Brazzil

Latin America has  some of the world's largest countries, in terms of land area, but the continent has no large global economy: and only two medium-sized economies, Brazil and Mexico. The region also lacks a local hard currency as a basis for international, and especially intra-regional, trade.

Many of the commodities that South American countries export are not traded in the currency of the originating country. So, if Chile imports oil from Argentina or Argentina copper from Chile, they pay in U.S. dollars. A regional currency facilitates trade and the creation of financial service hubs.

Europe developed its financial services and its regional development bank around the Pound Sterling, the Mark, the French Franc, and its economic stability now depends largely on the Euro. The U.S. Dollar filled this role in North America, and Asia uses the Yen (and increasingly the Yuan). (1) The lack of a continental currency leads to unstable national currencies and also financial dependence, in this case on the U.S. dollar.

Three Latin American democracies are dollarized (Ecuador, Panama, and El Salvador). While the Bank of the South will not replace the use of the dollar, even in development projects, it could be a step in the right direction in terms of locally-sourced development infrastructure. It is also a step toward a South American regional currency.

The Bolivarian Alternative for the Peoples of Our America (ALBA in Spanish) (2) countries have proposed beginning with a Sucre, (3) a transactional currency introduced at the latest ALBA-TCP (TCP - Peoples Trade Agreement) conference in Cumaná, Venezuela. ALBA itself was created as a "Bolivarian" alternative for Latin American commerce to oppose the Free Trade Area of the Americas (FTAA). Ecuador recently agreed to join ALBA.

Latin America is rich in real terms, however its financial infrastructure is primitive. This means that many national and international transactions pass unnecessarily via northern financial centers, sometimes requiring two hard currency conversions from buyer currency to dollar to seller currency.

Even transactions within a country can be in external currencies; buying an apartment in Buenos Aires, for example, involves a transaction in dollars. For a time this was also the case in Brazil. However, increased self-reliance, the strength of the Brazilian Real, and banking regulation have gradually replaced the dollar with the Brazilian Real in most Brazilian financial transactions.

One recent step forward has been a bilateral Central Bank agreement between Brazil and Argentina, allowing trade to occur between these two countries in local currencies. However, this Central Bank to Central Bank facility is not backed by basic financial services in São Paulo or Buenos Aires, such as currency hedges to protect the transaction in the case of a sharp currency move between the Brazilian Real and the Argentine Peso.

With the global financial crisis, currency moves are becoming more volatile. The result is that traders pay extra to buy and sell futures on the U.S. dollar, which offers them the currency security they need to plan ahead and fix the price of a future transaction, so use of this new facility accounts for less than 20% of transactions between Brazil and Argentina.

A History of Instability

Latin America has experienced economic instability for centuries. Some economic historians believe this to be the result of bad habits inherited from colonial times. During the Spanish and Portuguese empires, export policies were policed by viceroys for the benefit of their Iberian kings (and corrupt local customs officials). With military conquest came exploitation of human and natural resources for export markets abroad.

Iberian royalty cared little about the working conditions in their silver mines or large estancias. (4) It never even occurred to them to pay for the silver and gold coins smelted there for use in Madrid or Lisbon which funded Europe's development. In effect they were a donation of Latin American resources to Europe. New World plunder financed the development of Old World empires.

With independence came change and some improvement in the chain of international production. Recent decades, however, have seen another consolidation in the control of exploitation, production, transport, and marketing of South American resources, introducing new economic forces, a process known as the transnationalization of these economies.

The chain of production has shifted to the hands of private transnational corporations. Examples include U.S. transnational Cargill's activities in grains and oils (especially soybeans) in Paraguay, Argentina, Bolivia, and Brazil; or banking giants such as Citibank and HSBC; or Spanish transnationals such as Telefonica, Banco Santander, BBVA, and Repsol.

Today none of South America's commodity exports are denominated in their own currencies and most of the financial system is held and controlled by developed country-based transnational companies. This leaves national currencies and financial systems weak and vulnerable, what some have called a "neo-colonial" order that undermines regional development.

This results in flows of capital (5) from South America to the headquarters of the transnationals which operate there leaving the countries permanently short of hard currency. This causes so-called stop-and-go economic instability cycles: (stop) crisis in the balance of payments and then (go) after devaluation of currency. Stop-and-go makes development planning impossible.

