Bargain Hunters Boost Brazilian Stocks by Over 7%. LatAm Leaders Lambast US

    US dollar

    US dollar Brazilian investors went back into a buying spree, this Tuesday, September 30, in search of stocks that had become very cheap on Monday after the panic that swept Brazil's market with the Bovespa index dropping 9.36%.

    The quest-for-bargains movement allowed the São Paulo stock exchange to register a strong increase, but not enough to compensate for the previous day's losses and much less for the devaluation that occurred during September. 

    The Ibovespa, the Bovespa index, went up 7.63% with the market reaching 49,541 points at closing time. The stocks had a 11% slump in September.

    This was Bovespa's second largest jump in almost 10 years. At the end, 4.87 billion reais were traded, below the September average (5.5 billion reais) and below the year average (5.9 billion reais). 

    The recovery was helped by the big companies like state-controlled oil multinational Petrobras and mining firm Vale do Rio Doce. Petrobras's stocks went up 7.17% generating 737 million reais while Vale climbed 7.95% bringing in 457 million reais.

    The dollar, on the other hand, fell 3.15% being traded at 1.904 reais per dollar. The American greenback contrary to the stock market had a 16.45% boost this month alone. The so-called country-risk rating, however, has suffered a bruise declining to 305 points, 8.13% below the Monday rating.

    Record Losses

    Stock markets in Latinamerica crashed on black Monday 29, following the US House of Representatives rejection of the bi partisan bailout package which had been painfully stitched over the weekend.

    Brazil's Bovespa suffered its greatest loss in one day since 1999. Trading dropped 13.8% before beginning to recover towards the end of the day.

    Before Brazilian President Luiz Inácio Lula da Silva had to come out and insist that the global financial crisis would have a limited contagion for Brazil.

    Trading had to be stopped for 30 minutes after the crash reached the 10% threshold but once restarted continued to fall until at the end of the day the index settled at 46.028 points, down 9.4%. On January 14, 1999, Bovespa also crashed 10% when trading was stopped.

    All industries lost ground particularly steel makers and the world's largest iron ore producer Vale do Rio Doce SA. This was motivated by fears that the world slowdown might affect directly the steel and construction industries.

    In Argentina the MERVAL index skid 8.7% and in Mexico the IPC, 6.4%; in Chile the loss was 5.7% and in Colombia, 2.37%.

    For Chile it was the worst daily fall in a decade and for Argentina's Merval the blackest day since February 11, 2002 when the market crashed 10.68%. The Argentine stock exchange has lost 13,5% in September and 30% since the beginning of the year.

    As happened with São Paulo, steel, oil and banks were the stocks which most suffered.

    Irresponsible US

    Four of South America's leaders meeting in the Amazon accused the United States on Tuesday of "irresponsibility" in its handling of a financial crisis that has dried up credit markets and threatens economies around the world.

    Lula said that rich nations are responsible for the global financial crisis, and called on the US Congress to pass a solution quickly. Emerging markets, including Brazil, are better prepared to weather the crisis than the US, he said.

    "We did our homework and they didn't," Lula said. "Those who spent the last three decades telling us what to do didn't do what they had to do. The crisis is very serious and so profound that we don't know how big it is".

    Venezuelan President Hugo Chavez warned the crisis could slow economic growth across Latinamerica and predicted that US economic power is in dramatic decline.

    "This crash of capitalism and of neo-liberalism will be worse than that of 1929," Chavez told reporters at the Manaus city meeting. "No country can say it won't be affected''.

    Oil prices should stabilize between 80 and 95 US dollars a barrel said Chavez who added that the credit crisis in the US will likely make it more difficult to obtain financing in Latin America.

    The crisis has already started to hurt lending in Brazil, revealed Altamir Lopes, head of the economic research department for Brazil's central bank. External funding for corporate loans dropped in the first two weeks of September compared with a month earlier, he added.

    "The world will never be the same after this crisis. A new world has to emerge, and it's a multi-polar world," he said. "We are decoupling from the wagon of death".

    Many Latin American countries depend heavily on exports of commodities, such as oil, soy, copper and bananas, and falling prices combined with tighter credit are raising fears of a sharp slowdown.

    With world money markets in trouble, policymakers are hoping the US Congress will quickly revive and approve a 700 billion US dollars rescue package that would allow the US Treasury to buy up bad debt from struggling banks.

    But Bolivian President Evo Morales, who is a close ally of Venezuela's Chavez and has nationalized the natural gas industry as part of his socialist reforms, criticized the US plan as a bailout for the rich.

    "In Bolivia, we nationalized for the people to have money, while the United States wants to nationalize debt and a crisis of the wealthy," Morales said.

    Ecuador's Rafael Correa fresh from Sunday's overwhelming victory in the constitutional referendum said speculation and the Wall Street casino economy were to blame for the current global crisis and vindicated his government's growing role in the country's economy.

