood.” GEN. DAN CAINE: “ We haven’t had a lot of American combat power in our own neighborhood; I suspect that’s probably gonna change. We’ll see what we’re ordered to do.”

Venezuela is the current target, but there have been rumblings about Colombia, and you just know every slavering knuckle dragging neocon wants another crack at Cuba.

China gets a lot of resources from Latin America, and they want more. America regards Latin America as its backyard, the place where it has a right to overthrow governments at its whim, and where no other great power is allowed.

Obviously most South American countries not currently run by US aligned regimes aren’t too thrilled with the danger America constantly represents if they do anything the US doesn’t like. So they’ve been increasing their ties to China.

America is weakening. It’s falling behind China militarily, economically and technologically, and it will continue to do so. What it does still have, however, is far more military projection ability than China, and Latin America is nearby.

The US can’t offer Latin American nations as good an economic deal as China: America doesn’t need as much resources, its goods are more expensive, it charges more for loans and it no longer build bridges, ports, hospitals, railroads and so on.

Any sane Latin American country is going to want to move under China’s economic sphere, and most of them have. Even Argentina, an American lackey. (Milei talked big about cutting trade with China till he got in power, then he backed down fast.)

Worse, China has cheap effective drones and far better missiles than America, including anti-ship missiles. Plus air defense systems.

So the window for using military force to get friendly governments in charge of Latin American countries is closing. The longer the US waits, the harder it will be and before long it’ll be impossible. Bring those aircraft carriers close enough to be useful, start a war, and you’ll eventually lose one once China has finished arming its allies. (Plus Russia will happily sell as well, especially once the Ukraine war is over. Revenge is a dish best served cold and with a side of missile.)

This, it should be clear, is a desperation move. It is an attempt by a great power in serious decline to hold on to some remnants of its empire. It is part of a general move to try and tax vassals at a ferocious rate (that’s what the 5% of GDP on military goods is, a tax. Buy American weapons!) At the same time the US is trying to remove industry from its vassals and re-shore it. These efforts will succeed for a while and fail in the longer run, but they’re what the US has, since it can’t actually generate real growth (not fake GDP growth, but the real thing) itself any more.

In the medium run, the US will not be able to keep the Monroe doctrine running. The military advantage has just moved too much to new weapons which are cheap and effective at damaging the US military projection stack. If the US couldn’t even keep the sea lanes open against the Ansar Allah (the Houthis), when real countries, even developing ones, get their hands on enough Chinese and Russian missiles, drones and air defense, it’s all over.

Then, slowly, the Chinese will overthrow most of the puppet states, because they just have more resources and offer a better deal and will be seen as friendly. Countries near China may be scared of it, countries in Latin America know they’re far enough away that what it offers is a far better deal with far fewer chains than the US can, or ever did. (The same is true of Africa.)

This all falls under “Empires do not go quiet to that long night”. It could be very bloody. But the end is not in question. I doubt they’ll even hold on to Mexico. The way they’re going, America might eventually even lose control of Canada. Incompetence, greed and denial are powerful drugs, and America is high on all of them.

The long night approaches for the American Empire. Other than Europe and Japan’s comprador leaders, few will miss it.

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Development Politics in Central and South America

~by Sean Paul Kelley

Most of you probably know I lived in Nicaragua for a time—about six months—overseeing renovations to my father’s house, where he lives even now.

Me? I’m no fan of the country, nor its politics, nor do I romanticize the pervasive, grinding subsistence poverty in the countryside and sad, soul destroying poverty in the cities. About two dozen rapacious families guarantee Nicaragua’s place as second poorest nation in this hemisphere.

