Brazil and LatAm Say the Fundamentals of their Economy Are Strong

    Brazil's Central Bank chief, Henrique Meirelles

    Brazil's Central Bank chief, Henrique Meirelles The presidents of the central banks of the main economies in Latin America met this Monday, in Santiago, Chile, and disclosed a joint statement showing that their countries are "in better conditions to face the financial turbulences, thanks to their solid economic fundaments."

    The meeting included the presidents of the central banks of Brazil, Argentina, Chile, Colombia, Mexico and Peru. Venezuela was also invited, but did not show up.

    The president of the Central Bank of Brazil, Henrique Meirelles, and his Argentine colleague, Martรญยญn Redrado, discarded the possibility of central banks taking joint measures, as happened in the case of European central banks.

    "The joint actions promoted some weeks ago by the richest economies in the world had a specific finality, which was liquidity in dollars," explained Meirelles.

    "Our conclusion is that, due to the unique characteristics of each economy in our region and to the degree of integration we have with greater economies, the kind of strategy we have been adopting is the most efficient," he pointed out, adding the important of exchange of information between countries.

    The president of the Central Bank of Argentina agrees. "Each one has its particularities," said Redrado.

    "As is known, in Brazil some companies took a specific stand in the futures market, in the case of Mexico, commercial companies adopted positions of risk, and each country reacted with the instruments it has, but what is clear is that we all have the disposition to guarantee and preserve the economic and financial stability of our countries," stated the Argentinean.

    Redrado pointed out the climate of confidence among the presidents of the central banks, but he did not consider any chance of the organisations coordinating their actions. "Coordination is a word that does not qualify this meeting. What we have is a spirit of collaboration and engagement and economic and financial stability," he pointed out.

    The meeting of the presidents of central banks was to be secret, but a statement by the Central Bank of Brazil alerted the press, announcing the establishment of an Advisory Council for the Americas, an organization connected to the International Clearance Bank (BIS), which includes Central Bank presidents worldwide.

    But the meeting had already been replaced by an informal conversation between the central bank presidents of the countries of Latin America, which started these inquiries last week, in Washington.

    Meirelles considers the funds made available to increase liquidity are working adequately and that there is no difficulty in the concession of credit.

    "A good part of the compulsory loan is made available so that there may be credit concessions to medium and small banks. In the case of lines of loans with guarantees in foreign currencies we also have a direct link with credit concession in which the banks are obliged to use these funds to grant credit. However, we are monitoring this evolution of markets and are going to take the necessary measures," said Meirelles.

    ABr

    Tags:

    • Show Comments (27)

    • dnbaiacu

      Joao
      [quote]BTW, whether Lord Augustus likes it or not: Jesus was a true “Socialist” and so was Prophet “Mohammed”.
      report abusevote downvote [/quote]
      OMG ,LOL ๐Ÿ˜€ ๐Ÿ˜€ Please don’t get him started. lol
      Yes, I pay very close attention to Ch.c. There is ALWAYS oppurtunity in everything IF you have the eye for it and the capital. PREPARED is the word. I am keeping my eye out.

      In the meantime I just hope I get out of the States in a timely fashion. Before they make it extremely hard TO get out of here. I read the other link you posted on the Obama thread. I didn’t even bother to comment on that one. Ch.c pretty much summed up everything. Presidents have little power. Everyone is looking at the wrong entity. It is really sad to me. All these people standing in long lines getting emotional over nothing.
      . Things are changing quick and I do expect some type of crisis in the next 6 months. These people aren’t playing games.

    • Falupa

      Wow.
      “I”d say we are getting our moneys’ worth at this theatre?” LOL this is hilarious. I’d say we have the cheap seats.

    • dnbaiacu

      Wow Joao!
      I just read the link you posted.
      Sounds like a “global” trend to me….?
      Here in the U.S have you noticed the silly arguments over whether or not Socialism is being put in place? ๐Ÿ˜€
      I”d say we are getting our moneys’ worth at this theatre? ๐Ÿ˜€ ๐Ÿ˜€ ๐Ÿ˜€
      It is interesting to observe how some people are totally engrossed in what is going on and others trying to distract themselves as best possible.

