MercoPress. South Atlantic News Agency
Rousseff warns austerity measures alone are not sufficient to address economic crises
Brazilian president Dilma Rousseff criticized in Paris policies that are limited to austerity when facing crises because they are not effective in economic terms and only generate ‘more recession and unemployment”. Read full article
Comments
Disclaimer & comment rulesYour CommentDilma is advocating 'Growth' as the way forward for 'developed' Europe. In this way, she says, recessions and cliffs will not impact adversely on Brasil.
Dec 13th, 2012 - 10:55 am - Link - Report abuse 0OK, if there is something to grow.
If most Production is transferred to China, leaving mostly Service within Europe, there may be little in the way of trade flows that can benefit Brasil. [Does Brasil view such products as from a European company or as being 'Chinese'?]
For trade to blossom requires open markets. Is Brasil's market open to Europe? Or are there Brasilian-imposed trade barriers?
And does 'Developed' mean the same thing everywhere?
The UK may have a developed - though largely Victorian - infrastructure, education system, health service, etc, but if all national resources are taken up - and more - servicing the developed status, then where is the scope to build the economy?
Yes, I am aware of the answer; drop wages to Chinese levels and re-build production capacity in the UK. But this is a trough the UK might not want to go through.
And, at a time when Dilma is redistributing income from the rich to the poor to 'build' by enhancing buying and credit, it would seem illogical to advise the UK to chose to become poor simply to help out Brasil, etc.
I am becoming sufficiently old now to actually have observed the rise and fall of nations. This never happens as a result of altruism.
For the UK - and Europe - to transfer their Production from China to Brasil needs some thought on Brasil's part to costs, to 'red-tape', and to corruption.
She has MUCH to do to make her country the 'country of choice' for Production.
The word is “Rhetoric” .... the word by which all politicians survive...all words and no action.....all problems but no solutions...
Dec 13th, 2012 - 11:43 am - Link - Report abuse 0The economic problems of the World of democratically elected governments are all caused by politicians bribing the the hoi poloi with borrowed money in order to get re-elected. The great problem with democracy is that the people forever demand more from their governments and the politicians forever borrow more to bribe them with. The end result is that a time comes when governments cannot borrow any more and thus you arrive at the problems that the PIGS (Portugal Ireland, Greece, Spain) are going through where Newton's third law of motion doesn't work...The people can “scream and holler” all they like but the central governments won't- can't move an inch.
Brazil, Canada, Australia, et. al. have been prospering off the great Eastern dictatorship...China's demand for commodities to support their their cheap labour industial activities.
The UK has just hired a Canadian banker who say he will keep interest rates in the UK low for as long as it takes to get the economy moving again....this will result in a continued lower pound and lead to massive inflation within 10 years..
it will not cure the problem of their massive national debt....without reducing the demands of the hoi poloi for more services and handouts from government.
You can tax the rich with 50-75% tax rates but that doesn't work...they arrange to have their taxes laundered through low tax jurisdictions. the French rich are either leaving the country or re-arrangim=ng their income strategies...75% tax on the rich is once again just RHETORIC..a sale for the masses...not a solution.
I'm not being funny but just right now, Brazil are doing quite well but it's not always been the case and may not be in the future. I really don't think they are in a position to lecture.
Dec 13th, 2012 - 01:25 pm - Link - Report abuse 0Agreed, Brit #3
Dec 13th, 2012 - 03:25 pm - Link - Report abuse 0but I don't think Rousseff is *telling* us what to do, just thinking back to one of the successes in history - the USA New Deal, where throwing resources at the problem 'solved' it.
At least she is a trained economist, so her advice is arguably better than most!
My comment was that she has SO MUCH to do in her own country, and she's only half way through her first term of office.
Sadly, effective solutions are not always in one's own hands
(“Externalities, dear boy, externalities!” to parody Macmillan),
and even the best strategies rarely work.
I'm not being funny but just right now, Brazil are doing quite well but it's not always been the case and may not be in the future.
Dec 13th, 2012 - 04:54 pm - Link - Report abuse 0True. Brazil is doing well and no economies in the world will ALWAYS do well. It simply does not exist. It has and continue to learn from it's past and for some reason cannot forget, if you talk to Brazilians.
“ I really don't think they are in a position to lecture.”
To bad you concentrate on that, while you should concentrate why the developed world continue with a loser strategy. All Qe's have failed and will continue to fail, which hurt the regular people in those countries (it hurts your pension, geoff)..and in the developing world (though Brazil should also fix it's internal issues, include tax reform).
Austerity for the people (for years) and Bailouts (include no punishment for the banksters who rob the public infront of our eyes)
My wish is that people wake up and face reality that Austerity to bailout the zombie banks, zero interest rates (more negative which is horrible for savers who have to pay for saving and it benefits the banksters who borrow from zero and continue to gamble on the commodity futures market, SPECULATION, while they know they they are backed by their buddies in the government and have the status: TBTF....TO BIG TO FAIL)
Nobody really understands the European dilemma, on the one hand, everyone points to the Federal Reserve strongly promoting growth through incentives and to a certain point, being successul, as the US economy has begun to show growth in recent times. But the Federal Reserve can act in this way because the United States is a political union, more than anything, unlike the European Union, which is nothing but an economic community. And therein lies the problem, in the USA the Federal Reserve can help Nebraska or Arkansas and none in California or New York would cry foul, even though they perfectly know that the money used to help other states comes from their taxes and contributions or debt, but in Europe, if the Central Bank tries to help Spain, Germany will quickly stop them short, for they are not willing to see their contributions going to help another country.
Dec 13th, 2012 - 06:15 pm - Link - Report abuse 0Austerity is then, Europe`s only option.
*3*
Dec 13th, 2012 - 09:02 pm - Link - Report abuse 0British ones don't use * right now * expression.
You might be a a jobless British worker finds out a job in US.
Ok, well SHE can lend the money!!!!! :D
Dec 13th, 2012 - 09:08 pm - Link - Report abuse 0Since Spain & Portugal are Brazil's top investors, she wants the casino to stay open, but she isn't speaking responsibly.
The true challenge is that Asia is more competitive than Europe now in some ways, and so the money is flowing there. Not a bad thing, it's LIFTING people UP!
Agent999.............where are you !?
Dec 13th, 2012 - 09:35 pm - Link - Report abuse 0Yes...maybe one good celta/medieval music.......long live to Scotland's pub..
Dec 13th, 2012 - 11:30 pm - Link - Report abuse 0http://www.youtube.com/watch?v=u_tORtmKIjE
See, I told you so.
Dec 13th, 2012 - 11:56 pm - Link - Report abuse 0http://www.buenosairesherald.com/article/119310/cfk-argentina-close-to-reaching-automobile-trade-agreement-with-mexico
Well said Dilmita, austerity isn't working!
Dec 22nd, 2012 - 11:07 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!