I have been researching the desolate country of Honduras after being made aware of her president being sent into exile by the military.  Typically, I wouldn’t look twice at such an irrelevant event, but was intrigued by references to Chavez and Castro.  If President Zelaya was a friend of these men, then the Honduras military have just scored major credit, in my book.  Assuming they do not themselves seize power and rather return it properly to the country’s replacement, then a great victory has been enforced in the name of democracy.  Like Chavez and Castro, Zelaya was attempting to circumvent presidential term limits, the illegitimate bastard.

Going on, I was curious as to what sort of economy Honduras supports, and what potential this ouster contains.  It would seem that as with most socialist economies, promising gargantuan wealth and total equality to all residents within, Honduras has an egregious poverty distribution with the bottom half of the country below the line, and 27.9% unemployed.

Moreover, the country is having problems with its electrical grid, as typical with large social services.  Roughly half of all energy produced in Honduras is from government entities.

I will make no calls on this situation now, since the military throwing a coup d’états in no way dictates policy change.  However, should this situation evolve into a transfer of power to the countries right, it is possible that the potential for American companies to dominate the Honduran economy will present itself.  With the poverty line where it is, there is much untapped demand, and the government is in desperate need of reliable expertise from business to fix their grid and power base.

It may prove fruitful to keep Honduras in the corner of your eye.

Back home, I am curious to see where are markets will go over the next week.  Presently, I’m hedged between my longs (SLB, UEC, SLV, NRP, GKK, RSO, MO, RMCF) and my shorts (COF, PBR, EMN).  My longs are fairly nonreactive as dictated by beta, whereas my shorts are quite so.  It roughly evens itself out with a slight preference to the long side.  I shall allow oil to dictate when I remove the shorts, since to date it has traced the broader markets excellently.

Unless of course, we go much lower, in which case I shall maintain all my longs and merely roll over profits from short sales, at such point as a dictate most reasonable.

Now I’m off to watch a fireworks display in a nearby county.  I bid you all good night.