    Bzz/Mercopress

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    • Show Comments (26)

    • dnbaiacu

      We have to keep the panel open
      Augustus I don’t mean to “bother” you. I just raise an alternative viewpoint to looking at the world situation. It is not to be offensive. I WON’T BE QUIET’. Rest assured.! But I am by no means necessarily addressing you with texts from the Bible. We are all educating each other. Some find different “inputs” more interesting than others. For instance your with your whole “Bretton Woods” essay. I am sure some read every word. Others glossed over it. And still others ignored it completely. But it out there for ALL to take advantage of.
      Actually your “emotional” reaction to these Bible texts shows everyone the power or energy it holds. Being so diametrically opposed to the message says something in itself 😉 . So it isn’t a book with revelance. It is just a book YOU choose to hate. And IT”S OK 🙂 🙂
      It still remains the WORLDS BEST SELLER
      It still sells 50million copies every 5 minutes
      It still the worlds most shoplifted book.
      You and all the other Bible haters should be happy when they start burning them and outlawing them in the near future. 🙂
      Until that time comes I will continue to enjoy my “freedom of speech”.. And again , don’t take it personally. I know you are too intelligent to do so 🙂 😉

    • dnbaiacu

      Just a little FYI for anyone interested
      [quote)
      Augustus ! “Some are honest enough to say that they believe that their god actually roasts those people in hell anyway[/quote]
      Actually THIS is the TRUTH

      [quote]s eternal torment of the wicked compatible with Godˢ۪s personality?

      Jer. 7:31: À¢€œThey [apostate Judeans] have built the high places of Topheth, which is in the valley of the son of Hinnom, in order to burn their sons and their daughters in the fire, a thing that I had not commanded and that had not come up into my heart.À¢€Â (If it never came into GodÀ¢€™s heart, surely he does not have and use such a thing on a larger scale.)

      Illustration: What would you think of a parent who held his childÀ¢€™s hand over a fire to punish the child for wrongdoing? À¢€œGod is love.À¢€Â (1À‚ John 4:8) Would he do what no right-minded human parent would do? Certainly not![/quote]
      This the real condition of the dead
      [quote]Does the Bible indicate whether the dead experience pain?

      Eccl. 9:5,À‚ 10: À¢€œThe living are conscious that they will die; but as for the dead, they are conscious of nothing at all .À‚ .À‚ . All that your hand finds to do, do with your very power, for there is no work nor devising nor knowledge nor wisdom in Sheol,* the place to which you are going.À¢€Â (If they are conscious of nothing, they obviously feel no pain.) (*À¢€œSheol,À¢€Â AS, RS, NE, JB; À¢€œthe grave,À¢€Â KJ, Kx; À¢€œhell,À¢€Â Dy; À¢€œthe world of the dead,À¢€Â TEV.)

      Ps. 146:4: À¢€œHis spirit goes out, he goes back to his ground; in that day his thoughts* do perish.À¢€Â (*À¢€œThoughts,À¢€Â KJ, 145:4 in Dy; À¢€œschemes,À¢€Â JB; À¢€œplans,À¢€Â RS, TEV.)

      [/quote]
      [quote]Why is there confusion as to what the Bible says about hell?

      À¢€œMuch confusion and misunderstanding has been caused through the early translators of the Bible persistently rendering the Hebrew Sheol and the Greek Hades and Gehenna by the word hell. The simple transliteration of these words by the translators of the revised editions of the Bible has not sufficed to appreciably clear up this confusion and misconception.À¢€ÂÀ¢€”The Encyclopedia Americana (1942), Vol. XIV, p. 81.

      Translators have allowed their personal beliefs to color their work instead of being consistent in their rendering of the original-language words. For example: (1) The King James Version rendered sheÀ¢€™ohlÀ¢€² as À¢€œhell,À¢€Â À¢€œthe grave,À¢€Â and À¢€œthe pitÀ¢€Â; haiÀ¢€²des is therein rendered both À¢€œhellÀ¢€Â and À¢€œgraveÀ¢€Â; geÀ¢€²enÀ‚·na is also translated À¢€œhell.À¢€Â (2)À‚ TodayÀ¢€™s English Version transliterates haiÀ¢€²des as À¢€œHadesÀ¢€Â and also renders it as À¢€œhellÀ¢€Â and À¢€œthe world of the dead.À¢€Â But besides rendering À¢€œhellÀ¢€Â from haiÀ¢€²des it uses that same translation for geÀ¢€²enÀ‚·na. (3)À‚ The Jerusalem Bible transliterates haiÀ¢€²des six times, but in other passages it translates it as À¢€œhellÀ¢€Â and as À¢€œthe underworld.À¢€Â It also translates geÀ¢€²enÀ‚·na as À¢€œhell,À¢€Â as it does haiÀ¢€²des in two instances. Thus the exact meanings of the original-language words have been obscured.[/quote]

      The TRUTH sets you MENTALLY FREE

    • dnbaiacu

      Let the “ancient texts as worthless as toilet paper”speak for themselves.
      Augustus. the “ancient texts agree with you”
      [quote]And one of the seven angels that had the seven bowls came and spoke with me, saying: À¢€œCome, I will show you the judgment upon the great harlot who sits on many waters, 2À‚ with whom the kings of the earth committed fornication, whereas those who inhabit the earth were made drunk with the wine of her fornication.À¢€Â[/quote]
      Revelation 17:1,2

