Brazil Archive

World Finance Chiefs Chastise US on Budget Gap

So with the entire world completely wrong, but nonetheless in charge, seems a reasonable bet to assume weak demand and a too wide output gap/too high unemployment will continue indefinitely? That is, fear of looming national solvency crisis (becoming the next Greece) is causing the world to go, at best, the way ...Read More

macro currency update

So it looks to me like all the major currencies have somewhat strong fundamentals. That is, policy is working to make them ‘harder to get.’ EU and UK austerity policies are proactively cutting net govt spending from where it was. And the EU has figured out that the ECB can fund at ...Read More

Brazil’s Mantega

The Brazilian miracle- Tight enough fiscal/low enough domestic demand for an appreciating currency, FX buying to keep it there and support the exporters with lower real wages = ‘good looking’ Financials at the expense of the overall real standard of living *DJ Brazil’s Mantega: Dollar Weaker Globally On US Econ Improvement *DJ ...Read More

Pre Christmas update

The good news is the US budget deficit still looks to be plenty large to support modest top line growth. And as the deficit continuously adds to incomes and savings, the financial burdens ratios continue to fall, and the stage is set for a ‘borrow to spend’, ‘get a job buy a ...Read More

QE providing the ‘cover’ for foreign dollar buying?

Japan has already begun the resumption of dollar buying. Now looking like QE is may be opening the door for a lot more? Emerging Market Policymakers Vow to Combat Fed’s Easing November 4 (Bloomberg) — Policymakers from Brazil to South Korea and China on Thursday pledged to come up with fresh measures ...Read More

What Policies for Global Prosperity?

Antonio Foglia and Andrea Terzi interview Warren Mosler, Distinguished Research Associate of the Center for Full Employment and Price Stability, University of Missouri, Kansas City (participating via videoconferencing) April 20, 2010 *Antonio Foglia* (AF): I have known Warren from his previous life as an investor, where he definitely proved his skills. Now, ...Read More

World’s rich got richer amid ’09 recession

They call Obama a ‘socialist’ who’s taking from the rich and giving to the poor, but the facts show that instead he’s presided over the largest transfer of wealth from poor to rich in the history of the world. GDP has been growing by around 4% for the last two quarters, while ...Read More

Moody’s likely to downgrade Greece and Brazil buying more $

Seems no one wants a strong currency anymore, but instead wants to keep their real wages down. So fears of a dollar crash seem again to be overblown. Nor is there any immediate risk of inflation from excess demand. The cost push risk from the Saudis hiking prices remains, and so price ...Read More

more on the man of the year

[Skip to the end] More on the Bernanke testimony: Shortly after the failure of Lehman Brothers, I was in Brazil at an international meeting, and I had a meeting there with bankers, and I asked them how the Brazilian economy was doing. And they said well, it had been doing fine, but ...Read More

Deficit terrorism has not let up

[Skip to the end] No telling which way the Obama administration will go. Probably the middle path which will mean muddling through with high, repressive output gaps that do the most damage to their own constituency. It’s not a bad environment for stocks, the near term risk remaing a strong dollar that ...Read More