Globalization: Today's fun packed lesson

Wal Mart (you might have heard of them) is currently buying up D&S, the Chilean supermarket chain that is market leader in its home country (via its Líder brand of supermarkets and hypermarkets) . As part of the purchase process, Wal Mart today instructed D & S that it has until January 4th to remove from its shelves all products supplied by Cuba. Castrolandia supplied (up to now, at least) 42 different products to D&S, so Otto advises Lìder customers in Chile that if you want to buy your regular brand of rum, get down the stores before Sunday. Wal Mart is also banning from sale in Chile's biggest retail chain products from Venezuela, as well as Iran and Iraq. Now whatever would all these countries have in common?

So the upshot is that there are now two LatAm countries that cannot sell their products to another LatAm country, and all three have openly socialist governments. This must be because all socialists are made equal but some are more equal than others. Trade embargoes are like the Good Lord; they move in mysterious ways. But the US doesn't meddle in LatAm affairs any more. Oh no no no no no no...........

Screw the US consumer

Really and truly. The world of finance is quite literally afraid that "the US motor" is about to stop running. The way people are talking it seems that the future of the human race (or at least its financial system) depends upon whether Joe6pack decides to supersize or not. I can personally guarantee that the human race will not suffer if there are only three pet valet stores within 5 miles of your house instead of five. I promise that progress will not stop if Bed Bath and Beyond goes to the wall.

If we're going to have a recession, shit let's have one. Time to stop pandering to the US consumer and let 'em die their own death. Stupid and greedy enough to refi 5 times? Stupid and greedy enough to live on welfare for five years. If the bottom does fall out of the US consumer sector we're in for a hard time, but so is the dollar and that will even up the world playing field in the long run.

C'mon China...I dare you...bite the bullet and sell some U$ bonds.

Peru's Inflation comes in above expectations...again

Another blow to the image of Alan's perfect 'investment grade' Peru. In the words of local analyst Roberto Flores (quoted by Reuters here) "Even though the effect of the rise in fuel tariffs was going to add to inflation, such a rise wasn't expected......Inflationary expectations are still relatively high, despite food prices showing a slight downward tendency in the international markets."

Or to quote Otto, "This like totally sucks, dude." The 6.22% trailing yearly inflation might not sound much to you, but the bias towards price rises on foodstuffs (9.48%) and now the latest round of price rises in public transport is hurting the lower socioeconomic strata much more than the people who write the column inches in newspapers and try to convince the world that things really aren't that bad.

And Ooops! A quick lesson in Economics 101 for Jorge MiniMe Del Castillo; Just this morning he was exhorting Peru to eat more fish and potatoes and telling us how the switch from chicken to fish was saving 'las caseras' money. Result? Fish went up 2.07% in just one month (more than January to August combined) and potatoes/tubers up 9%. Jeesh what a dickhead that guy is, seriously.

Also, take note of that wholesale price index; you telling me there isn't bottled up inflation waiting for the retail number in the months to come? Finally, check back at October and November 2007, because between them they added just 0.42% to last year's total. And PPK said that Peruvian inflation would be at an annualized 3% by January...what the hell was he smoking?

Alan García = 19% approval rating. Nuff said.