Nicaragua is not without its charms. I have a deep respect for the people of one of three nations in this hemisphere who, one, told the United States to fuck off and two, have largely succeed in keeping the US at arms length. The Spanish spoken in Nicaragua is, in two words, incomprehensibly unique. They distinguish between beans and rice and rice and beans. Seriously they make up two distinct dishes, although I can’t tell the difference. They eat some crazy vegetables—they have ten different varieties of squash, which I detest. But, they know how to cook meat in ways as diverse as barbecue, stew, seared and broiled. Chicken, pork, beef (no lamb or goats) and of course gallino de palo (tree-chickens AKA iguanas) make up the usual tasty fare.

Nicaragua’s best aspect is its untapped collection of perfectly sized waves, best on the Central American Pacific Coast by my estimation; waves for beginners and pros alike. There is only one monster, which I’ll get to in a moment. Sadly (or not) the changes in the political situation between 2015-2025 have scared off most surfers and they’ve migrated to Costa Rica, which has some sweet waves and parts of Guatemala that remain damned near empty. But, I digress.

One late morning, completely disgusted after persistently being thrashed by the waves breaking on the beach at Popoyo—the barrels collapsed so rapidly I was unable to get all but three drops (and no, I was not surfing the A-frame point break Popoyo is famous for, as a beginner I had no death wish I’ve seen too many boards munched on that wave) so I gave up, hopped in the car and began the two hour drive back to Granada.

After 30 minutes drive on a dirt road I turned north on Nicaragua’s stretch of the Pan-American Highway. No fan of Latin music (the radio was off) my mind wandered along the amazing scenery. Volcanoes rose. Small villages disappeared in a sneeze. The olive shades of Lake of Nicaragua were seemingly endless. Isla Ometepe, an island of twin volcanoes, shot up and passed by just as quickly. A few small attempts at agriculture grew to my left and right. All disappeared in blur or blink.

But time passes strange in a foreign land and stranger still on the road. I pulled over next to an anemic sugar cane field, cut a small stalk, sliced it into three pieces and returned to the car. As I shaved the outer layer off and bit into the heart of the cane, two thoughts, as if in quantum superposition, occupied my mind.

“Damn, this is sweet!” Mundane, indeed, but the other was the “a-ha” moment my brain had been silently working out for the last hour.

“Holy shit,” I mouthed silently, “Nicaragua is full of a whole lot of nothing.” Sure, up north in the mountains they grow some mid-grade coffee. Tobacco growth is accelerating also. Why in the current anti-tobacco global climate I don’t know? But it is. Cassava is a major crop, it’s like a potato but tastes like a brown paper bag on a good day. True hunger makes much palatable, I suppose. Plantains and bananas are grown of course. And there are a handful of other root-like plants and squash-like plants that grow there also. The country imports most of its rice, but grows a lot of beans/legumes.

Later I shared this realization with my father who was as surprised as I was by the realization. He agreed. Of course, Dad and I think alike in many ways—father and son, best friends, traveled in 50 plus nations together—so we quickly developed a shorthand for my “whole lot of nothing” observation, calling it ‘low hanging fruit’ syndrome, LHF for short.

LHF came to signify the lack of economic development and general lack of entrepreneurial spirit in Central America. Now, not every nation on the planet is going to be entrepreneurial. Laos is an excellent example—and please this is not a criticism of Laos and Laotians. When I was there they just seemed to have other priorities, like Buddhism. But Nicaraguan’s? The Pinoleros—the preferred demonym of the Nicaraguans and it has not one whit of the pejorative to it—are natural, gifted hustlers, practically pure bred entrepreneurs who are imbued with a naturally prepossessing work ethic and quite a bit of chutzpah. In short: they know when to engage, when to toss out a bit of bullshit. They can sell with the best Wall Street sharks—I’d know—and they know how to make and keep money.

“Why then,” you ask, “is Nicaragua, the largest nation in Central America, making no economic progress and going backwards instead?”

Great question!

