Brazil's new minister promises the same Levy targets, but fails to convince investors

Tuesday, December 22nd 2015 - 14:49 UTC

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Brazil's new finance minister sought to reassure investors on Monday as he took the reins of the recession-hit economy, but the Sao Paulo stock market and the Brazilian real both fell. In his first full business day on the job, Finance Minister Nelson Barbosa held a teleconference with international investors, promising to practice the same fiscal discipline as his predecessor, Joaquim Levy. Read full article

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Jack Bauer
Nothing will change under Barbosa. He is part of the same gang who supported fat-ass's policies before, during the crisis, and now....what his objectives are, are all too clear - allow uncontrolled spending to continue by reducing workers' rights, and increasing taxes and contributions. There is only one correct solution : cut spending - not investments - by the size of the current deficit (around R$ 120 billion)
He said he “wants to improve efficiency in the Economy”.......what he should be saying is that he wants to improve efficiency in the 'Government' - by implementing strict measures to stop most of the stealing and corruption in just about everything that is 'public', by moralizing the social welfare programmes (handouts) which cost Brazil a ton of money and do little towards preparing the recipients to get back into the work market and to be productive.
As to inflation, on the one side you've got the Central Bank increasing the SELIC rate to reduce the amount of money in circulation, and on the other you've got the Government, sabotaging this effort by continuing to pour billions into the economy in the form of unproductive costs (handouts) ....which is really all interests the Government, in its futile attempt to keep its electoral base happy and to prevent its popularity from falling any further. The rest of Barbosa's and Dilma's rhetoric, is just a lot of hot air to silence the ignorant . Wait until the 'Lava-Jato' is finalized and the Federal Police give their full attention to other corruption scandals in the BNDES, Eletrobras, State company pension funds etc, just waiting to be uncovered - the 'mensalão', and now the PB scheme, are just the tip of the iceberg.
Dec 23rd, 2015 - 07:20 pm - Link - Report abuse 0
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