For Central Bank Chief, Brazil Is OK and Needs No Change
Written by Bruno Bocchini
Wednesday, 30 November 2005
The president of Brazil's Central Bank (BC), Henrique Meirelles, declared that in light of the international situation and Brazil's improving economic state, it is not a good idea to make changes in the country's economic policies. Meirelles said that it is important to continue the current fiscal policies because they are "responsible."
According to Meirelles, the fact that Brazil is on track can be seen because inflation is being kept to pre-established levels, the debt/GDP ratio is in decline, the exchange rate really floats and the government is moving ahead with microeconomic reforms.
"These are policies that work. They have worked in other countries and they are being successful here in Brazil," he said, adding that this was not the moment to take risks.
Meirelles concluded by saying he did not expect the government to interfere with the exchange rate.
Financial Markets Losses
Brazil's Securities and Exchange Commission (Comissão de Valores Mobiliários) (CVM) reports that in October, while foreign investors put US$ 2.915 billion in Brazilian financial markets, they took out US$ 3.275 billion, for a net loss for the country of US$ 360 million.
However, for the year (January to October) there has been a cumulative gain of US$ 14.6 billion in foreign investments in Brazil.
policies that work ? written by Guest,
November 30, 2005
No they dont ! When a country is giving a interest rate of around 13 or 14 % above the inflartion rate, it just attracts the speculative money that will flee the country whenever there is a great rate of rate reduction.
You are the only country in the world doing this.
Do you believe that you are the only country in the world where policies work ? The opposite is the answer !
By borrowing at such a high rate, the country just increases the total debt owned at the same faster speed on top of the fact that their is also the regular increase. You are already highly indebted and the snowball effect is doubled with your stupid rates !
Therefore you borrow new money at inflation rate of 5/6 %, plus 13/14 % additional, plus 8 to 10 % or so as natural increase. Total rate of yearly new debts go up by 25 % or so.
A country that increases its debts at an annual rate of 25 % or so, when inflation is 5/6 %, will have a deep problem in a not too distant future.
Brazil received a huge boost in its international image with its selection as the host of the 2016 Olympics, but it was really just the cherry on top of the overall recognition of the country's ascension to the ranks of one of the world's most important countries. Now, as it finally takes its place on the world scene, there has been a great deal of concern about what kind of image Brazil hopes to project, now that the world is really paying attention.
The only good thing to say about the visit to Brazil of Iran's president, Mahmoud Ahmadinejad, on Monday November 23, is that it was mercifully short and lasted less than 24 hours. Ahmadinejad had his picture taken being hugged by president Luiz Inácio Lula da Silva who gave him a warm welcome and said Iran had every right to develop nuclear energy for peaceful purposes.
The small, coastal town of Condé is located just a twenty minute's drive from João Pessoa, the capital of Paraíba. The Northeast of Brazil has historically been a place of encounter and mixing between peoples. For millenia groups of indigenous people fished, farmed, migrated and sometimes fought along this large, fertile area.
The Brazilian diplo-MÁ-cia (bad diplomacy) carries on its accelerated course towards the non-acknowledgment of human rights, although sometimes it takes pleasure in saying that it does precisely the opposite. The visit of Iran's president, Mahmoud Ahmadinejad, is another example of a diplomatic omission that verges on hypocrisy.
On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas to sign the protocol for the entrance of Venezuela into the Southern Common Market (Mercosur). After two and a half years, the protocol was approved by the legislative bodies of Argentina and Uruguay, and as of now it may be only days away from being ratified by the continent's economic megalith, Brazil.
Some sectors of the fight against AIDS have suggested that Thabo Mbeki, the former president of South Africa, committed genocide through his absence from the fight against the illness in his country throughout his two terms.
One hundred and eleven years after Brazil abolished slavery, the number of workers deprived of their freedom is still huge. They raise cattle, produce charcoal, sugar cane or timber. Some of them, most undocumented Bolivians, work in basements of small apparel factories in São Paulo and other metropolis.
On November 7, 2009 a few friends and I had an opportunity to take a look inside a Brazilian jail outside the city of Rio de Janeiro. We were able to take some amateur footage of our experience on video (see link below). It's no surprise, of course, that the typical Brazilian jail lacks some of the functionality of those in North America or Europe, but our experience that day was quite shocking.
