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16 August 2012

The colonial era is over? Julian Assange and Chapo Guzmán

16 August 2012

I am writing this about five hours before the Ecuadorian government makes an announcement on the asylum request of Julian Assange.  Whatever decision is taken tomorrow morning, there is one clear loser — The United Kingdom.

Embassy of Ecuador earlier this evening.

Although the U.K. did, over the last few weeks, build goodwill with hosting the Summer Games, it clearly has lost that throughout Latin America today when  British Foreign Office delivered a threat to the Ecuadorian Foreign Minister to “storm” the Embassy if needs be.  While the British have been backtracking (claiming they were only clarifying options available to the British government under a vaguely worded and never enforced 1987 “Diplomatic and Consular Premises Act ” (which apparently has to do with closing foreign embassies that are violating local health and safety codes) they have the legal right to what amounts to the kind of actions only undertaken by “rogue states” — the best example being the  Spanish Embassy Massacre of 31 January 1980, when a fire broke out at the Spanish Embassy in Guatemala City after police and army units attacked indigenous peasant farmers and students who had taken refuge in the Embassy.  36 people died.

Ecuadorian Foreign Secretary Ricardo Patino, after meeting with President Rafael Correa said “We want to be very clear, we are not a British colony. The colonial era is over.  The move announced in the official British statement, if it happens, would be interpreted by Ecuador as an unfriendly, hostile and intolerable act, as well as an attack on our sovereignty, which would force us to respond in the strongest diplomatic way.”

While war is the extension of diplomacy by other means, that doesn’t mean a shootin’ war, by any means, but the British are likely to pay a very high price for these intemperate claims:  I would expect at a minimum that British Embassies throughout Latin America are going to be besieged and quite a few windows broken, and various Latin American (and probably other) states enacting policies and procedures designed to make life difficult for British passport holders (amazing what Immigration and Customs service types can come up with when they want) and I fully expect British-owned businesses (some of which — like HSBC — are already seen as  “dodgy” to use Brit-speak ) might be in a zealous application of existing regulatory and oversight functions.

Although the “colonial era” is over, the neo-colonial era is still going strong.  Perhaps.  Proceso’s cover story on U.S. plans to “eliminate” Chapo Guzmán in a military strike (a la Osama Bin Ladin) is getting extensive coverage in the English-speaking media.  According to Proceso, Mexican military authorities turned down the idea being pushed by Felipe Calderón, who, in turn, is selling what can only be invitation to foreign intervention to the Americans.

The far right-wing Latin American website,  Fausta’s Blog, is skeptical based on the fact that there will be a change in administration in Mexico in December and “there’s the fact that the politicians in Washington are running for re-election. Who’s going to want to stir another hornet’s next now?”

Frankly, “stirring the hornet’s nest” isn’t likely to deter U.S. politicians looking for a short-term “win” and both U.S. political parties have been trying to sell the meme that narcotics exporters = terrorists for several years now.  As I argued before the elections here, both U.S. political parties have a stake in selling the rationale for military intervention under the guise of fighting a “drug war”.  That the Obama Administration has become enamored with drone attacks and “surgical strikes” makes it all the more likely that an intervention like this would be considered.  Obama’s opponents would want to shore up their own national security credentials and are pandering to both a  pro-military constituency, and an anti-Latin American one.While of course us armchair analysts will point out that just eliminating one so-called cartel leader does nothing to control narcotics exports in the long run, I have my doubts that controlling narcotics is really the point of a “targeted assassination” like this, anyway.  Its more about national pride, and a psychological boost for the political establishment (no matter which of the two neo-liberal parties controls the White House) and an excuse to repeat (on a lesser scale) that mindless “We’re Number One!” cheer-leading that followed the news of Osama Bin Ladin’s execution without trial.