    • dnbaiacu

      So true
      [quote]…
      written by jon, October 22, 2008

      The first and last things you do not want to hear from any politician are that “the fundamentals are strong”…[/quote]
      And Ch.c’s comments are so insightfully realistic ๐Ÿ™‚
      You HAVE to keep it real to keep from going insane.
      REALISTIC=TRUTH?????? ๐Ÿ˜‰
      Keeping it simple and being THANKFUL you ate TODAY. And have clothes on TODAY. The perfect stress antidote for the poor man.
      [quote]YOU must pray, then, this way:

      ร€ยขโ‚ฌล“ร€ยขโ‚ฌหœOur Father in the heavens, let your name be sanctified. 10ร€โ€šร‚ย Let your kingdom come. Let your will take place, as in heaven, also upon earth. 11ร€โ€šร‚ย Give us today our bread for this day; [/quote]
      Stop storing up for yourselves treasures upon the earth, where moth and rust consume, and where thieves break in and steal. 20ร€โ€šร‚ย Rather, store up for yourselves treasures in heaven, where neither moth nor rust consumes, and where thieves do not break in and steal. 21ร€โ€šร‚ย For where your treasure is, there your heart will be also
      ร€โ€šร‚ย So, never be anxious about the next day, for the next day will have its own anxieties. Sufficient for each day is its own badness.

      Just thought I’d throw some excerpts from the “worthless toilet paper”

      ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰
      But INFLATION is the thief!!! ๐Ÿ™ ๐Ÿ™ ๐Ÿ™ ๐Ÿ™ Hopefully people will recognize this. And CREDIT is a trap
      The rich is the one that rules over those of little means, and the borrower is servant to the man doing the lending. Proverbs 22:7
      He that is defrauding the lowly one to supply many things to himself, he also that is giving to the rich one, is surely destined for want. 22:16
      Do not get to be among those striking hands, among those who go security for loans. 27ร€โ€šร‚ย If you have nothing to pay, why should he take your bed from under you? 22:26
      Being COMPLETELY VICTIMIZED IS A CHOICE! ๐Ÿ˜‰
      WORTHLESS TOILET PAPER RULES! ๐Ÿ™‚ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰

    • dnbaiacu

      The “IMF Angel”…….
      Is coming November 15, a la’ Bush ๐Ÿ˜€ ๐Ÿ˜€ ๐Ÿ˜€

    • dnbaiacu

      “Meeting Of The Crooks”…
      That was great Augustus LOLOLOL ๐Ÿ˜€ ๐Ÿ˜€ ๐Ÿ˜€
      Loved it
      And that was a good essay on the “other” . Although of course we can agree to disagree ๐Ÿ˜‰ ๐Ÿ˜‰ ;-)I hope you are feeling better.

    • aes

      Gold is in the $600’s even charts can be translated in to Swiss, there is a Swiss language isnt there, or is it merely English, French German and Austrian. Switzerland a country the size of RI and a
      hey pindeho do you think that the $ will remain high against all currencies except the fiscally conservative yen much longer, you CANNOT continue to engage in defficit spending and have the dollar remain high merely because it is a safe haven currency. My reccomendation for gold was when it was at six, my reccomendation now was rhodium at 2 thousand previously at 10,000 you are a cheese maker not a business man.

      It was CNN that described the plight of the WON, I dont give a husky fuck about any opinion except my own and the measure of its validity is determined by the value of its wallet. The time to get out of the Real was at R$1.52 that was the time to cash out and put it in gold or in dollars. . .gold then was maybe $400, you Ch.c are a day late and an eternally dollar short. . .Credit Swiss just indicated a third quarter losso some $3 billion fucking genius. My recommencation is to buy acerage in Brazil or the U.S. stay away from ticky tak thinking Ch.c or you will continue to be merely an echo rather than a prophet.

