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

To: THE ANT who wrote (67827)	11/6/2010 2:49:50 AM
From: elmatador	Respond to of 217764

Let's go over this point by point. Stop sounding like a perma bull. The US is purposefully bubbling your economy. I start with my conclusion. CONCLUSION: Printing is the alternative to fleecing Let's start from the early beginning and I will stick to my discourse in this thread that I never diverted from. As the oomph of the OECD economy could not keep fleecing the other countries to prop their standard of living, it started plain pumping. Begun after 1998 meltdown when emerging markets smarted up and started paying their debts and acquiring reserves. See the very start of it: Year 2000 AG money pumping for Y2K millenium bug wayo. From there on it was only printing.Once OECD countries discovered that they could not fleece their way out of returning to their natural sizes, they realized they, now, could only live off printing. Luckily for them there is no alternative reserve (yet) currency and the game can still be played. Next we see the aftermath

To: THE ANT who wrote (67827)	11/6/2010 3:07:37 AM
From: elmatador	Respond to of 217764

"As it happens your currency goes up and assets go up and you help keep US afloat by spending your money at Disney World and in US economy." 1) The Europeans and Japanese did that in their hey day and there was nothing special about. Then they were just buying from the largest entertainment company in the world. 2) Brazilians are contributing to the deficit. As goods are cheap in the US they go there and buy imported goods contributing to the deficit.

To: THE ANT who wrote (67827)	11/6/2010 3:22:00 AM
From: elmatador	Respond to of 217764

"If you let your interest rate down to be more competitive you boom your economy and again help the US. It is a dangerous game, as eventually a bubble pops and the world goes down the tubes." It is a process not an even, Klaser. You are the best person I know to understand processes. Interest rate issue are part of a process. You take an entity and put some goals it has to reach. Make sure the constituents are on board your strategy. And consistently follow your game plan. As situation change along the way you fine tune your plan to adapt to the new circumstances. Then you find bumps along the road: Part of the original plan elections' time Not part of the original plan Boomlets of commodities Mensalão corruption crisis. Finding oil. Financial crisis of 2008 and drying up of trade finance Increase of the BRL went beyond envisage din original plan. So far the entity has dealt with those issues. Enter Dilma and she wants to tackle the Interest rates because with lower interest rates capital stop seeking higher returns there. This is good. Very good. next we tame interest rates

To: THE ANT who wrote (67827)	11/6/2010 6:23:38 AM
From: elmatador	Respond to of 217764

Why the interest rates in Brazil are so high? Let's explain. Before USD flooding it worked like that. To keep economy growing keeping inflation within target established by the target. Interest rates are jacked up to avoid overheating. We need money to pay to finance public debt. Thus high interest rates to attract funding. Inflation is a target. Target inflation is part of the plan. Before USD flooding: Government thought: If millions of Brazilians would go to work in the formal economy, taxes would flood government coffers pay its debt and interest rates could go down. That the government thought would avoid or postpone reforms which are long overdue (FHC president before Lula failed and Lula avoided. Dollar flood changed all that. There is nowhere where money can be made. Piles of USD burning the pocktes of people with money with nowhere to go. (Brazil compared to TJ's gold look better and here we are with the problem creatred abroad.) Brazil has a local problem (debt to GDP ratio) and there is the US compounding the problem. NEW TEST IS: Solve both above problems and come out on top.

To: THE ANT who wrote (67827)	11/6/2010 6:32:08 AM
From: elmatador	Read Replies (1) \| Respond to of 217764

"It is a dangerous game, as eventually a bubble pops and the world goes down the tubes." Bring it on! Let's pop the bubble. Decoupling is a fact of life people tend to deny. We are not part of 'that' world. Bubble pops closed economy tested will continue to grow because there is no fleecing this time. It was always fleecing that tanked emerging markets. And all previous crisis were forced to appear to create the conditions for fleecing to take place. Flight to quality ensues and OECD countries would gorge in the money pouring in. Today the money will pour back to OECD countries if Brazilians will fly to Europe or the US the consume goods and services. Brazilians flight. Not capital flight. Bubble pops. Money will go back to cover holes elsewhere likes last time. That is what happened in 2008. Economy will prod on.