The beginning of a second canal connecting the Atlantic and Pacific Oceans will begin in earnest in December of this year. In effect, Nicaragua and China have agreed that a $40 billion canal project running through Nicaragua will modernize the short cut from one ocean to the other, a move made necessary because the Panama Canal is too small for many modern ships to pass through.
Thus, the US will no longer control traffic between the two oceans.
A new paradigm is dawning in the Americas and it points to a diminishing role for the super power, even in its own back yard.
The president of Nicaragua, Daniel Ortega, is the leader of the Sandinista National Liberation Front who has returned to power after his first term in office in the 1980s. It was during those Reagan years where the US President violated US Congressional mandate and continued to support the Contra terrorist group and their wanton killing of rural peasants and farmers that forced President Ortega from office the first time and that finally came to a head during the Iran/Contra Affair in 1986.
This time around, Nicaraguan President Ortega and Chinese President Xi Jinping have been able to finalize this important agreement and will be able to finance this, at least partly, through the QE money from the US taxpayer.