Erik Reuter wrote:
>
>> I wasn't aware that Brazil had a troubled economy now - OTOH, the
>> economy has never been so untroubled.
>
> Brazil has definitely been getting better, but it still has a ways to
> go. Budget deficit of 4-5% of GDP. Unemployment at around 12%. Long
> term bonds are yielding 10%. Inflation was 6.9% in the 12 months to
> October and 14% the year before. 
>
Google? :-)

> That's not a safe and non-volatile
> investment by any stretch of the imagination. It was only about 2 years
> ago that people were seriously worried about a default on the government
> debt. 
>
Because we elected Lula, and there were serious doubts that he
was crazy [some USA newspapers even named a second Axis of Evil,
with Lula.br, Chaves.ve and Castro.cu]

> Nations change slowly, and even after the fundamentals have
> improved, emerging bond markets have a long memory (Brazil defaulted in
> 1826, 1898, 1902, 1914, 1931, 1937 and 1983)
>
Yep

> http://www.economist.com/displaystory.cfm?story_id=701377
>
Ah, so it's not Google!

> Here's an excerpt from a July 2001 Economist article [the US doesn't
> look too good by these criteria, now!]:
>
Things changed _a lot_ from 2001. And it might be even better, with
the raise of oil prices and increased oil production, Brazil may even
become an _exporter_ of oil.

Alberto Monteiro

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