Brazil Archive

Barack Obama mounts big push to bolster FDI in US

FDI is a function of employment. Note how high it was when unemployment was lowest. It’s about being able to make money here and not that we actually need fdi for anything, as we can instead relax fiscal Barack Obama mounts big push to bolster FDI in US By James Politi October ...Read More

Global Trade Flows Show Exports Are No Magic Bullet

It’s those pesky accounting identities again. With govt deficit reduction, it’s up to domestic credit expansion to offset the demand leakages. Global Trade Flows Show Exports Are No Magic Bullet By Simon Kennedy October 25 (Bloomberg) — When HSBC Holdings Plc’s economists from around the world recently pooled their forecasts, virtually all ...Read More

Emerging Nations Save $2.9 Trillion Reserves in Rout

Smart not to intervene and use reserves. And even the 19% isn’t as much as Japan’s recent approx. 25% drop, so they all remain stronger vs the yen. So the US now loses ‘competitiveness’ vs a whole mob of exporters cutting ‘real’ wages vs US, Canada, UK, and the Eurozone etc. As ...Read More

Turkey’s Babacan Warns Of Financial Turmoil

Turkey’s Babacan Warns Of Financial Turmoil By Yasemin Congar August 27 (Al Monitor) — Emerging markets will soon find themselves operating in a new world order. Few people are as painfully aware of this as Turkey’s Deputy Premier Ali Babacan. A soft-spoken politician whose key positions in three successive Justice and Development ...Read More

Brazil hikes rates to fight inflation

Fundamentally this increases govt deficit spending/interest income for the private sector, a negative for the currency and inflation, especially as it adds to costs. However it also adds to spending/output/employment which causes policy makers to think they got it right by hiking as the stronger economy ‘needs’ the higher rates, etc. Brazil ...Read More

The Stockman’s big swinging whip

The Man from Snowy River By Banjo Paterson So Clancy rode to wheel them — he was racing on the wing Where the best and boldest riders take their place, And he raced his stock-horse past them, and he made the ranges ring With the stockwhip, as he met them face to ...Read More

RBS: U.S. Equity Strategy Weekly; Assessing some Cracks in the Foundation

Good observations: Assessing some Cracks in the Foundation Most measures of investor sentiment rest deep within the optimistic domain. This, combined with the recent decline in volatility and performance correlation, suggests that investors have become much less concerned about the macro economy. A serious correction has so far failed to materialize and ...Read More

China hates QE

This was my suspicion back in maybe May, 2011 when Bernanke made his strong dollar speech after China had let their T bill portfolio run off after the Fed had begun QE1. Either China doesn’t understand QE or they are taking this position anyway, for further political purpose. And in any case, ...Read More

Brazil Cuts Rates to Record Low as Economy Stalls

Another central bank may have it backwards as lower rates turn out to be deflationary and slow things down via interest income channels? Brazil Cuts Rates to Record Low as Economy Stalls May 30 (Bloomberg) — Brazil’s central bank cut interest rates on Wednesday for the seventh straight time to a record ...Read More

Euro zone deficit hawks out in force

Says it all: Schaeuble Says Deficit Spending Backers Have ’Learned Nothing’ (Bloomberg) German Finance Minister Wolfgang Schaeuble said that deficit spending is the wrong way to bolster economic growth. People who believe you can generate growth without pursuing budget consolidation have “learned nothing from the experience of the crisis,” Schaeuble said in ...Read More