      [quote]Religion manipulates weaknesses in the human consciousness[/quote]
      You were RIGHT ON POINT here 😉
      The consciousness are most are “DRUNK” as a result of religion and specifically her close ties to the governments
      But GOD is going to put her out soon, using the governments of the earth.
      [quote]And he says to me: À¢€œThe waters that you saw, where the harlot is sitting, mean peoples and crowds and nations and tongues. 16À‚ And the ten horns that you saw, and the wild beast, these will hate the harlot and will make her devastated and naked, and will eat up her fleshy parts and will completely burn her with fire. 17À‚ For God put [it] into their hearts to carry out his thought, even to carry out [their] one thought by giving their kingdom to the wild beast, until the words of God will have been accomplished.[/quote]
      Revelation 17:15-15

      Funny thing is they will be doing it real soon out of a need for MONEY and in the name of PEACE and SECURITY

      This will be the first step to peace on earth
      [quote]Be glad over her, O heaven, also YOU holy ones and YOU apostles and YOU prophets, because God has judicially exacted punishment for YOU from her!À¢€Â[/quote]
      Revelation 18:20

    • dnbaiacu

      Augustus
      COMFORT
      [quote] And I saw a new heaven and a new earth; for the former heaven and the former earth had passed away, and the sea is no more. 2À‚ I saw also the holy city, New Jerusalem, coming down out of heaven from God and prepared as a bride adorned for her husband. 3À‚ With that I heard a loud voice from the throne say: À¢€œLook! The tent of God is with mankind, and he will reside with them, and they will be his peoples. And God himself will be with them. 4À‚ And he will wipe out every tear from their eyes, and death will be no more, neither will mourning nor outcry nor pain be anymore. The former things have passed away.À¢€Â[/quote]
      Revelation 21:3,4
      It is good for your soul to believe. 🙂

    • Augustus

      SUGGESTIONS FOR JOAO’S PRESUMPTION: “NEW MERCOSUL CURRENCY” NAME CONTEST
      While the shortsightedness of Brasilia has not yet included a new common currency (as far as I know), but simply a Payment System in Local Currencies (restricted to Brazil & Argentina), I suppose itÀ¢€™s very possible that Bin-Lula SertenejoÀ¢€™s foolish, unrealistic, ostentatious (super-power) dreams might soon embrace a common currency for Mercosul. Such ill-considered proposal would undoubtedly represent an even greater mistake than the more limited SML, not only because the current Latin American Political Cultures are not sufficiently À¢€œmatureÀ¢€Â and À¢€œfiscally responsibleÀ¢€Â for entertaining such an enormous task, but also due to the rather precarious nature of the existing (and historic) Latin American Financial Markets.

      IÀ¢€™m nearly certain that most bloggers would agree that the Latin American Markets (presuming one may even indulge the region with such terminology) are way too volatile and exceedingly embedded in corruption to be trusted with a Central Bank to regulate a common currency!
      If planned, the entire enterprise would turn Brazil into the laughing stock of the International community, as Brasilia would become the subject of ridicule in light of Latin America’s never-ending waves of scandal, mismanagement, and theft by politiansÀ¢€¦

      Yet, for the sake of a providing a certain diversion for our fellow bloggers, we might perhaps amuse ourselves with JoaoÀ¢€™s suggested effort of À¢€œcoining a name for the new currencyÀ¢€ÂÀ¢€¦ I suppose we might consider a minor contest whereby each À¢€œfrequentÀ¢€Â Blogger would suggest two names to be submitted for a vote here (or in any of À¢€œBrazil.comÀ¢€Â popular threads).

      My suggestions:
      1)Latino (um Latino / dois Latinos / two Latins / dos Latinos)
      2)Colonial (um Colonial / dois Coloniais / two Colonials / dos Coloniales)

      Naturally, if I were to impose a name with absolute authority, I would name it À¢€œImperialÀ¢€Â (um Imperial, dois Imperiais, two Imperials, dos Imperiales) 😉

    • João da Silva

      Simpleton
      [quote]Sado-Masochistic-Lula (SML)
      written by Simpleton, October 03, 2008 [/quote]

      That was a very good and fast one, Simpleton. You havenÀ‚´ t forgotten your sense of humor. BUT….BUT….I am trying to coin a new name to replace SML and this “New Currency” will last for “eternity”. 😉

    • Simpleton

      Sado-Masochistic-Lula (SML)
      You just had to ask Joao didn’t you? Let’s keep that out of site / off the airways til after the elections – ok?

    • João da Silva

      Augustus
      [quote]JOAO – please go back to your link and NOTE the two comments made by angry Brazilians objecting to the deal[/quote]

      Yeah, I read them and hoped you would do so too.There are plenty of [i]indignant[/i] Brasilians. Some protest vociferously and many silently. But both these segments show their displeasure at the ballots. That is the reason, I am monitoring the Municipal Elections with interest. It is time for the intelligent and educated Brasilians to bring sanity back to the society!

