That Bolivian economy

Fitch upped its rating on Bolivia yesterday (for those who care, it's now a 'B Stable'). Of course the world reacted with its usual apathy but one line of the Fitch review is worthy of dissemination to the four corners of this planet. Fitch said:

"..limited foreign participation in Bolivia's banking system as well as the absence of toxic assets or sizable international funding has shielded the country from fallout from the global crisis through direct financial channels."

The implications of that simple sentence run for thousands of words. Bolivia avoided the recipe for destruction handed out by the northern paymasters and is ignored because it has the fastest growing economy in the region. A once and future coca leaf grower runs countries better than teams of dumbasses in suits (you know them by the name 'economists') with multisquillon dollar eddycations. And now the country's embarrassing success is swept under the carpet, except by those technicals who are paid to recognize its macroeconomic stability.

Go figure. Seriously, go figure. Don't just forget about it because the concepts are uncomfortable to you, have a good think about it.

Bolivia got new money

As from 2010, Bolivia's central bank is changing the wording on the reverse side of coins minted.

It remains to be seen whether the fascist jerks that claim to represent Santa Cruz are into plurinationalism.

In other Bolivia financial news, International Currency Reserves now stand at U$7.955Bn (which I think is an all-time record, but even if it isn't it's darned close). Also, Fitch said nice things about Evolandia using words like "stable" and "solid" and phrases like "fiscal surplus" and "GDP growth in 2009". But don't let facts get in the way of anyone telling you that Bolivia's economy is in a mess, will you?

Peru: House sales down 45% in Lima

It must be really annoying for President Twobreakfasts when incontrovertible facts get in the way of his delusions. El Comercio reports that house sales in the capital Lima (by far the most sophisticated real estate market in Peru) dropped 45% in the 4th quarter of 2008 compared to the 3rd quarter. Also notable was the relatively low decrease in top-range housing (-7.4%) compared to the lower socio-economic groups (between 60% and 75% drops reported).

Slightly OT, let's add this report about how Repsol is deferring its $350m investment in the Peru oil&gas sector due to low prices. Then there's this report entitled "Peru Miners: project financing drying up on lower metal prices" from DJNW. And then there's the 8,000 mineworkers already laid off in the first two months of 2009.

All this must be part of that "strong macroeconomic framework" that the idiots at Fitch cited when they reaffirmed Peru's investment grade rating (with a stable outlook!!) in January.