Jack's South America
South America has been a special part of my life for four decades. I have lived many years in Brasil and Peru. I am married to an incredible lady from Argentina. I want to share South America with you.
Tuesday, April 1, 2025
Peru:A Massive Crime Rate Is Bringing The Country To Its knees
Home Alone: Rule By Might Brings Peru to its Knees
Peru
On March 16, renowned Peruvian singer Paul Flores was shot to death by hitmen who attacked a bus he was on with his Armonia 10 group bandmates after a concert outside the capital of Lima.
The musicians had been threatened by a criminal gang who had attempted to extort them for money.
That’s not uncommon anymore, however – extortion and murder are now an everyday occurrence in Peru.
“We’ve been abandoned and left to fend for ourselves,” local resident Pedro Quispe, 48, of Lima, told the Associated Press. “If you get on a bus, you can get shot; if you go to work, you can get asked for extortion payments.”
Between 2019 and 2024, reported extortions increased sixfold to almost 23,000 incidents. In 2025, one out of every three Peruvians said they knew someone who had been extorted. Homicides, meanwhile, have doubled since 2019 to almost 2,000 in the country of 34 million. In 2025, more than 75 percent of Peruvians reported being scared to leave home.
And yet, for years, the government downplayed the situation, say observers.
“Well, homicides aren’t a simple problem, and they’re not unique to this country,” said Peru’s health minister César Vásquez in January. “Violence has increased dramatically around the world, and other nearby countries are much worse off.”
Still, soon after Flores’ murder, the Peruvian government declared a state of emergency in Lima and sent soldiers onto the streets. Protests broke out soon after with Peruvians outraged over the killing of the Cumbia musician and also the government’s inability to stop the crime wave that is bringing Peru to its knees.
As a result, in a country that has grappled for years with deep political and economic instability, it’s the crime wave that has now become the top priority for voters, according to recent polls. Many are calling for a strongman leader, such as President Nayib Bukele of El Salvador, who has filled prisons with thousands of suspected gang members to stop the criminal gangs but has also repeatedly violated civil rights to bring order to the streets.
The government of deeply unpopular President Dina Boluarte – her approval ratings are around 5 percent, while Congress’ is at 4 percent – has moved to institute states of emergency – three in the past year – which allow the government to use the military for civilian purposes and suspend civil liberties, for example making arrests without a warrant.
The government says they have dismantled more than 60 criminal gangs. Meanwhile, in March, lawmakers designated the Venezuelan gang Tren de Aragua as a terrorist organization.
Yet the murders and violence continue, wrote Bloomberg.
The northern city of Trujillo is known for its economic ties to organized crime and illegal gold mining and is a good example of how out of control the situation is, say analysts.
Trujillo has been under a state of emergency for months due to high levels of criminal activity. One reason for that is that organized crime gangs are cashing in on a boom in illegal mining supported by high gold prices.
Protests have been breaking out since last year over a rise in extortion demands there. Then, in January, the prosecutor’s office was bombed as it was investigating cases against organized criminals.
Still, analysts say that if Peru doesn’t do more to address the obstacles in stamping out the crime wave, it won’t be able to halt the slide into gang totalitarianism. Meanwhile, Boluarte’s announcement of fresh elections next year won’t stop that slide, they add, without addressing corruption and collusion by politicians.
“In 2024, the Peruvian Congress passed laws and adopted other decisions that undermined judicial independence, weakened democratic institutions, and hindered investigations into organized crime, corruption, and human rights violations,” wrote Human Rights Watch. “President Dina Boluarte made little or no effort to stop these congressional attacks against democracy and the rule of law, and her administration also pursued policies that contributed to the erosion of democratic norms and civil rights. These included efforts to suppress protests and a growing disregard for judicial independence.”
Last year, Boluarte herself came under investigation for corruption and bribery: She allegedly received illegal contributions to her political campaign and failed to declare the many Rolexes and other expensive watches and jewelry she sports – some of which were allegedly on loan from a provincial governor – in a scandal known as “Rolexgate.” Meanwhile, more than half of all 130 members of Congress were also under criminal investigation for corruption and other offenses, local media reported.
