Brazil Archive

foreign dollar buying

[Skip to the end] The possibility of announcing an exit from Afghanistan with the funds saved to pay down the deficit would be extremely popular short term and contribute to lower GDP and higher levels of unemployment over the medium term. Those shorting dollars are selling them to foreign central banks who ...Read More

Carry trade

[Skip to the end] The article completely misses the point. There is no ‘cash pouring into’ anything. Nor is there a constraint on lending/deposits in any non convertible currency. It is not a matter of taking funds from one currency and giving them to another. There is no such thing. Yes, the ...Read More


[Skip to the end] Rates high, deficit up, state sponsored lending that’s functionally a fiscal transfer more than making up for the drop in private sector lending. Looks good! Brazil: Rates: Currently at 8.75%. Down from cycle high of 13.75% in January 2009. UE Rate->FF Rate”> Brazilian Development Bank Lending has been ...Read More

LatAm News

[Skip to the end] In general, Latin America seems to continue to be doing the right thing with fiscal policy including state sponsored lending and finance programs that are quasi fiscal transfers as well. Highlights Brazil’s August Retail Sales Rise 4.7% From Year-Ago Brazil to Extend Tax Cut on Appliance Purchases, Folha ...Read More

Fate of the US Dollar?

[Skip to the end] I think they want to accumulate financial assets and would like to get a currency they could feel good about to do that. And at the same time they want to net export. The only way they could do that is to somehow ‘force’ us to borrow their ...Read More

OECD Calls an End to the Global Recession

[Skip to the end] Guess it wasn’t as bad as most of the doomsday crowd thought? They never give sufficient credit to the automatic stabilizers and fiscal policy in general. I suppose that were understood there would have been a policy response at least a year ago to avert the damage that ...Read More

China’s Commodity Stockpiles Prompt Market Concerns, Hands-on China Report, Jing Ulrich

[Skip to the end] Looks like they are running their own passive commodity fund for a portion of their reserves! China’s Commodity Stockpiles Prompt Market Concerns By Jing Ulrich Following record inflows of base metals, iron ore, crude oil and coal this year, investors are questioning whether the surge in imports of ...Read More

Brazil Lula Vetoes Spending Limits for 2010 Budget, Estado Says

[Skip to the end] Brazil seems to be catching on? Brazil Lula Vetoes Spending Limits for 2010 Budget, Estado Says August 14 (Bloomberg) — Brazil’s President Luiz Inacio Lula da Silva vetoed 20 items in the guidelines for next year’s budget that sought to curtail government spending on public works, O Estado ...Read More

U.S. Federal Reserve Extends Swap Line with Brazil Central Bank

[Skip to the end] Wonder if they’ve used it? In my humble opinion lending them $30 billion unsecured is a high risk proposition. U.S. Federal Reserve Extends Swap Line With Brazil Central Bank June 25 (Bloomberg) — Brazil’s central bank said today it has extended an agreement to access up to $30 ...Read More

Nonsense from Wells Fargo

[Skip to the end] Please send this on to Eugenio Aleman at Wells Fargo Thinking The Unthinkable: The Treasury Black Swan, And The LIBOR-UST Inversion Posted by Tyler Durden >   The below piece is a good analysis of a hypothetical Treasury/Dollar black swan >   event, courtesy of Eugenio Aleman from, surprisngly, Wells Fargo. Eugenio ...Read More