HOWEVER, “The colonial era is over”.   Within the United States, of course, you’ll have the usual conspiracy thinking about why Chapo was not taken alive (and I’m not immune to wondering why “kingpins” don’t make it into courtrooms) and the tedious and rather pointless discussions of marijuana legalization … and maybe a couple of serious discussions of the “morality” of using drones and attacking other countries, but in Mexico, there will still be a bunch of dead Mexicans to deal with.

Although an intervention is possible (and I fear probable), and you’d be hard-pressed to find sympathizers for Chapo Guzmán outside of some rural communities along the Devil’s Backbone in Sinaloa and Durango, there would be huge repercussions diplomatically and otherwise.

I wouldn’t go so far as to say there will  be a popular backlash to U.S. intervention, in which Chapo emerging as a posthumous bandit-hero symbol of resistance to Yanquí imperialism, but I wouldn’t discount the possibility.  I would expect that — besides the usual mayhem that follows any shakeout in the management teams of the various gangster organizations — that U.S. interests will be seen as legitimate targets by those organizations.  And, that a good number of Mexicans will just see it as logical response by  the gangsters, and nothing which they should see as worth wasting time and effort to control

Diplomatically, within Mexico, and throughout Latin America, intervention is going to play very badly with the intellectuals and politically active… not just on the left, but from nationalists and anti-imperialists of all stripes.  Whatever administration is in Los Pinos when (or if) this happens is going to get the blame, and even if a successful raid (i.e., only minimal “collateral damage”) will have to deal with admitting to allowing foreign troops to operate on Mexican soil.  If there is a Peña Nieto administration, with even less credibility than the Calderón Administration suffered under, there will be massive responses… probably not just from the left, but from nationalists in general.  Furthermore, violence that would be expected after the death of a crime chief would also be blamed on that President… who, would, by definition, be seen as a tool of the United States.

For their own survival, any administration here is going to have to respond as if it was taken by surprise, or duped, or “not fully informed”.  In other words, to save it’s own skin, it will have to take diplomatic measures (and extra-diplomatic ones) to restore credibility with not only it’s own people, but with the rest of Latin America, and the world.

Peña Nieto: the view from the south

15 August 2012

How our election was seen by our neighbors to the south… nothing not said in Mexico… just not said on TV.

From Argentina’s TV Pública’s talking heads program 6-7-8.  It is the second most popular public television program in Argentina (the first, of course, is a soccer program).

 

 

¡Fraaaaaaaaaaaaude!

15 August 2012

Sunday’s Expo-Fraude on the Zocalo in Mexico City garnered a reported 25 TONS of evidence that was presented to the electoral authorities yesterday.  Among the evidence turned over was one pig, two turkeys, several chickens and a sheep— allegedly given to rural residents in return for their votes for the PRI.   It is not illegal for elected officials to “gift” constituents with goods and or services (or even livestock) paid out of municipal funds, but what started as a well-intentioned public service has often been abused by political parties and candidates.

As a wrote in Gods, Gauchupines and Gringos:

[…] with his background in agricultural economics and concerned about reports of protein deficiencies in México, [1950s President Adolfo] Ruíz Cortines spent six years pushing egg and chicken production, making them staples of the Mexican diet… and given away free turkeys.

These were live turkeys, hopefully, a source of more turkeys, meant and eggs for poor families.  In the U.S.S., while it was not uncommon for politicians to distribute turkeys (dead and plucked) to poor constituents with an expectation of their support at the next election, this small, mostly rural, Mexican assistance program is a good example of how the government programs became Party programs.  Until the 2000s, there was no suggestion that the birds, seeds or building materials given to needy people were anything other than payment for party support at the next election.

After election law reforms in the late 1990s, the government had to run television commercials to spread the message that anyone — regardless of political party — could have a free turkey.  Using government funds to spread party propaganda is now a serious criminal offense, but in every election, candidates still try it.  In 2006, one creative PRI candidate spent municipal funds to give away women’s underwear… with the candidate’s face and campaign slogan printed on the front.  The candidate lost, by the way.

