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

To: THE ANT who wrote (53837)	8/21/2009 7:54:33 AM
From: elmatador	Respond to of 217732

Hi Klas! Good to hear that I can sleep nicely and sound!

To: THE ANT who wrote (53837)	8/22/2009 5:24:07 AM
From: elmatador	Respond to of 217732

How Brazil is correcting 20 years of being out of synch with the rest of the world. Once macroenomic stability is achieved, it needs to improve Total Factor of Productivity as physical and human capital must interact more efficiently. In short there is a lot that can be extracted from the economy. Note that all that is ocurring during ther demographic window. If you look to the 50 to 70 year olds of Brazil today, they are moving out of the workforce, With them, Brazil is getting rid of the guys who lived through: first urbanized, first to have access to mass education. First to have experienced social mobility and first to have experienced Lost Decade social mobility downward. On the other extremem the bracket that has not yet entered the work force yet, grew up without knowing the hyper inflation nor the 'Lost Decade' and all the mind set that it created. They are the first ones with a clean head.

To: THE ANT who wrote (53837)	8/22/2009 5:33:52 AM
From: elmatador	Read Replies (1) \| Respond to of 217732

What Brazil did wrong that let it land in the situation of 1980 be at mercy of the fleecers? When the Arabs had gazillions of Petrodollars (result of the concocted Oil shocks of 73 and 79) they put in the Westerners banks which in their turn wenty on to recycle them lending them to countries like Brazil. Once Brazil was owing their underwear in variable interest rates, Paul Volcker increased the interest rates to double digits and the rest is history. Then Brazil paralised. One of the reason was that the vast majority of people did not know where their government officialdom had put them. The second main reason was that anyone who had climbed the social ladder did not want to go down. Once that happens, only the ones who had the power todo so achieve the objective. That is why employees of the state and employees of the state-owned companies held on to their positions. The rest paid tribute to them by inflation taxes, since the inflation was a tax on those who could not have hedge or correct for inflation. Any opportunity was grabbed by the ones who could exe ise power and get the business for himself. I need to tell that because of one of the cusases Brazil suffered inefficiencies as its result. Next posting will take care of that.