    • ch.c.

      What an ace/hole ………17% is better than Buffet’s 10%
      Noooooooo
      – Because he got 10 % in a currency that is strong !
      – 17 % is in a weak currency. Do your maths now….if you can !!!!!
      – do you really believe that YOUR GOVERNMENT BEING OBLIGED TO BORROW AND PAY AT 17 % is a sign of strength ?
      – Your CFOs had the same conclusion than you the idiot AES ! yESSSSS—-FOR THEM BUYING THE BRL AGAINST THE US$ WAS A SMART IDEA ….receiving 14 % and paying 3 % in the interbank foreign exchange !!!!
      See now the results ! You should be…..APPLAUDED AND APPLAUDED.

      You should replace the CFOs of Sadia, Aracruz and Votorantim and the other 197 Brazilians CFOs ! At least there would be aa guarantee of continuation of LOSSES
      – Should you decide to put your money where your mouth and brains are, why dont you buy the Argentina Government foreign bonds ? They are paying 30 %…in US$….until maturity in 2033 ! Using your famous common sense….30 % in US$ is better than 17 % in Brl and better than 10 % in US$ !!!!!

      But coming from YOU the Idiot AES…..nothing is surprising !!!!!!!

      Ohhhhh….using your same common sense, why dont you buy the ZIMBABWE CURRENCY ???????
      NO DOUBT YOU SHOULD EARN 100 % PLUS…PER YEAR !!!!!!
      And were you not the Financial Genius that wrote very recently that “it seems the South Korean Won COLLAPSED” ?????
      Have a look a chart : if you can read it the right way which should not be too difficult for an averagre idiot…you should see
      that during the WON collapse (your own words)….the Brl DID NOT DO ANY BETTER !!!!!!!!! Even WORSE if measured until today !!!!!!!

      Dear Financial Genius, on your previous reference to Warren Buffet 2-3 weeks ago, YOUR conclusion was to buy GOLD at slightly over US$ 900.- ! Short memory ??????? TODAY US$ 727.-
      A No brain Idiot cant have a memory….by definition !!!!!!
      And if you guarantee that you have a brain, at best it is filled with a feijado.
      So shake your head, and dance the Bossa Nova in rythm !!!!

      Keep entertaining me, please !
      You are very amusing !

    • ch.c.

      I meant by our standards !
      Sorry Joao, they are not big, not even by your standards !
      In jobs or whatever it is different !
      They WERE big !
      Smiles

      On a more serious note, hopefully you understand what happened during your bull market, followed by your bear market.

      1) due to your CRAZY local interests rates in Brl, your firms preferred to borrow in US$ at a much lower rate
      2) after your 1999-2002 currency meltdown of 75 %, in an economic recovery phase you have several PLUSES
      3) You borrow in a foreign currency that should (and went down). Meaning you borrow let say Us$ 1 million at 10 %. also meaning you owed (assuming the currency exchange rate at 3 Brl to 1 US$) 3 million Brl and 300’000 annual interests rate…but to be paid in US$.
      4) Forget the interests rate for a while, but at the time of the loan repayment, let say 5 years later with a new exchange rate of let say 2.-, you had to repay only 2 millions Brl to make the US$ 1 million repayment !!!!!!
      5) But for the interest rate it was the same, but on a slower speed, because the interests are usually paid Twice a year !

      End results, it was a clear winning strategy.

      This is what we did in 2005, with a 3 to 1 leverage. Because on top of that this was a CARRY TRADE : Buy the Yielding Currency and short (borrow) the low Yielding Currency. The advantage of having a currency paying let say 18 % and paying our debts at a rate that was 4 %, advantage further leverage by the gearing of 2 (3 to 1 ratio)
      Now if you remember our many discussions, even before it happened, I said many times that the signal to get out will be at the first of your rate increase. Because after the first rate change from down to up (But the same if the other way), it is ALWAYS THE FIRST IN A SERIE…….. that no one can predict the end accurately !

