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submitted 11 months ago* (last edited 11 months ago) by SeventyTwoTrillion@hexbear.net to c/news@hexbear.net

Image is of the Cobre Panama open-pit copper mine, located 120 kilometers west of Panama City.


Canada is a prolific mining country, hosting many of the world's top mining corporations. Some of its extraction is local - for example, Saskatchewan is the world's largest producer of potash, a critical agricultural nutrient. Much of the extraction is abroad. Naturally, this means that Canada has cut a bloody, but often ignored, path through the global periphery, extracting minerals and causing environmental degradation.

A notable recent example is that of the Cobre Panama copper mine, which is owned by First Quantum Minerals, one of the largest mining companies in Canada. The company earned $10 billion in revenue in 2022, of which the Cobre Panama mine generated $1 billion. Protests in Panama about this mine have gone on for over a decade, urging for a greater share of the profits, protection of indigenous people, and stronger environmental protections. Canada has maintained a stoney silence (pun somewhat intended) on these movements.

On October 20th, the president of Panama, Cortizo, renewed the company's mining concession for 20 years, after a halt in production since the end of 2022 due to negotiations and reform. Everybody hated this. In October, protestors took to the streets in sufficient numbers that Cortizo was forced to halt new mining approvals, and announced a public referendum on whether the contract with First Quantum should be repealed. This was immediately cut down, but the government decided to invalidate the new concession anyway in late November, calling it unconstitutional, and closing down the mine.

First Quantum Minerals has lost about half its market value since October. Various international banks have said that Panama could lose its investment-grade credit rating next year due to the income hit - the mine generated 5% of its GDP. The international arbitration process which First Quantum has initiated against Panama could last years.

The book Canada in the World: Settler Capitalism and the Colonial Imagination handles Canada's role as an imperialist, anti-indigenous, extractive state throughout its history, and is on our geopolitical reading list.


The weekly update is here on the website.
Your Tuesday Briefing is here in the comments and here on the website.
Your Thursday Briefing is here in the comments and here on the website.
Your Friday Briefing is here in the comments and here on the website.
Your Saturday Briefing is here in the comments and here on the website.


The Country of the Week is Canada! Feel free to chime in with books, essays, longform articles, even stories and anecdotes or rants. More detail here.

The bulletins site is here!
The RSS feed is here.
Last week's thread is here.

Israel-Palestine Conflict

If you have evidence of Israeli crimes and atrocities that you wish to preserve, there is a thread here in which to do so.

Sources on the fighting in Palestine against Israel. In general, CW for footage of battles, explosions, dead people, and so on:

UNRWA daily-ish reports on Israel's destruction and siege of Gaza and the West Bank.

English-language Palestinian Marxist-Leninist twitter account. Alt here.
English-language twitter account that collates news (and has automated posting when the person running it goes to sleep).
Arab-language twitter account with videos and images of fighting.
English-language (with some Arab retweets) Twitter account based in Lebanon. - Telegram is @IbnRiad.
English-language Palestinian Twitter account which reports on news from the Resistance Axis. - Telegram is @EyesOnSouth.
English-language Twitter account in the same group as the previous two. - Telegram here.

English-language PalestineResist telegram channel.
More telegram channels here for those interested.

Various sources that are covering the Ukraine conflict are also covering the one in Palestine, like Rybar.

Russia-Ukraine Conflict

Examples of Ukrainian Nazis and fascists
Examples of racism/euro-centrism during the Russia-Ukraine conflict

Sources:

Defense Politics Asia's youtube channel and their map. Their youtube channel has substantially diminished in quality but the map is still useful. Moon of Alabama, which tends to have interesting analysis. Avoid the comment section.
Understanding War and the Saker: reactionary sources that have occasional insights on the war.
Alexander Mercouris, who does daily videos on the conflict. While he is a reactionary and surrounds himself with likeminded people, his daily update videos are relatively brainworm-free and good if you don't want to follow Russian telegram channels to get news. He also co-hosts The Duran, which is more explicitly conservative, racist, sexist, transphobic, anti-communist, etc when guests are invited on, but is just about tolerable when it's just the two of them if you want a little more analysis.
On the ground: Patrick Lancaster, an independent and very good journalist reporting in the warzone on the separatists' side.

Unedited videos of Russian/Ukrainian press conferences and speeches.