Latin America's economic problems are compounded by foreign debt and the growth of dollar-denominated commodity exports. This has a cyclical destructive pattern in Latin America from the shortage of savings in local currencies. Who wants to save for a rainy day when their currency is constantly losing value, if not by internal inflation, then by forced devaluation relative to other currencies?

When Argentines have excess currency they ask their economist friends: "Should I buy euros or dollars?" This means they have more pesos when the currency devalues and often means they can avoid taxes. On the contrary in Brazil some save in foreign currencies, but due to recent economic stability and high interest rates, many save in Reals. This aids stability in Brazil but not in Argentina.

Much of Latin America's debt began with "development" or "aid" loans made to the region via Multilateral Development Banks (MDBs) such as the Inter-American Development Bank (IADB) or the International Monetary Fund (IMF). Much of this money was used in Latin America to develop local infrastructure and to buy weapons for the military but the money never left the lending countries - it was simply recycled into their arms manufacturers and construction companies.

President Chavez of Venezuela recently presented U.S. President Obama with a copy of Eduardo Galeano's 1971 "Open Veins of Latin America;" (6) the symbolism of open veins has a contemporary analogy in international finance. If the rivers of interest payments are dammed, they will stop pouring into oceans of foreign finance and instead can be re-channeled within Latin America.

This could result in a constructive dynamic cycle of growth and currency stabilization. A regional bank such as the Bank of the South (BDS) could promote peace and economic development by the sourcing of development from neighboring countries. This is good for both source and destination countries. The net result is dynamic development cycles which also aid the local country exporting the service. It also provides an aquifer of local finance that replenishes itself from local fronts.

To examine the cyclic destructive nature of the current lack of development, consider the following characteristics of Latin American public finance:

1. High Cost Debt

Regional countries exhibit high debt-to-GDP (gross domestic product) ratios. They are indebted to countries outside the region and the cost of that debt has a high risk premium (country risk) also calculated by agencies external to the region. Much of their debt is in foreign currencies. All this combined makes the cost of debt repayments very high. (7)

2. Exports Bring Collars for Interest Payments

National governments are advised by neoclassical economists (such as those who work for the World Bank or the IADB) to counteract debt problems with economic policies that prioritize exports. This is compounded by the arguable theory that nations should only compete in exports in which they have natural competitive advantages over other nations.

This in turn leads to policies to promote the export of commodities in primary form (from mining and agricultural sectors) while ignoring local industrial sectors that are not directly related to commodities and inhibiting the development of value-added industries.

3. Transnational Export Trade, Not Denominated in Local Currencies

Many countries in Latin America compete with their neighbors in commodity exports. In mining these include oil, copper, gold, silver, and iron ore and in agriculture; cattle, corn, sugar, bananas, soybeans, etc. Exports of these products to countries outside the region are characteristically transacted in foreign commodity markets, such as the Chicago Board of Trade (8) with prices denominated in the U.S. dollar.

Trade in commodities is handled by a small number of global transnational corporations competing with their own divisions in neighboring Latin American countries. Therefore, there is a tendency for exporters (those same transnational corporations and land owners in particular) to influence national governments in a race to the bottom, driving down national production costs by pitting neighbor against neighbor in devaluing national currencies.

Competition for national economic activity also pressurizes neighboring countries to compete with each other. National governments are encouraged to provide production subsidies to export industries or to weaken environmental or labor laws, thereby enticing the presence of transnational production facilities to their country rather than to that of their neighbor.

Examples include automobile production in Brazil and Argentina. It is interesting to note that while General Motors may be bankrupt it is still loath to sell its Brazilian plants, which are one of only a few profitable divisions in the company.

4. Large Foreign Reserves Abroad, Less at Home

Managing devalued currencies and speculative attacks by currency speculators requires countries to maintain large reserves of foreign currency. The currency is derived from exports (again largely denominated in U.S. dollars). This leaves smaller funds to pay off debts, and for internal development.

5. Export Policies Push Down Currency Values, Debt Repayment More Expensive

Devaluations of currencies lead to high debt repayment costs for debt denominated in foreign currencies due to a lower tax-base in a devalued currency. This, in turn, has the unfortunate side-effect of high inflation due to increased costs of imports. It can even lead to internal social unrest due to unpopular taxation policies within the country.

The current world financial crisis is leading to greater concentration of global wealth due to nations being forced to salvage their financial sectors by bankrolling private financial interests. While such problems are mainly in developed countries capable of the financial sophistication required, there are also risks in Latin American economies.

