Another indicator shows recession

[camberiu]

Link?

Not being a pedant, just genuinely curious.

If you can read portuguese, see the document straing from Brazil's largest bank (Banco do Brasil). Please see page 8.

http://www.bb.com.br/portal/dwn/fnd/dem04061548.pdf

 

[brewer12345]

If you can read portuguese, see the document straing from Brazil's largest bank (Banco do Brasil). Please see page 8.

http://www.bb.com.br/portal/dwn/fnd/dem04061548.pdf

Yes, and I can fly a table to the moon, too. Oh well.

 

[camberiu]

Maybe this will help:

http://www.bloomberg.com/apps/news?pid=20601086&sid=auPliv_HsP7Y&refer=news

 

[brewer12345]

Maybe this will help:

http://www.bloomberg.com/apps/news?pid=20601086&sid=auPliv_HsP7Y&refer=news

Hmmm, they quote someone talking about trade surplusses, which suggests that the Brazilian gummint may be dependent on brrowing, but the economy as a whole is not.

 

[camberiu]

Hmmm, they quote someone talking about trade surplusses, which suggests that the Brazilian gummint may be dependent on brrowing, but the economy as a whole is not.

As a Brazilian myself, I wish that was the case. You see, without the foreign borrowing, Brazil's goverment would have no choice but to raise interest rates (already the highest in the world) and taxes even further in order to finance its deficit (Brazil's goverment has no concept of cutting costs), which would have a devastating effect on the economy. Brazil is a 3rd world country with tax levels that rival those of seen in Scandinavian nations. A significant outflow of capital would be devastating (it would not be a new experience however, we have been through that story quite a few times already).