South America heads into a grim recession. Joseph Humire @jmhumire , @CabalSenadora

Apr 15, 2020, 03:58 AM
Image:  Inca farmers using a chakitaqlla (Andean foot plough). Public domain.

Joseph Humire, Secure Free Society exec director; and Maria Fernanda Cabal, Senator in Colombia; in re:  World Bank said Latin America as a whole ex-Venezuela would suffer a 4.6% contraction this year. Demand from China and the G7 is falling dramatically. Pres Duque’s chief concerns are the virus, and the economy.    Demand diminution occurred before, at the end of the commodities supercycle; this just makes it worse. Goldman:  3.8% down across the whole region.  Social and political instability loom.   Today our [Colombian] financial minister had to ask for $11,000 million from the IMF, which was accepted because we’ve never defaulted.  We’ll have to do a tax reform.
        If the US decouples from Asia, will it look more toward South America?  I think that’s a good idea.  [North and South America Treaty Alliance? NOSTA? —ed.]