Amazingly, the Left has finally won in Peru and it’s about time. Things had really come to a head there. The Shining Path insurgency had not taken place in a background. Peru spawned the worst leftwing insurgents because it had one of the worst systems on Earth. Similarly, few countries were more feudal or unequal than Cambodia in the 1970’s. People were distributed into five economic castes depending on income. People of lower castes were virtually forbidden from speaking to the higher caste people. The city people viciously exploited the rural areas, and the rural people hated the city people. Cambodia had one of the worst societies on Earth. So of course it spawned the worst Leftwing movement ever.
The Right, of course, in the form of the party of former dictator Fujimori’s daughter, is already screaming fraud. There was no fraud. Anyway, the election was run by the center-right former government, and they were dead-set against this Leftwing guy winning. The US government and media can be reliably predicated to chime in quickly that the election was fraudulent. You just wait. The rich in Lima are trembling and threatening to pull all their money out of the country. The Lima Stock Exchange (which probably should be shut down) is having conniptions. We will see how this plays out in coming days, but I’m not optimistic.
Thing is, every time the Left wins, the US insists that it’s automatically a dictatorship. Meanwhile, the US does everything it can to provoke the state into overreacting with constant coup threats and regular coup attempts and even actual coups, huge street riots that turn into virtual counterinsurgencies, a vicious rightwing opposition that is downright seditious and takes all of their money from the US, lockout strikes by the bosses, currency warfare by currency traders, economic warfare (make the economy scream a la Henry Kissinger) when businesses refuse to produce goods or simply stockpile them to drive prices up, creating inflationary crises.
That’s in addition to the capital strikes and mass capital outflow, which has to be stopped. Problem is the only way to stop it is with currency controls and sooner or later currency controls cause a currency black market and dual currencies, usually effecting the real currency badly. The black market currency rate is often deliberately tinkered with to create inflationary crises. This is what the treasonous Venezuelan rich did with their currency firms in Houston that set the black market rate at crazy prices that caused wild inflationary spinouts. Eventually the real currency has to be floated, which wipes out everyone’s saving and drives the cost of the currency down to a very low number.