MercoPress. South Atlantic News Agency
Rousseff again confirms Levy as (austerity) minister despite complaints from the ruling party
Brazilian President Dilma Rousseff jumped to the defense of her embattled finance minister saying she would not be pressured into sacking him. Rousseff, fighting to save her second term presidency from threatened impeachment proceedings, said she was ignoring suggestions by the head of her own Workers' Party (PT) that Joaquim Levy should be dismissed. Read full article
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Disclaimer & comment rulesBrazil has to give a macroeconomic shock:
Nov 17th, 2015 - 09:49 am - Link - Report abuse 01 - Reduce interest (SELIC) dramatically to 4% pa and stop talking about fiscal adjustment;
2 - Taxing the foreign speculative capital inflows in the stock market by 10% to prevent the appreciation of the Real.
Because with the reduction of the Selic credit back to consumption, unemployment would be reduced, the tax revenue would increase. In addition, Brazilian inflation is not demand, but prices administered by the government that have been dammed in recent years.
Stock markets are expected to grow naturally with productivity gains and operating results of companies that have listed shares. Companies that have valued stocks artificially by speculative capital inflows are subject to the seesaw of the financial market. This is bad!
“ O maior inimigo do capital é o próprio capital!”
Productivity gains... in a country where people see less and less of a return on their investments, both in terms of labor and capital, in the past four years... carai, estou morrendo de rir!
Nov 17th, 2015 - 01:00 pm - Link - Report abuse 0The more radical sectors of the PT, as well as the 9-fingered toad , want to get rid of Levy and replace him with Meirelles....they don't understand that 'austerity' is the ONLY thing that'll get Brazil back on track, even though so far, it's been a farce. To make a difference, Meirelles would have to cut far deeper into Government spending, or does the damned PT want him because they know he will open the flood gates and allow irresponsible spending to continue ?
Nov 17th, 2015 - 09:21 pm - Link - Report abuse 0On the other hand, it was good to see fat Ass tell Lula to fuck off ; after all, the asshole had two terms, and is the idiot who started Brazil on the downward spiral , and not satisfied, keeps on poking his fucking nose where it's not wanted.
As to the brasshole's comments @1 :
1 - the SELIC rate is decided by the COPOM - the Central bank - and controlled by whom ? by the fat Dilma ...besides, reducing the SELIC rate, would make credit explode, along with the prices, causing an even larger increase in the cost of living...and compounding the crisis.
2 - If he doesn't want the Real to appreciate, this can only mean he wants it to depreciate, until it's not worth the paper it's printed on ; Regarding foreign capital, coming in for speculative purposes only, it's only fair that it be taxed upon repatriation - as I think it already is, but perhaps not enough - but foreign capital coming in as the result of productive investments and exports, should be incentivated. With more foreign currency available, the cheaper it gets and the Real can regain some of its buying power instead of going further down the drain.
As far as the rest is concerned, expansion, based on credit alone, just causes 'bubbles', as the results of too much easy credit over the past 5 years has proven ; loads of people today, can no longer pay their bills - just take a look at the record number of cars, and homes, being returned to the banks.
The fall of the Selic to 4% offer Brazil a primary surplus of 6% in 2016 and a nominal surplus of 2%. If the dollar is appreciated is excellent. Let the dollar reach 10, 20, 30, 40 reais. The problem is the dollar, not ours. The Brazil would sell all its reserves in US dollars and we would be capitalized until the year 2523 AD.
Nov 17th, 2015 - 10:23 pm - Link - Report abuse 0Then we will simply prohibit any transaction in dollars. Then we will simply prohibit any transaction in dollars. We do not need the dollar. The dollar is that needs us. Remember that our partnerships are in the East.
@4 brasshole ( terrorist sympathizer with shit for brains)
Nov 18th, 2015 - 04:44 pm - Link - Report abuse 0The reduction of the SELIC to 4% per annum, without many other prior structural (and drastic) changes would not have the desired effect, and would spell further disaster, just digging the hole deeper. The government's wrong decisions over the last 10 years, due to their rotten ideology and corruption, have been the main cause of the crisis in Brazil. The crisis and its causes are far larger than the SELIC rate !
If the Dollar appreciates, the problem IS ours...because it would mean the Real is worthless - against the Dollar, the Yuan or even the Argie Peso... unless of course, you expect everyone to go and live with you in your stinky slum. You haven't the slightest clue what you're bull shitting about. No one needs Brazil, unfortunately. Why do you think that your darling fat DumboAss is desperately trying to negotiate trade deals with the US and with Europe ?...we've all seen what happens when you put all your eggs in one basket, like Lula did, and DumboAss continued to do, with the Chinks.......they stopped buying and Brazil's trade balance went to shit. But you probably believe that Argentina , Cuba, Venezuela are the solution ?? don't make laugh, you ignorant turd !
@4 Do you expect to capitalize in reais? Doesn't it defeat your argument if the real diminishes to 50, 60, 70, 80, after “the Brazil” sells its reserves? Moreover, had you expected to denominate your reserves in another currency? I'm pretty sure if you're depreciating against the dollar, you're depreciating against the whole basket of SDR currencies. Trade, particularly imports, are going to be difficult for you. I also hope your exporters don't have an issue “prohibiting any transaction in dollars,” as I'm not sure how else you're going to import many of the capital-intensive goods that Brazil currently needs. Moreover, I'm sure your exporters are going to want to stay in business by selling goods to the U.S. Careful not to step on any toes...
Nov 18th, 2015 - 10:37 pm - Link - Report abuse 0Commenting for this story is now closed.
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