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

To: benwood who wrote (61866)	3/12/2010 3:27:07 AM
From: elmatador	Respond to of 219937

First the Angolan situation to put in the right perspective. the Angola went from 150Km hour, slammed in the breaks and is now at 30Km an hour. That because oil prices collapsed. Country lives off almost exclusively from oil exports that fund the reconstruction after 30 years of civil war. First they did not accept the technical assistance of the IMF and the world bank and turned to China for money. Chinese agreed to open line of credit in exchange to oil interests. Brazil and Portugal also opened fat lines of credit and those 3 countries got a big share of the reconstruction projects. Everything was going well with high oil prices. Then came July 2008 oil price collapsed. It took over one year to see how things would develop post oil price collapse First the country went after more line of credits and the president travelled abroad seeking more funding: Germany, Italy, Spain more China… Portugal pulled lines of credit cinse Portugal is part of PIIG group. Brazil’s Lula had to defined his own economy to propel internal growth… China had already too much money here and was reluctant to put more money in now that there was lots of oil and prices had collapsed. Then Angola had to pay the bills incurred. The treasury was empty!! The Finance Minister and the Central Bank had made bogus transfers. He slammed the brakes real hard. Sacked almost everybody and started checking evry signle payment. Kwanza started to be exchanged for USd at a fast pace. From 75 to USD in the black market today is 98 to USD. IMF talks that had stopped are now back in track and government is accepting their technical assistance., Elections for this year were postponed for 2012, since under this economic climate the president would not be elected. (he is in power for 30 years but was never elected) Of course the government machine started to tighten the belts. Since I have seen this film in Nigeria 1983 onwards and in Indonesia 1997/98 Belt tightening, government officials and bureaucrats need extra money ‘on the side’ Policemen came out for the propina in droves. It used to be one every 8 weeks. Now is once a week I was forced to go ponokee