Pro-Russian Telegram Channels:

Again, CW for anti-LGBT and racist, sexist, etc speech, as well as combat footage.

https://t.me/aleksandr_skif ~ DPR's former Defense Minister and Colonel in the DPR's forces. Russian language.
https://t.me/Slavyangrad ~ A few different pro-Russian people gather frequent content for this channel (~100 posts per day), some socialist, but all socially reactionary. If you can only tolerate using one Russian telegram channel, I would recommend this one.
https://t.me/s/levigodman ~ Does daily update posts.
https://t.me/patricklancasternewstoday ~ Patrick Lancaster's telegram channel.
https://t.me/gonzowarr ~ A big Russian commentator.
https://t.me/rybar ~ One of, if not the, biggest Russian telegram channels focussing on the war out there. Actually quite balanced, maybe even pessimistic about Russia. Produces interesting and useful maps.
https://t.me/epoddubny ~ Russian language.
https://t.me/boris_rozhin ~ Russian language.
https://t.me/mod_russia_en ~ Russian Ministry of Defense. Does daily, if rather bland updates on the number of Ukrainians killed, etc. The figures appear to be approximately accurate; if you want, reduce all numbers by 25% as a 'propaganda tax', if you don't believe them. Does not cover everything, for obvious reasons, and virtually never details Russian losses.
https://t.me/UkraineHumanRightsAbuses ~ Pro-Russian, documents abuses that Ukraine commits.

Pro-Ukraine Telegram Channels:

Almost every Western media outlet.
https://discord.gg/projectowl ~ Pro-Ukrainian OSINT Discord.
https://t.me/ice_inii ~ Alleged Ukrainian account with a rather cynical take on the entire thing.


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[-] InevitableSwing@hexbear.net 55 points 11 months ago

Biden promises continued military assistance to Israel and he says "I am a Zionist," at a Hanukkah event. Then they sing "Hava Nagilah", lift him on a chair, and dance him around the middle of the circle like a groom at a Jewish wedding.

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[-] InevitableSwing@hexbear.net 55 points 11 months ago

Demand today for PA President Mahmoud Abbas’s resignation stands at 81% in the Gaza Strip and 92% in the West Bank.

Nitter

Press Release: Public Opinion Poll No (90) | PCPSR

92% of Palestinians in West Bank want Abbas to resign: Poll

The survey also found that demand today for PA President Mahmoud Abbas’s resignation stands at 81 percent in the Gaza Strip. We reported earlier about a survey by prominent pollster Khalil Shikaki, who found that support for the Palestinian Authority was waning.

- Al Jazeera

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[-] AIf@hexbear.net 55 points 11 months ago

a bottle was thrown at Milei during a parade. unfortunately it just missed

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[-] Satanic_Mills@hexbear.net 55 points 11 months ago* (last edited 11 months ago)

Russia has lost 87% of troops it had prior to start of Ukraine war, according to US intelligence assessment

a source familiar with a declassified US intelligence assessment provided to Congress told CNN ... Of the 360,000 troops that entered Ukraine, including contract and conscript personnel, Russia has lost 315,000 on the battlefield

A completely separate reality.

Edit: also, weren't most credible estimates of initial Russian troop strength on the order of ~200,000? Subtle way of playing down Ukraine's initial failures in the south.

[-] SeventyTwoTrillion@hexbear.net 52 points 11 months ago

Once again, the problem with these assessments is that it creates a contradiction. You can say that Russia's lost a billion troops, but then you also have to explain why Ukraine and NATO weren't then able to beat Russia extremely easily. If Russia's army sucks, then your army necessarily must suck more, given that Russia has retained their positions, and there isn't the slightest hint of a secret mass conscription campaign (and it's REALLY FUCKING DIFFICULT to keep mass conscription campaigns secret - same with massive amounts of death).

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[-] Torenico@hexbear.net 55 points 11 months ago

Let me be clear: I think the Izz ad-Din al-Qassam Brigades are GOOD.