As officials come under investigation, they have also acted to blunt investigation tools necessary by police and prosecutors that are also being used against themselves, say observers. For example, the legislature passed a law in 2024 narrowing the definition of “organized crime,” hindering investigations into corruption and extortion while weakening the Attorney General’s office in a move the Lima Bar Association called “a setback” in the fight against organized crime.
Also, the president vetoed a bill in 2024 that would have made it easier to detain suspected criminals.
Still, Peruvian analyst Martin Cassinelli of the Atlantic Council warned that a crackdown on crime or a change in government might not be the panaceas that voters hope for unless there is institutional change along with them. After all, Peru has had six presidents in seven years, some of them currently jailed.
For example, he said Peru might soon fall into the same trap it did in 2021 – when angry voters elected populist Pedro Castillo as president and then, afterward, as public corruption ran rampant, the president tried to undermine democracy with an unsuccessful “self-coup,” for which he was later impeached and imprisoned.
“Yet, while authorities focus on crackdowns against violent crime, they risk ignoring the deeper cause of the crisis: a decade of institutional decay marked by jailed presidents and pervasive corruption,” he wrote, “(and) any real solution must also tackle crime’s institutional roots. Candidates (for office) should promote a comprehensive political reform that reduces organized crime’s influence in the country’s political bodies.”
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Sunday, March 30, 2025
Friday, March 28, 2025
El Salvador 2,400 Years Ago
A Bigger Role
A set of 2,400-year-old ceramic puppets discovered on top of a pyramid in El Salvador is reshaping how archeologists view the region’s ancient past.
In 2022, archeologists unearthed five rare figurines at the San Isidro site in what is now western El Salvador, dating from around 400 BCE.
The ceramic figures – four women and one man – are believed to have played a central role in ritual performances, possibly reenacting “readily decodable events, mythical or real,” the researchers explained in their new study.
“This finding is only the second such a group found in situ, and the first to feature a male figure,” lead author Jan Szymański, an archeologist at the University of Warsaw, said in a statement.
Three of the puppets – measuring nearly one foot tall – have articulated heads and expressive faces that seem to shift with the viewer’s perspective.
“Seen from above they appear almost grinning, but when looked at from the level angle they turn angry or disdainful, to become scared when seen from below,” Szymański explained. “This is a conscious design, perhaps meant to enhance the gamut of ritual performances the puppets could have been used in.”
Though first assumed to be grave goods, the absence of human remains and the placement of the figurines atop a prominent pyramid led researchers to believe they were meant for public rituals. The researchers also recovered other figurine fragments, including parts that may depict a birth scene.
They explained that these puppets closely resemble others found in Guatemala and are accompanied by jade pendants typical of cultures in Nicaragua, Costa Rica, and Panama – suggesting that the site’s elites were part of a wider cultural and trade network.
Once believed to be culturally isolated, El Salvador was long considered a peripheral player in ancient Central America because of its volatile geography and limited archaeological record.
Volcanic eruptions, such as the catastrophic Ilopango blast around 400 CE, buried many ancient settlements and erased much of their artifacts. Large-scale excavations have also been difficult because of the region’s high population density today, according to Live Science.
However, the recent discoveries challenge those assumptions and hint that El Salvador may have been far more connected to its Central American neighbors than previously thought.
“This discovery contradicts the prevailing notion about El Salvador’s cultural backwardness or isolation in ancient times,” added Szymański. “It reveals the existence of vibrant and far-reaching communities capable of exchanging ideas with remarkably distant places.”
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Thursday, March 20, 2025
Uruguay: One Of the Most Underrated Countries In the World
DESTINATIONS CENTRAL AND SOUTH AMERICA
Anthony Bourdain Called This One Country The Most Underrated In The World
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BY SHELBY WILKERSONMARCH 20, 2025 8:00 AM EST
The late Anthony Bourdain was more than a former television host with a keen sense of storytelling — he was a renowned culinary giant who undoubtedly revamped how people experience travel and food. A former executive chef turned host and author, his shows like "No Reservations" and "Parts Unknown" took watchers off the beaten paths, blending grungy locations with an inclination for the underdog and the hole-in-the-wall. His palate was impressive, his curiosity endless, and his ability to find these hidden gems made him a travel oracle. When asked by National Geographic about the most underrated travel destination he'd visited, he resoundingly answered Uruguay.
