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Montevideo, May 27th 2019 - 09:19 UTC

US financial crisis is “political” and needs of strong decisions, says Rousseff

Thursday, September 15th 2011 - 21:43 UTC
Full article 4 comments
Advice from the Brazilian president to the US political system Advice from the Brazilian president to the US political system

Brazilian president Dilma Rousseff said the financial crisis in the Untied States which is contaminating the rest of the world is more ‘political’ than economic and it’s not only a matter of money, but also and mainly of ‘strong decisions’

The problem was born in 2008 when the US government went to the rescue of the banks and converted “private debt into public debt”, which at the time was inevitable and helped prevent a major catastrophe.

However now “there is a political objection in the US precisely when there is a need for greater fiscal expenditure, when the US needs a fiscal imitative and not only monetary”.

“The greatest difficulty facing the US currently is the lack of political decision in the sense of sending a strong message of stimuli to investments” added President Rousseff.

“The problem is not money”, insisted Rousseff who added that ‘depending on circumstances’ she could very well address the issue with her US peer Barrack Obama during the coming meeting next week in New York in the framework of the UN General Assembly.

Rousseff added that there is no international solution for this type of problems, not even for the Euro zone, since “it’s up to them to define conditions and to speed up the rescue package”.

As to the possible impact of the global crisis on Brazil, Rousseff said the government would be doing a major effort and achieve a 4% expansion this year.

The Brazilian economy expanded 3.6% in the first quarter of the year, and 0.8% in the second quarter. Rousseff admitted the third quarter should be even slower, but in the last quarter of the year, “there will be a strong resurgence that should allow us to end the year with just over 4% annual growth”.
 

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  • Fido Dido

    “private debt into public debt”

    First “Government” leader who says this openly. Shows they in Brazil know damn well what's going on. A scam: Private became public is socialism for the rich, capitalism for the poor. I (bank) lost, you (the people) pay (Bailout the banks)...of course for some idiots here on Mercopress, that's all fine because the economy needs those big banks.

    Rousseff added that there is no international solution for this type of problems, not even for the Euro zone, since “it’s up to them to define conditions and to speed up the rescue package”.

    Yes, shows they know that they in Europe and the US have to allow their TO BIG TO FAIL banks to fail, rather than protecting their corrupted buddies who don't want loose (Goes back to point 1)

    Sep 16th, 2011 - 01:15 am 0
  • briton

    but fido,
    the dog, cannot give its master advice,
    was you not told this,
    but hey what do i know,
    your the expert .

    Sep 16th, 2011 - 01:31 pm 0
  • Fido Dido

    Briton, first of all, I never claimed I'm an expert.
    Second, you're a moron, but since you're a kid with no knowledge of what's happening outside your bubble, the title “moron”, fits you perfect.
    You prove that over and over. You're not capable of learning something new.

    Sep 17th, 2011 - 06:53 am 0
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