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[-] bbnh69420@hexbear.net 54 points 11 months ago* (last edited 11 months ago)

As the resident combat footage poster, new Hamas vid just dropped. Hope that guy who flipped down the hill is ok (cw:corpses, no gore)

https://streamable.com/sfo5sf

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[-] Aru@lemmygrad.ml 54 points 11 months ago

NSFL crime on humanity committed by the occupation[NSFL] the IDF ran over a hospital with refugees inside using a bulldozer, the video doesn't contain the bulldozer running them over, but it has the aftermath, with the dead bodies

https://twitter.com/QudsNen/status/1736042867418661194?t=7vb_rwCNxcyEKNC6zd77bg

https://nitter.cz/QudsNen/status/1736042867418661194?t=7vb_rwCNxcyEKNC6zd77bg

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[-] SteamedHamberder@hexbear.net 54 points 11 months ago

Haaretz Reporting 13 Israeli soldiers killed, mistakenly identified as Khamas.

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[-] Frogmanfromlake@hexbear.net 54 points 11 months ago

My fiancee's parents yesterday told me that we shouldn't relocate to the US (we weren't planning to) because black people will try to kill her for being Asian. I find it a little funny that they think Guatemala is safer than the US for her. We've been to the US as well to visit my family and the worst that happened were dudes relentlessly hitting on her every time I wasn't around.

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[-] a_party_german@hexbear.net 54 points 11 months ago

After ships sailing for European companies (yet somehow the ships are registered in Liberia - curious, huh?) were attacked by Yemen, German fash-libs start clamoring for sending German navy ships to the Red sea. The faction is increasingly called "Strazi" in German, after their Nazi-liberal Führer-Woman Strach-Zimmerman (think a dumber, even more aggressive anti-Russian von der Leyen)

Please make it happen lathe-of-heaven

I mainly wish for the lathe here because these German navy frigates are utter crap. Rather large ships without a clear doctrine, and bewildering weapons assortment. You've got 5000-ton air-defense "destroyers" equipped for anti-pirate stuff, with the odd harpoon missile launcher thrown in for good measure. I wouldn't be surprised if the Houthis manage to launch like 3 ballistic missiles at them without the ships even noticing, because the European radar systems had a software "issue" at the time or something so their claimed 350-mile range was impaired. And of course those crap frigates cost like 50% more than comparable French ships.

Please Mr. Houthi your mission is clear here! You may launch the Al-Farrah when ready.

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[-] grandepequeno@hexbear.net 54 points 11 months ago

The EU ended it's policy of needing unanimous decisions by asking Orban to leave the room so that the remaining PM's could vote yes on moving ahead with negotiations for ukraine accession into the EU.

I was under the impression that nobody really wants Ukraine, and that it won't be easy to integrate or even beneficial for the EU to do so, so I guess those negotiations sure will be something I guess

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[-] let_me_tank_her@hexbear.net 53 points 11 months ago

IOF having Mickey Mouse ranks and promotions will never not be funny to me. How the fuck you losing 5 officers in an ambush? Zero privates or NCO's in this army.

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[-] InevitableSwing@hexbear.net 53 points 11 months ago

Israel has announced its worst combat losses in more than a month after an ambush in the ruins of Gaza.

Israel said on Wednesday that 10 of its soldiers had been killed over the past 24 hours, including a colonel commanding a forward base and a lieutenant colonel commanding a regiment, Reuters reports.

The toll was an increase of one on the military’s earlier figure and is the worst one-day loss since 15 soldiers were killed on 31 October.

Most of the deaths came in the Shejaia district of Gaza City in the north, where troops were ambushed trying to rescue another group of soldiers who had attacked Hamas fighters in a building, the military said.

Hamas said the episode showed that Israeli forces could never subdue Gaza.

In a televised address, Hamas chief Ismail Haniyeh said any future arrangement in Gaza without Hamas was a “delusion”.

- The Guardian

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[-] thelastaxolotl@hexbear.net 53 points 11 months ago

Outcry as Brazil Congress overrides president to revive anti-Indigenous law brazil-cool

  • Brazil’s Congress has pushed through a new law that includes several anti-Indigenous measures that strip back land rights and open traditional territories to mining and agribusiness.
  • It includes the controversial time frame thesis, requiring Indigenous populations to prove they physically occupied their land on Oct. 5 1988, the day of the promulgation of the Federal Constitution; failure to provide such evidence will nullify demarcated land. The decision provoked outrage among activists, who say the new law is the biggest setback for Indigenous rights in Brazil in decades.
  • Both President Lula and the Supreme Court have previously called the measures in the bill unconstitutional and against public interests, and Indigenous organizations announced they will challenge the law.
  • Brazil’s Congress has pushed through a new law containing a series of anti-Indigenous and anti-environmental clauses, overruling President Luiz Inácio Lula da Silva’s previous veto of some of the bill’s most harmful passages. Activists have lambasted the decision, saying it drastically strips back Indigenous rights and poses a threat to the future of the Amazon Rainforest and other Brazilian biomes.