Located on South America's southeastern coast, Uruguay is the continent's second-smallest nation, and is often left in the shadows by the elevated pulse of well-known neighbors like Brazil and Argentina. Bourdain loved it for its authentic and unassuming energy, it's laidback soul, stunning beaches, and fabulous food. He raved about the national sandwich, the chivito. He wondered how such a place could remain this undiscovered, mostly known to the savvy Argentinians popping over for their vacations. With nearly half its 3.4 million people packed into the capital, Montevideo, Uruguay feels like a cozy, undiscovered treasure.
Getting there is easy, with the main port of entrance through Carrasco's International Airport in Montevideo, a travel hub promising to "bring Uruguay closer to the world." Many visitors opt to go during their summer season, October through March, when the sun offers long days, the beaches beckon, and the national Carnival reigns king. It's peak season, but worth it for the warmest days offering endless time to explore and acquaint oneself with the myriad adventures.
Uruguay's beaches steal the show
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Uruguay's coastline stretches about 410 miles along the gorgeous Atlantic Ocean, a golden strip of sand and surf beckoning sun-worshippers (Anthony Bourdain described them to National Geographic as "incredible"). From the stylish villages and resorts to the boho hideaways, there is a spot for every traveler. Punta del Este, also called "The Pearl of the Atlantic," is known as the crown jewel of Uruguay's coastline. Think South America's counter to the French Riviera. With its peninsula protruding into the ocean, it provides wonderful surfing, water sports, beach access, and a nightlife reverberating with glitz. The iconic La Mano sculpture, it's massive fingers reaching up from the sand, is an absolute must-see, while restaurants, art galleries, and fashionable shops line the streets waiting to be discovered.
For a more relaxed vibe, head to Jose Ignacio or La Barra, where barefoot vibes and serenity reign. These spots trade flash for soul —think horseback riding and sunsets that easily melt into the sea. Near to Montevideo, The Rambla stretches almost 13 miles, offering beaches like Playa de los Pocitos, a bustling enclave just minutes from downtown offers a beautiful stretch of golden sand, or check out Playa Carrasco where century-old mansions provide a beautiful architectural backdrop and a nod to the past.
For solitude, Playa de la Aguada delivers quiet wave breaks perfect for surfing, while Laguna de Rocha, not a beach but a UNESCO Biosphere Reserve, delights visitors with opportunities to see bright pink flamingos and birdwatching bliss. It's no wonder Bourdain saw this place as a sleeper hit — a true travel bucket list destination.
Uruguay has a food scene worth savoring
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Uruguay's culinary scene talks the talk and walks the walk — it's carved into its history, community, and lifestyle. The Fray Bentos Industrial Landscape, a UNESCO World Heritage site known as "the greatest kitchen of the world," revolutionizes meat processing while exporting over 200 products globally. This beef legacy lives on in the country, as grasslands cover about 80%, feeding cattle and animals that end up in popular dishes such as chivito. Bourdain called chivito the "the Mount Everest of sandwiches," stacked with beef, ham, bacon, egg, cheese, and more, often served atop a bed of french fries. It's a carnivore's dream, and a national icon.
Then there is asado, the Uruguayan barbecue that's both meal and ritual. Slabs of beef, goat, or pork sizzling over an open, wood-fired flam, a smoky celebration of the country's community and pride. Vegetarians might struggle, but meat lovers will be in heaven. For dessert, dulce de leche reigns supreme, a rich and creamy caramelized sauce created by slowly cooking down sweet and condensed milk. Visitors will find this in many deserts, like flan, churros, or alfajores, shortbread cookies sandwiched by the rich and creamy gold. Pionono, a rolled sponge cake, and a sweet medialunas for breakfast round out the sugar rush.
