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Montevideo, November 16th 2018 - 09:39 UTC

Mantega says US and Japan have again ignited the “currency war” and Brazil will defend itself

Friday, September 21st 2012 - 16:45 UTC
Full article 9 comments

Brazil threatened on Friday a further clampdown on speculative foreign capital, firing a warning shot in the “currency war” Finance minister Guido Mantega blames on money-printing by Western central banks. Read full article

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  • redpoll

    Yes I would agree with him. If US doesnt stop printing more and more paper dollars they will lose thier place as a reserve currency. In the end the mighty dollar is as vulnerable as any other currency but they havent ever had to face up to it till now. Remember what happened in the Wiemar republic of Germany or any other country´s currency who ran thier printing presses and thier country to collapse and exhaustion and the political consequences that ensued?

    Sep 21st, 2012 - 05:15 pm - Link - Report abuse 0
  • Think

    TWIMC

    Article says:
    “Speculative foreign capital”.
    “Excess inflow of foreign investors”.
    “Flows of hot money harming the economy”.
    All too familiar concepts from Argentina's 1990's false “Economic Boom”

    Brazil is doing the only right thing....
    Defending itself...
    And Mercosul...

    Sep 21st, 2012 - 06:13 pm - Link - Report abuse 0
  • Condorito

    redpoll
    The difference is that there are many powerful countries, like China, who hold most of their reserves in dollars and don't want to see their hard earned savings trashed.

    Now with the euro wobbling, there is even less of an alternative.

    I think we should move towards a Copper Standard ;)

    Sep 21st, 2012 - 07:43 pm - Link - Report abuse 0
  • ChrisR

    Yes, it all sounds good, until you realise that the present investors in Brasil are not at all happy about the present bout of devaluing the Real.

    Losing value is losing money just the same.

    Pot calling the kettle black?

    Sep 21st, 2012 - 08:14 pm - Link - Report abuse 0
  • briton

    mmmmm
    bad news for some,

    but good news for the Pound...

    Sep 21st, 2012 - 08:21 pm - Link - Report abuse 0
  • redpoll

    @3 condorito I quite agree with you Paper money unbacked by eiter a cdommodity or confidence in an economy is just that, I have some old pound notes in my collection which are nothing more than promisary paper - I promise to pay the bearer the sum of one pound i.e one gold soveriegn. Well that went out for sterling in 1935. Sterling was a reserve currency until the Yanks forced a devaluation from 4 dollars to the pound. They then kept a gold standard until the 1970s, pegging gold at U$D32 the troy ounce, How much id gold worth today per ounce?
    Ok China owns a lot of US scrip but it will be the Bank of China who determines its worth, not the Federal Reserve

    Sep 21st, 2012 - 10:53 pm - Link - Report abuse 0
  • Fido Dido

    I'm for debt free money. Gold standard never worked if you read history. Good example is the UK.

    Sep 22nd, 2012 - 12:49 am - Link - Report abuse 0
  • ChrisR

    @7 Fido Dildo

    Prove it.

    Sep 22nd, 2012 - 11:13 am - Link - Report abuse 0
  • British_Kirchnerist

    #1&2 Nice to find something both sides agree on =) As do I.

    Sep 23rd, 2012 - 11:01 am - Link - Report abuse 0

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