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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (34949)	5/20/2008 11:15:28 AM
From: Rolla Coasta	Read Replies (2) \| Respond to of 218343

no USD dealing here but we have a pile of BRL a gloomier picture would be a total psychological panic worldwide regarding paper assets. Even if the US brings back a Bretton Woods-like system, someone would ask if I trust this govt to guarantee me a precious return on the new paper money. Same goes to BRL, as there's nothing to back it up other than trust on both sides in trade. When the panic spreads, people could dump BRL and bank runs in Brazil maybe also likely to happen. Forget about Europe, which will be disintegrated and the disruption on the economy may dampened demand for Brazil. The only important surviving trade route could be between Brazil and China, but that would be put to test if RMB goes to toilet. I can envision there could be a new barter system between Brazil and China without paper money being involved. Of course, if someone wants to mess up with China, then Brazil has to look somewhere else for microeconomics to work. Not so easy, as the manufacturing base is still in China.