Uruguay is unapologetically simple, hearty, and steeped in history. The UNESCO nod to Fray Bentos provides the perfect punctuation: a food culture born from innovation and tradition, still thriving today. From beachside carnival feasts, Uruguay's table is set for adventure and delight. Go taste it for yourself to see why Bourdain called it a beautiful destination for your next South American beach vacation.
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DESTINATIONS
The 29 Most Beautiful Temples In The World
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BY SYJIL ASHRAFAPRIL 29, 2020 2:30 PM EST
Both places of worship and architectural marvels, these grand temples around the world are an amazing sight.
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1. Lotus Temple (New Delhi)
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The lotus is sacred in many religions, including the Bahá'í faith, and as a floral symbol, it generally signifies enlightenment, rebirth, and purity. The Bahá'í House of Worship in New Delhi, popularly known as the Lotus Temple, takes on the shape of one to symbolize the unity of mankind, key to the faith.
2. Wat Rong Khun (Chiang Rai, Thailand)
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Wat Rong Khun is an undiscovered wonder of Thailand. Its distinctive design is in the Thai Buddhist style, and its pristine and white appearance seems to almost sparkle.
3. Temple Mount (Jerusalem)
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Jerusalem is an important city in Christianity, Islam, and Judaism, and the Temple Mount is a significant place to all three religions. In addition to being the holiest site in Judaism, which dictates it as the site where Abraham offered up his son as sacrifice, it is also the third holiest site for Muslims, with the iconic Dome of the Rock and Al-Aqsa Mosque having been built here.
4. Kotoku-In (Kamakura, Japan)
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Kotoku-In is a Buddhist temple famous for being the home of the Great Buddha of Kamakura, the largest outdoor Buddha in Japan. Azaleas color the scenery during the blooming season, and the temple is surrounded by beautiful gardens as well.
5. Byodo-In Temple (Kaneohe, Hawaii)
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A lesser-known spot in Hawaii, the Byodo-In Temple is situated at the base of the Ko'olau Mountains of Oahu. The non-practicing Buddhist temple, which welcomes people of all faiths for worship, is surrounded by meditation spots, waterfalls, and a reflection pond — it even has some wandering wild peacocks.
6. Golden Temple (Amritsar, India)
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India's Sri Harminder Sahib, or Golden Temple, in Amritsar is one of the most sacred pilgrimage spots in Sikhism and gets its name due to the fact that it's built with 400 kilograms of gold leaf. The temple puts great emphasis on acts of kindness, notably feeding about 20,000 people for free every day and up to 100,000 for special occasions.
7. Temple of Heaven (Beijing)
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The Temple of Heaven in Beijing has a complex consisting of 92 buildings with 600 rooms. Two main sites are the Imperial Vault of Heaven and the Circular Mound, which is open to the heavens.
8. Temple of Confucius (Qufu, China)
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The Temple of Confucius is also a historical mansion that is the family home and resting place of the legendary philosopher and politician. In addition to the tomb of Confucius, the remains of more than 100,000 descendants are at the complex's cemetery.
9. Gawdawpalin Temple (Bagan, Myanmar)
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About 2,000 monuments and pagodas lie in the Bagan plains of Myanmar, including Gawdawpalin Temple. Towering above lush green trees, the russet tones of the temple match those around it in a mesmerizing sight.
10. Borobudur (Java, Indonesia)
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The Indonesian island of Java is an underrated spot that's home to the largest Buddhist temple in the world. The Borobudur temple, which was built in the eighth and ninth centuries, has a main three-tiered stupa surrounded by 72 other stupas, each containing a statue of the Buddha.
11. Shwedagon Pagoda (Yangon, Myanmar)
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Said to house multiple holy Buddhist relics, including strands of hair from the Buddha himself, Shwedagon Pagoda is a 2,500-year-old temple in what is now the coastal city of Yangon in present-day Myanmar. It was built using hundreds of gold plates and 4,531 diamonds encrusted into the top of its stupa.