No one expects the Spanish acquisition

14 August 2012

Wow… government austerity really works well… for other countries.

Those who don’t believe that government spending isn’t the motor that allows for private investments to grow might want to consider what’s happening in Spain right now.

Francisco Garzon, of the Spanish Economic and Commercial Office in Mexico, told El Universal that with public and private deficits in the hands of a Spanish government seeking to implement structural reforms that are meant to tackle the problem, and return to a growth, the present economic climate requires employers to choose other investment destinations.

“In recent months we have detected a large number of Spanish companies showing an interest in Mexico, both as a foreign market, and as an investment opportunity. Mexico is a priority country at present. More and more companies realize they most go abroad,and where better than a country offering legal security and a related culture.”

(Eduardo Camacho, El Universal. My translation)

There’s always has to be the lingering fear that the mother country will, as she did for a good three hundred years, pull as much out of Mexico and return as little as possible — and Spanish investments in the energy sector have been controversial, but this could be a boon for Mexico.  Spanish investments are already substantial in key sectors of the Mexican economy:  the automotive, aeronautical, tourism, renewable energy, real estate, finance, construction, telecommunications and high tech industries.

With the Spanish government cutting back on government investments, hard to see much market for those big ticket items (like highways and renewable energy projects) on the Peninsula, and with the right not looking to cut back on populist government projects (although it does seek to privatize them) and “austerity” talk from the left not focused on development but on executive perks and what Ronald Reagan would have called “waste, fraud, and abuse), Iberian investments are probably going to be focused on long-term investments (one doesn’t build a new auto plant, expecting to pull out and go home in a few years) which means these will be turning into Mexican investments… sorta payback for those three hundred years of colonialism.

In the 1930s, the Spanish people got shafted with the assistance of the Germans.  The cultural austerity of the Franco regime sent the intellectuals and artists fleeing to Mexico… which, being a “country offering legal security and a related culture” was able to integrate into Mexico the cultural elites.  The present Spanish government — again with active German support — has opted to screw the Spanish people again, although more though indirect, economic means than aerial bombardment and firing squads looks to be giving Mexico an unexpected opportunity to integrate not the financial elites (mainly heirs to Franco or those that robbed the “New World” for 300 years)  but at least their money.

Refinery explosion in Tamaulipas

14 August 2012

Supposedly caused by a lightening strike, there was (or is, as I write this) a fire at the PEMEX gasoline refinery in Cd. Madero, Tamaulipas. It may not be as bad as it looks, since media reports indicate there have been no evacuations (although the initial explosion could be heard 7 Km. away).

A lightening strike is the most probable cause, but — given the unseemly slow pace of refinery expansion under the present administration (which has yet to really start even one of the several new refineries it promised over the last six years) and its, as well as the presumptive incoming administration’s, interest in denationalizing large parts of PEMEX (including gasoline distribution), of course rumors are already circulating on the social media that this was no accident.

Better read than dead

13 August 2012

Former MGM musical bit player (Holiday in Mexico, Easy to Wed), labor lawyer, Mexico City street photographer, yachtsman and erstwhile fishing buddy to Ernest Hemingway, Fidel Alejandro Castro Ruz was born 13 August 1926 in Biran, Oriente, Cuba.

The octogenarian retiree who who has always taken a keen interest in his nation’s politics mostly blogs and writes on-line on-line commentary on  Latin American history and U.S.-Latin American relations these days… which I guess makes him one of MexFiles’ comrades.

I just wish he’d take the time to tell about working with Lucille Ball.

 

This is so wrong…

13 August 2012

If ever there was a nationalist cause everyone could get behind, maybe this is it:

Tequila may be Mexico’s national drink, but if the anticipated sale of Jose Cuervo to British multinational Diageo goes through, not one of the country’s major tequila companies will remain in Mexican hands.

