Hey everyone, new to the forum, long-time lurker, Start-up Chile Alum, paid a lot of payroll tax funding a Bitcoin derivatives protocol developed in the 5th region, married to a Chilena, starting a derivatives brokerage.
Big capitalist. Also have nuanced political views.
New constitution != Left - necessarily.
The Military can get away with a lot, the only real checks are the US (which is sympathetic/silent), and the Rome Treaty (which Chile could well begin extricating itself from under a Kast presidency if we go in that direction).
The people who don't have property, and who have been scammed out of an education by embezzling charter public school managers, don't have much experience with benefitting from property rights, hence they're in a kamikaze dance of death and have nothing to lose, and theoretically, a lot to gain. It's maybe not constructive to call them simian when we are all, in fact, descended from primates.
Chile's education bamboozle leads to the favored sons of Las Condes being able to get preferential access to credit and we have the real estate bubble like where I live on the coast, there's a fantasy of creating a tech economy to fill out jobs here, but it's easier said than done. Huge supply overhang, people don't know how to invest globally. Most people don't know that you can buy Bitcoin, sell swaps against it, and get a 20-35% annualized yield with little credit risk (some BTC deposited to the exchange to margin the position), or 10-20% with futures roll-yield. People just invest in real estate and get caught up in managing renters or left holding a bag, while RE developers can realize a very high return on equity leveraging the vertical development off of a patch of sand. Pretty weird!
We don't have to throw out the economic development baby with the fashy bathwater, but this bathwater is gross y'all and we need to change it, but of course, protect the bebe. Economic development in Chile (or the US for that matter) has not truly been in accordance with the Free Market principles of Hayek. Guzman wrote the current constitution based on three influences, Hayek, Novak's "The Spirit of Democratic Capitalism" which is where a lot of the feel good, minivan, family-friendly vibes in the culture get reinforcement from, and then there was this fella named Carl Schmidt. Schmidt was a Nazi who thwarted the German prime minister's attempt to invalidate Hitler's Enabling Act by resigning, therefore triggering a technical change in government and ending the perpetual emergency instituted by the Act, which of course was passed by on a false flag arson attempt that was blamed on communists. Schmidt said, well the executive is always right, so no, basically, and then we got the Holocaust, millions dead in World War 2, because of that man's clever lawyer talk. And this is where the executive over-ride in Chile's government, the president's ability to flip a switch and have boots in the streets executing bystanders, torture centers and all the rest come from.
Now, a lot of us are from the US, a lot of us are from Canada and the UK, these countries have 90% similar constitutional rights, USA moreso on guns and speech, but there's a sense of what's what that we all benefit from in our educations, business careers and epic leveraging of the Chilean environment to advance those careers. I think we can *all* agree on the following:
1) Nazis are bad
2) A market economy built on government reinforced monopolies that are backed up by lethal violence is not really a free market economy
3) Gulags and communist violence is bad, we can't just burn it all down to get our way
4) AFP compared to Vanguard is a huge scam - not just for the management fees cannibalizing the dividend yields and killing long-term compounding, but also, the annuity-style payouts that index the average lifespan as 95 or something crazy like that, and thus people can't even take IRA-style withdrawals as they please/need. It's a scam wrapped in a scam. Any investment professional knows that the AFP system is not in league with the fiduciary standards that are required in the developed world.
Taking this all into account, there is a real opportunity for Chile to find a better constitution closer to the rights guaranteed by the US constitution, and in the process, become a more free market country, with more equal opportunity, a more dynamic pension system, and a better real estate market supported by decentralization of incomes instead of privilege-fueled real estate bubbles in vacation spots.
That's the Chile I want to raise a family in, and invest in, for decades to come.
It's almost like the US and the UK and Canada got to be such successful market economies because they adapted enough mixed economics to facilitate upward income mobility which reinforced the total retail investment market from being 1% of the population to being 20-30%.