12. Angkor Wat (Siem Reap, Cambodia)
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The temple of Angkor Wat is one of the largest religious structures in the world, originally built in the 12th century as a Hindu temple before being converted for Buddhist use. Marveling at this architectural achievement and its surrounding complex is a bucket-list experience for every American.
13. Temple Emanu-El (New York)
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New York City has plenty of sights, but you may not know about Temple Emanu-El. The new synagogue was designed in the Romanesque-revival style by Jewish architects and continues to be an important site in Reform Judaism.
14. Paro Taktsang (Upper Paro Valley, Bhutan)
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The South Asian nation of Bhutan's most iconic spot is the Taktsang Palphug Monastery, better known as Paro Taktsang. Situated on a cliff more than 10,000 feet above sea level, the temple complex is a breathtaking sight surrounded by majestic mountains and lush green valleys.
15. Mahabodhi Temple (Bodh Gaya, India)
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One of the first Buddhist temples built from brick that is still standing, the Mahabodhi Temple is an impressive 164 feet tall. One of the four main holy sites related to the life of the Buddha, the temple complex was established in the third century B.C. on the site where it is said he first achieved enlightenment.
16. Swaminarayan Akshardham (New Delhi)
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More than 8,000 volunteers from around the world helped build the Hindu temple Swaminarayan Akshardham in New Delhi, taking more than 300 million volunteer hours. This stunning work of architecture in the capital of India was made with marble and sandstone and is surrounded by lovely gardens and a courtyard.
17. Shri Swaminarayan Mandir (Robbinsville, New Jersey)
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Consecrated in 2014, the Shri Swaminarayan Mandir is a Hindu temple in Central New Jersey and is made entirely of Italian Carrara marble. The intricate carvings of the temple are one of the most breathtaking sights in America and include 13,499 individual carved stone pieces.
18. Wat Benchamabophit (Bangkok)
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A landmark of the renowned city of Bangkok, Wat Benchamabophit — often known to foreigners as the Marble Temple — is an excellent example of traditional Thai architecture. The Buddhist temple was built using imported Italian marble and is notable for its striking golden and red roof.
19. Nan Hua Temple (Bronkhorstspruit, South Africa)
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The largest Buddhist temple in Africa, Nan Hua Temple is also a seminary that draws in students eager to learn from all over the continent. Influenced by the architecture of eastern Asian temples, the building of Nan Hua Temple was supported by the significant Taiwanese community in South Africa.
20. Kashi Vishwanath Temple (Varanasi, India)
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Kashi Vishwanath Temple lies on the banks of the Ganges River where thousands of pilgrims come every year for a ritual bath. Located in Varanasi, one of the oldest cities in the world, the temple was built in the 18th century.
21. Pura Taman Ayun (Bali, Indonesia)
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Located in Bali, a paradisiacal island where it's always summer, Pura Taman Ayun dates back to 1634. Built in the traditional Balinese style, the temple grounds have a fountain area and lotus pond, as well as gardens.
22. The Grand Palace (Bangkok)
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Built in the late 18th century, Wat Phra Si Rattana Satsadaram is the royal chapel of the Grand Palace of Bangkok. The perfect spot for some self-care in the form of meditation or worship, it's also known as the Temple of the Emerald Buddha due to the elaborately emerald Buddha sitting on a golden throne inside.
23. Meenakshi Amman Temple (Madurai, India)
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The Meenakshi Amman Temple in southern India is striking due to the rainbow of colors used to paint the figurines that cover the exterior of the Hindu temple. The temple was rebuilt in the 16th and 17th centuries after being destroyed along with much of the city in 1310.
24. Kinkaku-ji Temple (Kyoto, Japan)
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Kyoto is known for its gorgeous cherry blossoms and temples, and the Kinkaku-ji Temple —also known as the Golden Pavilion — is particularly lovely and iconic. Covered in gold leaf and home to sacred relics, the temple also has a garden and a teahouse on its grounds.
