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

To: Webster Groves who wrote (59377)	12/27/2009 5:42:32 AM
From: elmatador	Respond to of 218958

2010 focus on investment, cool stimulus. conservative economic management, even as the country boomed this decade, was little noticed until the credit crisis began ravaging economies around the globe but dealt a comparatively light blow to the vast Latin American country. It entered a relatively shallow two-quarter recession and a consensus is growing among officials and analysts of economic growth of 5 percent or more next year. "The same model which beat the (economic) crisis has enabled, in only seven years, the creation of 12 million formal jobs, brought 20 million Brazilians into the middle class and brought 31 million out of abject poverty," Lula said. reuters.com 31 million less raw material for violence. that is what I am trying to put into the head of C2.

To: Webster Groves who wrote (59377)	12/27/2009 5:47:01 AM
From: elmatador	Respond to of 218958

It is important to note that there is a high level of visibility on the problems because the problems are concentrated in a few places: 5 major cities account for quarter of Brazil's GDP 68% of the population leave on a narrow strip of land along the coast. The hinterland is sparsely populated. The films C2 watch are all about urban poverty caused social problems. It is easy to erradicate the problems if one erradicate the urban poverty. Target that concentration and the prblem is solved. The GDP of Sao Paulo, Rio, Brasilia, Belo Horizonte and Curitiba amounted to 23.8 percent of Brazil's GDP in 2007, the study said. Sao Paulo, the largest city in South America, generated 12 percent of the GDP, followed by Rio with 5.2 percent, Brasilia with 3.8 percent, and Belo Horizonte and Curitiba with 1.4 percent each. Sao Paulo's GDP is bigger than that of all other individual states. It also showed the 50 cities with the highest GDP produced half of Brazil's total in 2007, while the 1,342 cities with the smallest generated less than 1 percent of the total. There are 5,564 cities in Brazil. news.xinhuanet.com

To: Webster Groves who wrote (59377)	12/29/2009 8:25:34 AM
From: elmatador	Respond to of 218958

how to shrink or neutralize the inflationary impact from the biggest monetary expansion in U.S. history? Fed Proposes Selling Term Deposits to Absorb Excess Reserves By Craig Torres Dec. 29 (Bloomberg) -- The Federal Reserve proposed a program to sell term deposits to banks to absorb some of the banking system’s $1 trillion in excess reserves now threatening to accelerate inflation as the economy recovers. The plan, subject to a 30-day comment period, “has no implications for monetary policy decisions in the near term,” the central bank said yesterday in a statement released in Washington. Fed Chairman Ben S. Bernanke and his fellow policy makers are debating how to shrink or neutralize the inflationary impact from the biggest monetary expansion in U.S. history. Some central bankers, including Richmond Fed President Jeffrey Lacker, have suggested that the Fed reduce excess reserves by selling Treasuries or mortgage-backed securities. Term deposits may help policy makers “assert operational control over the federal funds rate” once they raise the interest rate from the current range of zero to 0.25 percent, said Lou Crandall, chief economist at Wrightson ICAP LLC in Jersey City, New Jersey. Excess cash “would be locked up,” easing downward pressure on the federal funds rate, he said. The Fed has expanded its balance sheet to $2.2 trillion through several liquidity programs, including purchases of $1.25 trillion in mortgage-backed securities. Excess reserves constitute cash held by banks in excess of what they are required to keep against deposits. The Fed proposal says the term deposits could be sold in an auction or through a formula. Raising Rates The Fed won’t begin raising interest rates until the third quarter of 2010, according to the median estimate of 62 economists surveyed by Bloomberg News in the first week of December. “We’ve known for some time now that term deposits were on the Fed’s radar and were often treated as the next most likely tool for draining reserves after reverse repos,” said Dan Greenhaus, chief economic strategist at Miller Tabak & Co. LLC in New York. In a reverse repurchase agreement, the Fed lends securities for a set period, draining cash from the banking system. At maturity, the securities are returned to the Fed, and the cash to the primary dealers that act as counterparties to the central bank. The “maximum-allowable rate for each auction of term deposits would be no higher than the general level of short-term interest rates,” the central bank said. Federal Funds Short-term interest rates “would be defined as the primary credit rate and rates on obligations with maturities of up to one year in which eligible institutions may invest, such as rates on term federal funds, term repurchase agreements, commercial paper, term Eurodollar deposits, and other similar rates,” the Fed said. The term deposits, which would be Fed liabilities similar to consumer deposits sold by banks, could be used as discount window collateral, the central bank said. Fed officials are likely to determine maturities on the term deposits after banks have a chance to comment on the proposal. The central bank press release cites examples of 14-day, 28-day and 84-day term deposits. Maturities would not exceed one year, the Fed said, and will probably range between one and six months. To keep the federal funds rate set at the target determined by the Federal Open Market Committee, the Fed must prevent reserves from flooding the market and lowering the target rate. The Fed could use reverse repurchase agreements and term deposits to soak up excess cash. Rather than tie up excess reserves by using such tools, Lacker and other Fed officials have proposed permanently reducing reserves through the sale of Treasuries or mortgage-backed securities. “When we get to the point where we feel like we need to reduce bank reserves, we will have a number of options to choose from,” Lacker told reporters on Dec. 2. “To my mind, the natural place to start is asset sales.” To contact the reporter on this story: Craig Torres in Washington at ctorres3@bloomberg.net.