I think it's important to keep some sense of proportion here: there are no actual socialists in power in Latin America. There are brilliant political figures like Chavez, but he is developing a form of welfare capitalism at the moment. This is a great thing, and it is even better that he is moving to intensify radical new forms of public democracy, but we also have to see how that works out.
Secondly, it's important to have some basic honesty: who is making "a red flag out of a burqa"? Only the women who wear burqas can do that.
Thirdly, a sense of strategy: which part of the world is most strategically important for us? In Latin America, you have a massive left-wing independence movement that is seeking elude Washington's grasp, and Bush has, despite the NED's best efforts, had to let it slip because of the overriding importance of the Middle East. At the moment, the best hope for the global Left is the Egyptian working class, which is engaged in a serious revolt at the moment. If they can overthrow Mubarak, the field of possibilities is thrown wide open. If they can get their own government, they can support the Palestinians, and form anti-imperialist alliances across the region. They may not choose socialism - the socialist parties in Egypt remain the minority - but the very fact of a popular working class uprising dislodging the second largest global recipient of US military aid would prepare the region for a massive transformation, and open up opportunities for socialists that have been absent for decades. There's hope for you.