MercoPress. South Atlantic News Agency
Latin America: Making the Good Times Better
By Dominique Strauss-Kahn - Latin America has enjoyed tremendous economic dynamism and a rising quality of life in recent years. But, faced with new challenges, the question is: how best to sustain this progress? Read full article
Comments
Disclaimer & comment rules“how best to sustain this progress?” Don't worry Muppet, watch and learn.
Feb 26th, 2011 - 06:53 am - Link - Report abuse 0“una época de vacas gordas” This is Spanish, Mercopress, what's happening to you? You are being forced to speak and write Spanish a la manera de los latinoamericanos hahaha
Les dejo una cumbia villera pa' que sigan aprendiendo español haha para todos los guachines yerba brava, vamo lo pibeeeee haha
aguante el apache!
http://www.youtube.com/watch?v=SqXiVDhZHpQ&feature=fvst
Of the chief of the largest international bank in the world, I'd have expected more than those platitudes. He leaves unmentioned the most importance issues for the region: that inflationary pressures might be caused by capital markets liquidity, not by high aggregate demand; that some Latin American countries are having soaring current account deficits - something that may in the future develop into currency crises. This issue is of great importance: Latin America's well-known boom and bust cycle has been the result of large, and ultimately unsustainable, current account deficits being carried for too long. He doesn't warn us about that, though. In fact, he actually recommends that we inflate our currencies to fight inflation. That is harmful in the short term - it affects job creation - and suicidal in the mid-term. As for foreign investors, they're obviously not going to bother with “future exchange rate risk”. Just like animals, market investors don't have the ability to plan for the long term. If profits from high interest rates and strong currency are good, they'll keep coming en masse: just see the 1990s Asian crisis. If prospects for the short term are very good, people will not be pressured to worry about some vague possibility that the outcomes of policies being now implented - policies that result in high profits for them - might end in tears.
Feb 26th, 2011 - 10:19 am - Link - Report abuse 0He also avoids by all means mentioning inflation in commodity prices - something that resulted from US currency devaluation policy. In fact, he has actually called in recent days for a weaker dollar (and also a strong renmibi). One can only wonder, who is this guy: is he the chief of the bank responsible for watching over GLOBAL economic stability, or is he the international face of the US Trade and Commerce Chamber? Perhaps in the near future he'll ask us to buy U.S. - but not Chinese -products to force inflation in domestically produced consumer goods down.
If only the IMF and Dominique Strauss-Kahn were properly appraised about the inbuilt weaknesses of the Bolsa Familia as well as its supposed successes.
Feb 26th, 2011 - 11:10 am - Link - Report abuse 0The IMF briefing seems to be closely allied to the UN progress reports that took a decidedly left-wing socialist perspective on the project and its 'successes'.
Dilma has asked the fundimental question - how do we get families off the BF and willing to stand on their own feet?
Because if it simply remains as an ever-expanding hand-out, transferring monies from the middle class to the working and non-working classes it will remain a Robin Hood tax perpetuating a new dependency culture.
Also there is much, much less effective scrutiny of the key part of the BF - ensuring that it is linked to *achievement* in state education by the children of the 'poor'. Brasil remains close to the bottom of all world rankings of educational achievement. - a situation exacerbated by Lula's frequent declarations that even Brasilian presidents can be uneducated and reach the top of the tree.
One can only agree with these IMF three key statements/questions.
The key question is - is Brasil prepared to use its governance and administration to ensure these monitary and fiscal programmes are in place, ready and functioning for when inevitable down-turns arrive?
GeoffWard... “One can only agree with these IMF three key statements/questions.”
Feb 26th, 2011 - 06:58 pm - Link - Report abuse 0Geoff, The IMF, World Bank, and the US/World oligarchy are one and the same. Do not delude yourself into believing ANYTHING that comes from the mouths of these “economic hit men”. The goal of these organizations is always to “control and exploit” the target countries. Always has been and always will be. The delegations of the current target countries (Panama, Uruguay, Brazil) would be well advised to receive Senor Strauss-Kahn respectfully, listen politely to what he has to say, and then to ignore him completely.
forget, it's better to ignore that kool aid drinker from the US aka Geotward, they really believe they are the best, know it all, while they forget how terrible their own educational system is, but oh no, they are being told, we're number one. As you can read, he's a real fan of this clown who wants a global currency after getting rid of the dollar. That's their dream.
Feb 26th, 2011 - 07:53 pm - Link - Report abuse 0Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!