Indigenous advocates reject Chile’s new draft constitution ahead of vote :chile-cool: pinocchio-evil

Sunday’s referendum will be the second time in as many years that Chileans have voted for a revised constitution.

For more than a decade, architect Julio Ñanco Antilef has campaigned to rewrite Chile’s constitution, a relic from when General Augusto Pinochet ruled the country as a military dictator.

But now, as Chile prepares to vote on a new draft, Ñanco Antilef finds himself in a paradoxical position: hoping to keep the old version in place. “It’s not that we are defending Pinochet’s constitution. It’s just that this proposal is worse,” he told Al Jazeera in a recent interview.

A member of the Democratic Revolution party, Ñanco Antilef was one of the few left-wing representatives to participate in the Constitutional Council that drafted the new version, which is set to go before voters on Sunday. Rather, it was Chile’s far-right Republican Party that led the drafting process, holding 22 of the council’s 50 seats.

The result, critics say, is a draft that favours right-wing priorities at the expense of historically marginalised groups, including Chile’s Indigenous peoples. “It is tied to a business model and favours individual interests rather than collective ones,” said Ñanco Antilef, himself of Indigenous Mapuche descent.

Now, he and other Indigenous Chileans are pushing for voters to reject the draft constitution, even if that means the country will be stuck with the Pinochet-era version for the foreseeable future.

“We are 13 percent of the population,” said Alihuén Antileo Navarrete, a Mapuche lawyer elected to represent Chile’s Indigenous peoples on the council. He argues the draft constitution deliberately “excludes” Indigenous voices from government.

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[-] Torenico@hexbear.net 53 points 11 months ago* (last edited 11 months ago)

milei gives up after two days and sends a letter to Xi asking him to intervene directly in the currency swap that was signed mere months ago. The same milei who said that "he won't deal with Communists".

In an attempt to quickly rebuild ties with the Asian giant and obtain the US$5 billion renewal of the current currency swap with China, President Javier Milei sent a letter hours ago to Chinese President Xi Jinping, in which he requests his support to accelerate the process and obtain the funds to face urgent expirations with the International Monetary Fund (IMF).

Before and after that meeting, in which Foreign Minister Diana Mondino participated, the short circuits that still separate China from the Milei government became clear, whose statements regarding “not having ties with communist countries” made during the electoral campaign, upset the Chinese government.

Milei's urgency to rebuild ties with China was reflected during the meeting, in which, as LA NACION learned, the President showed himself willing to have a phone call with the Chinese president. Previous loans, such as those obtained by President Alberto Fernández with Sergio Massa as Minister of Economy, were unblocked after direct communication with the Chinese president. The delegation of that country left the President an invitation to visit the Asian giant as soon as possible.

Among the demands that the Chinese delegation brought to Buenos Aires is to replace, or at least announce, the successor of Sabino Vaca Narvaja at the head of the embassy, ​​taking into account that other destinations have already been announced or confirmed, such as the United States (Gerardo Werthein), Brazil (Daniel Scioli will continue) and Israel (they will appoint Milei's rabbi and spiritual guide, Axel Wahnish). Currently, and after the resignation of Vaca Narvaja, Marcela Barone, a diplomat with the rank of secretary, was in charge of the embassy, ​​in one of her first diplomatic assignments. Mondino's announcements to “transparent” the agreements with China also caused discomfort, in reference to the currency swap and other economic agreements for current public and private works.

Unlike the Milei government, Alberto Fernández received the delegation led by Wu Weihua on Saturday at 11 in the morning at the Casa Rosada in a meeting in which Vaca Narvaja participated on his last day as ambassador, the then foreign minister Santiago Cafiero and the general secretary of the outgoing Presidency, Julio Vitobello. Sources from the previous administration affirm that the sending of a “high-ranking” diplomat could help unblock the link and complement the letter sent by the President.

