January 8, 2016
Neoliberalism Raises Its Ugly Head in South America: Washington Targets Venezuela, Brazil and Argentina
by Jack Rasmus
After 9-11, the United States focused its most aggressive foreign policy on the Middle East – from Afghanistan to North Africa. But the deal recently worked out with Iran, the current back-door negotiations over Syria between U.S. Secretary of State John Kerry, and Russia Foreign Minister Sergei Lavrov, and the decision to subsidize, and now export, U.S. shale oil and gas production in a direct reversal of U.S. past policy toward Saudi Arabia – together signal a relative shift of U.S. policy away from the Middle East.
With a Middle East consolidation phase underway, U.S. policy has been shifting since 2013-14 to the more traditional focus that it had for decades: first, to check and contain China; second, to prevent Russia from economically integrating more deeply with Europe; and, third, to reassert more direct U.S. influence once again, as in previous decades, over the economies and governments in Latin America.
Following his re-election in 2012, Obama announced what was called a ‘pivot’ to Asia to contain and check China’s growing economic and political influence. In 2013-14, it was the U.S.-directed Ukraine coup – i.e. a pretext for sanctions on Russia designed to sever that country’s growing economic relations with Europe. But there is yet another U.S. policy shift underway that is perhaps not as evident as the refocus on China or the U.S. new ‘cold war’ offensive against Russia. It is the U.S. pivot toward Latin America, begun in 2014, targeting in particular the key countries and economies of South America – Venezuela, Brazil, and Argentina – for economic and political destabilization as a fundamental requisite for re-introduction of Neoliberal policies in that region.
Venezuela: Case Example of Destabilization
Economic destabilization in its most recent phase has been underway in Venezuela since 2013. The collapse of world oil and commodity prices, a consequence in part of the United States vs. Saudi fight that erupted in 2014 over who controls the global price of oil, has caused the Venezuela currency, the Bolivar, to collapse. The United States raising its long term interest rates the past year has intensified that currency collapse. But U.S. government and banking forces have further fanned the flames of currency collapse by encouraging speculators, operating out of Colombia and the ‘DollarToday’ website, to ‘short’ the Bolivar and depress it still further. U.S. based media, in particular the arch-conservative CATO institute in Washington, has joined in the effort by consistently reporting exaggerated claims of currency decline, as high as 700 percent, to panic Venezuelans to further dump Bolivars for dollars, thus causing even more currency collapse. Meanwhile, multinational corporations in Venezuela continue to hoard more than US$11 billion in dollars, causing the dollar to rise and the Bolivar to fall even more. The consequence of all these forces contributing to collapse of the currency is a growing black market for dollars and shortages of key consumer and producer goods.
More:
http://www.counterpunch.org/2016/01/08/neoliberalism-raises-its-ugly-head-in-south-america/