      Fully proofed theory and facts….by now !!!!!!

      Quite strange that your JUNKIES CFOs continued the Carry Trades after your first SELIC increase !!!!!

      Not over :
      Theorically we should have gone short the Brl, since the signal was in place. Right ?
      We did not do so for the simple reason, that we had Noooooo intention to PAY the Brl rates, since we would have been short the Brl.
      Furthermore, we obviously had NOT the single clue that the Brl will go down at the speed it did.

      More simple….there is not !!!!!

      Snifffff…..sniffffff….we also missed A GREAT TRADE !
      Just imagine we shorted the Brl at a 3 to 1 ratio.
      We would have done around 80 % NET PROFITS in 5 months , even after paying 3 times (due to the 3 to 1 ratio) your CRAZY interests rates !
      So it is !!!!

      ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰

    • aes

      Ch.c 17% is better than Buffet’s 10% and his is denominated in safe haven menopoly dollars, wake up and smell the ink, it is only hard assets like land its the 70% again Todo.
      17% percent is pretty good amigo, the Real is hanging between 1.75 and 3,00 by the time three years roll around the investment should be pretty good, Buffet is only getting 10% The time is when to leave the game, if the Real blows by the 3/$ time to liquidate and buy gold. . .if the dollar devaluates and it has to because all they are are printing it, then the only hard assests are gold and real estate, since nobody is doing any business nobody is buying any commodities. But the object is not to be married to any investment, just to make a profit and move on. Ch.c you are forever in concrete you aint no Jimmy Hoffa though they might find you with an annurism and a high coffee bean colonic.

    • Joรƒฦ’ร‚ยฃo da Silva

      dnbaiacu
      [quote]Things are changing quick and I do expect some type of crisis in the next 6 months. These people aren’t playing games. [/quote]

      I give less than 6 months. ๐Ÿ˜‰ Just wait till Nov 5th. ๐Ÿ˜‰

      Here the tone of our “Rulers” changes every 2 hours. That is a bad sign. ๐Ÿ˜ฎ

    • Joรƒฦ’ร‚ยฃo da Silva

      Ch.C !
      [quote]None of the 3 companies could even be listed to the New York Stock Exchange !!!!! [/quote]

      Ch.c, when I said they are very big, I meant by our [i]standards[/i]. I was not even talking about the Market capitalization figures you had given (and of course they are correct). I was concerned more about the number of direct and indirect jobs they provide and any job losses in those companies will certainly produce “domino effect” in the economy.

      [quote]Ohhh Joao…are these companies….financial companies…or industrial companies who wanted to enter finances ??????
      Smiles ! [/quote]

      Here you are absolutely right. Unfortunately the “Professional Managers” of these companies forgot what their “Core Products” were and instead went into play in the casino. You might be surprised to know that the founder of one of these companies was the one who made the phrase “Brasil is a casino” famous 20 years ago!!. You might know who he is (still alive, though he is not actively participating in day to day Management).

      The fact that the Directors of Finance and some executives of these firms were fired is no consolation to the share holders (Who are threatening to sue the companies) nor to the ones that are going to lose their jobs. As I always like to say, I have seen this movie before. ๐Ÿ˜‰ ๐Ÿ˜€

      But…But…. who knows, Sadia will be bought by the Arabs.

      Still I am curious to know the other 197 companies. I bet they are “Export oriented” too and were taken for a sucker ride by the “Professional Managers” chosen by the politicians. To my credit, I always said that ” Nร€ฦ’ยฃo vai dar certo”;-)

    • ch.c.

      Joao….Joao…..VERY BIG…VERY BIG ??????????
      Market Capitalization :

      Aracruz Brl 3,6 billion or less than Us$ 1,5 B.
      Sadia Brl 3,8 billion
      Votorantim Brl 3,6 billion

      I am not even sure if that includes their 10 % drop in today price alone !

      VERY BIG…VERY BIG ???????

      In my view, like the world financial companies, there is no other way for them but to raise new capital, further diluting the existing shareholders !