On the other hand, and with his now classic leather jacket and boots, President Milei arrived minutes before 8 at the Casa Rosada. On his second business day as President, the president led a cabinet meeting held for the imminent economic measures that will be announced today afternoon, and special presences. The former head of the Central Bank Federico Sturzenegger, a supporter of economic “shock” policies, participated in the meeting, along with the Minister of Economy, Luis Caputo, the head of the Central Bank, Santiago Bausili, and the other ministers. Caputo and Bausili, as it turned out, seek to accelerate verbal and factual reconciliation with China, and asked the Foreign Ministry for clear and forceful gestures in that regard.

The former Minister of Justice and proposed as the next Treasury Attorney, Rodolfo Barra, was also seen entering the Casa Rosada, questioned for his participation in the Tacuara philonazi group in the sixties.

Original article in spanish

Turns out being in power makes you a pragmatic eh?

Another massive win for XI JINPING THOUGHT.

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[-] Dolores@hexbear.net 53 points 11 months ago

so what is the deal with Israel's officers? i heard earlier like all? conscripts got to be sergeants , and there's been lots of jokes about the officers generally being young and inexperienced.

but then where are all the old ones? what's the careerist core?

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[-] Assian_Candor@hexbear.net 53 points 11 months ago

But did they jerk them off?!

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[-] carpoftruth@hexbear.net 53 points 11 months ago* (last edited 11 months ago)

kkkanada Genocide Justin really showing his entire ass here with the other colonial castoffs from down under. All three countries voted for the unga ceasefire motion today and then released the following joint statement

https://www.pm.gc.ca/en/news/statements/2023/12/12/joint-statement-prime-ministers-australia-canada-and-new-zealand

We want to see this pause resumed and support urgent international efforts towards a sustainable ceasefire. This cannot be one-sided. Hamas must release all hostages, stop using Palestinian civilians as human shields, and lay down its arms.

There is no role for Hamas in the future governance of Gaza.

The pre-requisite for a ceasefire is unconditional surrender. This is what people mean when they refer to states being agreement incapable. These are the same talking points against a ceasefire as earlier in the Russia-Ukraine war, and look at how that's gone since spring 2022.

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[-] Frank@hexbear.net 52 points 11 months ago

So there's an actual dysentary outbreak in the idf? Damn.

Fascism gonna fascism i guess. : /

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[-] VILenin@hexbear.net 52 points 11 months ago
[-] InevitableSwing@hexbear.net 53 points 11 months ago

Why is America like this? Why does anyone feel comfortable spending 8 hours in their car?

I'm American, and to answer your question we just love cars and that's why. We like to drive fast and be in our car all the time. I actually drive my car into work. Not to work, INTO work and I park at my desk and use my Tesla laptop. Then I come home and park my car in my bed

Nitter

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[-] carpoftruth@hexbear.net 52 points 11 months ago

Nearly half of the Israeli munitions dropped on Gaza are imprecise ‘dumb bombs,’

about 40-45% of the 29,000 air-to-ground munitions Israel has used have been unguided. The rest have been precision-guided munitions, the assessment says.

A US official told CNN that the US believes that the Israeli military is using the dumb bombs in conjunction with a tactic called “dive bombing,” or dropping a bomb while diving steeply in a fighter jet, which the official said makes the bombs more precise because it gets it closer to its target. The official said the US believes that an unguided munition dropped via dive-bombing is similarly precise to a guided munition.

strangelove-wow

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[-] professionalduster@hexbear.net 52 points 11 months ago

so we now know the amount of Arab people France deems reasonable to sacrifice for the Zionists - officially about 20k, and again officially about 10k children

UK + Germany aren't quite at their limit but are approaching it

for the US it is probably limitless

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[-] sisatici@hexbear.net 52 points 11 months ago

Salutes to the yemeni heroes

[-] CoralMarks@hexbear.net 52 points 11 months ago

I don't know if we had this one already, F16 this time

officer-down

US fighter jet crashes over Yellow Sea
An F-16 fighter jet belonging to the US forces in South Korea crashed during a training flight over the sea between the Korean Peninsula and China. The US armed forces said on Monday that the pilot was able to escape using the ejection seat. He was rescued from the Yellow Sea by the South Korean Navy and is in stable condition. The plane took off from the US air base in Gunsan in the morning (local time) before an in-flight emergency occurred, it said. The cause of this is being investigated.

