Latin America File: Russia hails formation of Community of Latin American and Caribbean States, “anti-imperialist” regional bloc embraces Cuba, excludes USA and Canada, widely perceived as counterweight to OAS; Pravda praises “socialist tide sweeping” South America

While most eyes have been fixated on China, Russia, Europe or the middle east over the years; in our own backyard Latin America has been forming into a regional hegemonic bloc, threat and challenge to the United States.

Finally, Pravda notes with satisfaction the devotion of Latin America’s Red Axis leaders to Russia, Cuba, China, and Iran, as well as regional integration:

Chavez, Morales and Correa are charismatic leaders who have gained global admiration and support. They favor a multi-polar world, anti-imperialism and anti-capitalism. They share strong ties to other Latin American countries, Cuba, China, Russia and Iran.

Latin American strength is founded on unification. Chavez, Morales and Correa are fiery champions of ALBA (Alliance for the Peoples of our America), UNASUR (Union of South American Nations) and the newly created CELAC (Community of Latin American and Caribbean States). Latin America has its own virtual currency, the SUCRE, and its own regional bank, BANCO DEL SUR.

Something tells me, though, that even if a Republican returns to the White House in 2013, Washington’s response to the “Red Spread” south of the border will be piecemeal at best. The Oval Office needs the robust ideological presence of another Ronald Reagan, in our opinion, America’s last great president.

Incidentally, Communist China, which had virtually no presence in Latin America and the Caribbean during the Cold War, has carved out new niches in this region, including one that suggests a “Red Cocaine” scenario.

Earlier this month, the Mexican navy reported the seizure of 195 tons of methylamine, a chemical used to make the synthetic drug methamphetamine, as well as synthetic cocaine. Mexican authorities found 12 shipping containers full of this precursor chemical at the Pacific coast port of Lazaro Cardenas. The shipment originated in Red China and was destined for Guatemala and Nicaragua. Mexican navy officials said the drug cartels terrorizing their country have expanded their methamphetamine operations to Guatemala. Not so coincidentally, the port facility at Lazaro Cardenas is operated by Hutchison-Whampoa, which is owned by Hong Kong billionaire Li Ka-shing, who in turn is closely allied with the Communist Party of China.

According to a 2011 report by the United Nations Office on Drugs and Crime, the world’s main producers of synthetic drugs remain the Netherlands and Myanmar (Burma), but manufacture has lately spread to Latin America.

Continue reading article: Latin America File: Russia hails formation of Community of Latin American and Caribbean States, “anti-imperialist” regional bloc embraces Cuba, excludes USA and Canada, widely perceived as counterweight to OAS; Pravda praises “socialist tide sweeping” South America (Once Upon A Time in the West)

China And Japan Currency Swap: Nail In US Dollar’s Coffin

On 25 December 2011, the government of Peoples Republic of China and Japan unveiled plans to promote direct exchange of their currencies. This agreement will allow firms to convert the Chinese and Japanese currencies directly into each other, thus negating the need to buy dollars. This deal between China and Japan followed agreements between China and numerous countries to trade outside the sphere of the US dollar. A few weeks earlier, China also announced a 70 billion Yuan ($11 billion) currency swap agreement with Thailand.

After visiting China, the Prime Minister of Japan Yoshihiko Noda went on to India and signed another currency swap agreement with the government of India. These currency agreements in Asia came in a year when the countries of the Association of South East Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) were seeking to deepen ways to strengthen their firewall to protect their economies from the continued devaluation of the US dollar. In the year of the ‘Eurozone crisis’ when the future of the EURO as a viable currency was fraught with uncertainty, many states were reconsidering holding their reserves in the US dollar.

Continue reading article: China And Japan Currency Swap: Nail In US Dollar’s Coffin (Eurasia Review)