Doug Casey Talks About South America

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A reader question from Beth: I would appreciate hearing from Mr. Casey and company about the best potential places for older, political moderates, probably cultural conservatives, to move to avoid the coming US social changes, to avoid the surveillance state, to protect their investments. 

Since Mr. Casey and friends have bolt holes in Argentina, although it is a mess, apparently you think it's safe, at least for folks with your resources. But for folks who have saved up good but less than a million dollars in IRAs, whose home is valued at $160,000, who already are in a rural area, where can we be safe?

Again, thank you for the good information. But where should we look? Uruguay? Argentina and Chile since they have more Europeans and maybe blondes so we wouldn't stick out so much?

Doug Casey: The whole world is going in the wrong direction. Every country in the world has a Congress or a Parliament. What these people do all day is pass laws, deciding what you must do, or must not do. Furthermore, all the world's governments are bankrupt because they've created welfare states to a greater or lesser degree.

Joe Lewis was right. "You can run, but you can't hide." 

That said, if you can afford it—and not everybody can—you should have a crib in another jurisdiction. Market risks today are huge—but political risks are even greater.

Right now, I'm writing this from Uruguay. Why? Because it's small and rural, with low population density, it has always been among the most peaceful countries in Latin America. It's a quiet, somewhat backward place, but not a banana republic.

On the downside, it's a total welfare state—the world's first actually, along with New Zealand and Sweden. Wages for locals are low, import duties and taxes are high, and the cost of living is higher than the US. But on the bright side, there are no taxes on foreign income. That's a huge plus. It's also the most ethnically European of the Latin American countries. 

I've also always favored Argentina, which has a similar ethnic makeup but is culturally much more sophisticated. The problem with all Latin countries is their governments. Unstable, highly regulated, highly taxed, corrupt, and deeply indebted. 

That's on the downside. On the upside, Argentina, as we speak, is probably the cheapest developed country in the world. Land and building costs are now at giveaway levels. If you look around, there are lots of distress sales that you can take advantage of. The cost of living is extremely low. 

I could go on for hours about Latin America; I've spent lots of time in every country. And have written many articles, a good number of which are free on the internet. So brief comments here are no more than generalities.  

What you have to do is get on a plane and explore these places. It's no good talking about them at a distance. You have to actually come down and get boots on the ground for a few weeks or months before you make a move. Of course, it's going to be some months before the planes will fly again. But when they fly again, get on one. 

The clock is always ticking. And the next ten years are going to be increasingly unpleasant and inconvenient for many people who aren't politically diversified.

Another Torture House Of The Argentina Military Government Exposed

https://nsarchive.gwu.edu/briefing-book/southern-cone/2020-07-21/argentinas-house-of-horrors?eType=EmailBlastContent&eId=6e9ccb94-15d9-4a0a-8008-30359cf38485

Brasil: Left Behind

BRAZIL

Left Behind

Brazilian President Jair Bolsonaro vetoed select provisions of a bill aimed at helping indigenous communities hit hard by the coronavirus, opting to deny them water and cleaning products, CNN reported.

The bill would create an emergency plan to fight the outbreak in indigenous territories and would have classified those communities as “groups in situations of extreme vulnerability.”

The provisions vetoed included the free distribution of drinking water, hygiene products and disinfection materials. He also vetoed a line item to provide more hospital beds and intensive care units for indigenous people.

Many of the country’s indigenous live far from hospitals and in areas lacking basic infrastructure. Brazil’s Special Indigenous Service said that more than 8,000 people in the community have contracted the virus since the beginning of the pandemic.

Meanwhile, the bill was in response to an order by Brazil’s Supreme Court for the government to take measures to protect such communities from the virus.

The legislature can override the veto if the majority of both houses of the legislature vote in favor of the bill.

Brazil has more than 1.6 million confirmed cases of Covid-19, the second-highest globally after the United States. On Tuesday, coronavirus-skeptic Bolsonaro tested positive for the virus.

Brasil: The President And His Virus

BRAZIL

The President and the Virus

President Jair Bolsonaro’s fortunes have been indirectly proportional to the coronavirus statistics in Brazil. The more the virus spreads, the lower his popularity plunges. Whether it bottoms out and gives him enough time to stage a comeback reelection campaign in 2022 is the big question facing Brazilians, wrote Al Jazeera.

Currently, Brazil has one of the highest coronavirus infection rates worldwide and the second-highest number of deaths after the US. Writing in the Conversation UK, political scientist Alfredo Saad Filho said the country has had the worst response to the virus in the world, owing mostly to inequality within society and poor leadership in government.

Mammoth protests against Bolsonaro’s handling of the coronavirus have been occurring throughout the South American country. This Reuters video paints a picture of the sometimes violent situation.

Meanwhile, Bolsonaro has stirred controversy as a rightwing populist who has downplayed the potentially lethal effects of the coronavirus. He frequently appears without a mask, shaking hands and posing for pictures. He once was filmed sneezing into his hand and immediately afterward shaking the hand of an elderly woman. A judge eventually ordered him to wear a mask while in the capital of Brasilia, the BBC wrote.

It was too little, too late: On Tuesday, he announced he had tested positive, the Wall Street Journal reported.

“This virus is like the rain, it’s going to get you,” a masked Bolsonaro told reporters Tuesday. He remained unsubdued, telling Brazilians to get back to work. “Life goes on, Brazil has to produce.”

A former army captain in the oppressive junta that ruled Brazil from 1964 to 1985, Bolsonaro has supported allies who have called for the dissolution of Congress and the Supreme Court because they oppose his agenda, MercoPress explained.

Environmentalists have criticized his policy of easing rules designed to curb deforestation in order to stoke the economy, as Reuters described. Brazilians of color have formed activist groups to protest racism and police brutality, Americas Quarterly wrote.

Brazilian newspaper Folha de São Paulo recently launched a pro-democracy campaign to push back against the dictatorial tendencies of Bolsonaro’s government, the Guardian reported. “We saw, and will never forget, the horrors of dictatorship, and we will always champion democracy,” a Folha de São Paulo editorial declared.

The strongman president might weather a liberal invective. But he won’t improve his standing amid an economic meltdown. The International Monetary Fund recently forecast economic losses of 9.1 percent due to the pandemic. Congressional critics are also investigating corruption allegations and looking into impeachment.

As a result, Covid-19 might wind up destroying Bolsonaro’s political career and the brand of populism he harnessed to win office, Financial Times columnist Gideon Rachman wrote.

Some hope that’s all it destroys.

Venezuela: Shut Out

VENEZUELA

Shut Out

The British High Court rejected Venezuela’s demand to access $1 billion of its gold reserves stored at the Bank of England Thursday, dealing a blow to the embattled government of President Nicolas Maduro, the BBC reported.

The court ruled that Britain doesn’t recognize Maduro as the country’s president therefore Maduro cannot access the assets on the country’s behalf. Britain recognizes his rival, Juan Guaido, who declared himself Venezuela’s acting president last year.

Cash-strapped Venezuela had demanded the release of the gold reserves after the British and American governments imposed sanctions on Maduro’s government. Venezuela says it needs the gold to fund the fight against the coronavirus pandemic. Guaido, however, told the bank to deny access, saying it would fuel corruption.

Guaido is recognized by more than 50 countries as Venezuela’s president but Maduro still controls the country’s security forces and most institutions.

Despite its vast oil reserves, Venezuela is suffering a deep economic crisis following years of government mismanagement, corruption and international sanctions. Its foreign currency reserves are nearly depleted.

The country needs to import most of its necessities from abroad, prompting the government to sell off its gold reserves to allies, namely Russia and Iran.