“Author Archive”
Stories written by Larry Zwerling
Recent comments by Uruguayan vice president Danilo Astori have put the current economic crisis in a disturbing light: “I have no doubts we are before the most significant financial crisis capitalism has faced in contemporary history”, Mr. Astori remarked when asked about the ramifications for Uruguay of the stumbling trend in the US dollar and Euro. The vice-president said that Uruguay is much better prepared commercially and economically, should another crisis occur. Astori referenced the fact that following the August 5th decision by Standard and Poor’s to downgrade the rating of US debt from AAA to AA+, world markets collapsed, down in some cases as much as 11%. World commodities bore some abuse, and the hardest hits were apparent in oil. “In coming months we might be faced with scarce availability of credit, and therefore it is possible we will be seeing a tendency for interest rates to increase”, predicted Astori, a former economist who held the Minister of Finance position from 2005 to 2008.
August 9th, 2011 | Posted in Global Finance,Headlines,International Real Estate | Read More »
The government of Brazil has recently taken steps to improve the transparency of real-estate funds in an attempt to lure more investment to Brazil’s booming real estate sector. Breifs, as the Brazilian real estate funds are called, have ballooned in recent years, hand-in-hand with a real-estate boom driven by 10 years of strong, reasonably consistent economic growth. Real-estate values in some desirable regions of the country have skyrocketed, which is causing analysts to suspect a bubble. Others, however, still see plenty of room for growth, pointing to the fact that real-estate financing amounts to only 3% of GDP. Breifs- similar financial instruments to U.S. real-estate investment trusts, also known as REITs- buy and rent commercial properties in and around developed areas of Rio de Janeiro and Sao Paulo, although the fund’s structure is versatile, and they can be used for other purposes, like financing. One thing that separates them from their U.S. counterparts is that the Brazilian funds can’t take on loans to inflate returns.
August 5th, 2011 | Posted in Global Finance,Headlines,International Real Estate,Real Estate News | Read More »
In order to address the distortions on local currency caused by increased worldwide liquidity and import dumping, South America’s top economic analysts, policymakers and monetary authorities will be meeting in Lima and later in Buenos Aires to formulate a plan of action. The announcement was made by Argentine president Christina Fernandez and Brazilian president Dilma Rousseff in Brasilia, during July 29th ceremony inaugurating the Argentine embassy in Brasilia. Referring to a joint statement by the presidents, Ms. Roussef said,“We must define joint and specific actions to defend our countries from the excessive liquidity that artificially revalue our currencies, and from the avalanche of manufactured goods which can’t find a market in advanced countries and impact on employment and industry in our region.” The plans for the meetings were originally made during the UNASUR (Union of South American Nations) meeting held in Lima on July 28th, following the official inauguration of Peruvian President Ollanta Humala, who chaired the UNASUR meeting.
July 31st, 2011 | Posted in Global Finance,Headlines,International Real Estate | Read More »
The tiny, struggling nation of Zimbabwe has announced plans to import U.S. currency in the form of small coinage for shops, which are otherwise unable to give customers change, according to finance minister Tandai Biti. In 2009, Zimbabwe officially allowed domestic trade in U.S. dollars, after soaring hyperinflation made the Zimbabwean dollar worth less than the paper it was printed on. Street-side walls are littered with fliers and broadsides against the government printed on the defunct notes. The US dollars most people deal in are abundant, but there is a desperate need for small coins, pennies in particular, according to the BBC.
July 28th, 2011 | Posted in Global Finance,Headlines,International Real Estate | Read More »
In 2012, world population will hit 7 billion, and this unprecedented level of population growth and density has prompted the U.N. Population Fund (UNFPA) to launch the “7 Billion Actions” campaign to promote new techniques for tackling global development challenges. As the world population increases, the largest concern is still hunger, which kills 6 million children each year, a number roughly equivalent to the population of Israel.On the plus side, innovative solutions in sustainable agriculture can provide a not only food, but also opportunities for a growing population. Sustainable agriculture has become seen as a solution to climate change, public health problems, urban livability, and unemployment in a stagnant job market. The UN hopes that by sharing stories of successful innovations in an open forum, communication and collaboration will spring up, resulting in increased efficiency and production. As the population of earth increases and becomes increasingly dependent on each other, environmentally sustainable, health oriented solutions will be increasingly necessary.
July 14th, 2011 | Posted in Global Finance,Headlines,International Real Estate | Read More »
Delegates to Mercosur, the South American trading bloc, met in Luque, Paraguay for a summit focused on tightening integration and increasing trade. The leaders of the group arrived outside Paraguay’s capital Asuncion to discuss better cooperation in the trade bloc, which includes Argentina, Brazil, Paraguay and Uruguay. The organization has recently stalled on plans to form an EU style banking system.
July 2nd, 2011 | Posted in Global Finance,Headlines | Read More »
Bolivian President Evo Morales signed a groundbreaking law in June which would effectively increase the nation’s food security for generations to come. A large component of the plan is the establishment of state-owned companies to produce seeds and fertilizers. The creation of a a state seed bank for native plants, which would preserve the rich biodiversity of region is also planned. This is an exciting prospect for Bolivia, not only because it is a blow for sustainability and heritage breeds in the face of current food engineering trends, but because Bolivia has some of the greatest remaining biodiversity on the planet.
July 1st, 2011 | Posted in Global Finance,Headlines | Read More »
Colombia, Peru and Chile are where multi-billionaire entrepreneur Sam Zell is investing next, he told CNBC recently. Due to a merger, “…the stock exchanges of Colombia, Peru and Chile…will become the second-largest exchange” in Latin America behind Brazil and ahead of Mexico, said the chairman and founder of Equity Group Investments. “That stock exchange event will act like a funnel to these countries.”Zell’s name has been mentioned in connection with a $15 billion plan to build low-income houses in Brazil, a service he performs in Mexico for a princely sum.
May 20th, 2011 | Posted in Global Finance,Headlines,International Real Estate,Real Estate News | Read More »
Cinco de Mayo is observed in locations around the world as a celebration of Mexican heritage and pride. For the most part the celebrations combine food, music and dancing. Cinco de Mayo is perhaps best recognized as a date to celebrate the culture and experiences for people of Mexican ancestry, much as St. Patrick’s Day, Oktoberfest, and the Chinese New Year are used to celebrate those of Irish, German, and Chinese ancestry, respectively. In fact, in the US, Cinco de Mayo is celebrated more than in Mexico itself, with major street parties in San Antonio, Long Beach, New York, San Diego and Miami.
May 4th, 2011 | Posted in Headlines,International Real Estate | Read More »
Paraguay, like Bolivia, is actually completely landlocked. Asunción, situated on seven small hills on the east bank of the río Paraguay, is home to one twenyt percent of the country’s population and is a main urban center. Located in the center of South America, this somewhat quaint city is nearly equidistant from the Atlantic and the Andes, and is very interesting to consider investing in. Paraguay also had an attraction for the religiously inclined. The Jesuit Order actually ruled the country as well as part of Bolivia for 150 years until King Ferdinand expelled them from Latin America in 1760. The Jesuits had established a series of missions in the area which are principal tourist attractions still yet today. The 1986 movie The Mission starring Robert DeNero, dealt with the missions and also contained some dramatic footage of the Iguaçu Falls. Today, now that the Jesuits gone, Paraguay has become the world center of the Mennonite religion. Whatever the religion or purpose, many find this an undiscovered low cost paradise as Paraguay has only around 7 million people living there currently.
March 12th, 2011 | Posted in Headlines,International Real Estate,Real Estate News | Read More »
