Reuters -- "Era of Cheap Oil Over" -- IMF' chief Dominique Strauss-Kahn warns of looming threats from rising prices for LATAM

Using the great and free online personal finance management site "Mint," I have been able to monitor all my personal expenditures from my various bank accounts and credit cards.

Since the month of September, I've seen my expenditure on food increase roughly 20% and my gas expenditure has increased about 70%. Since August 2006, when I purchased the car, the cost of filling my tank has more than doubled.

If price rises are really hitting home in the United States, the cliche "world consumer," this pinch is definitely affecting the emerging world. IMF, chief Dominique Strauss-Kahn urged Latin American leaders on Monday "the rising threat of inflation in Latin America, urging policymakers to take steps to contain the shock to prices from energy and food."

He continues, explaining "The task for policymakers is to ensure that the initial impact of the supply shock on prices is contained and that macroeconomic policies successfully prevent higher inflation from becoming entrenched in expectations and wage demands"

“In the short term the challenge for Latin America is inflation. The region built credibility in the last decade and that credibility is now being tested”.

Strauss-Kahn's comments as the world as a whole attempts to fight inflation and ride the wave of problems resulting from the global credit crunch and sub-prime mortgage crisis in the US.

To view the full article from Mercopress in which I accessed Strauss's comments from click here

Reuters - Era of Cheap Oil Over

Argentina's agricultural sector in focus -- ''There's a lot of capacity in Argentina, including a lot of capacity that hasn't been met,'' Pisacco said

''There's a lot of capacity in Argentina, including a lot of capacity that hasn't been met,'' Pisacco said. ``We believe we'll be able to help feed the rest of the world.''

A farmer in Argentina told a reporter for the Miami Herald, this weekend. Click here to read the full article.

No less, the current picture of the global economy remains quite gloomy, and leaders around the world will be desperate to keep their people from going hungry, including the countries of South America.

South America, in particular Argentina and Brazil, currently have found themselves as possible answers to world food shortages and sky rocketing prices.

Ironic as large portions of the population in these countries and South America as a whole live in poverty and struggle on a daily basis.

Central and South America as they have been centuries, are stuck within greater global economy with a image they have found hard to shed. Articulated very nicely in Michael Reid's book "the Forgotten Continent," mentioned in earlier posts, as follows:

"Latin America has often been condemned to failure. Neither poor enough to evoke Africa's moral crusade, nor as explosively booming as India and China, it has largely been overlooked by the West."

Click here to purchase the book

Eurocup 2008 - Spain emerges victorious after years of historical "under-achievement"

Spain advances to the semi-finals in Eurocup 2008, after years of "La Madre Patria'' (the mother country), entering international championships with world quality and internationally top ranked teams... yet always falling short of expectations.


Hopefully the Spanish economy can make such a come back, as my last post indicates, their position in Latin America has grown in the past years and their FDI is crucial-- especially to countries like Cuba and even Peru and Argentina which few can deny are dominated by Spanish banks, telecommunications and construction. Perhaps "dominated"is not the correct term, but rather, lets me describe it as Spain's growing market presence in Latin America is significant and growing.

Peruvians, despite many expressing their anger over Fujimori's government signing of what many consider monopolistic rights to Telefonica of Spain, realize Spain is an important partner in the international community.

Telefonica did come to control the majority of the Peru's telecom sector, and they do charge very high prices for their services in Peru, Spain no less is a important source of FDI, in addition to China, the US, and Europe as a whole.

Latin America continues to grow, and achieve healthy growth rates when compared to other countries and regions in the world economy. Spain knows Latin America is a region they strategically have a advantage over other countries due to the similarities in language, religion and if I might say...

The United States re-placing Spain as the "imperial power'' or ''empire.'' Today, as of 2008, I believe it is fair to say the failures of the neo-liberal reforms of the 90's in Latin America. Combined then with the fact the Bush administration in the US has largely ignored Latin America for the past 8 years, has greatly helped Spain's image in Latin America, along with China, India, Europe and other countries around the world.

Spain, however, is a unique partner in the fact, much like Britain, the countries of Latin America have inherited certain traits and characteristics from the ''mother country.'' Second, Spain recently grown quite wealthy in a short period of time, they are in a position more than ever to invest, initiate cooperation and work with Latin America towards helping each other-- in economic, political and cultural respects.

Miraflores,Lima. The trendy/modern district. Symbolic of Peru's recent economic growth.

Spanish banking giant Banco Santander 2008 profit suprasses 10 bil Euros, helped in large by their operations in Latin America

Santander 2008 Profit to Surpass 10 Billion Euros (Update2)

By Charles Penty

June 21 (Bloomberg) -- Banco Santander SA, Spain's biggest bank, forecast profit will surpass 10 billion euros ($15.6 billion) in 2008, a record, as growth in Brazil and elsewhere in Latin America offsets an economic slowdown in its home market.

``Banco Santander has shown its considerable strength in the face of the abrupt change in financial markets,'' Chairman Emilio Botin, 73, told shareholders today at the bank's annual meeting in Santander, Spain. Santander earned 9.06 billion euros in 2007, or 8.11 billion euros before extraordinary items.

Santander, which makes about 80 percent of its profit from retail banking, has sidestepped much of the collapse in the U.S. subprime mortgage market that so far has caused almost $400 billion in losses. Santander is doubling its presence in Brazil with the acquisition of ABN Amro Holding NV's bank and Botin said today he expects Latin American profit to increase 20 percent this year in dollar terms.

Santander has ``performed well in this environment and that's admirable,'' said Peter Braendle, a fund manager who helps manage about $60 billion at Swisscanto Asset Management AG in Zurich. ``But make no mistake -- they're facing many challenges.''

---> To access the full story from Bloomberg LP click here

** Apologies once again for the lacking analysis in the past two days of posting, i'm traveling at the moment and unable to spend much time at the computer. Will make up for in the days to come!