Unrest In Peru - Connecting Some Dots
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Quickly connecting some dots today on Peru, and why it matters.
First, the headline:
Then, the narrative positioning:
“The violent chaos roiling Peru spread on Monday after President Dina Boluarte’s call for early elections failed to calm demonstrators protesting against her five-day old government.
Crowds blocked highways and massed in city centers in several regions of the Andean nation, and at least four people were killed as security forces tried to reimpose order, according to the Health Ministry.“
Then, the financial talking heads, making the case for “action:”
“Peru’s stocks, bonds and currency all weakened Monday, with the selloff in stocks made worse by lower copper prices.
The magnitude of the protests has been surprising, said Sarah Glendon, senior analyst at Columbia Threadneedle Investments in New York.
‘The protests really matter because if they are prolonged and if they are big, then they can have an impact on fundamentals,’ she said.”
“The call for early elections is ‘the right thing to do,’ keeping the overall look for markets in 2023 ‘fairly stable,’ Daniel Rico, a FX strategist at RBC Capital Markets, said in response to written questions.
Ratings agency S&P Global Ratings Monday revised the nation’s outlook to negative from stable, citing increased risks to institutional stability, but kept its rating two notches above junk territory at BBB, in line with Panama and Uruguay.”
And, finally, the REAL meat:
“The demonstrations are affecting harvesting, packing and transport to the port of perishable goods, said Gabriel Amaro, head of Peru’s agricultural producers, in reply to written questions. Peru is a major exporter of agricultural goods including blueberries, avocados, grapes and asparagus.
The political unrest also threatens to inflame simmering community tensions in mining areas. Peru’s rise to become a major producer of copper, zinc and silver has been hampered by sometimes-bloody protests and sporadic roadblocks as indigenous groups vent frustrations over what they see as insufficient compensation for land being used by mining companies.”
From Trade.gov:
“Peru is the world's second-largest producer of copper, silver, and zinc and Latin America's largest producer of gold. Peru is among the primary producers of mineral commodities in the world. Abundant mineral resources such as copper, gold, silver, and lithium are found mainly in the mountains.”
That last part sounds SUPER valuable, doesn’t it?
Connecting The Dots
As we’ve shared (CLICK HERE to see our precious metals forecast), the IMF, World Bank, and World Economic Forum machine is well designed to:
*Drive the destabilization of countries rich in natural resources (Problem);
*Drive panic and desire for a solution (Reaction);
*Then provide the loans that are nearly impossible to pay back, and supported by power-brokers who get collateral in the form of assets (Solution).
Those assets would be all of the precious metals.
Sherloc & Sherloc Exposes are committed to calling these things out.
We refuse to let bad actors keep running the same hustles and taking advantage of you without your knowledge.
Learn more, including how you can get access to the same research we use to connect the dots for $99 per month, at InvestInAnswers.com.