Dr. Pedro Paéz, minister of Economic Policy Coordination of Ecuador and coordinator of the Southern Bank, singled out competitive devaluations as a distinct risk, one that can be alleviated by trade policies based on regional solidarity, and not solely driven by raw competition. Such policies, along with policies of nationalization of critical economic sectors, fly in the face of the interests of transnational corporations operating across multiple Latin American borders. The ALBA system of trade, for example, has two primary tenets related to trade and production: Solidarity, complementarity, (9) and non-competition along with harmony with Mother Nature for long-term sustainability.

Dr. Paéz's own country has recently taken measures to escape the debt trap. Ecuador assembled a debt audit commission (Comisión Para la Auditoría Integral del Crédito Público, CAIC), an internationally advised national debt audit committee, in its department of finance. President Correa has refused to pay what the commission ruled on as fraudulent and/or onerous debt in an effort to break the debt/underdevelopment stranglehold that high debt repayments bring.

This has not made Ecuador any friends in the international financial community. Like Argentina or Iceland, the Ecuadorian default has lead the country to be punished by "high country-risk" status, making traditional sources of investment and credit expensive or completely unavailable from New York, London, Berlin, Paris, and Tokyo. This lack of alternative funding makes creating an alternative source of development like the BDS even more attractive for the black sheep of international finance.

Toward a Future Financial Integration

If the BDS launches successfully, then regional leaders can choose to implement other modules described by President Correa above - a regional reserves fund and a common currency. These two elements would offer the region an opportunity to stabilize currencies relative to each other and prevent competitive devaluation, by loaning to each other in times of stress.

For a common currency proposal like the Sucre to develop into a transactional currency it will need the participation of Brazil and Argentina to gain international acceptance. For now, currencies are still national, and fiscal policy will be tight for the next few years. Latin America will have to look to alternative markets for loans, such as currency swaps with China or with each other.

Long-term stability will require savings and investment in Latin America even by Latin Americans. It will also require the development of basic financial services with local regulation. The BDS, regulated for its constituents and not solely for the benefit of its transnationals, can be used to fund genuine cross-border development projects for South Americans by South Americans. It is a promising step in the right direction for regional financial autonomy.

Tony Phillips is a researcher and journalist on trade and multinational finance with an emphasis on dictatorships and the WTO, and a translator and analyst for the Americas Program at www.americaspolicy.org. Much of Tony's work is published at http://projectallende.org/.

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A hodgepodge mess of an article...
written by Fernando Cassia, June 10, 2009

I find that headline insulting. Plus, the article switches back and forth between praise of the new measures to promote trade without the use of the dollar, to slamming the countries for their "lightweight" economies.

One step forward, two steps backwards, seems to be your writing style. Instead of taking a positive attitude, you seem to think there´s some sort of a curse on the region, and that it´s been a mess for centuries, when that certainly hasn´t been the case.

Why not talk about standards of living, of which the Southtern Cone has the best living standards in the region,comparable to Eastern europe?.

Your article is also painfully long.

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"The Bankrupt" the New Currency for the Spanish countries of South America
written by Ricardo C. Amaral, June 11, 2009

In the last 11 years I wrote many articles about Brazil adopting a new currency – from 1998 until early 2005 I had been suggesting that Brazil should adopt the euro.

From mid-2005 to this day I have been suggesting that Brazil adopt the New Asian currency.

I am almost done writing my latest article on that subject.

You can read some of my articles on that subject on the enclosed web link:

http://brazzilnews.blogspot.com/

Since the year 2000 I have been suggesting a very appropriate name if they want to create a new currency for South American countries. Here is what I wrote in one of my articles:

September 2002 – Brazzil Magazine – “Countdown to Armageddon” by Ricardo C. Amaral

Quoting from that article: “…The only thing we can do is to sit back and have a good laugh. I find pathetic that senior members of the Brazilian government's economic team, at this stage of the game, are still contemplating the possibility of creating a new currency for South America. I believe one of the names that they are considering for that new currency is the "Bankrupt." I find that name very appropriate, when we take in consideration what is happening today to the economies of all the countries in South America.”


*****


Brazil does not need the rest of South America, and creating a currency for that group would be a major mistake since most of the other countries of South America are financially destitute.

