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  • #277032

    celso
    Member

    In o Estadao today an old PT Economist suggests that Levy take a chunk of foreign reserves to buy Real debt. This would reduce Real debt expense and improve financial standing to prevent credit downgrade. Why sit on $350 billion dollars that pay no interest whlie paying 13% on Real debt at home?
    So a hundred billion dollars could be used this way.
    Also good news on dropping fx spent on petroleum 50%. This is helping fx reserves yet killing Pertobras offshore dreams….
    Agribusiness will remain roboust….So two more years of pain then…

  • #277034

    Anonymous

    Perhapsthat old PT economist should consider that the significance of the Brazilian governmentReal debt situation, unlike the Brazilian Dollar debt situation, hastheoretically vastly improved given the recent appreciation of the value in theDollar reserves relative to the Real. The old goat should also appreciate thatthe credit agencies have a little better insight into the failure of PT understandingof economics.

  • #277036

    miguel
    Participant

    That old PT economist should also recognize that selling off a huge chunk of the country’s forex reserves would be tantamount to canceling the country’s insurance policy against economic chaos, and a downgrade to junk surely follow (per Moody’s latest report). Net debt ratios would skyrocket. Is the ‘premium’ on that policy expensive? Absolutely, and worth every centavo, as the risks it is insuring against are very real. miguel2015-08-18 21:55:03

  • #277038

    celso
    Member

    Now, wait. The internal debt could be paid down with 100 of the 350 billion dollar reserve. Brazil would still have 250 billion dollars on hand. That would save about 40 billion reais a year in interest payments… Just what the rainy day funds are for. 40 billion reais savings is 200 reais per capita per annum.GreatBallsoFire2015-08-19 01:02:56

  • #277039

    Anonymous

    [QUOTE=GreatBallsoFire]Now, wait. The internal debt could be paid down with 100 of the 350 billion dollar reserve. Brazil would still have 250 billion dollars on hand. That would save about 40 billion reais a year in interest payments… Just what the rainy day funds are for. 40 billion reais savings is 200 reais per capita per annum.[/QUOTE]

    Whatis this internal government debt you speak of? A debt on which 40% interest isbeing paid!

  • #277051

    Serrano
    Participant

    I recall in my ‘puppylove’ days of Brasil, back during when FHC was residing at thePlanalto, I learned Brasil had paid off ALL of her IMF debt. Thatimpressed me! Or was it World Bank debt? (continued…)

  • #277052

    Serrano
    Participant

    What’s the difference,really? They’re both pushers for quick ‘fixes’ needed by developingcountries, with the aim of keepingtheir addicts on increasing dosages of debt. Anyway, that was apositive sign for me to delve further into the prospect of investinghere, and even living here. Confused
    (continued…)

  • #277054

    Serrano
    Participant

    BTW,for an ‘accidental’ president, FHCwas a damn good one! It was rumored FHC issupposed to be Dilma’s confessor; she will either admit to him her’errors’, or givehim her resignation. “Bless meFather HC, for I have sinned. It has been about fifty years since mylast confession… I have a lot to tell you!” LOL
    (end of post; this cut and paste is a PITA!)

  • #277058

    Andrewfroboy
    Participant

    Some kind of Twitter posting with character limits?

  • #277222

    lynchem
    Member

    Stay happy healthy with US dollars.

  • #277265

    Serrano
    Participant

    [QUOTE=Leblon]Stay happy healthy with US dollars.

    [/QUOTE]
    For now… but not forever…. Wink

    This piece of propaganda
    indicates that Parana is the place to weather the economic crisis. Look out 3casas, here come the ‘boat people’! Shocked
  • #277266

    Anonymous

    [QUOTE=Leblon]Stay happy healthy with US dollars.

    [/QUOTE]

    Em, isn’t that stating the bloody obvious!Perhaps in your next post you’ll remind us of last week’s winning lotterynumbers.

  • #277294

    lynchem
    Member

    Ouch… I did miss you, but you do know after you have a few glasses not to be aggressive! I’m surprised I have to remind you since your historic accusations of me being “stoned” while posting. Wink

    The global marketplace is in a crazy shift, losses here, stagnation there. I cannot come to grips with why Canadian dollars are down to .75 on the dollar. In all ways obvious that US dollars are a safety net right now, some might argue buying a place or two would be a good idea as well (in brasil). That is before inflation goes northward of ridiculous.
  • #28616

    shaunmw87
    Member

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