There are two reasons for Nicaragua’s penury. First, 90% of Nicaraguans live west of the Pacific slope or in the interior highlands. This population occupies only 38% of Nicaragua’s landmass. The remaining 10% of Nicaraguans live on a narrow strip of the Caribbean Coast or the Corn Islands. Almost two thirds of the country—62%— is uninhabited. Not that I am advocating the rapine of all the pristine tropical forest of the Caribbean lowlands, but far to little of it is being developed and far too many people occupy a very crowded Pacific slope. What is the cause of this underdevelopment? The Pacific slope is littered with LHF and to travel through the Caribbean Lowlands to the coast takes two days on very, very bad roads. Until there is significant infrastructure development that opens the lowlands to development Nicaragua will remain mired in LHF poverty.

Hurdles aside, development politics in Central and South Americ are undergoing a seismic shift. That’s good news for the Pinoleros, money is pouring in. It’s bad news for the USA because the cash is coming from China. As is China’s policy, the money comes with no strings attached, unlike American money with its persistent moral litany of “Do this, don’t do that!”

“Do as we say, not as we do!”

This is not what the Nicaraguans hear from China. The only real demand the Chinese make is on the bigger infrastructure projects. Chinese builders design it, and Chinese build it, hiring few, if any local workers—usually because they don’t have the skills. The Chinese also pay for it, mostly, and don’t lecture. The US can’t compete—not after 150 years of terrible behavior in Latin America. The conclusion, the only conclusion, one can come to in Nicaragua and many other Latin American nations is that the USA is losing influence and power to China. Big time. And fast.

We have a sustained current account deficit with Nicaragua of $1.9 billion. That means we consistently import more from them than we export. China is the reverse. Much of that is due to FDI (foreign direct investment). This investment doesn’t benefit China solely. At present China is building a huge new airport that’s primary goal is to displace the Avianca Hub in San Salvador as the go to airport in Central America. China funded it to the tune of $499 million. It will possess two 4,000 meter runways, long enough and large enough to accommodate Airbus A380 and other wide body jets. The airport is intended to act as a non-stop hub to Europe, Asia and all of South America. Ground has been broken and the expected operational date is sometime in 2028.

The Chinese are also going to help build out the road network to the Caribbean Coast. This will create many new opportunities. Ortega, for all his faults, brought about some serious land reform at the beginning of his rule, so the Caribbean lowlands are now open to just about anyone who has the gumption to settle them.

The decline in American power is as palpable now as it was during the COVID epidemic. The moment COVID was politicized I could literally sense our decline, it was so obvious. Now, under Trump II, the decline is accelerating. Even in our own backyard.

The jury is still out on whether it is rapidly relative decline or real decline. I think it is the latter, only time will tell. Just not enough time for my taste.

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Follow Up and And Reply On My “How to Lose Allies” Post

First, I want to follow up on this: “I am due to have a conversation with a friend that lives in Denmark tomorrow and I’m going to ask him about energy prices.”

His reply, and I paraphrase as I did not record it or take notes: “if we still had to make our house payment, we would be totally screwed. The amount of money that we pay for energy now is about equal to what our house payment used to be. It’s about five times higher than it normally is, but what’s even worse is the high cost of energy filters out into everything in the Danish economy. A simple item like bread is three times higher than it used to be. Specialty items are three or four times higher than they used to be. Fish from fisherman that we go to the docks to buy from because we live on an island is four times more expensive because they’re paying four times more for the energy they’re using to go out and fish. It’s brutal and it’s all because the United States or somebody allied with it blew up the Nord stream pipeline. I try to keep my mouth shut about this because most people have drank the Kool-Aid, but I really hope Russia wins because I’m sick of all this global elite bullshit.”

These words were spoken by a well educated American married to a Dane with two teen-aged Danish children. If the Danish economy is suffering like this Germany must be fucked.

Where does Europe get its energy now? From the US, now exporting LNG (liquid natural gas) to Europe for 4x the price of Russian and Turkmen natural gas. Here is my question as a Texan: why haven’t natural gas prices risen in tandem with the export of the commodity? People I have asked who recieve natural gas royalties are pissed because there is no price increase pass through. So, owners of the wells are getting screwed and so are the buyers of the product. Welcome to Oligarchical America.

