Brazzil

...a cleaning has a cost...but also a benefit !!!

Should Alencar replace Lula, you should have a short term exodus of capital ! That will be good because without government intervention you currency should weaken and make you again more competitive or more profitable for your exports !
Alencar said the first thing he would do is reduce interest rates....and that would amplify further the same things as just mentionned !!!!

Your economy growing faster than now would benefit :
- jobs creation
- increased corporate profits
- increased tax collection
- reduce somewhat amounts government borrows
- reduce borrowing costs with lower interest rates for government, corporate and individuals borrowing costs !

And after a few weeks if the transition has been smoothed....everything will be better than now...and foreign money will return !!!!

The world community should also see a strong commitment for the future of your country...from your new leaders.

The mistakes that should be not done are...
- a return of inflation
-.too much additional government spending, except for the poors....to get the votes for next year elections !!!!

With a gradual lowering of interest rates and a somewhat weakening of your currency....internal and external growth will help you for a sustained growth !!!!!!

Your government and corporations should issue more longer term bonds that would become a very good investment in case of lower interest rates !!!!!

The real may return to it's true value - which will slow down the Lula camp from buying US$ for their offshore accounts...

As I said in a previous article 'Brazil's Scandal Reaches Lula Family While Vice-President Says He's Ready to Take Over ' Brazil should look at the big picture.

Lula and the PT party have done a lot of good. Stabalised inflation, encouraged investment and are attempting to help pooer people.

It is only right that corruption should be dealt with, but this needs to be done in a rational systematic way. The 'antics' of certain induviduals is nothing unusal in South America or possibly other countries such as the US.

Impeaching the president will not show the world that it is getting tough on corruption that is unproven, but that Brazil is still unstable and not worth the risk of investing in.