Brazil represents 50 percent of South America and Brazil is larger than the European Union.

Your article is very insulting to Brazilians – anyway the Brazilian economy is in terrific shape and looks great for the future.

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...
written by Greenspan, June 11, 2009

Brazil represents 50 percent of South America and Brazil is larger than the European Union.

And has a GNP 15 times smaller!!

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Reply to Greenspan
written by Ricardo C. Amaral, June 11, 2009

That's why I had been suggesting that Brazil should adopt the euro as its new currency from 1998 to 2005.

In the last 4 years I have been suggesting that Brazil should adopt the new Asian currency.

I will explain why it would be smart for China to create this new Asian currency instead of using their own currency as the new world currency such as the US dollar.

The future of Brazil is connected to China and other Asian countries more than anything else.

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Correction
written by Ricardo C. Amaral, June 11, 2009

I will explain on my next article to be published soon...

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...
written by Greenspam, June 11, 2009

And the US owes everybody money!!

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Ricardo Amaral
written by João da Silva, June 12, 2009

I find pathetic that senior members of the Brazilian government's economic team, at this stage of the game, are still contemplating the possibility of creating a new currency for South America.

You wrote these sentences in 2002. Lamentably, the "senior members" continue to be pathetic 7 years later!!

Anyway, welcome back.

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trust Brazilians
written by Pedro Primavera, June 12, 2009

The answer to Brazil's economy comes not in the IMF or the American Dollar or the Chinese currency (name escaping me now). It lies in the Brazilian people.

In 1960, Brazil and S. Korea had roughly the same GNP. Since then, S. Korea's economy has skyrocketed. The reason: they trusted their own people. Brazil still has a command economy, although less controlled than what it once had. Entry into Brazilian entrepreneurship is extremely difficult. Once the barriers of needless regulation are removed, Brazil will see a resulting expansion of their economy.

It is an absolute shame watching the potential of the Brazilian people go to waste--or underutilized. It hurts all of Brazil.

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Reply to Pedro Primavera
written by Ricardo C. Amaral, June 12, 2009

Here is some statistics about Brazil and South Korea, but before you give the South Korean economy as an example for Brazil to follow you should read the book by Ha-Joon Chang, "Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism" (Bloomsbury Press, 2007.)

He is a well-known South Korean economist and that book would clarify to you how the South Koreans were able to develop their economy – you seem to be a bit misinformed.


Brazil:

Population: 198,739,269

GDP (purchasing power parity): $1.99 trillion (2008 est.)

GDP (official exchange rate): $1.665 trillion (2008 est.)


South Korea:

Population: 48,508,972 (July 2009 est.)

GDP (purchasing power parity): $1.278 trillion (2008 est.)

GDP (official exchange rate): $857.5 billion (2008 est.)


*****


If the potential of the Brazilian people goes to waste it is their own fault. In the age of the internet never before was so easy to start a business with so little capital.

As the young people get further access to the internet the only thing that can hold them back is lack of initiative, imagination, and so on… The sky is the limit in the age of the internet. The young people learn how to use the internet in no time and overnight millions of other Brazilians also can be online.

I hate to say that but your mindset is stuck in the past.


*****


“Com acesso no trabalho, Brasil chega a 34,5 milhões de usuários ativos de internet”
da Folha Online – 10 Junho de 2009

O Brasil tem 34,5 milhões de internautas ativos --que usam a web ao menos uma vez no mês--, levando em conta o acesso em casa e no trabalho. Os dados são da consultoria Ibope Nielsen Online, que no mês de maio passou a comp**ar a audiência de internet nas empresas --antes, era levado em conta apenas o acesso residencial.

Considerando apenas o acesso em casa, o Brasil registrou 25,5 mil internautas ativos, ficando estável em relação a abril. Em maio, o número de pessoas com internet em casa ou no local trabalho, mas que não necessariamente acessaram a rede no mês, foi de 44,5 milhões de pessoas.
"A ampliação do painel permite monitorar com mais precisão a navegação em sites da web 2.0, apresentando maior abrangência,", afirma Fábia Juliasz, diretora-executiva do Ibope Nielsen Online, em nota.

Considerando os brasileiros de 16 anos ou mais de idade com posse de telefone fixo ou celular, a estimativa é que o país tenha 62,3 milhões de pessoas com acesso à internet em qualquer ambiente (residências, trabalho, escolas, LAN Houses, bibliotecas e telecentros).