Next I want to address a handful of commenters in my post, best reprersented by Mark Level. He writes, in a very gracious and polite comment that he takes issue with my outline of American Grand Strategy. He notes, “This insane hobby-horse (or idee fixe, choose your metaphor) dates back far more than 120 years, probably 3x that long, and originates in British Colonial phobias about Russia and “the East” generally. Halford John Mackinder developed this lunacy & published it almost exactly 120 years ago, but it had a long pre-natal development among arrogant Imperial gits in Asia. (Gits and twits, upper-class British twits, like the Monty Python sketch.) See here, and the delightful childish fantasy of being Alexander Magnus from this Mackinder thought bubble . . . .

Please note, first and foremost, I used the word hostile power or hostile coalition. Hostile being the primary variable.

I’ve read Mackinder’s works. Anyone who has traveled across the Silk Road pretty much has to read them. His idea is not necessarily original. It’s more a fusion of ideas that came out of the late 18th century and 19th century Western European dominance of the world that began, as I previously mentioned, with the defeat of Venice in 1509,  Portugal’s conquest of a Spice Empire, and its desrtuction of the Ottoman Navy in the Indian Ocean, thus having no rivals, and of course Spain’s rapacious theft of New World gold and silver.

During the 17th and 18th century, a new idea developed with the growth of the British Navy, who outstripped the Dutch and pretty much took over their empire. New York City was, after all, New Amsterdam. What these developments presaged was an idea that centered around the ascendancy of the Littoral powers over the Continental Empires that had ruled Eurasia for millenia. Gunpowder, boats, better firearms, better steel and in the New World, devastating disease leading to genocide in many cases up and down North and South America. The Littoral is defined by strategistsas those land areas (and their adjacent areas and associated air space) that are susceptible to engagement and influence from the sea.” Thus the emphasis on a strong navy by Alfred Thayer Mahan who proved just how dominant Littoral Powers could be. For a time, that is, only for a time, as I see it.

Add to this ascendancy the wars of the Western European powers of the United Kingdom, Spain, France, and the Holy Roman Empire primarily fought during the 18th century for two strategic reasons, primarily by two very different nations with very different vital national interests at stake.

One, was the United Kingdom’s insistence that no power could dominate the Low Lands of the Netherlands and later Belgium because if they could, it would threaten an invasion of the British Isles, plus their massive exports of wool textiles, fueling the nascent industrial revolution. Smart, if ruthless policy.

Second, we must understand France‘s main goal during the wars of this time (and for several centruies prior) was to ensure a divided Germany. So long as the German states were littered into 100 different little principalities France had nothing to worry about. Thus France could go on dominating the continent. The first seismic change to this was the War of the Sixth Coalition which saw for the first time Russia flex its true potential when Russian troops occupied Paris. France’s cataclysm occured not in 1941 but in 1870 with her defeat in the Franco-Prussian war. The result of which was Prussia unifying all of Germany into one empire, adding insult to injury by having the Kaiser crowned in Versailles and taking Alsace Lorraine away as its prize.

Fuse those two strategies together and it is not too far an intellectual leap, considering the Great Game going on at the time between the UK and the Russian Empire, for Mackinder to conjure up his ideas. Were his ideas taken up by the United Kingdom? You bet, but by 1917 when it was clear that the United Kingdom could no longer maintain the balance of power in Europe and the United States had to intervene, (everyone should read AJP Taylor’s magnum opus, The Struggle For Mastery in Europe, to understand the balance of power and its collapse in 1917) US foreign policy intellectuals adopted it. And rightly so.

