Brazil is the fourth largest sovereign creditor of the US, holding more than $200 billion in Treasuries, which is good news for Brazil, since its economy has been growing enough that the country can do so:
Brazil, the region's economic powerhouse, which just a decade ago had to come to Washington to ask the International Monetary Fund for a bailout, is now the United States' fourth-biggest sovereign creditor -- holding about $211 billion in U.S. Treasury securities, according to U.S. data from May.
These days, Latin America's economy as a whole is expected to expand about 4.7 percent in 2011 -- almost twice the expected rate in the United States -- thanks to strong demand for the region's commodities and a decade of mostly prudent fiscal management, itself the product of many hard-learned lessons of the past.
"When did the American dream become a nightmare?" gloated Argentina's President Cristina Fernandez, whose own country defaulted on about $100 billion in debt a decade ago.
In a speech at the Buenos Aires Stock Exchange on Monday, she contended that Argentina had prospered since then by focusing on exports and controlling financial speculation -- a lesson that Washington has yet to learn, she said.
Cristina's soul mates Evo and Hugo are using the U.S. debt for propaganda purposes:
Washington's biggest critics in the region, such as Venezuela's Hugo Chavez and Bolivia's Evo Morales, have also portrayed the crisis as an inevitable outcome for a country that failed to follow its own financial advice and overextended itself militarily - in Latin America, and elsewhere.However - in spite of large oil reserves - the well is running dry in Venezuela:
Yesterday, the Washington Post reported that Bolivian president Evo Morales had announced that a local program called “Bolivia changes, Evo delivers,” which “is under his control and has little legislative or administrative oversight," would no longer depend on Venezuelan largess, but would be funded by the Bolivian government.Here in the USA, Congressman Connie Mack, Chairman of the Western Hemisphere Subcommittee Connie Mack, has proposed legislation which would cease aid to those countries which harm America’s freedom and security.
Mack’s five amendments would:
Cross-posted at Fausta's blog