Apesar de o critério ter mudado, o Brasil continua como campeão no volume de horas gastas na internet, com 40 horas 41 minutos --considerando apenas o acesso residencial, esse número foi de 25 horas e 43 minutos. Os dados são do mês de abril. O país está à frente de países como Estados Unidos, Reino Unido, França e Espanha nesse quesito.

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Reply to Joao da Silva
written by Ricardo C. Amaral, June 12, 2009

Thank you.

Nice to hear from you.

In the last 6 days I saw on pay per view both games that Brazil played to qualify for the world cup.

There is thing I don't understand - why Dunga left Diego out of the team that just played the qualifying games for the world cup and will play another tournament in South Africa?

I have been watching many games of the European leagues and also their major soccer tournaments - in the last few months I saw various games when Diego was playing for his German team - all I can say is that he is playing a spectacular soccer.

In my opinion it is incredible that Dunga left Diego out of the Brazilian national team, since he is one of the Brazilian players who are playing the beautiful game the way our superstars play it over the years.

I still don't like Dunga as the coach of the Brazilian team and I would replace him with Felipao.

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Reply to Joao da Silva
written by Ricardo C. Amaral, June 12, 2009

By the way, Diego has been transferred recently to Juventus of the Italian league.

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...
written by Walton Family, June 12, 2009

The future of Brazil is connected to China and other Asian countries more than anything else.

And the future of China and other Asian countries is connected to the demand for their products in the U.S. more than anything else. So ipso-facto Brazil's future is connected to the U.S. more than anything else!

Understand?

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Reply to Walton Family
written by Ricardo C. Amaral, June 12, 2009

I don’t know if you are trying to imply Walton Family as in Wal-Mart, but anyway – you said: “And the future of China and other Asian countries is connected to the demand for their products in the U.S. more than anything else. So ipso-facto Brazil's future is connected to the U.S. more than anything else!

Understand?”

No, I don’t.

If you read some of my articles about China and Brazil then you will understand why your assumptions might be incorrect.

You can start by reading the following articles:
1) Brazzil Magazine - March 2, 2007 - “Here Is Why Brazil Should Adopt the New Asian Currency” - Written by Ricardo C. Amaral
2) Brazzil Magazine – October 2007 - "The Smartest Thing China Could Do Right Now: Invest US$ 200 Billion in Brazil" - Written by Ricardo C. Amaral

http://brazzilnews.blogspot.com/

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...
written by alves, June 14, 2009

Diego is out because a spectacular athlete like Felipe Melo enables
both Elano and Gilberto Silva and allows Dunga to keep them in the lineup with less pressure on Gilberto Silva to create and more freedom
for Elano to come forward as he has done to score crucial goals against both Italy and Argentina. I don't see any argument that the midfield could be better by subbing Diego for Felipe Melo and leaving the other starters - you would have to do a wholesale re-shuffling of players to get a better result which almost certainly would require a
new coach. Also, recall the Dutch header in the '94 quarterfinals and the two Zidane headers over Leonardo in '98 and that should be enough
to cast doubt on a player like Diego who cannot compete in the air.

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But....but....but.....
written by ch.c., June 16, 2009

Brazilians have the well known disease.....INFERIORITY COMPLEXION !!!!!!!
What is then their cheap meds ? They turn the stats....UPSIDE DOWN.....AND CARESS THEIR NAVEL THAT HAS BEEN INFECTED AFTER HAVING SCRATCHED AND INFECTED THEIR HEAD.....BUT...BUT...THEY DID NOT FIND ANY OTHER SOLUTIONS THAN TO TURN THE STATS UPSIDE DOWN !!!!!

Hip hip Hurrah for Brazil having a LOWER GDP PER CAPITA than their CLOSEST neighbours......VENEZUELA......ARGENTINA.....AND URUGUAY !!!!!!!

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Greenspan II.....
written by ch.c., June 16, 2009

1)...... and Brazil devalued their currency 4 times with 3 zeroes against the also weak US dollar over the last 7-8 decades.
What idiot in Brazil can figure out what was the weakest of these 2 currencies ?????

2)....and Brazil Government debts in US$ in the 1980s were so high that the country needed the Brady rescue plan ! Parts of every Brazilian debts were GUARANTEED BY THE U.S. GOVERNMENT !
....WHEN will Brazil return the favor to the USA and guarantee part of their debts.....BY THE BRAZILIAN GOVERNMENT ??????

