. May 6, 2009 SouthAmerica: Last night I was watching the Lou Dobbs Tonight on CNN and Lou Dobbs started whining about how China is replacing the United States as the most influential country in South America including in Brazil. I have been writing about this subject for many years and as usual Americans suddenly wake up and start wondering what has been going on for a number of years right under the noses. I donât know why Americans take so long to grasp what is really happening in many parts of the world including right around the US's own backyard. Itâs laughable that Lou Dobbs accuses China of coming into what Americans consider to be part of their circle of influence in South America and taking it over right under the Americans noses. Lou Dobbs makes it sound like China has been challenging the United States and China has been taking a piece of the circle of influence of the United States in South America. If Lou Dobbs had read many of my articles over the years then he would be better informed on this subject and he would know that what really happened was something completely different than the story that he is trying to convey to his audience. Here are the web links to some of my articles on this subject: Brazzil Magazine - June 2, 2005 âWhile China Rises the US Falls in Brazil and Latin Americaâ Written by Ricardo C. Amaral http://www.brazzil.com/2005-mainmenu-79/152-june-2005/9296.html â¦China's Rising Influence In a very short period of time China is becoming the most important business partner of Brazil. China has been quickly replacing the United States' influence in Brazil - and that is also happening in other South American countries On May 17, 2005 - The Financial Times of London had another article trying to explain why US influence was declining in South America: "Latin lessons the US faces a loss of leadership." The article said: "Why have relations turned so sour? Economics is part of the reason. During the late 1980s and 1990s Latin America embraced free market policies and moved enthusiastically into the US orbit. But when reform often failed to produce growth that began to change, with many Latin Americans blaming the US for their problems. "The failure of the Bush administration to help Argentina when it ran into a disastrous debt crisis at the end of 2001 was particularly damaging to its image in the region. "Whether or not Washington or Wall Street really bear the blame, many Latin Americans believe the US led them down the primrose path but then were simply not interested when times got tough," says Julia Sweig, a Latin America specialist at the New York-based Council on Foreign Relations. "After a number of South American countries embraced democracy, and many of the economic policies prescribed by Washington including all kinds of privatizations, the result of these changes did not benefit the South American population as expected. "And South America's less than impressive economic performance over the past 15 years has led to a fresh bout of soul-searching about what kind of economic model is right for the region. "... In particular, the role of the state - which policymakers were trying to cut back for most of the 1990s - is undergoing a rethink, in part reflecting South America's growing economic relationship with parts of Asia that have achieved much higher rates of growth." There is another factor that contributed to the current state of affairs in South America. After the collapse of the Soviet Union in 1991, the United States lost its interest regarding South America. Some South American countries including Brazil, instead of whining or crying over spilled milk, did something about it, as a capitalist country they started searching around the world for new partners to establish new ties to replace their lost business. The US decline of influence with Brazil did not happen overnight or because of political reasons; it was as a result of economic reasons as Brazil found new partners. The Brazilian need to find new markets for its products coincided with the economic explosion that has been happening in the Chinese economy in the last few years. Today, China has an insatiable need for commodities of all kinds to feed its amazing production machine. ***** Brazzil Magazine - September 06, 2006 âWhile the American Dream Is Outsourced Brazil Drives the World into the Futureâ Written by Ricardo C. Amaral http://www.brazzil.com/component/content/article/171-september-2006/9684.html ***** Brazzil Magazine - March 2, 2007 âHere Is Why Brazil Should Adopt the New Asian Currencyâ Written by Ricardo C. Amaral http://www.brazzil.com/component/content/article/177-march-2007/9821.html ***** Brazzil Magazine â October 2007 "The Smartest Thing China Could Do Right Now: Invest US$ 200 Billion in Brazil" Written by Ricardo C. Amaral â¦The final conclusion is: It's imperative that China move forward in an aggressive fashion and implement with Brazil the plan described in this four-part series of articles. And China should look at it as a matter of national security and future survival. Monday, 01 October 2007 - Part 1 of 4 http://www.brazzil.com/component/content/article/184-october-2007/9977.html Friday, 05 October 2007 - Part 2 of 4 http://www.brazzil.com/component/content/article/184-october-2007/9979.html Thursday, 11 October 2007 - Part 3 of 4 http://www.brazzil.com/component/content/article/184-october-2007/9983.html Tuesday, 16 October 2007 - Part 4 of 4 http://www.brazzil.com/component/content/article/184-october-2007/9985.html .
Want to know the difference between American business and Chinese? American - All they think about, and what most idiot investors get obsessed about, are the next quarter's numbers. China - They think and plan, 10, 20, maybe even 50 years for the future.
Excellent commentary as always.... What is particularly interesting is bien raices (compra/vende) in the Latin region.... The Latin region is in a $200 to $600 per month world....and are highly dependent on Chinese manufactured essentials.... The point being the only "price protection" from what little manufacturing exists in the Latin region are buyer/seller spreads by local crony monopolies....and/or local govt. protectionist regs/taxes.... Actually the Latin region largely brokers Chinese manufactured products.....as does the US....as does much of the world.... This leads to the idea that there are still price efficiencies to be had in the Latin region by removing many of the unnecessary middlemen that needlessly add to prices.... The bottom line being that when this "vig" is removed.....then more Chinese imposed "local" manufacturing could take place because of actual efficiencies.... Chinese incomes are much closer to Latin incomes versus the US/Europe....and is a better fit.... ............................................................................................... A major point.... The most efficient capital in the world is common stock....nonobligatory 0 interest ownership.... And since electronic trading is becoming more reliable and mature....the transaction event cost spread should move to basically nothing.... And since the internet highway broadband is being constructed in most of the developing world.....common stock can play a major role in "wealth distribution".... Any bank should be able to offer the soon to come truly universal accounts.... This will grease the wheels for more domestic manufacturing means which will be Chinese lead.... The Chinese know the value of savings and will embrace the new worldwide stock market....as will Latin America.... "Wall Street will change to World Street"....