    • Augustus

      JOAO – Your link – ESTADAO Editorial (Real/Peso) – SML (LOCAL CURRENCY PAYMENT SYSTEM – bound to fail)
      In connection with JOAO’s LINK, there have been other editorials here about this SML agreement the last one during the last visit which the Argentine Bimbo-President made to Brasilia. Based on CH-C comments, they have been talking about this “dream” for years but it never happened. As such, I was shocked to see it actually being implemented, particularly now, with this Financial messs

      [quote]O presidente do Banco Central do Brasil, Henrique Meirelles, tratou de reverter as crÀƒ­ticas de alguns economistas de que o momento nÀƒ£o Àƒ© oportuno para o SML por causa da volatilidade das moedas. Primeiro, reconheceu que “o inÀƒ­cio das operaÀƒ§Àƒµes do novo sistema em moedas locais ocorre, por coincidÀƒªncia, num perÀƒ­odo de forte instabilidade nos mercados financeiros internacionais, e de restriÀƒ§Àƒ£o de liquidez ÀƒÂ s operaÀƒ§Àƒµes comerciais globais”. [/quote]

      Not surprisingly there are many sckepticals, because sooner rather than later ARGENTINA’s currency will collapse which will be immediately followed by the Brazilian – as it will have to collapse to avoid Argentine losses…
      This is probably one of the GREATEST MISTAKES Brasilia has ever made! Tet, what else could we expect from the moronic Bin-Lula (borrowing CH-C term) —- JOAO – please go back to your link and NOTE the two comments made by angry Brazilians objecting to the deal 😉

      [quote]”HÀƒ¡ muito nervosismo nos mercados em geral e entre os empresÀƒ¡rios, mas o nervosismo vai passar e o SML vai ficar. Depois que passar, tudo que facilitar o comÀƒ©rcio serÀƒ¡ muito bem aceito”, afirmou ÀƒÂ  AE o presidente da FundaÀƒ§Àƒ£o Exportar, Marcelo Elizondo. Segundo ele, existem hoje cerca de quatro mil pequenas e mÀƒ©dias empresas que exportam para o Brasil que serÀƒ£o beneficiadas com o sistema.[/quote]

    • Augustus

      FYI – Important clarification – BRETTON WOODS COMMENTS – TAKEN from the internet – (not mine)
      ALL
      Except for some comments here and there, most of the text was taken from the internet for clarification of this important historical document, particularly because Joao was very interested on the subject.

      I would never take credit for something I did not create 🙂
      Again, the purpose of the entries was to clarify and educate (and comply with Joao’s request 😉 )

    • João da Silva

      Augustus
      Thank you for the essay on Bretton Woods and along with the comments of CH.C, it did make a good reading.

      As for your comment:[quote]BRETTON WOODS – LATIN AMERICAN MENIONED ONLY ONCE![/quote]

      I must inform you that, Latin America is going to have its own monetary system soon and to enable you to understand further, I am posting you the following article:

      [url]http://www.estadao.com.br/economia/not_eco252705,0.htm[/url]

      Even though it is currently being called SML , I think that we should think of a more appropriate name for it. 😉 😀

    • Augustus

      BRETTON WOODS COLLAPSE
      However, the Bretton Woods Agreement lacked any effective mechanism for checking reserve growth. Only gold and the U.S. asset were considered seriously as reserves, but gold production was lagging. Accordingly, dollar reserves had to expand to make up the difference in lagging gold availability, causing a growing U.S. current account deficit. The solution, it was hoped, would be the SDR.

      While these instruments continue to exist, this long-term effectiveness can only be the subject of speculation. Today SDRs make up about 1 percent of IMF members’ nongold reserves, and when in 1971 the United States went off the gold standard, Bretton Woods ceased to function as an effective centralized monetary body. In theory, SDRs – used today on a very limited scale of transactions between the IMF and its members – could function as the beginnings of an international currency. But given the widespread use of the U.S. dollar as the peg for so many currencies worldwide, it is unlikely that such a shift to a new direction will occur before circumstances make it the only choice.

      The Bretton Woods system collapsed, partially due to economic expansion in excess of the gold standard’s funding abilities on the part of the United States and other member nations. However, the problems of currency systems not pegged to gold lead to economic problems far worse.

    • Augustus

      BRETTON WOODS – LATIN AMERICAN MENIONED ONLY ONCE!
      The dollar shortages and the Marshall Plan

      The Bretton Wood arrangements were largely adhered to and ratified by the participating governments. It was expected that national monetary reserves, supplemented with necessary IMF credits, would finance any temporary balance of payments disequilibria. But this did not however prove sufficient to get Europe out of its doldrums.

      In 1956, the World Bank created the International Finance Corporation and in 1960 it created the International Development Association (IDA). Both have been controversial. Critics of the IDA argue that it was designed to head off a broader based system headed by the United Nations, and that the IDA lends without consideration for the effectiveness of the program. Critics also point out that the pressure to keep developing economies “open” has led to their having difficulties obtaining funds through ordinary channels, and a continual cycle of asset buy up by foreign investors and capital flight by locals. Defenders of the IDA pointed to its ability to make large loans for agricultural programs which aided the “Green Revolution” of the 1960s, and its functioning to stabilize and occasionally subsidize Third World governments, particularly in Latin America.