      Surprises will be nasty !

      Ohhh Joao…are these companies….financial companies…or industrial companies who wanted to enter finances ??????
      Smiles !

      VERY BIG…VERY BIG ??????? Smiles

      iN AMERICA, even at today’s prices, these companies would be listed in the Russell 2000 Index !
      An Index composed of the 2000 SMALLEST MARKET CAPITALIZATION companies !!!!
      None of the 3 companies could even be listed to the New York Stock Exchange !!!!!

      ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰

    • Joรƒฦ’ร‚ยฃo da Silva

      [quote]Their problems stem from betting on Latin American currency derivatives. In Brazil alone, the result is tens of billions of dollars down the drain and maybe 200 companies in trouble.

      Aracruz, Sadia, Votorantim. And the Mexicans. [/quote]

      The three companies you mentioned are very big and in spite of it, I wonder if they can absorb the losses so easily. Nobody knows which are the other ones in the list of 200.

      I have a feeling that even some large private banks are in trouble. The next week may bring some more unpleasant surprises.

    • ch.c.

      Another Brazilian lie…from Mantega !
      ““Brazil’s economy is more dynamic and has several comparative advantages over advanced economies,” Mantega said. “The sole fact that only 13 percent of our GDP comes from exports is an advantage. We depend more on domestic demand than foreign markets, so we’ll be less affected than China in case there’s a reduction in global trade.”

      A pure LIE, because my country exports around 50-60 % of its GDP, and the currency remains STRONG even against the Euro.

      Fact is that most of your exports are BASIC COMMODITIES, not Premium Manufactured Goods !

      How many times have I said : Brazilians are cheating lying and hiding on a permanent basis ? Welll….just another proof of how true it sadly is !

      And if Mantega would be only half right about his ” has several comparative advantages over advanced economies” then why is the Brazilian currency weakening against the more advanced economies….without exception ???????
      And this despite offering the World Highest Interests Rates….after inflation.

      Hey hey !
      Mantega is a “smart” LIAR and junkie…….. as AES !!!!!!!!!!

    • ch.c.

      And the list continues to grow for those who will put a knee down…when knocking at the IMF doors !
      “South Africa’s rand (PROBABLY NEWEST BEGGAR) and the Ukrainian hryvnia have joined Iceland’s krona in a “currency crisis,” while the Turkish lira and Hungarian forint may follow in “a matter of days,”

      And see what may be copied in some JUNK currencies :
      Iceland’s krona has slumped 93 percent against the dollar since July 1

      And who could be next ?
      Turkey…. time will tell !!!!!!
      Funny…they have the same attribute than Brazil : they have THE SECOND WORLD HIGHEST INTERESTS RATES…..AFTER INFLATION !
      Who is World First ?
      BRAZIL !!!!!!!
      A sign of strength…or weakness ?
      Hmmmmmm…I let you answer !

      ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰

    • ch.c.

      Tit and Tat !
      To dnbaiacu
      Keep writing your proverbs.
      Last time you stopped at 18:10 which could have been translated to…..Brazilian rates may stop at 18,10 %
      Now you are already at Proverb 27 ! A probable sign !

      “But INFLATION is the thief!!! “
      But there is Noooooo inflation !
      What does that mean ?
      The thief was already at work for a while ! 24 hours a day for 5 years….and you not only applauded him, but re-elected him….as the King of Thieves !!!!

      “Stop storing up for yourselves treasures upon the earth, where moth and rust consume”
      Are you talking about the Cia Vale iron ore, for which they wanted 60-90 % ANNUAL price increases ?????
      Sorry but here we are storing IN OUR BRAINS. Have I not said to Joao more than once in the past that the wealth is not what is in the ground but what is in the brains. ?

      As to the Latest Novelty from the Brits :
      BARCLAYS just announced a 3 billion Euros bond issue….GUARANTEED BY THE UK GOVERNMENT !!!!!!

