MercoPress. South Atlantic News Agency
Brazil central bank at a cross road: fosters growth or combats inflation
Analysts forecast Brazil's central bank will leave its benchmark interest rate unchanged at 11% this week, with the world's seventh-largest economy caught between rising inflation and sluggish growth. But given the persistence of inflation it should not come as a surprise if the monetary policy committee raises Selic to 11.25% after its two-day meeting this week. Read full article
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Disclaimer & comment rulesThe story is the same world-wide; otherwise normal adults are unable able to understand the fallacy of attempting to grow faster and faster forever on a finite planet.
May 27th, 2014 - 01:19 pm - Link - Report abuse 01. You have no imagination. I'm sure there were people saying the same thing 50/100/500+ years ago.
May 27th, 2014 - 01:45 pm - Link - Report abuse 0Technology brings growth always has always will.
Dilma started all this messing with Mr. Market by holding back on raising fuel prices commensurate with the production costs, instructing the commercial banks to lower their discrepancy hurdle so that poorer people could take out loans on this that and the other BUT her biggest mistake was / is leaving The Liar Mantega in post.
May 27th, 2014 - 09:44 pm - Link - Report abuse 0Frigg with Mr Market and he will Frigg with her: BIGTIME, as she is about to learn.
There is no win with the present situation except to encourage production whilst reducing costs which means getting rid of people. THAT will never happen in SA.
What the government needs to do is unbridle the economy : getting rid of excessive labour costs would be a good start ; today, with all the taxes and contributions which incide on company payrolls, the cost is roughly double that of the actual salaries ; Built-in taxes on industrial production (IPI), the circulation tax (ICMS), and dozens of other contributions, increase this burden to a point that these taxes represent anything from 40% to 60 % of the final price....
May 29th, 2014 - 04:27 pm - Link - Report abuse 0Another problem, unlikely to be addressed any time soon : invest your money with a bank, you're lucky if you get a return of 10-12% a YEAR...but go to the same bank to request a loan, or pay interest on outstanding credit card debt, be prepared to fork out 12 to 14% per month, or about 250 -300% , per YEAR.
There are endless examples of bad government management in similar issues which negatively impact the market, but the former has little, or no interest in correcting them.
And to top all that, we cannot forget the excessive cost of big government, and corruption, which have both skyrocketed under the administration of the PT....Unless the federal government makes radical changes (virtually impossible), Brazil will carry-on down it's slippery slope.
One last thing, which is not directly related to the economy, but to the danger the PT represents : The President of Brazil's Federal Supreme Court, Joaquim Barbosa, has not only just resigned from the Presidency, but he has 'retired' ; he is only 59 years old and had another 11 years to go, but decided to get the hell out, now. Coincidentially, one of our main magazines on politics and economy, 2 weeks ago published a letter sent by a high-ranking member of the PT party in the State of Rio Grande do Norte, threatening to kill Joaquim Barbosa, and inciting other 'petistas' to carry-out this deed...Strangely, the other mainstream media sources have kept quiet....I wonder why...
why don't they just follow that shining beacon of economic prosperity called the UK that Brazil just kicked behind on its way to insignificance.....how desperate can they get?
May 29th, 2014 - 09:17 pm - Link - Report abuse 0Prostitutes and drug dealers are set to give Britain a £10bn boost as the country revamps the way it measures its economy.
http://www.ft.com/intl/cms/s/2/65704ba0-e730-11e3-88be-00144feabdc0.html#axzz338lGfrie
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