      Bretton Woods, then, created a system of triangular trade: the United States would use the convertible financial system to trade at a tremendous profit with developing nations, expanding industry and acquiring raw materials. It would use this surplus to send dollars to Europe, which would then be used to rebuild their economies, and make the United States the market for their products. This would allow the other industrialized nations to purchase products from the Third World, which reinforced the American role as the guarantor of stability. When this triangle became destabilized, Bretton Woods entered a period of crisis which led ultimately to its collapse.

    • Augustus

      BRETTON WOODS-3 / STRUCTURE
      1 Origins
      1.1 The Great Depression
      1.1.1 À¢€œEconomic securityÀ¢€Â
      1.1.2 The rise of governmental intervention
      1.1.3 The Atlantic Charter
      1.1.4 Wartime devastation of Europe and East Asia
      2 Design
      2.1 Informal
      2.1.1 Previous regimes
      2.1.2 The Bretton Woods system of fixed exchange rates
      2.2 Formal regimes
      2.2.1 The International Monetary Fund
      2.2.1.1 Designing the IMF
      2.2.1.2 Subscriptions and quotas
      2.2.1.3 Financing trade deficits
      2.2.1.4 Changing the par value
      2.2.1.5 IMF operations
      2.2.2 The International Bank for Reconstruction and Development
      3 Readjusting the Bretton Woods system
      3.1 The dollar shortages and the Marshall Plan
      3.2 Bretton Woods and the Cold War
      4 The late Bretton Woods System
      4.1 The U.S. balance of payments crisis (1958À¢€“68)
      4.2 Structural changes underpinning the decline of international monetary management
      4.2.1 Return to convertibility
      4.2.2 The growth of international currency markets
      4.2.3 The decline of U.S. monetary influence
      4.2.4 The decline of the dollar
      4.3 The paralysis of international monetary management
      4.3.1 “Floating” Bretton Woods (1968À¢€“72)
      4.3.2 The “Nixon Shock”
      4.3.3 The Smithsonian Agreement
      5 Bretton Woods II?
      6 Academic legacy
      7 Pegged rates
      7.1 Pound sterling
      7.2 French Franc
      7.3 Deutsche Mark
      7.4 Italian lira
      7.5 Japanese yen
      7.6 Swiss franc
      7.7 Dutch gulden
      7.8 Belgian franc
      7.9 Finnish markka
      7.10 Greek drachma
      7.11 Danish krone
      7.12 Spanish peseta
      8 See also
      9 Notes and references
      10 External links

    • Augustus

      CLASSICAL BRETTON WOODS – PART-2
      Wartime devastation of Europe and East Asia
      Furthermore, U.S. alliesÀ¢€”economically exhausted by the warÀ¢€”accepted this leadership. They needed U.S. assistance to rebuild their domestic production and to finance their international trade; indeed, they needed it to survive.
      Before the war, the French and the British were realizing that they could no longer compete with U.S. industry in an open marketplace. During the 1930s, the British had created their own economic bloc to shut out U.S. goods. Churchill did not believe that he could surrender that protection after the war, so he watered down the Atlantic Charter’s “free access” clause before agreeing to it.
      But in 1945 de GaulleÀ¢€” at that point the leading voice of French nationalismÀ¢€”was forced to grudgingly ask the U.S. for a billion-dollar loan. Most of the request was granted; in return France promised to curtail government subsidies and currency manipulation that had given its exporters advantages in the world market.
      On a far more profound level, as the Bretton Woods conference was convening, the greater part of the Third World remained politically and economically subordinate. Linked to the developed countries of the West economically and politicallyÀ¢€”formally and informallyÀ¢€”these states had little choice but to acquiesce in the international economic system established for them. In the East, Soviet hegemony in Eastern Europe provided the foundation for a separate international economic system.

      Design
      Free trade relied on the free convertibility of currencies. Negotiators at the Bretton Woods conference, fresh from what they perceived as a disastrous experience with floating rates in the 1930s, concluded that major monetary fluctuations could stall the free flow of trade.
      The liberal economic system required an accepted vehicle for investment, trade, and payments. Unlike national economies, however, the international economy lacks a central government that can issue currency and manage its use. In the past this problem had been solved through the gold standard, but the architects of Bretton Woods did not consider this option feasible for the postwar political economy. Instead, they set up a system of fixed exchange rates managed by a series of newly created international institutions using the U.S. dollar (which was a gold standard currency for central banks) as a reserve currency.