I think it’s the correct idea. But my reasons for thinking it’s the correct idea are not gonna make many of you happy. You might have to face some hard truths. Oh yeah, I did tell you I was a Realist in the old school manner of the word? In fact there have been a few times when Ian has chastened me pretty seriously for my realism. With that admisssion I will make another one: I don’t mind the criticism from Ian or from others. Ian is probably the smartest person I’ve ever met in my life and I listen to what he has to say. And when I say listen to him, I mean, I consider his words deeply. A man who cannot change his mind will never change anything. Nevertheless, I digress.

Here are my reasons for why I believe the prevention of a single hostile power or coalition of hostile powers from dominating the Eurasian landmass is smart policy. Please, if you take anything away from this sentence, take the meaning hostile. 

Number one: the Monroe Doctrine. Oh, I hear you screaming already. But the fact is that if this were not “our” hemisphere, not a one of us would have the standard of living we do today. Our hegemony of the Western Hemisphere is the primary foundation of our wealth and our power. You might not like it. I grimace frequently at the crimes we comitt to protect it. But, the Westphalian System is not built on justice. It is built on the acceptance of international anarchy. Each nation to its own. There is no single sovereign power governing planet Earth. Thus, violence is the supreme authority from which all other authority is derived. Is this a grim Hobbesian outlook? Yes. I don’t like it and I’m pretty sure you don’t either. But as a realist, I take the world as it is, not as I desire it to be. A hostile power or coalition of hostile powers that dominate Eurasia can take that hegemony away. You might not like it but trust me when I say you don’t want that to happen.

Second, a hostile power or coalition of hostile powers that dominate Eurasia can take more than our hegemony away, it/they can invade us. We don’t want that either. Thus we have a powerful navy that projects power to keep Eurasia divided–for the time being, because I think if we get into a war with China, their indirect way of war–read your Sun Tzu–will probably outwit us on the high seas. I’ve spent a great deal of time in China and have a healthy fear of their capabilities. However, my greatest fear is that in our arrogance we will engender the very hostility we must prevent and by our own devices bring about the doom we should seek to avoid. We have lost our edge, our generosity of spirit and our understanding of power. We have become a mean spirited, two-bit, cheap and vulgar people. And sadly, because so many of us are beaten down economically by rich elites who are delusional, we’re going to lose a big war in a painful way. A war that could be avoided, but probably won’t be. I hope I’m wrong, but don’t think I am.

That said, these very wise words, written by Robert D. Kaplan recently, convey the gravity of our present predicament, “There is no prediction. It is only through coming to terms with the past and vividly, realizing the present that we can have premonitions about the future.” Moreover, as a wise woman wrote about history, “the more I study history, the more I learn the art of prophecy.” Deeply contradictory statements, yet both true in their essence.

Are we any more perceptive now about what awaits our planet than were the Russians of 1917, or all of Europe in 1914, and, for that matter, the Germans of the 1920s and the early 30s?

Do we honestly think we know better than they did? With all of our gadgets and our technological triumphalism I bet you there are a handful of you out there that think we do know better than they did. I hate to disappoint you, but we don’t. History is the story of contingency and human agency, not inevtiablity.

So, there it is. Rip me to shreds if you wish. I’ve suffered enough Shakespearean arrows of outrageous fortune in my 54 years to handle it. In fact, I welcome your ideas and if you got this far I’m grateful for your time.

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Losing Our Asian Allies – And Fast

Ian in his last post mentioned that our Asian allies are slipping away from us. While we pretend to strategically re-orient the Japanese are engaging in massive rearmament begun by Abe and being continued by the current government. Japan has lost confidence in the American security umbrella because of the deceit we’ve displayed in foreign relations. The Koreans? I lived in Korea. They’re simply apoplectic. Some are even at the point where they are willing to consider a loose confederation with the north, an entente of sorts so the South has the protection of the North’s nuclear umbrella and the North gains goods and services from the South.

This is simply unheard of. When I talked to one of my former students who now works in the foreign ministry and he told me this I was gobsmacked.

