To: KyrosL who wrote (87603 ) 3/5/2012 12:23:06 PM From: elmatador Respond to of 219502 banks of developed economies have injected $8.8 trillion into the global economy since the start of the financial crisis vast amounts of money into financial markets, are equivalent to a tax on tradeBrazil President: Easy Money Similar To Trade Tariffs -Report SAO PAULO (Dow Jones)-- Brazilian President Dilma Rousseff criticized the measures taken by developed world central banks to pump vast amounts of money into financial markets, saying that they are equivalent to a tax on trade, O Estado de S Paulo newspaper reported Monday. The Bank for International Settlements recently reported that the central banks of developed economies have injected $8.8 trillion into the global economy since the start of the financial crisis, which Rousseff said caused an artificial depreciation of their currencies, O Estado said. "What is happening is equivalent to a trade barrier. And everyone complains about taxes on trade, about protectionism ," Rousseff was quoted as saying while in Hannover, Germany, where she is meeting with German Chancellor Angela Merkel. The massive injection of cash into the global economy also builds speculative bubbles, the newspaper cited Rousseff as saying. "When you have this level of expansion, you produce two effects: one is the artificial depreciation of a currency," Rousseff said, according to the newspaper. "The other serious problem is that you have a mass of money that doesn't go to the real economy. What do you get? Bubbles and speculation." Rousseff said she will discuss the matter with Merkel on Monday, O Estado reported. Asked if the discussions would amount to an infringement of the European central bank's autonomy, Rousseff said that the actions of other central banks have interfered with Brazil's own central bank policy. The newspaper said Rousseff also criticized her own foreign affairs adviser, Marco Aurelio Garcia, who told reporters Sunday that Brazil's central bank will lower rates. Garcia said that the benchmark interest rate will see a "moderate" reduction this week when policy makers meet March 7. "The person who discusses rates in my government is the Central Bank, it's Alexandre Tombini," Rousseff said Monday, according to the newspaper. "Neither I nor anyone in my government is authorized to talk about rates." online.wsj.com