25. Cao Dai Temple (Tay Ninh, Vietnam)
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There are numerous temples in Vietnam dedicated to the Cao Dai religion, a widely encompassing religion that reveres figures from many religions and historic periods, including the Buddha, Jesus Christ, Muhammad, Joan of Arc and Julius Caesar. Perhaps most impressive among them is the Cao Dai temple in Tay Ninh, which has bright yellow towers and red roofing that makes it stand out.
26. Bahá'í House of Worship (Wilmette, Illinois)
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Located about 16 miles outside of Chicago, the Bahá'í House of Worship is stunningly white both inside and out thanks to a combination of white Portland cement and quartz. Its nine gardens are also considered worship spaces, some including the pretty waters of a reflecting pool.
27. Seiganto-ji Temple (Wakayama, Japan)
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A bright red temple with soft green roofs on its three tiers, the Seiganto-Ji Temple is a postcard-worthy sight. It stands against a backdrop of intense greenery and the beautiful waterfall known as Nachi Falls.
28. Salt Lake Temple (Salt Lake City)
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The iconic Salt Lake Temple is currently under renovation, yet is impressive all the same. Built in the Gothic style, the impressive temple of the Church of Jesus Christ of Latter-day Saints is located in Salt Lake City's Temple Square, the most visited place in Utah.
29. Batu Caves (Selangor, Malaysia)
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Located just north of the Malaysian capital of Kuala Lumpur, the Batu Caves have three main caves on site, accessed using a 272-step flight of stairs up a limestone outcropping. Several temples can be found within the largest cave, the Temple Cave, at the top of the steps. At the bottom of the steps lies the gigantic statue of the Hindu deity Murugan, making it one of the most awe-inspiring places of worship in the world.
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Friday, March 14, 2025
Soccer Solidarity: Fans Join Grannies Protesting Low Pensions In Argentina
Soccer Solidarity: Fans Join Grannies Protesting Low Pensions
Argentina
Argentine soccer fans and retirees clashed with police in Buenos Aires Wednesday in one of the most violent protests yet against the austerity policies implemented by President Javier Milei, France 24 reported.
Every Wednesday for the past year, pensioners have hit the streets in demonstrations that have generally stayed small and peaceful.
However, during this week’s protests, a large group of soccer fans arrived, waving flags in support of the pensioners, the Associated Press reported. The crowd chanted “Milei, garbage, you are the dictatorship!” and “Don’t touch the elderly.”
Police formed a cordon to block their march toward Congress and used tear gas, rubber bullets, and water hoses to scatter the protesters, who threw firecrackers, stun grenades, and stones in response.
More than 20 people were injured and more than 100 were arrested.
A video showing a police officer pushing and hitting an elderly woman who fell onto the ground, with her head bleeding, went viral on social media.
Milei was elected on a promise to stabilize the economy and the country’s budget. As a result, he has made numerous cuts to social services and benefits. Retirees have taken the biggest hit.
Milei last year vetoed a law that would have increased pensions.
Friday, March 7, 2025
El Salvador's Business Model Fills Jails
El Salvador’s New Business Model Fills Jails
El Salvador
Last month, Salvadoran President Nayib Bukele made an unusual offer to the United States: He said he was willing to take violent prisoners in US jails – citizens, legal residents, and migrants of any nationality – and house them in a mega-prison that now holds tens of thousands of suspected gang members.
The offer was warmly welcomed.
Bukele “has agreed to the most unprecedented, extraordinary migratory agreement anywhere in the world,” US Secretary of State Marco Rubio said after meeting with Bukele in early February. “We can send them, and he will put them in his jails.”
“There are obviously legalities involved – we have a constitution,” he added. “But it’s a very generous offer. No one’s ever made an offer like that.”
Bukele has made El Salvador’s harsh prisons a trademark of his aggressive fight against crime. Now he’s offering to “outsource” them for a fee, he said on X, explaining that the payments would make the enterprise sustainable, essentially a viable business model.
The crown jewel of the prison system is the Terrorism Confinement Center (CECOT), which was opened in 2023 just outside of the capital of San Salvador. It can house about 40,000 inmates.
Bukele says the prison is a symbol of El Salvador’s successful transformation: “El Salvador has managed to go from being the world’s most dangerous country to the safest country in the Americas. How did we do it? By putting criminals in jail. Is there space? There is now.”