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[-] SoyViking@hexbear.net 52 points 11 months ago* (last edited 11 months ago)

In Germany, only genocidal settlers are allowed to make hyperbolic comparisons to the Holocaust:

Berlin finds Abbas’s 2022 Holocaust remarks incited hatred, but can’t pursue charges (Times of Isn'treal)

Full text

Berlin prosecutors say that Palestinian Authority President Mahmoud Abbas’s comments on the Holocaust during a visit last year amounted to inciting racial hatred, but they won’t pursue a criminal case due to his diplomatic immunity.

Police in Berlin launched a probe “on suspicion of inciting hatred” in August 2022 on the basis of two complaints accusing Abbas of “relativizing the Holocaust” during a joint press conference with German Chancellor Olaf Scholz.

The Berlin prosecutor’s office says in a statement it reached the conclusion that “Abbas had committed the crime of inciting racial hatred” but enjoyed “immunity so that there is an obstacle to him being tried.”

At the press conference with Scholz, which predated the current war between Israel and Hamas by more than a year, Abbas accused Israel of committing “50 Holocausts” against Palestinians since 1947.

Scholz did not immediately challenge Abbas on his comments but, following widespread criticism, tweeted the next day that he was “disgusted by the outrageous remarks” made by the Palestinian leader.

In Israel, Abbas’s remarks drew a hail of condemnation from then prime minister Yair Lapid, who called them “not only a moral disgrace, but a monstrous lie.”

The Berlin prosecutor’s office stressed that while Abbas was covered by immunity, his comments were a clear violation of German law.

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[-] Torenico@hexbear.net 52 points 11 months ago* (last edited 11 months ago)

Milei government confirms massive devaluation of peso

spoiler

First measures announced by Economy Minister Luis Caputo; Official dollar moves from around 400 to 800 pesos per greenback, among host of other measures.

President Javier Milei's government launched a major devaluation of the peso on Tuesday and a host of other measures as it attempts to head off a major economic crisis.

Economy Minister Luis Caputo, speaking in a delayed pre-recorded message, said that the peso would pass to 800 per United States dollar – a devaluation of more than 50 percent.

"The official exchange rate will go to 800 pesos" to the US dollar, up from 391 pesos earlier in the day, Caputo announced as part of a raft of "shock" measures to tackle triple-digit-inflation and cut spending. He also announced a reduction in the state's generous subsidies of fuel and transport, without saying by how much.

Caputo announced around 10 measures in total, with most dedicated to slashing government spending. They included pre-announced steps like halving the number of government ministries and slashing secretariats. Money transfers to provincial governments (“discretionary transfers”) will also be trashed while all ongoing public works projects without external financing will be immediately suspended. “State employment contracts which have been in force for less than a year will not be renewed," said Caputo.

Other spending cuts he announced include the suspension of all state advertising for a year – which, he said, had cost 34 billion pesos in 2023. Subsidies for transport and energy services – huge expenditure for Argentina's government – will also be slashed, he said, without providing further details. “This is the correct path,” declared Caputo, warning that continuing the status quo would lead Argentina into an even deeper crisis.

“We have to avoid catastrophe,” he said, due to “the worst inheritance” in the nation’s history. Echoing the line Milei used often on the campaign trail and in his inaugural speech, the minister declared: "There is no money." Moments before the announcement, the new Central Bank Governor Santiago Bausili summoned representatives from all the nation’s banks to a meeting scheduled for 9am Wednesday.

This is an important bit. Milei's last efforts during the campaign were to coin the phrase "No hay más plata" (There's no more money). According to him, and to the libertarians, the state's treasury is completely dry and there's no cash for anything other than "the essentials". This means, for example, all public works are to be halted and taken over by the private sector. This might also serve as the basis for future massive privatizations, since the state "must get money", therefore it will be "necessary" to privatize as many state services as possible...

IMF approval

In an attempt to compensate for the loss of purchasing-power, Caputo said the government would raise child benefit and food stamp payments by 50 percent. There was no word on any measures to protect the retired and elderly, a sector of the population which will be hit hard by the new measures.