      No doubt a new trend that will be very fashionable in more and more JUNK countries, such as the UK, and probably followed by others in the “strong” Euro zone countries !!!!!
      When I told you Europe has far more problems that many can even imagine, wellllll…this is another proof !!!!!!

      Ohhhhhh…last but not least :
      1) All of you are watching the Oil prices collapsing ! Right ?
      Who has watched the ethanol price ? Probably none of you !
      Welllll……it went from Us$ 2,60 area per gallon to…US$ 1,74 since the end of July !!!!!!!

      But feel free to trust your crooks, your promised with a blue face that the Brazilian ethanol was profitable from US$ 35.- per barrel of oil equivalent !!!!!!!
      You should still be HIGHLY profitable.
      Just check how much Cosan was earning during the las 4 quarters. Every quarter was at a loss, despite the oil was going UP in prices like crazy.

      And finally :
      In the early summer, OPEC refused to meet earlier than their next schedule meeting in September.
      They also refused to talk or meet the Consuming countries ! Right ?
      Latest news of today : OPEC President says producers and consumers…..SHOULD MEET !!!!!!!

      ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰

    • Joรƒฦ’ร‚ยฃo da Silva

      dnbaiacu
      [quote]I just read the link you posted.
      Sounds like a “global” trend to me….? [/quote]

      I am glad that you read the link. We are not talking about just the “socialism” in U.S. or Brazil.If you re-read the entire link, you will find that where there is a crisis, there is an opportunity for young entrepreneurs like you. What the Brazilian “Social Democrats” did between 1994 and 2002 was to privatize some important strategic assets we had (for pea nuts) and the “Labor” who criticized the “Social Democrats” did not lift their fingers to [i]arrest[/i] the trend. Instead, they were talking about even privatizing the State owned banks. To do that, they were filling up these banks with their own cronies and getting rid of professional managers and employees [i]and strengthening private banks[/i].

      Now they are creating a subsidiary for CEF to help out the “Construction companies”!! As I said earlier, where there is a crisis, there is an opportunity. In your state (BA), I expect some “Construction Companies” to go belly up. If I were you, I would continue paying attention to Ch.C. Who knows, you may end up buying a company or two. ๐Ÿ˜‰

      Keep tuned. Shall post interesting links for ya.

      BTW, whether Lord Augustus likes it or not: Jesus was a true “Socialist” and so was Prophet “Mohammed”. ๐Ÿ˜‰

    • Joรƒฦ’ร‚ยฃo da Silva

      For those interested in knowing what measures our government is taking to make the “fundamentals” [i]stronger[/i]:

      [url]http://www.estadao.com.br/economia/not_eco264268,0.htm[/url]

    • jon

      The first and last things you do not want to hear from any politician are that “the fundamentals are strong”…when pressed they probably could not coherently explain what these fundamentals are. It has been tracked that every time Bush and his economic team made speeches to calm everyones nerves during this meltdown, the stock market closed lower each time ๐Ÿ˜ฎ ๐Ÿ˜ฎ

    • ch.c.

      And what about Brazilians Government Bonds in Local Currency ?
      The prices are plumetting, meaning RATES are are rising quite fast for the medium & long term bonds.

      3-Year 10.000 01/01/2012 874.7 / 16.87 %
      4-Year 10.000 01/01/2013 853 / 16.33 %
      5-Year 10.000 01/01/2014 817.02 / 16.60 %
      8-Year 10.000 01/01/2017 736.26 / 17.11 %

      To the junkie AES :
      Is this a sign of currency strength…or weakness ?
      Yesssssss…on a 5 years bond, Brazil Government is paying 13 % MORE than the US Government !
      While having a relatively similar inflation !!!!!!!

      Hey…hey…..QUADRUPLE IDIOT AES……I am anxiously waiting your Genius Idiot Answer !!!!!

      And……and…..and……look about your own latest reference to Warren Buffett when you stated…..BULLISH COMMODITIES, BULLISH GOLD. From that exact date….The Gold price went from slightly above Us$ 900.- to us$ 750.- in around 2 weeks !!!!!
      What a Great Interpreter AES is, on what Buffett NEVER SAID !
      He just has a big imagination, just as when he has MONO sex !

      ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰

    • ch.c.

      Viva the Bimbo Fernandez, Viva the Pimp de Kirchner !!!!!!!
      Trick…after trick, after trick, after trick, here is THEIR LATEST TRICK :
      “Argentina’s planned seizure of $29 billion of private pension funds stoked concern the nation is headed for its second default in a decade.”
      “Argentine bond yields in US$ soared above 24 percent BEFORE the announcement late yesterday,”

      And the show is just starting !!!!!!

      To Ric :
      yesss and no, time will tell. But…..but….for the time being it looks like that some people are estimating that Brazilian NON financial companies, will have a total of approximately US$ 27 billion in CURRENCIES LOSSES, due to their currencies SPECULATIONS….NOT HEDGES !!!!
      Most of these $ 27 B. are still to come.
      And it is not by having a currency that continue to weaken such as yesterday or today, that losses estimates will remain in at $ 27 B.
      Yessssss…the further the Brl weakens, the more the losses will grow in US$ !
      What will the Brazilian Government do ?
      Sell their foreign currencies reserves to support the Brl ?
      But that is acceptable only up to a certain POINT
      Because the less they have foreign currencies the more it weakens the Government and its currency.
      therefore at one point in time there is THE BREAKPOINT…wherever that point is.
      Breaking it….. AND what follows is a further fast deep currency drop, or……THE IMF Angel !!!!
      The IMF Angel that so many addicted to this Angel named it….. the IMF Hell, depending on the season. Angel when there is a hurricane and Hell…when there is sun !!!!!!!!
      The third possibility is by increasing, increasing. increasing their Government rates…which also en up as…NEGATIVE !
      Just look at Brazilian History…or actually….in ZIMBABWE !!!!
      Typically the emerging nations mentality !

      ANYWAY

      – Ukraine is HOPEFUL…to receive at least Us$ 14 billion…. by next week…at the latest !
      Pakistan has its 5 prayers daily, that the Christian IMF knocks at their mosque door ! Somewhat funny that their own close brothers…dont move a finger….! But so it is !!!!!! Muslims are friends to each others only as long as foreign money flows.
      – Hungary…..is certainly also praying 5 times a day at their churches !

      And the Bimbo Fernandez, like a real whore, has also put her hands, in the pockets of those that elected her….AS THE WORLD BEST LAP DANCER !!!!! They believed that she will bend to provide a BJ. Nooooo….she is emptying their savings !!!!!!!!

      But….but….but….more to come, in the news from these countries and from other COUNTRIES either already having had an addiction to the IMF, or newer countries that did not do…….SO FAR !!!!!

      2009 will be a great year !
      In the World, there will be only A FEW LARGE COMPANIES HIRING A LOT OF NEW WORKERS :

      – tHE IMF, World Bank, European Bank for Reconstruction, Asia Development Bank, American Development Bank, and a few others IN THE SAME INDUSTRY !!!!!!!!

      Watch out….watch out !!!!!

    • Augustus

      The Meeting of Crooks
      My sole surprise is that the sole decent Head of State among the bunch, namely Ms. Bartellet of Chile, actually invited the corrupt Latin American ร€ยขโ‚ฌล“chiefsร€ยขโ‚ฌร‚ย to meet in her capital, thereby making Santiago the chair of a Summit on Corruption and Embezzlement.

      On a side comment, I wonder if only the foreign ministers have attended it, since the Argentine Bimbo President generally shareร€ยขโ‚ฌโ„ขs Ignoramus passion for ร€ยขโ‚ฌล“State Visitsร€ยขโ‚ฌร‚ย as frequently as they canร€ยขโ‚ฌยฆ The Buenos Aires bimbo likes to go shopping (and meeting up her Venezuelan Pimp) whereas the illiterate ร€ยขโ‚ฌล“Sertanejoร€ยขโ‚ฌร‚ย from Brasilia enjoys bragging about any absurdity his idiotic mind may conceive at any given moment, generally resulting in embarrassing remarks to become the laughing stop of the Worldร€ยขโ‚ฌยฆ.