    • Augustus

      CLASSICAL BRETTON WOODS – PART-1 Attempt to ‘sumarize texts from the Internet
      Origins
      he political basis for the Bretton Woods system was in the confluence of several key conditions: the shared experiences of the Great Depression, the concentration of power in a small number of states (further enhanced by the exclusion of a number of important nations because of the war), and the presence of a dominant power willing and able to assume a leadership role in global monetary affairs.
      The Great Depression
      A high level of agreement among the powerful on the goals and means of international economic management facilitated the decisions reached by the Bretton Woods Conference. The foundation of that agreement was a shared belief in capitalism. Although the developed countries’ governments differed somewhat in the type of capitalism they preferred for their national economies (France, for example, preferred greater planning and state intervention, whereas the United States favored relatively limited state intervention), all relied primarily on market mechanisms and on private ownership.
      Thus, it is their similarities rather than their differences that appear most striking. All the participating governments at Bretton Woods agreed that the monetary chaos of the interwar period had yielded several valuable lessons.
      The planners at Bretton Woods hoped to avoid a repeat of the debacle of the 1930s, when foreign exchange controls undermined the international payments system that was the basis for world trade
      Thus, for the international economy, planners at Bretton Woods all favored a liberal system, one that relied primarily on the market with the minimum of barriers to the flow of private trade and capital. Although they disagreed on the specific implementation of this liberal system, all agreed on an open system.
      À¢€œEconomic securityÀ¢€Â
      Also based on experience of interwar years, U.S. planners developed a concept of economic securityÀ¢€”that a liberal international economic system would enhance the possibilities of postwar peace. One of those who saw such a security link was Cordell Hull, the United States Secretary of State from 1933 to 1944.[1] Hull believed that the fundamental causes of the two world wars lay in economic discrimination and trade warfare. Specifically, he had in mind the trade and exchange controls (bilateral arrangements) of Nazi Germany and the imperial preference system practised by Britain (by which members or former members of the British Empire were accorded special trade status).
      The rise of governmental intervention
      The developed countries also agreed that the liberal international economic system required governmental intervention. In the aftermath of the Great Depression, public management of the economy had emerged as a primary activity of governments in the developed states. Employment, stability, and growth were now important subjects of public policy. In turn, the role of government in the national economy had become associated with the assumption by the state of the responsibility for assuring of its citizens a degree of economic well-being. The welfare state grew out of the Great Depression

    • João da Silva

      Ch.C
      [quote]Augustus….not so true your “While Bretton Woods established the rules for commercial and financial relations among the world’s major industrial states in July 1944 ![/quote]

      That was a beautiful tutorial and thanks! BUT….BUT, Augustus was (in his own subtle way) was laughing at the “The Socialist Latin Jesters” , by bringing in the “Bretton Woods” issue and you confirmed that the ” Latin American Common Currency” is going to be a big joke or for that matter so is “UNASUL”. 😀 😉

      Dnb would love this tutorial!

    • CH.C.

      Augustus….not so true your “While Bretton Woods established the rules for commercial and financial relations among the world’s major industrial states in July 1944 !
      In those days it was PROHIBITED for individuals or corporations to own GOLD….in the USA !

      The USA IMPOSED the rules because they worked in THEIR favor…of course !!!!
      It was the only way for them to have a strong US$ !!!
      Just think about it : USA could print as many US$ they wanted…and keep the parity !!!!!
      Ohhhhh…they were not alone ! Most european countries did the same, except Germany and Switzerland !!!!
      But then things turned upside down !
      Yessssssss……after they cancelled the parity….the US$ and all europeans currencies DEPRECIATED year after year after year after year against…the German Marks and the Swiss Franc !!!!!!
      Because these 2 countries did not print too many of their currencies and were the only ones doing whatever it takes/whatever it costs……. to keep inflation LOW !!!!!

      Take whatever European curency of your choice and IT went down by 70 to 90 %…OVER THE DECADES, against the DM and the Swiss Franc !!!!!
      the BP went from 12 to 1…to 2 to 1 today
      the ITL went from 7 to 1…to 1 to 1…..until the Euro was created a decade ago (in fact from 7000 to 1 to …..1000 to 1)
      the Us$ went from 4,36 to 1….. to 1 to 1 recently !
      I can continue if one wants with Spain, France, Portugal or whatever !

      On the other hand as “weak” these US$ or Europeans currencies were….they ALL WERE VERY STRONG against currencies
      from Asia (ex Japan), South America, Russia, , Middle East and Africa !!!!!!

      Even better : Today emerging nations currencies have lost 95 to 99,99999 % against the US$ over the decades and say…THE US$ IS WORTHLESS !!!!!!!!!
      In my vew only idiots can say so !
      Yessssssss…idiots either dont know but pretend they know, or idiots have no memory. And Cheaters have no memory…on purpose !!! and liars…simply lie because they cant prove they are right ! Ignorance is different, and I always respect Ignorance but not the others groups !

      I have written here many times during the past several months that the US$ is reversing its trend. And you have not seen anything yet. the US$ will continue to go HIGHER against ALL WORLD CURRENCIES for the next 2 to 4 YEARS !
      iF NO ONE PREDICTED HOW LOW IT COULD GO FIRST, NO ONE CAN PREDICT HOW HIGH IT WILL GO !
      But the TREND is predictable, simply not precisely in time and price !

      BUT I KNOW ONE THING :
      – The US$ is now in a multi years bear market rally… but within its SECULAR BEAR MARKET….. against the Swiss Franc
      – The emerging nations had a multi years bear market rally against the US$….BUT within their SECULAR BEAR MARKET against
      the US$

      Against the EURO it is diffrerent. Too long and subtle to explain. But in Euroland their is ONE strong currency (the DM) and many weak currencies (ALL the other EU currencies) ! By weak…it is against the DM !
      And in short, for the time being, the US$ is in a bull phase against the Euro also for the next 2-4 years, and for those following what I am saying, the Euro is going to be weak against the Swiss Franc (it already started)

      If one is interested, I can easily demonstrate how time after time after time, the emerging nations are champions for AUTOGOALS !!!!! YESSSSSSS……THEY CORNER THEMSELVES EVERY TIME !!!!!!
      And they have not yet understood the…HOW & WHY……and HOW THEY COULD AVOID THESE AUTOGOALS IF THEY HAD NOT CHEATERS AND LIARS IN THEIR GOVERNMENTS WITH ZERO COMMON SENSE !!!!!!