Diageo, which owns Smirnoff, Johnnie Walker, Baileys and Guinness, already has an international distribution deal with Cuervo and is now looking to acquire ownership of both the Cuervo and 1800 brands owned by Mexico’s Beckmann family since their foundation over 200 years ago.

Neo-liberalism, Hell!  British tequila… the Mayan Apocalypse can’t come soon enough!

 

Formally and informally, The Wall Street Journal sucks

13 August 2012

That the Wall Street Journal is probably the last place one one would go for an  intelligent analysis of Latin American economics (or of anything else in Latin America, for that matter),  so it shouldn’t be any surprise that WSJ gets even the most basic facts completely wrong.  Two Weeks Notice recently came across a  a WSJ classic last week:  an article that not only mangled the meanings of basic terms, but did so in a way that was blatant in it’s anti-worker spin.

The Journal (subscription required) wrote:

What could trip Mexico, though, is if a new government elected in July doesn’t undertake labor reforms to unify its “formal” and “informal” labor pools, the report said. Formal is defined as organized labor that is expensive, while informal labor is free of associations but is also unskilled.

As Two Weeks noted, this is just plain wrong. “Informal” does not mean “unskilled,” nor does “formal” mean “unionized”.  Nor, should it be added, does “unionized” mean “expensive” (Keith Dannemiller’s comment below gives a more detailed explanation of the legal differences).

Hiring a plumber off the street to fix a bathroom leak is “informal” employment, but the plumber is going to be skilled labor, and if his labor costs are somewhat lower than that of a “formal” worker, it is only in that I am paying him in cash, and there is no tax record of the transaction.  I could hire a “formal” plumber, who might or might not be unionized… or might be an independent contractor .

As it is, unskilled workers in a number of fields are organized… think of the ambulantes (roving vendors of everything from candy to handicrafts) you find in every Mexican city.  They’re certainly an organized bunch, and while their job protection from competitors is usually designed to benefit their employer (aka, the bosses have goons and lookouts along the most popular routes) it is a form of organized labor.

The “reforms” I’ve seen are mostly in the nature of creating a sub -minimum wage for new hires (and making it easier to lay off worker).  In addition, they seek to make it more difficult for workers to form independent associations (and, given the Calderón Administration’s open attacks on independent unions — SME and the miners’ unions — obviously meant to benefit large corporate employers like CFE and the foreign-controlled mining companies), or to pursue claims of labor violations… which is of benefit neither to the “formal” nor the “informal” worker.

Admittedly, it is expensive (and time consuming) to put employees on the payroll, and small employers often see a huge advantage in hiring “informal” workers.  But that would be better resolved through bureaucratic reform, which means more state intervention (if only in the benign sense of redesigning the klutzy social security payment procedure and making it easier for small and changing the tax code to make hiring and retaining employees less burdensome.  And a better unemployment insurance system so that employees CAN take jobs with the more marginal employers.

All these of course, are anathema to the WSJ which is not particularly capitalist anyway.   I don’t expect the Wall Street Journlists to embrace Marx’s labor theory of value (though, of course, Marx was just borrowing Adam Smith and David Ricardo’s concepts for that), but I would expect them to stop trying to peddle nostrums for other nations that are of benefit to no one simply because they reflect some U.S. ideas from the world’s most absurd economic theorist (Ayn Rand and Milton Friedman) that haven’t worked out exactly to the benefit of anyone except the already overly developed anywhere.

Of course, as I’ve pointed out before, one of the best guides to what will not happen in Latin America is to see what the WSJ is pimping. It’s not associated labor that’s hurting Mexico, it’s low wages. While something more in the sort of response to the problem that I’d expect from the United States, I don’t see this particular proposal coming from PRI as at all bad.

MEXICO CITY – Institutional Revolutionary Party (PRI) Deputy Miguel Ángel García Granados proposed a zero income tax (ISR) rate for workers making less than 14,169 pesos a month on Sunday. The proposed tax reform would modify the current Income Tax Law, and compensates for losses in worker’s purchasing power.