      What a region!
      ๐Ÿ™

    • Joรƒฦ’ร‚ยฃo da Silva

      [quote]Venezuela was also invited, but did not show up. [/quote]

      Probably Chavez was afraid that the Argentina will ask him for monetary aid to bail out its economy! This proves that UNASUL is still born.

    • —-

      [quote]Brazil and LatAm Say the [b]Fundamentals of their Economy Are Strong[/b][/quote]

      If we use McSame speak here, fundamentals doesn’t refer to the economic base, it’s refers to the brave, strong and eager work force. ๐Ÿ˜ฅ

      USA USA USA

    • Ric

      If They Have to Say That
      It shows that they are not sure it’s true.

      Their problems stem from betting on Latin American currency derivatives. In Brazil alone, the result is tens of billions of dollars down the drain and maybe 200 companies in trouble.

      Aracruz, Sadia, Votorantim. And the Mexicans.

      Thirty-something idiots with legit MBAs trying to leverage.

    • ch.c.

      showing that their countries are “in better conditions to face the financial turbulences, thanks to their solid economic fundaments.”
      Ohhhh yesssssssssss….especially Argentina, in need of a massive injection, not of ethanol, but of IMF fresh new capital !

      Venezuela ? Ohh sure. To finance their Government budget spending they need an AVERAGE oil price of US$ 80.- to 90.- !
      Of course despite oil is Us$ 70.- now, this is not the average.
      But what about if in 2009 that average price is US$ 70.- or slighlty lower ?
      And for 2010 if the average will be in the range of US$ 55.- to 60.- ?????

      Us$ 55.- to 60.- average will be still be high when measured from historical prices !

      Therefore this is certainly not impossible ! What follows a Bubble IS ALWAYS…a Burst !
      Meaning that even Us$ 40.- is not out of realm !

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazilian Industry Says It Won’t Accept Increases in Bolivia’s Gas Prices

    The president of the São Paulo Manufacturers Federation (Federação das Indรบstrias do Estado de ...

    Brazilian Petrobras platform

    Petrobras Tests First Oil Platform Made 100% in Brazil

    Brazilian oil multinational's Platform P-51, the first unit entirely built in Brazil, has left ...

    Safe Sex in Brazil: 25 Million Free Condoms on Carnaval, 1.5 Billion in 2006

    The Brazilian Ministry of Health’s National Program for Sexually Transmitted Diseases (DST/AIDS), is ready ...

    Caatinga, Brazil's semi-arid region

    Desertification Is Robbing Brazil of Close to US$ 1 Billion a Year

    Imagine a country with 937,000 square kilometers and a population of 18.5 million inhabitants ...

    Four Brazilian Cardinals Will Vote for New Pope

    Of the four Brazilian cardinals eligible to vote in the college which will choose ...

    An offshore oil platform in Brazil

    Oil and Chemicals Lead Brazil’s 6% Industrial Sales Growth

    Brazil's industrial sales grew 3% in January when compared to December 2006, in a ...

    Brazilian delegation at Mercosur meeting

    Mercosur Members Gather in Brazil in Effort to Fix Fractured Group

    Mercosur presidential summit next week in Brazil has on the table an agenda of ...

    Blood of the Wicked cover

    In Blood of the Wicked, a Brazilian Cop Turns Out to Be the Good Guy

    George Demko, a professor at Dartmouth University, has carved out an interesting niche for ...

    Korean Air

    Los Angeles-Brazil Nonstop Flight Back Thanks to Korean Air

    Starting this Monday, June 2, at 7:30 pm, Korean Air will be offering what ...

    Housing in Alagoas

    Brazil’s Housing Plans for the Poor Look Good Only on Paper

    The two most recent floods that have hit Brazil have served to underline the ...