In the 31st edition of the Brazil-Germany Economic Meeting, Brazil President Dilma Rousseff took the opprtunity  to defend the economic policy of her government and strengthen the argument that monetary policy and exchange rate of the rich countries are the main cause of the loss of competitiveness of Brazilian industry. For Dilma, the “monetary injections pressured emerging currencies that have appreciated and affected our competitiveness.” In response, he said, the government is seeking to take steps to create a more healthy and competitive for Brazilian companies, and seek to eliminate production bottlenecks and make the country more attractive for foreign companies.

Our opinion: Awesome, simply awesome… “it’s not our fault, it’s their fault!”

Question: well, then why the Brazilian central bank has been intervening in the forex market and not letting the Real devalue in the last few months? Isn’t because the inflation is high and they are preventing it from becoming even higher? Then the argument here is that developed countries are making Brazil’s inflation a favor by keeping the Real expensive.

Source: Valor


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11 Responses to (Just Beautiful!) Dilma blames monetary policy in developed countries for Brazil’s lack of competitiveness

  1. Mertens says:

    More evidence to short the BR real .The strong D mark was a blessing for West Germany.

  2. Rodrigo Rodrigues says:

    Let’s see, corrupt government at federal, state and local levels. Selfish rich politicians and corrupted business man living it up on the backs of the bruised.
    A $600 million dollar maracana renovation aka “macaranex” stadium partially paid for by the state when there are homeless people starving and sleeping in boxes. Corrupt election processes, People voting for Clowns,Crooks, Prostitutes and Ex soccer players. Monopolies, anything from mining companies to construction firms combined with easy credit
    destroying the idea of a fair market. A ridiculous amount of laws and regulations on the people while polimagicians receive immunity and amnesty. I could go on, but I won’t. I have watched my home state of Rio de Janeiro, as well as the rest the country be sold down the river by selfish, greedy and corrupt governmet officials.
    No economy will function at its highest capacity if poor infrastructure—bad roads, insufficient sea ports, lack of technology—creates inefficiencies at the various stages of production.
    There’s one single sign that Dilma and his blind followers are doing terrible wrong.
    The deficits are soaring and she tries to steal even more get more and more desperate.
    . The unproductives are getting more and more and they do drive political parties. That means the spongers decise what the host animal has to do. That’s the sad fact.

  3. Rob says:

    What a rabbit like total plum!

  4. jay says:

    you are all right!! except for the part of the “former soccer player” acctually, he is the one who has given the most of positive surprises!!

  5. frank stein says:

    Dilma is a communist while Lula is an opportunist. Brazil will march slowly or backwards during her government and at least the next one. Bovespa may fall well below 20 Ks.

  6. Enki Ea says:

    Rodrigo Rodrigues said it all.

    Brazil is fucked up for a long time to come. Look at the crooks presiding the Senate and Congress. Look at an ex terrorist President. Look at the convicted “Mensalao” guys…Its all a marked card games. Not even the judicial system is free of theater (Joaquim Barbosa thinks he is Batman reincarnated).
    In the meantime, terrorists, crooks, drug dealers, arms dealers, etc. are pumping money into a small crooked bank in Sao Paulo (Banco Paulista) and funding the black market of dollars via their broker-dealer (SOCOPA). There you can see a spectacle of people coming and going, receiving their dollars or reais, all from fraudulent forex contracts being serviced by the Central Bank on an daily basis (Banco Paulista buys US Dollars at the official rate, forges forex contracts and sells the same dollars to the black market). The daily volume is well over USD 8 Million.
    Where are the authorities?
    Where is the police?
    Where are the indignant citizens?
    As said, Brazil is just a Banana Republic as its always been.
    No future because the politicians and the corrupt elite (Ermírio de Moraes, Safra, Diniz, Batista, Setúbal, Villela, Odebrecht and many others) like the way it is being handled.
    Since the people are just plain stupid, things will keep on going until someone raises up with a strong voice and like Hitler or Mussolini, creates a convolution…

  7. gringo nao sabe nada says:

    Well, it is always good to get my periodic dose of pessimism from BB and commentators. I certainly don’t want to get swept up by the “ufanismo” of Brasil Grande, Copa e Olimpiadas. However, I still remember when I was a kid in Pirapora, MG, most people didn’t know what a carrot was, it took 10 to 12 hours to reach BH on the dirt roads if it weren’t raining, and a lot of people were dirt poor. Now we all have TVs and even refrigerators and have the blessing of Rede Globo (a cores, even). We live longer and consume more calories. Yeah, I know Brazil won’t be perfect in my life time (I am an old man) but I know the institution building process is making progress. Look at Barbosa referred to as Batman above. Aos trancos e barracos (Darcy Ribeiro), we are going somewhere. I don’t agree that it will end in catastrophe and fascism. I might be wrong, but I don’t think so.

  8. marcelao says:

    Dilma and her (or “his”?) crowd = plain socialist scum.

    They play with the illiterate lazy soccer-ass-beer-driven brazilian untermensch to achieve this new-socialism.

  9. McIvor says:

    Blame someone else for your own mistakes. What a joke.

    Brazil is and always will be a banana republic. Thieves and incompetents governing the country. Backward thinking. Oblivious and complacent people. What do you expect? The dream of the average Brazilian is to be able to get a “boquinha” from the government.

  10. Rodrigo Rodrigues says:

    You may say
    I’m a dreamer, but I’m not the only one
    I hope some day you’ll join us
    And the world will be as one ( Globalized).”
    John Lennon hit the nail right on the head by accident!
    This is what the Brazilian people want ..Bread and Circuses, there is no difference between politics and fantasy , pt, pmdb, psdb makes no difference , basically We have 513 prostitutes working on a whorehouse called planalto
    and Dilma happen to be a master madam!!,In our media saturated reality show pop culture society, they ( The Globalists)figured out that to grab ahold of short attention spans, you’ve got to have some drama. So they direct today’s issues of governance like political theater. First, you need to have some kind of deadline to induce suspense. You know, like a bomb .Then you have to write into the story-line the villains( Other countries manipulating currencies eg.) a script writer or the media ( Carta Capital , Globo tv eg.)will work just as well for that purpose.. You create these characters with little depth and in cartoon proportions, and take great pains to show they have little or no redeeming qualities. The bad guys exist only to counter balance and thwart the actions of the good guys. The heroine (Dilma) has to be somewhat reluctant. But she eventually steps up to the challenge because she is
    finally convinced she is the only one with the right talents and attributes to get the job done. Then finally you’ve got to have the ticking clock( Inflation, unemployment, deficts eg). The device that reminds the audience how little time is left until the crisis explodes.
    It’s quite an impressive production, and appears to be a great hit with the box office of voters ( Naive people who believe in Santa Claus), The reality is that
    Globalization is killing cultures and sovereigns, Entire countries are becoming departments of mega-enterprises,politics, as the organiser of the nation state, no longer exists, Now politics serves solely in order to manage the economy, and politicians are now merely company managers .National governments take on the role of running things on their behalf ,States are simply enterprises with corrupted managers in the guise of governments, and the new regional alliances bear more of a resemblance to shopping malls than political federations.

  11. Hank Chinaski says:

    McIvor spoke like a prodigy: “The dream of the average Brazilian is to be able to get a “boquinha” from the government.”

    Dream of the average American graduating from college: start a company up and get it IPO’d it a few years down the road.

    Dream of the average Brazilian graduating from college: boquinha no governo.

    End of story.

    Born dead.

    If you can tell how far people will go by their goals…

    I will let you finish the thought.

    Nunca serao!

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