Griffin's Wesbury on Brazil: Global Economy Comment
Washington, Jan. 13 (Bloomberg) -- Comment from Brian
Wesbury, chief economist at Griffin, Kubik, Stephens & Thompson
Inc. in Chicago, on Brazil's currency devaluation and turmoil in
world financial markets:
''The devaluation, combined with capital flight, will crush
Brazil's economy,'' Wesbury said. ''A sick economy needs more
transactions -- not fewer. A transaction tax is the last thing
Brazil should be moving toward. Fortunately, only 2.3 percent of
U.S. goods exports head to Brazil and exports represent just 12
percent of the overall U.S. economy,'' he said.
''As a result, the impact will be felt at the margin'' of
the U.S. economy, Wesbury said. ''Nonetheless, the inevitable
collapse of Brazil and its currency will weigh on commodity
prices, corporate profits and U.S. growth.''
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