Depletion of the Amazon Rainforest is not a new concern facing environmentalists, biologists, ecologists, and a growing number of the Amazonian indigenous peoples. For decades they have feared for the fate of the world's most biologically diverse and species-rich hothouse.
Geisy Arruda made history this week in Brazil, but for all the wrong reasons. What began as a poorly planned fashion statement has become a worldwide tale. Geisy decided to wear a pink mini-dress to her private college in São Paulo state, and after that, all hell broke loose.
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Brazil received a huge boost in its international image with its selection as the host of the 2016 Olympics, but it was really just the cherry on top of the overall recognition of the country's ascension to the ranks of one of the world's most important countries. Now, as it finally takes its place on the world scene, there has been a great deal of concern about what kind of image Brazil hopes to project, now that the world is really paying attention. 
The only good thing to say about the visit to Brazil of Iran's president, Mahmoud Ahmadinejad, on Monday November 23, is that it was mercifully short and lasted less than 24 hours. Ahmadinejad had his picture taken being hugged by president Luiz Inácio Lula da Silva who gave him a warm welcome and said Iran had every right to develop nuclear energy for peaceful purposes. 
The small, coastal town of Condé is located just a twenty minute's drive from João Pessoa, the capital of Paraíba. The Northeast of Brazil has historically been a place of encounter and mixing between peoples. For millenia groups of indigenous people fished, farmed, migrated and sometimes fought along this large, fertile area. 
The Brazilian diplo-MÁ-cia (bad diplomacy) carries on its accelerated course towards the non-acknowledgment of human rights, although sometimes it takes pleasure in saying that it does precisely the opposite. The visit of Iran's president, Mahmoud Ahmadinejad, is another example of a diplomatic omission that verges on hypocrisy. 
On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas to sign the protocol for the entrance of Venezuela into the Southern Common Market (Mercosur). After two and a half years, the protocol was approved by the legislative bodies of Argentina and Uruguay, and as of now it may be only days away from being ratified by the continent's economic megalith, Brazil. 
Some sectors of the fight against AIDS have suggested that Thabo Mbeki, the former president of South Africa, committed genocide through his absence from the fight against the illness in his country throughout his two terms. 
One hundred and eleven years after Brazil abolished slavery, the number of workers deprived of their freedom is still huge. They raise cattle, produce charcoal, sugar cane or timber. Some of them, most undocumented Bolivians, work in basements of small apparel factories in São Paulo and other metropolis. 
On November 7, 2009 a few friends and I had an opportunity to take a look inside a Brazilian jail outside the city of Rio de Janeiro. We were able to take some amateur footage of our experience on video (see link below). It's no surprise, of course, that the typical Brazilian jail lacks some of the functionality of those in North America or Europe, but our experience that day was quite shocking. 
Depletion of the Amazon Rainforest is not a new concern facing environmentalists, biologists, ecologists, and a growing number of the Amazonian indigenous peoples. For decades they have feared for the fate of the world's most biologically diverse and species-rich hothouse. 
Geisy Arruda made history this week in Brazil, but for all the wrong reasons. What began as a poorly planned fashion statement has become a worldwide tale. Geisy decided to wear a pink mini-dress to her private college in São Paulo state, and after that, all hell broke loose.
No they dont ! When a country is giving a interest rate of around 13 or 14 % above the inflartion rate, it just attracts the speculative money that will flee the country whenever there is a great rate of rate reduction.
You are the only country in the world doing this.
Do you believe that you are the only country in the world where policies work ? The opposite is the answer !
By borrowing at such a high rate, the country just increases the total debt owned at the same faster speed on top of the fact that their is also the regular increase. You are already highly indebted and the snowball effect is doubled with your stupid rates !
Therefore you borrow new money at inflation rate of 5/6 %, plus 13/14 % additional, plus 8 to 10 % or so as natural increase. Total rate of yearly new debts go up by 25 % or so.
A country that increases its debts at an annual rate of 25 % or so, when inflation is 5/6 %, will have a deep problem in a not too distant future.