      As I said many times common sense will always prevail, sooner or later. No one can go against common sense. JUST ASK
      WARREN BUFFET !!!!!!

    • João da Silva

      Augustus
      Regarding the question you posted to me in another thread about the list of Presidential candidates for 2010, I would rather wait until after our Municipal elections on this coming Sunday. Depending on the results the dynamics will change.

      According to what I read, the candidates of the “Ruling” party do not have any chance in the three Southern capitals!!. Hope the Paulistanos will vote wisely. We may still be able to save the Republic in 2010 from the “Jesters”. 😉 😀 😉

    • João da Silva

      Augustus
      [quote]DNB – a very SERIOUS request![/quote]

      Lord Augustus, I must protest against the authoritative manner through which you are trying to suppress the free expression of speech by young Dnb, who is not imposing his religion on anybody including your (or my) honorable self. He is merely demonstrating scholarly ability to interpret “The Book” in a correct way and I enjoy reading his quotes.

      Nevertheless, I understand your point of view.BUT…BUT…you can not ask the youngster to shut up (I interpret your “request” as an order to do so). After mulling over your comments addressed to Dnb, I must regretfully inform you that your “Request” is denied and you are not allowed to appeal! Now we come to a more interesting topic:

      [quote]The Socialist Latin Jesters[/quote]

      I must congratulate you for having written these interesting comments and mentioning about Bretton WoodsÀ‚´s agreement. While you were recuperating from your illness, I had posted a question to our agent in Geneva about this issue and he briefly responded, without elaborating further. It would be interesting to listen his views on your comments regarding the “Latin Jesters”.

      Alas, our Swiss agent is more interested and busy in writing a book on his “Romantic Interludes”, than to analyze the “proposal” to revise the original agreement of 1944. 😉 😀

    • Augustus

      The Socialist Latin Jesters
      The meeting of the four Socialist Latin Jesters should be displayed in the contest of a comedy show during an Imperial Masquerade ball in Copenhagen, London or MadridÀ¢€¦

      Each stooge vomited vile words towards Washington and London while ridiculing the historical Bretton WoodsÀ¢€™s Agreement, taking advantaged of the current financial crisis in the civilized Western World, promising in its stead the fiscal resources of a discredited socialist fantasy with the creation of Bank of the South (proposed in Buenos Aires several years ago). Under the illusion that such meager bank, which would undoubtedly be managed by corrupt officials, Chavez proceeded with his old proposal emphasizing that this Latin Monetary institution would develop its own À¢€œmechanismsÀ¢€Â to protect the Latin American nations from the Tremors caused by Wall StreetÀ¢€¦

      While Bretton Woods established the rules for commercial and financial relations among the world’s major industrial states in July 1944 and thereby established the foundations of a healthy western economy for the second half of the 20th Century, the Bank of the South would allegedly unite the À¢€œfinancial needsÀ¢€Â a socialist Latin Brotherhood for the current Millennium. Yet, as far as I know, there have been no concrete plans or viable financing for such an absurd Institution; and I could hardly anticipate that there would be actual solid (and believable) mechanisms in place designed to prevent the inevitable series of fraud and misuse of precious resources. Undoubtedly there would be an endless flow of funds (and/or other assets) into secrete private accounts of so-called managers or into the hands of Venezuelan agents entrusted to À¢€œfinanceÀ¢€Â (through bribes) the electoral campaign of left-wing candidates across Latin American (with the full support of La Paz, Quito, Havana and Managua).

      While I have never respected the Brazilian president, I had never expected this idiotic official would succumb to the clear Manipulation of Hugo Chavez and host this absurd masquerade in Manaus where, joining hands with the Chavez puppets, the (nearly illiterate) Brazilian À¢€œrulerÀ¢€Â Joined the leftist monkeys in attacking the United States and the Western World…

      Although there is no doubt that Western governments, particularly the irresponsible idiotic George Bush, should be blamed for their negligence in relaxing required rules and tough regulations to oversee their economies, it is absolutely ridiculous to witness unworthy, corrupt Latin officials having the audacity to presume the right to adopt the Role of Honorable Chevaliers in defense of a region whose populations have always been abused by their very own graft and totalitarian.

      As such, the four Latin morons would be better poised if dressed as jesters to entertain the remaining crown heads of EuropeÀ¢€¦ At least it would have been amusing!

    • Augustus

      DNB – a very SERIOUS request!
      Hopefully you have simply forgotten that my earlier explanation that I consider anything any text from your bible extremely offensive. It offends my humanist sensitivities the realization that modern, intelligent man actually debase themselves by believing is such absurdities, thereby making me feel ashamed of sharing the same species displaying abject practices.