For years, powerful street gangs had a stranglehold on the country, terrorizing residents, strangling business, and threatening governance.
Then, in 2019, Bukele was elected on a promise to bring crime under control. Three years later, he declared a state of emergency, suspended civil liberties, and sent the army out into the streets after rival gangs went to war and killed 62 people in a few hours.
Since then, about 84,000 people have been arrested, in three years tripling the prison population to about 110,000 in the country of about 6 million.
Homicide rates have plummeted, life has changed. “The environment where we live is very different now,” one woman told the Associated Press. “It’s very quiet now for the family, for the kids.”
El Salvador last year had a record low 114 homicides, a decrease of almost 50 percent over 2023. In 2015, there were 6,656 homicides.
As a result, Bukele’s approval ratings among voters hover in the 90 percent range. He won the election last year with 83 percent of the vote.
Meanwhile, the number of Salvadorans trying to cross the border into the United States has fallen by a third.
Now, he’s looking ahead, trying to revamp the country in other ways, too. Recently, he lured Tether, the world’s leading stablecoin firm, to El Salvador to create its first physical headquarters. That’s part of his attempt to turn El Salvador into crypto central: In 2021, El Salvador became the first country to make Bitcoin legal tender. Last week, however, the International Monetary Fund told the country to stop accumulating and mining the currency.
He’s been reshaping the government, too. Recently, he’s changed the constitution to make it easier to change it. Now he’s trying to eliminate public financing of political campaigns. Both moves, critics say, are designed to eliminate political competition.
As a result, the “World’s Coolest Dictator,” as he calls himself, has opposition groups, human rights organizations, and others worried.
A year ago, he won his second term even though the constitution forbids consecutive terms for presidents by packing the judiciary and resigning just before the election. Now he’s already talking about an illegal third term. Meanwhile, he has cracked down on journalists, unions, and civil society groups, intimidated opposition lawmakers, and ousted judges who cross him, wrote World Politics Review.
He has also jailed thousands without any access to lawyers or due process: Amnesty International said that El Salvador is essentially undertaking the “gradual replacement of gang violence with state violence.”
El Salvador has become the most incarcerated country in the world, with 1.6 percent of the Salvadoran population now behind bars – more than four times that of the United States.
Now, there is a different type of climate of fear in the country: Salvadorans say that it is common to end up in jail because someone has anonymously reported them to the police, who don’t investigate the claims.
Meanwhile, the US State Department describes El Salvador’s overcrowded prisons as “harsh and dangerous,” lacking water and other basics. El Salvadoran officials say they want to keep these individuals in jail for life, regardless of what crime they have – or haven’t committed.
Now, Bukele is turning his success at reducing crime into a nationwide business by importing criminals. As Foreign Policy noted, “Where El Salvador has become a true leader – not only in the Western Hemisphere but globally – is incarceration.”
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Thursday, March 6, 2025
El Salvador's Experience With Cryptocurrency Ends In Failure
Finance & economics | Bukele buckles
El Salvador’s wild crypto experiment ends in failure
Its curtailment is the price of an IMF bail-out. And one worth paying
A Bitcoin statue in San Bartolo Plaza in Ilopango, El Salvador
Relic of another agePhotograph: Getty Images
Mar 2nd 2025
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For much of the time since Nayib Bukele became president in 2019, El Salvador has teetered on the brink of default. The warning signs were familiar: high debt and interest payments, exacerbated by a wide fiscal deficit; low dollar reserves; anaemic investment and GDP growth. Negotiations with the IMF over a bail-out were deadlocked. Mr Bukele’s relentless attacks on the judiciary, his opponents and the media did not inspire confidence.
Then there was his crypto fixation. In 2021 El Salvador became the first country to make bitcoin legal tender, alongside the dollar. The president vowed to shun conventional capital markets, and raise billions via tokenised blockchain bonds. He would buy $500m-worth of bitcoin, build a “bitcoin city” in the jungle and develop geothermal energy to power bitcoin miners. The conventional markets shunned him. Several Salvadoran bonds traded below 30 cents on the dollar in the summer of 2022. When the government started deferring public-sector salaries to preserve cash, investors prepared for the worst.
