South American Economics/China-Latin American Relations Thread

luminary

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This has been ongoing for 40 years in Argentina-the hyperinflation.

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I’d postulate that Argentinians have lost their life savings about 4 times before 2001.
  1. 1983 and before: Peso
  2. 1983-85: Peso Argentino (10,000 old Pesos = 1 Peso Argentino)
  3. 1985-91: Austral (1,000 Peso Argentino = 1 Austral)
  4. 1992 and since: Peso Convertible (10,000 Austral – 1 Peso Convertible)
 

luminary

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The Intercidades line will connect the metropolitan regions of São Paulo, Jundiaí and Campinas, using 15 trains.

The contract also includes the construction of a 44km inter-metropolitan train line (TIM), which will have five stations: Jundiaí, Louveira, Vinhedo, Valinhos and Campinas.

Construction of Trem Intercidades is expected to be completed in 2031, while TIM is likely to be finished in 2029.
“The success of this auction can stimulate other passenger train projects to connect different cities," Joubert Flores, president of Brazilian passenger transport association
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, told BNamericas.
 

luminary

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We will see if Mexico bends the knee

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“Both the USMCA and this ruling issued by the trade dispute panel are designed primarily to protect the interests of transnational corporations.”

As we
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would happen a few weeks ago, Mexico has lost the dispute settlement panel brought by the US and Canada over its attempt to ban imports of genetically modified corn for direct human consumption. On Friday (December 20), the arbitration panel ruled in favour of the United States, asserting that Mexico’s 2023 decree banning the use of genetically modified (GM) white corn for human consumption violated the terms of the trade agreement.


It wasn’t even a close run thing: the panel’s three judges agreed with the US on all seven counts in the case. The panel has given Mexico 45 days to realign its policies with the ruling. Failure to do so could result in stiff penalties, including sanctions.

As we’ve
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, this case may be an important battle for Big Ag lobbies and biotech companies but it is an existential one for Mexico, for whom corn is the cornerstone not only of its cuisine and diet but also its culture.
 

Serb

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I recommend watching this video to get a better idea of why Latin America is now much more comfortable defying the US nowadays.

It’s pretty simple - when they deal with the US, they get imperialism. When they deal with China, they get modern factories, railroads, ports, and actual infrastructure.

For decades, when Latin America was left to the US’s devices, it went nowhere. But with China’s win-win cooperation, the region is finally rising together.

Yeah, the US might still have higher total FDI, but most of it is low-value service sector investment - call centers, McDonald's, Starbucks, Walmart, banking, and financial services.

Basically, the same low-value-added nonsense that also defines much of the US economy. Nothing transformative.

Meanwhile, China is offering high-value-added manufacturing, which has massive positive ripple effects on economic activity.

And even if we leave manufacturing out of the equation, just think about how important cheap, high-quality civil infrastructure is for any economy to grow.

The US simply can't offer any of that. That’s why its nominal GDP is useless for projecting economic influence - because it doesn’t translate into anything tangible for other countries.

And it’s not just basic infrastructure either - China also leads in high-tech digital infrastructure like 5G, data centers, and renewable energy.

And let’s not forget - China doesn’t just extract raw resources. It builds local processing plants and even full-fledged EV factories.

Also, as China's standards of living rise, it will also be able to afford more and more agricultural imports from Latin America too.

If an emperor (the US) only uses the stick but fails to bring any real benefits, his rule won’t last - eventually, the people will overthrow him.

Domination alone isn’t enough; there has to be an incentive to stay under his influence.

The Monroe Doctrine is dead because the US can no longer offer Latin America anything of value.

It can only offer destabilization and lectures about problems like mass immigration and drugs that they helped create in the first place.

Without economic benefits, loyalty disappears, and alternatives - like China - become far more attractive as we are currently witnessing.

More and more leftist governments are rising in the region precisely because of this shift - the US no longer holds the same grip it once did. And what does it still fully control?

Ecuador, Paraguay, and a few other small players? Compare that to a decade ago, when US influence was far stronger. The tide has turned.
 
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