Talk about a turn of events. I remember a time back in the 80’s and 90’s when Latin American nations would default on their debts. Another tactic they would use is monetizing their debts, sound familiar. Now most Latin countries have their fiscal house in order, The result is economic growth. Buoyed by their new found success, they are now lecturing the Obama Regime about debt and fiscal responsibility.
SAO PAULO, July 20 (Reuters) – After three decades spent battling their own debt crises and getting constantly lectured about them by Uncle Sam, many Latin Americans are watching the countdown to a possible default in Washington with a mix of schadenfraude and fear of what a collapse might mean for them.
For everybody from presidents on down to street vendors, seeing U.S. politicians argue over where to make painful budget cuts has also been a reminder that those days are over in Latin America. For now, at least, as most of the region enjoys an era of economic prosperity and comparatively tiny deficits.
Brazil, the region’s economic powerhouse, which just a decade ago had to come to Washington to ask the International Monetary Fund for a bailout, is now the United States’ fourth-biggest sovereign creditor — holding about $211 billion in U.S. Treasury securities, according to U.S. data from May.
This is unacceptable. America is becoming the economic laughing stock of the world. When you have former debtors telling us to be responsible, it’s embarrassing.