Ian’s correct. For 400 years the balance of payments from the rest of the world went to the Littoral seapower states. For the last 50 years the balance of payments has been reversed.  All that gold is going back home. In one generation the United States has squandered all the goodwill and wealth it received during WWI and WWII. China in the last 50 years has lifted more people out of poverty than the rest of the world did during all of recorded history. Chew on that stat for a moment.

I will be visiting China and South Korea to do a 20 year retrospective tour and a 30 year retrospective tour on the former and the latter. I don’t know what to expect, but I remember China 20 years ago and being blown away.

The USA is in deep strategic shit. For 200+ years our power has been based on our complete hegemony of this hemisphere. For 75 of the last 100 years our main strategic goal has been the prevention of one power or an alliance of powers attaining hegemonic power over the Eurasian landmass. In the last six years we’ve abandoned that VITAL national interest for what? We’ve driven Russia into the arms of China. India lost all confidence in us. Now East Asia has.

If a single power or coalition of powers dominate the Eurasian landmass our two oceans will not protect us.

It appears I might have been wrong about the Israeli-Iran pissing contest being the opening act of WWIII. Good. What it really feels like is the first Balkan War in 1912. The calculus is being made in Beijing. And Tokyo. And Seoul. And Taipei. We lack the ability to protect our allies conventionally. And no one wants nukes.

I don’t have any smart quip to conclude with except a Spanish expletive, “la puebla es jodida.”

You get the idea.

Cuba’s Big Currency Mistake

So, there are some protests in Cuba. I don’t know how much they amount to; I’m no Cuba expert.

But I do know that Cuba made a huge mistake when they ended their dual currency system at the beginning of the year.

Dual currency systems designate one currency for purchasing internal goods and services, and another for external goods. Their purpose is to make sure that a country doesn’t spend more money on external goods than it is earning from exports of goods and services.

When there’s way more demand for foreign goods than there are export earnings, if you allow people to just buy whatever they want in a single currency system, your single currency collapses, leading to inflation or hyper-inflation.

There’s a reason Cuba ran a dual currency system before, and while getting rid of it allowed Cubans to buy more foreign goods to start, it has also contributed (along with Covid and US sanctions) to hyperinflation:

The result of dollarization, scarcity, and devaluation: Prices have skyrocketed and inflation will likely come in at a minimum of 500 percent, and as much as 900 percent this year, according to Pavel Vidal, a former Cuban central bank economist who teaches at Colombia’s Pontificia Universidad Javeriana Cali.

Hyper-inflation destroys regimes.

Cuba is caught in a trap; they don’t have enough of anything, including food. Their primary ally, Venezuela, can no longer help (also being caught in hyper-inflation). Letting Cubans buy directly in dollars and getting rid of caps on imports must have seemed like a way out.

But shortages are shortages: Moderate inflation helps ease them, hyper-inflation simply imposes them on a different group of people -— those who can’t get foreign currency, a.k.a., US dollars.

Were I advising Cuba, I would suggest going back to the dual currency regime. Long lines and evenly-distributed shortages are tolerated much better than hyper-inflation-induced shortages because they are far more fair and predictable.


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Bolivian Socialists Sweep To Power

Luis Arce is in power after a victory too large to pretend it didn’t happen. Last year, when the coup happened, I wasn’t sure if it was real or not, a call I got wrong (it was a coup). This is very good news. The election results were so clear that the coup leaders could not pretend otherwise, and a campaign of violence and intimidation, plus exile of Morales, failed. (Note that this is only barely a case of “democracy worked”, since a lot of people died, were beaten and so on fighting the coup.)

I will suggest that Bolivia will be best served by prosecuting those involved in the coup, and systematically (though carefully) expunging right wing ideologues from the military and the police so they are not willing, in the future, to back coups. As long as military and paramilitary forces are right wing, the country will always be ripe for coups and outside interference.

It is, nonetheless, an excellent sign that no attempt to retain power thru further force was used after all the intimidation failed.

I note, also, that the coup leaders were essentially fascist Christians. A warning for other nations.


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