elMatador:
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" Here is a chronology of events leading up to Friday's announcement by the International Monetary Fund of a $41 billion-plus package for Brazil to help Latin America's largest economy survive global financial turmoil..."
The USD30billion of last week is on top of USD41billion of 1999.
When the Economist show this level of ignorance, I have to forgive you guys on this thread.
But i have time I can keep teaching you guys. It's my pleasure. I don't want you guys to make a fool of yourselves thinking that J6P "gave" USD41 billion in 1999 to Brazil and now "giving" an additional USD30 billion.
If you think like that, gentlemen, you are J6P yourselves. Go clean the ash tray and dump those empty Budweisers cans in the bin!
Lost money in the bubble? Well, if your level of knowledge of the market is as deep of your level of international finances, I am not wondering why!
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For educational purpose could you elaborate on these points?
1) Of 30 billions in recent doll out, how much is US's contribution? How of US contribution is backed by US treasury, and how much by private banks like C, Fleet?
I heard that this time Private banks did not agree to US
Government and treasury, and in fact their exposed risk is reduced due to US Government's doll out. I am not sure how far this is true.
2) What is the interest rate that Brazil is paying on this loan? Is it an emergency situation and hence no interest type arrangement?
3) Regarding US is already is a biggest debtor nation and hence J6P cannot possibly loan is irrelevant. Still US has the ability to borrow 10s of billion every month from all over the world to pay for its borrow-and-gamble life and to doll out to unfortunate and incompetent nations (I am not implying that US is competent in managing its pocket book. In fact it is the worst in that regard thanks to Free trade, WOT, WAT, WAD, WAP, WAI etc.). Ultimately, all those borrowed money has to be paid by the J6P with interest and hence J6P is loser. For me US and other IMF loan dependent nations are like addicted gamblers who borrow and bet, not worrying about how they are going to pay back or how their kids are going to face debt burden.
4) How much Brazil debt has been forgiven of the 41B? Or how much of principle is paid back and how much is the interest payment?
Please enlighten us.
Thanks,
-Nat |