During the explanatory memorandum for the bill, the PRI deputy stated that current tax breaks for workers earning less than 7,382 pesos per month benefit more than 10.9 million people.

García Granados said, “Expanding tax breaks will not negatively impact public finances … on the contrary, tax breaks create more financial liquidity, ultimately generating economic growth.”

In the last five years, real wages have gone down 42 percent, according to findings from the National Autonomous University of Mexico’s (UNAM) Center of Multidisciplinary Analysis. García Granados added that the center reported that the loss in worker’s purchasing power is due to low wage growth in comparison to price increases for basic goods.

The PRI deputy said that between December 2006 and February 2012, the daily minimum wage increased from 45.5 to 62.3 pesos, while the cost of the daily basic food basket increased from 80.8 to 197.9 pesos.

At the beginning of the current administration, a minimum wage could buy 4.8 kilos of beans; today, he said, the same amount buys 2.7 kilos of beans, not including milk, tortillas, eggs, oil and bread, which have also increased considerably in price.

(Víctor Mayén, The [Mexico City] News)

Of course, while the immediate benefit is only unskilled formal workers (which the WSJ seems to think don’t exist)  it puts more money in people’s pockets means more spending and more “development”.  I know the present administration has been leery of inflation, but holding down wages has done nothing to stop inflation in the most critical areas, so you’d think something like this would be a no-brainer.  But then, we were talking about the Wall Street Journal and their coverage of Latin America, based on disassociation from the real world.

Today in Mexican History… um… TODAY!

11 August 2012
tags:

Address in a dress

8 August 2012

In his Sunday sermon, Norberto Cardinal Rivera said the human body is “marked with the seal” of masculinity or femininity and that modern marriage led to “polymorphism” and and leads to a “war between the sexes”, in which women are to blame for being “antagonistic”.  Also, apparently, equality between homosexuals and heterosexuals somehow cancels out bodily differences between the genders.

It is worth mentioning that the 70 year old bachelor — who has been living in all-male households since he was 15 years old — was wearing a lovely green dress with gold lamé appliqué to complement the gold trim on his stunning pink hat (and a lot of jewelry) when he made these remarks last Sunday at the Metropolitan Cathedral in Mexico City.

Source:  Milenio.  Photo: Sinaloa Gay

 

 

Right in the kisser

7 August 2012

A kiss is just a kiss…

Professor Manuel Berumen, who was arrested for kissing his opposite gender one-and-only legitimate wife in a public square in León on Saturday.

El perp

When the afore-mentioned Professor smooched his opposite gender one-and-only legitimate wife, Mayra Alemán, an unidentified woman called the police, complaining of the “obscenity” of the act.  TWO … count them TWO police cars responded and so, Ms. Alemán  whipped out… her cell phone camera, recording the arrest of the unresisting (and frankly incapable of even looking slightly  menacing if he tried) Berumen, creating a viral video classic.

So far, Mexicans haven’t figured out that, like U.S. cops, they need to criminalize not kissing on the streets, but filming the police on the streets, if they don’t want to be seen by the whole world being total morons.

                   La Amarga… soon to be the laughing stock of Mexico … and planet earth.

Hauled before The Grand  Inquisitor a so-far nameless, but not blameless judge,  Berumen was charged with “indecency”and fined 800 pesos… which of course he refused to pay, meaning he ended up spending 12 hours in the slammer on the complaint of a bitter, undoubtedly sexually-frustrated and world-wide mockery-worthy woman.

Kissers of the world united… or at least the kissers of León … on Sunday in front of the Cathedral.  Even the Mass goers applauded.

Berumen  received an apology from León’s Presidente Municipal, Ricardo Sheffield.  Leon’s comptroller has started an investigation into the judge, who apparently has tried to fine people for this dubious (and non-existent) offense before, while the police department’s internal affairs division wants to find out why not one of the six officers had the common sense to tell the complainant to get a life.