Chile Kicks Off Nationalization Stage of Nationalism Wave

Resources will become more scarce as more countries go down this path. Mining Journal: Chile Constitutional convention votes to nationalise mining

Chile’s Environmental Commission of the Constitutional Convention has approved a rule for inclusion in the new constitution to nationalise the exploitation and exploration companies of strategic assets, which includes lithium, copper and precious metals assets. The norm would result in, “passing to the national domain all the assets of said companies and their subsidiaries related to their activity in national territory. … The exploration and exploitation mining concessions constituted in favour of these companies will cease immediately once the nationalisation takes effect,” the document reads.

Included in the law is no compensation for lost assets.

Very few countries run state industries efficiently. What happens most of the time is the nationalized industry is inefficient. It needs increased capital, but cannot obtain it on the world market. In the current world situation, China will probably be happy to colonize Chile's resource sector. Otherwise, as happened in Venezuela, the country will go down the tubes as one of its main sources of wealth is systematically destroyed by a parasitical ideology.

For the rest of the world, the result is higher resource costs. If they do not print money and create inflation in response, the result will be slowing growth, recession and stagnation until substitutes are found. Copper won't be replaced outright, but as the price rises, projects that use it will cease, and where it can be substituted it will be. Over time, countries will make do with less of whatever resources has become expensive. In this case, the green revolution is rapidly dying, although most of the West doesn't realize it yet because they're blinded by an apocalyptic religion.

The other trend to note is nationalism. Nationalist socialism, nationalist populism, nationalist capitalism and so on are rising. The nationalists will defeat the globalists.

Adios Mi General: New Wave of Socialism Could Destroy Chile's Wealth

ZH: Chile Assets Dive After Radicals Win Election Mandate To Overhaul 'Free Market Friendly' Constitution

In what's being widely described as a shock loss after this weekend's historic election to determine who will draft the country's new constitution, traditional parties including President Sebastián Piñera’s ruling center-right coalition Chile Vamos got clobbered, seeing their parliamentary seats and influence greatly diminish in favor of both independent, hard-left and radical candidates Sunday night.

With over 90% of the votes counted by Monday afternoon, Pinera’s coalition won a mere one-fifth of the constitutional assembly's 155 seats (at 37 seats), while traditional center-left parties picked up only 25 seats, leaving the lion's share to "radical blocs" that include communists and independent leftists that are bent on implementing sweeping changes to Chile's constitution which dates back to Gen. Pinochet's military rule. Radical re-drafting of the constitution was a central demand of the 2019 protests triggered by high living costs and rampant inequality (which famously, it should be remembered, was initially sparked by a $0.04 metro fare price hike given long boiling anger among the working class).

BBC tallies that now with more than 98% of the votes counted, "independent candidates had secured 48 seats, the left 28, the centre-left 25, and the right-wing coalition 37." And an additional 17 seats will go to representatives of indigenous groups, the latter which were a driving force in the protests and unrest of 2019.

Given the ruling government failed utterly in its battle to secure the critical one-third of seats needed to block major changes, a radical new constitution is all but assured, with the new constitution expected to head to public vote by the first half of next year (after delegates will spend at least nine months drafting it).

The Chile ETF failed out of the monster wedge pattern.

USDCLP doesn't look helpful yet, but if Chile goes down the tubes, the currency will start driving the ETF.

Peru has elections next month. The country is headed in the same direction. The chart of the currency implies trouble, but the ETF could go either way thanks to resource prices. Veezuela is a stark reminder that the most resource endowned nations can still go straight down the tubes with a socialist government.

Colombian and Chilean Pesos

Latin America on the Brink

A stroll through charts in Latin America.

First currencies. USDCLP (Chile). Base, test, boom.

USDBRL (Brazil). Base, boom.

USDMXN (Mexico). Fakeout to breakout.

USDPEN (Peru) has a long way to go if it follows Chile and Brazil's currencies.

Country ETFs argue for a bottom, but there are also topping patterns that point to huge declines if they complete.

Individual stocks follow. These aren't selected for any particular reason as a group. Some are airport stocks that could sink if coronavirus spreads, some have nice patterns. My focus is on banks because of the currency component.

Latin American Currencies Ready To Stumble

All clear for global markets or are Latin American currencies about to light the next phase of the dollar bull market?

Bonus chart USDCNH.

Home prices down; support for stock market; religion infects the party

China’s November Home Prices Post Worst Performance This Year Amid Curbs China opens up to offshore renminbi investors No room for faith for all party members

"All religions, without any exception, belong to idealism. And in philosophy, there is fundamental conflict between materialism and idealism, which cannot co-exist, no matter when it is applied to any individual and political party," Zhu said.

There are enemies around every corner in the mind of the Marxist. Wukan rebels prepare with rocks and rice

“If they have guns, we have rocks,” said a villager surnamed Li. “If they want us to die, it’s OK too. We don’t have any land left anyway.”

Throwing rocks at rescued miners

Whoa. Chile's economy has been growing, it's stock market has been one of the better performers since 2009. How to explain this story except by social mood?

Protesters throw fruit at Chile’s rescued miners

It has been a bittersweet anniversary for Chile’s rescued miners, who were honored as heroes in their home town only to come under attack by anti-government protesters who threw fruit and small stones at them, accusing them of being ungrateful, greedy sellouts.

...But the events were marred by scuffles between riot police and protesting students, teachers, environmentalists and other miners, all trying to pressure Pinera to accede to their demands on reforming public education, increasing miners’ pay and stopping controversial dams and power plants.

Throwing rocks at the miners is partly explained by what sounds like the leftist makeup of the protest. Spitting on soldiers or throwing rocks at people trapped underground for 69 days is OK in the advance of politics. But still, the greater story is the shift in social mood, how else to explain the large drop in the president's popularity?

Pinera’s popularity has plunged to 26 percent, the lowest of any president since Chile recovered its democracy in 1990, as protests have roiled the country. Environmentalists hope to block hydroelectric dams in southern Patagonia and a huge coal-fired power plant in northern Chile. Unionized miners have briefly paralyzed the nation’s largest copper mines, costing companies millions in lost production. Mapuche Indians have occupied ancestral lands, setting off violent confrontations with police and landowners. Striking high school and university students have stopped classes for more than two months.