Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Snowshoe who wrote (72780)	3/11/2010 5:37:42 AM
From: elmatador	of 74559

During the Mercosur negotiations, a dispute arose between Argentina, a less efficient cane producer, and Brazil over Brazilian subsidies to Northeastern sugarcane farmers. These subsidies have been encouraging ethanol production as an alternative fuel source. www1.american.edu The case of financial equalization, whereby rich southern Brazil protects the less efficient Northeastern states. As I keep saying: we are no hogging types. We protect the northeasterners sugar cane farmers. We south easterners could gobble the whole Brazilian market for sugar cane and ethanol. For what? That would lead to the northeasterners coming down to southern Brazil, pile up in the cities creating all sort of problems. Like those poor people coming to the rich countries as a result of rich countries hogging. All countries in this world have those programs to assist regions that are backward. Like TVA of Roosevelt; Germany's Finanzausgleich; Canadians Maritimes...

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