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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (7167)	5/12/2008 6:26:49 AM
From: THE ANT	Read Replies (3) \| Respond to of 71454

I agree the real is overvalued in the medium to long run. I tell people that at this point ,outside of agriculture and natural resources,Brazil can not compete with the US due to the Real.Still these things can go on much longer than you think they can

To: RockyBalboa who wrote (7167)	5/22/2008 1:23:09 PM
From: elmatador	Respond to of 71454

Only way to survive and prosper with a high valuie currency is to increase productivity: "As of this writing, the Brazilian government has already announced US$12 billion in tax cuts. Plus, they're giving 10 times that amount to finance new machinery and infrastructure over the next three years. Their newly formed Brazilian Sovereign Wealth Fund will also aid Brazilian companies reach overseas and bolster their growth. But wait, it gets even better.... Brazilian firms are also investing heavily in consumer electronics, aerospace, bio-fuel, software, and medicines. So Brazil will NOT be a "one hit wonder;" prospering only during the commodity boom years. No they're taking steps now to ensure they will be a viable economy long after the "resource boom" is over. For instance, you'll see over 40 billion reals (US$24.3 billion) spent on technology by 2010. Much of this technology is going to rush into these sectors: agribusiness, nanotechnology, biotechnology, biodiesel, perfume, oil, and gas." Message 24612680