While Caputo announced the exchange rate would slide to 800 pesos to the dollar, from about 391 in recent days, there was no immediate mention of the lifting of strict currency controls which have birthed a multitude of dollar exchanges and a thriving black-market where the dollar has sold for up to three times the official rate at times. Argentina’s government has for years strictly controlled the exchange rate of the peso to the dollar, which analysts have derided as an expensive fiction. The announcements won the immediate approval of the International Monetary Fund (IMF), which said the austerity was "aimed at improving public finances."

“IMF staff welcome the measures announced earlier today by Argentina’s new Economy Minister Luis Caputo. These bold initial actions aim to significantly improve public finances in a manner that protects the most vulnerable in society and strengthens the foreign exchange regime. Their decisive implementation will help stabilise the economy and set the basis for more sustainable and private-sector led growth," read a statement signed by IMF Communications Director Julie Kozack. "IMF staff and the new Argentine authorities will work expeditiously in the period ahead. Following serious policy setbacks over the past few months, this new package provides a good foundation for further discussions to bring the existing Fund-supported programme back on track," it concluded.

'Economic disaster'

In his recorded message – which included a lengthy opening section in which Caputo tried to explain the rationale for the measures – the minister attempted to underline the severity of the “economic disaster” facing Argentina. The minister said the country had an "addiction" to spending to more than it earns, and had posted a fiscal deficit for 113 of the past 123 years.

Consumer prices have risen by more than 140 percent over the last 12 months and more than 40 percent of the population lives below the poverty line. “The fiscal deficit exceeds 5.5 points of gross domestic product with a Central Bank with an absolutely deteriorated balance sheet, without dollars in its assets and printing money of more than 20 points of GDP, thus causing inflation to currently sail at 300 percent per year and punish Argentines every day,” claimed Caputo.

He assured that the genesis of the problem "has always been the fiscal deficit," as he outlined the package of economic measures. "If we continue as we are, we are inevitably heading towards hyperinflation," he declared. "What we come to do is the opposite of what has always been done... to solve this problem at root, precisely so that we do not have to suffer these consequences anymore," said Caputo. In relation to discretionary transfers from the National State to the provinces, Caputo maintained that they will be reduced "to a minimum" and added that these are "funds which, unfortunately, in our recent history have been used as a bargaining-chip to exchange political favours".

With regard to public works, Caputo announced that "the National State will not tender any more new public works and will cancel the approved tenders whose development has not yet begun."

"The reality is that there is no money to pay for more public works which, as all Argentines know, often end up in the pockets of politicians or businessmen on duty." Presidential Spokesman Manuel Adorni had attempted to highlight the inheritance received by the Milei administration in his daily press conference and anticipated some of the announcements, such as a complete suspension of state advertising in media outlets.

"The measures will be in line with a strong fiscal cut, with some expansion in social items and this package will be accompanied by the removal of privileges," trailed the spokesman. Caputo's presentation was made after markets closed. Reaction is likely to come thick and fast on Wednesday morning. Local reporting said a first take at the video had been rejected by Caputo and others in Milei's government. The video was reportedly re-recorded and eventually released two hours after initially planned.

Milei's vow

Upon taking office last Sunday, Milei vowed to introduce a set of emergency measures he argued would save the country from “hyperinflation.” The 53-year-old libertarian and self-described "anarcho-capitalist" took office on Sunday vowing to slash public spending, warning the situation was likely to get a lot worse before it gets better. Annual inflation is currently at 140 percent and poverty levels at 40 percent in Latin-America's third-biggest economy. Milei has vowed to cut spending by five percent of gross domestic product and has already streamlined the government from 18 ministries to nine. Recent governments have been heavy on intervention in prices and currency controls, welfare handouts and subsidies of fuel and transport – bus tickets cost only a few dollar cents.

During his campaign Milei's main vow was to ditch the peso for the US dollar and shut down the Central Bank. However, with little power in Congress he has been forced to ally with members from the right-wing PRO party and has watered down some of his more fiery stances. Milei and his government have doubled down on the message that inflation, and the general economic situation, will worsen significantly before they get better. "We are going to be in poverty, and the situation is going to be much harder," said teacher Gabriel Álvarez, 57, reacting to the announcements.


Original Article

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[-] GinAndJuche@hexbear.net 52 points 11 months ago
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this post was submitted on 11 Dec 2023
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