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Brazilian president calls on Central bank for “a cycle of interest rate reductions”

Saturday, October 1st 2011 - 05:54 UTC
Full article 6 comments

Brazilian President Dilma Rousseff made on Friday her strongest call yet for the central bank to continue cutting borrowing costs. At an event in Sao Paulo she said it was “inadmissible” for policy makers not to take into account the possibility of a recession and even a depression in the global economy. Read full article

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  • GeoffWard2

    “Rousseff made on Friday her strongest call yet for the central bank to continue cutting borrowing costs”

    I find it hard to get my head round the simple facts, let alone the complexities of the issues, but it seems to me that the whole mess was facilitated by *too much borrowing, too cheaply*.

    If the problem itself becomes the 'solution' to the problem,
    then it was either no problem in the first place (patently untrue),
    or somebody has put forward the wrong analysis and prescription.

    Oct 01st, 2011 - 01:37 pm - Link - Report abuse 0
  • Fido Dido

    what they need (all nations need that) is debt free money.
    The good thing of Brazil is, it has public banks that controls the money supply. Control your money, control your destiny. In Europe and in the US it's in private hand..no wonder bankers rule their.

    Oct 01st, 2011 - 05:31 pm - Link - Report abuse 0
  • GeoffWard2

    Fido,
    Central Banks exist in many countries.
    They attempt to manage monitary and financial stability.
    Private banks - of many types - are something else again.

    Oct 02nd, 2011 - 05:25 pm - Link - Report abuse 0
  • Forgetit87

    What “whole mess”, Geoff? The slowdown (in Brazil, at least) has been precipitated by quite another factor, that the tightening cycle hampered corporation's ability to borrow and invest. And in the long term this reduces potential growth and thus increases inflation. Interestingly, to increase interest rates may in fact worsen that which it is supposed to improve, the inflation outlook. This is to say nothing that if the economy remains without significant monetary and fiscal stimulus (which were all withdrawn at the beginning of this year when the government gave in to the international press's hysteria regarding “overheating”), a financial crisis may soon ensue (for example, if unemployment rises, which isn't unlikely considering the international outlook).

    Oct 03rd, 2011 - 01:36 am - Link - Report abuse 0
  • Fido Dido

    “Central Banks exist in many countries. ”

    You're right and wrong, the Federal Reserve is la private bank / company like Federal Express. You can read it openly in the so called creation of the Federal Reserve act. Another private “central” bank is again, the Bank of England. Not a fiction, but if you do your proper homework and take your time, you find out yourself. One big reason I love the old fashion history books.

    Oct 03rd, 2011 - 03:21 am - Link - Report abuse 0
  • GeoffWard2

    Welcome back, Forgetit, I thought this topic would attract you. I am still struggling a bit with your explanation; but give me time.

    Fido, yes, I am aware of the status of the Federal Reserve. I also understand the explicit segregation of the Bank of England from the political/governmental process, and the history of its nationalisation in the 1940s. This positioning of the English central bank is a structured 'Chinese Wall' designed to stop temptation resulting in corruption amongst the nation's Administration.

    The Deutsche Bundesbank has the same independence and segregation from the Administration - but that does not make it a PRIVATE ENTERPRISE.

    Oct 03rd, 2011 - 12:54 pm - Link - Report abuse 0

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