Dec. 23 (Bloomberg) — Colombia will “delay” 3 trillion pesos ($1.4 billion) in spending from the 2009 budget in a bid to bolster investor confidence amid a global economic crisis.
Dec. 19 (Bloomberg) — Peru is advancing with plans to sell its first foreign bonds in almost two years to “demonstrate the economy’s strength” after receiving investment-grade ratings, said Betty Sotelo, the Economy Ministry’s debt director.
So how’s this go again? One country is going into debt to boost investor confidence. The other is holding on to savings in order to do exactly the same. Both will receive the breath of popular applause, of course. After all, it’s not what you do but who you do it to that counts.