Comments for With US$ 100 Billion in Reserves Brazil Says It Got Turbulence Vaccine at http://www.brazzilmag.com , comment 0 to 1 out of 1 comments http://www.brazzilmag.com Wed, 15 Oct 2008 21:54:04 +0100 FeedCreator 1.7.2 http://www.brazzilmag.com/content/view/7958/54/#pc_7512 In April 1998 your foreign currency reserves stood at Us$ 84 billion ! At that time your economy was smaller. And what happened next ? - Right then the collapse started : A) You stopped pegging the Reais to the US$ B) Your devaluation ended in 2002 when your curency went as low to nearly 4 Reais per US$ and is by now around 2.10 And even today when Brazilian caress their own navel because they finally have a strong currency, sorry but that is a short term view only. The Real is still HALF of what it was a decade ago against the US$ !!!!!! The Real today is worth 20 % of what it was worth before you pegged your currency to the US$ at the end of 1994 ! A few decades ago every poor brazilian was multi millionaire....in your monkey currency !!!! So much that you cut 3 zeroes 3 times in 2 decades....only, plus you divided it by a factor of 2.75 when you did the peg in 1994, and today it is still 50 % of what it was when you pegged it !!!!! Therefore 1'000'000'000 (Yesss you read well 1 billion) of your 1985 currency IS ACTUALLY WORTH LESS THAN 0,30 REAIS or 0,15 US$ !!!!!! incredible but true ! 1986 three zeros are dropped and the cruzeiro becomes the cruzado. 1989 three more zeros are dropped and the cruzado becomes the cruzado novo. 1990 the cruzado novo is renamed the cruzeiro with no change in value. 1993 three zeros are dropped from the cruzeiro which becomes known as the cruzeiro real. 1994 the cruzero real is replaced by the real, worth 2.75 old cruzeiros reais. 2007 the Real is still worth 50 % of when it was issued in 1994 !!!!!! But worse yet if you use a longer time frame because : 1942 the cruzeiro becomes the new currency, replacing the old reis or mil reis. 1967 three zeros are dropped and the cruzeiro becomes the cruzeiro novo. 1970 the cruzeiro novo is renamed simply cruzeiro. Meaning effectIvely that you would need 1 MILLION times (yesss a multiplication) 1 BILLION OF YOUR 1942 CURRENCY TO GET 0,38 Reais of 2007 Or to put the zeroes in places : 2'750'000'000'000'000 of your 1941 currency became....1 Reais in 2007 !!!!! Sadly for you there is not 1 single zero added by mistake ! - ch.c. Thu, 01 Mar 2007 23:13:02 +0100