Yet El Salvador has defied expectations—and on February 26th the IMF’s board approved a $1.4bn loan to be disbursed over 40 months. In order to obtain the money, El Salvador has made the usual promises on fiscal discipline. It is also scaling back its crypto project. After a change to the law in January, taxes are no longer payable in bitcoin, and its acceptance in the private sector is voluntary.
On its way to the IMF deal, El Salvador showed remarkable commitment to paying its debts; Mr Bukele was in part motivated by a desire to show up his Wall Street doubters. The country’s bond prices have climbed all the way back to par. Officials used scarce dollars to buy back bonds at a discount, saving a good share of future payments of principal. The fiscal deficit, which hit 10% of GDP in 2020, has returned to pre-pandemic levels of 2-3%. A crackdown on tax evasion, strong inflows of remittances and an economic uptick have boosted government revenue; the phasing-out of energy subsidies and pandemic-era programmes have slowed spending.
The fund’s loan lowers the risk of a debt crisis, especially if it unlocks a further $2.1bn from other multilateral lenders as is hoped. Despite the deficit-cutting, the country might not have managed much longer. When debt is high and growth low, raising money at 12%, as El Salvador did in early 2024, is unsustainable. Sovereign default is all the more costly in a dollarised economy such as El Salvador’s, with no lender of last resort to avert a bank run or financial contagion. Local bank deposits are partly backed by government debt, so default might snowball into a banking crisis and even de-dollarisation.
Pumped, now dumped
As for bitcoin, its demotion may be more of a blessing than a concession. Mr Bukele promoted the cryptocurrency as a way to provide financial services to the two-thirds of adults without a bank account and to lower the cost of remittances, which come to almost a quarter of GDP. But the main barriers to financial inclusion are the size of the formal economy and low digital literacy. Remittances are expensive because Salvadorans like to send and receive banknotes, a pricey business made pricier by crime. The government also rushed the roll-out of Chivo, a digital wallet. Bugs and identity theft, to snaffle the $30-worth of bitcoin for signing up, were rife.
The IMF was wary of lending to El Salvador while bitcoin was legal tender. Its volatile price posed a risk to financial and fiscal stability. The fund also pointed to bitcoin’s potential use in crime. El Salvador, according to the IMF, will limit “transactions in and purchases of” the currency. The country has in fact kept buying up to 1.6 bitcoin a day since the deal, according to blockchain data. It may yet have to reduce or reverse purchases to comply with the agreement. El Salvador owns 6,102 bitcoin, valued at around $550m, including unrealised gains of $250m or so, about which the president boasts regularly.
Despite these profits, crypto has brought El Salvador more costs than benefits. The free publicity has been welcome, yet crypto-investment and crypto-tourism have been small beer. Gains in financial inclusion and from more efficient payments are meagre at best: the currency never really caught on. In 2022, when the hype was at its peak, a survey by CID-Gallup found that only a fifth of firms accepted bitcoin and just 5% of tax payments were in crypto. Recent numbers are likely to be even lower, as Salvadorans have retained their strong preference for cash and payment cards.
Moreover, the policy cost $375m in all—from the Chivo rollout, subsidised transaction fees, bitcoin ATMs and more—according to Moody’s, a rating agency. That far exceeds the profits on bitcoin holdings, which could still evaporate. By delaying an IMF deal, the crypto experiment kept El Salvador’s risk premium high.
Mr Bukele enjoys stratospheric approval ratings, often above 90%. It was not crypto that made him “the world’s most popular dictator”, as he calls himself, but his draconian crackdown on crime, in which due process and the rights of presumed criminals have been forgotten. His obsession with cryptocurrency has done little to ease El Salvador’s economic woes. Although bitcoin may remain a reserve asset on the national balance-sheet, its days as legal tender are over. Mr Bukele is just the latest crypto-utopian to see his wild ideas dissolve on contact with reality. ■
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