      Your bible quotations are very disturbing (in addition to ridiculous) and your determination to continue offending my feelings and refusal to comply with my repeated requests makes me EXTREMELY angry; thereby automatically compelling me to retaliate in kind; thus offending othersÀ¢€¦

      Consequently, I must ask you, one more time, to respect my sentiments and refrain from repeated offensive quotes from that absurd relic you call the bible!

      If you were to quote allegories of any sort, please refer to the ancient civilaizations of Greece and Rome and feel free to quote their lovely À¢€“ far more interesting À¢€“ mythology, as they are far more interesting and actually more relevant, since they represent the basis of western culture. Yet, regarding the contents of their allegoric, colorful stories are just as meaningless to me as the ridiculous, hypocrite, and hateful Judeo-Christian mythology!

      As such, I kindly ask you to consider respecting my position and views in the same way a sex addict should respect others who might object to remarks containing sexual connotations!

      I hope you finally understand the significance of this issue to me and start being more considerate.

    • CH.C.

      Chavez who added that the credit crisis in the US will likely make it more difficult to obtain financing in Latin America.
      Why doesnt South America finally uses their apparent large foreign currencies reserves…to finance Latin America ?????
      Why still in need of US$ financings, when Latin America have tons of US$ ?????

      Something doesnt add ??????

      Have developed nations governments already accumulated the South America currencies…for their foreign currencies reserves ????
      Your currency are strong ! Are they ????
      Thus why accumulate monkey papers if they are worthless ?????
      Why dont your Governments stop borrowing in US$ or Euros, and borrow only IN THEIR own currency ?
      That is what the developed nations have done….for decades…decades…and decades !!!!!

      And as to Chavez :
      – if he did not like the US$, why has he accumulated 80 % of its foreign currencies in….. US$
      – if the Venezuelian currency is so strong, why is it one of the very few currencies in the world that lost a lot against the
      apparent weak US$….during the last 5 years ?
      – if the Venezuelian economy is sound, why is there an inflation of around 30 % ?
      – If the Venueielian currency is sound, why have taken 3 zeroes off, early this year ??????
      – With the oil prices so high during the last few years, why is there still as much poverty in Venezuela ?????
      – Outside of oil, what can Venezuela produces and export ????
      – With so much oil wealth, why Venezuela cant even produces enough food, despite they have a large land size and similar climate than Brazil ????

      DONT WORRY Brazil, Venezuela is going to be your next brother. So far they remain your cousins !!!!!

      😉 😀 😉 😀 😉 😀 😉

    • CH.C.

      Augustus ! “Some are honest enough to say that they believe that their god actually roasts those people in hell anyway”
      But…but…but……Bin the Crook has given a passport to God, if you re-read what THE Emperor said recently !!!!!

      Therefore no doubt in Robin the Crook’s mind that God is NOW…..BRAZILIAN !!!!!

      Better yet, THE Emperor said a while ago : “No one on earth except God could have done a job than HIM…THE Emperor !!!!!

      😉 😀 😉

    • Augustus

      DO NOT GET ME STARTED!!!! Religion manipulates weaknesses in the human consciousness
      Religious fanatics can never agree on what supposedly happens to individuals who never knew about the ‘fact’ that they had to worship some zombie Jewish carpenter or burn in hell for eternity before they died; or whether they should bow like lowly serves to debase themselves seven times a day towards Mecca; or to knock their ignoble heads against a ridiculous ancient wall in Jerusalem, while at the same time plotting to slaughter one anotherÀ¢€¦

      Some are honest enough to say that they believe that their god actually roasts those people in hell anyway; while other Christians try to fudge and claim that god forgives people that have not heard of the zombie cult leader. Others believe they should go about blowing themselves to pieces and kill innocents just because their À¢€œIslamic godÀ¢€Â is supposedly great

      You knowÀ¢€¦ I À¢€˜m sick and tired of this primitive nonsense
      How many times do I have to tell you or anyone here that this absurdity of is just ridiculous to me
      Therefore, I urge to refrain from wasting yourself in quoting ridiculous IRRELEVANT passages, from an stupid gathering of ancient texts which have less meaning than a piece of used toilette paper, which in the very least had a meaningful, relevant use for someone in REAL needÀ¢€¦
      🙁 🙁 🙁

    • Augustus

      Extreme Pessimism
      While I hope that my assessment is incorrect, I fear the World is bound to a nearly cataclysmic downfall which at best will result in a Global Depression likely to pale the World crisis of 1929. The symptoms have been evident for several months with overspending out of control (increasing the US, complete lack of regulations by conservative Republicans (as well as Right wing Europeans) thereby triggering the credit/mortgage crisis, high levels of indebtedness by most Americans (as well as most people in the Western World), protectionist policies, failure of international agreements, upsurge in terrorism, rise in extremist religious sects, to mention a few factors from the top of my head without the trouble of any detailed research or careful analysisÀ¢€¦

      With this consideration, it is obvious that Brazil will inevitably be affected and possibly in the worse possible wayÀ¢€¦

      My only satisfaction would be the clowns of Venezuela, Bolivia and Ecuador tumble along with everybody else.

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