And last but not least to the BRIC IDIOTS :
After having amassed so many truckloads of cheap papers the US dollar is....what are you going to do ? Sell them ? But every time Brazil sells let say US dollars 10 billion their remaining 190 billion are also worth...LESS !

You are STUCKED with your shiploads of cheap papers !

Dont worry this is good for your lumber exports to the USA. they are going to produce more and more and more paper until you get an indigestion.
Later you could then recycle these worthless papers into Brazilian toilet paper rolls ! Or use them for the wall papers in your favelas !

Right ????? Welllll....not so...not so !

In my humble view it is going to be the Brazilian currency that is going to lose value against the US$.....over the next 20 years or so ! Thus feel free to already import the printers and the ink for wall papers rolls you are going to export Africa !
Lets face it......you cant even build printers....in Brazil....outside of assembly lines !!!!!

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Theft!
written by Tom Lloyds, June 17, 2009

Ch.C: "Hip hip Hurrah for Brazil having a LOWER GDP PER CAPITA than their CLOSEST neighbours......VENEZUELA......ARGENTINA.....AND URUGUAY !!!!!!!"

Brazzil Magazine - March 2, 2007 - “Here Is Why Brazil Should Adopt the New Asian Currency” - Written by Ricardo C. Amaral


Now! I understand! Ricardo urges Brazil to join the New Asian Currency because he wishes Brazil to steal the "wealth", (not paper money) from the rich Asian countries! This guy is amazing!

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Ricardo C. Amaral
written by Tom Lloyds, June 17, 2009

Ricardo C. Amaral:"The future of Brazil is connected to China and other Asian countries more than anything else. "

But... The future of China is not connected to Brazil. Brazil is only one of commodity suppliers to the Chinese. The Chinese has been smart enough to invest in Africa since Mao to gain the access of commodity. Does the Chinese care the oil is made in Brazil or elsewhere?

Well. Brazil is welcome to apply to join the New Asia Currency. There is absolutely hopeless to join. How can I made this idiot understand that the Chinese has no interest to create this New Asia Currency!!!!!!!????????? They only wish their Yuan to control the world!

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The future of Brazil is connected to China and other Asian countries ..as per Ricardo !!!!!
written by ch.c., June 17, 2009

OF COURSE YESSSSSS !!!!!

BRAZIL CAN ONLY PRODUCE...... BASIC COMMODITIES !
WHAT ELSE ?????????
BRAZIL CANT PRODUCE VALUE ADDED GOODS ANYWAY. TWO THIRD OF YOUR EXPORTS ARE...BASIC COMMODITIES !
But can Brazil compete with Asia in producing tractors, cars, trucks, machinery, drugs, technology, assembly lines, call centers, textile, services industries ?
- Lets face it, Brazil is the only Mega Country that DOESNT & IS UNABLE TO PRODUCE ITS OWN CARS, can only produce generic drugs, unable to produce armaments, submarines, jet fighters, nuclear power plants, etc etc etc !
- and as to your infrastructure in paved roads, Brazil is a backward country even within the BRIC's club. Brazil has only 5 % of paved roads, much much much less than the other BRIC countries. Your ports ?
DECREPITATED when compared to the other BRIC members !

As to the idiot Ricardo Amaral :
- more junkie than you there are not. Your "wise" articles were written AT THE PEAK OF THE COMMODITIES BUBBLES ! As I told you then....idiots....buy (nationalize) when prices are HIGH and sell (de-nationalize) WHEN PRICES ARE LOW !!!!! Thus idiots like you, as you have written, always complain that the De-nationalization prices were WAY TOO LOW !!!! Of course it was way too low....using your own theories, well publicized in your articles to nationalize when prices WERE BUBBLING !
- As you are also an ELITE TRADER MEMBER, a club full of junkies like you, no doubt that you took A BIG BIG BIG LOSS from the commodities prices PEAK ! fORTUNATELY for you, being a member of generations of crooks who have pillaged your own country for many many decades in view of your ancestrors your are so proud of, your family should easily be able to fill the holes in your trading account !!!!!!!

Last but not least on the eventual New Asia Currency :
- Do you think that Brazil is in Asia ? It is like saying that Argentina, Chile or Bolivia will adopt the New Asia Currency !!!!!
- Doesnt Mercosur has its own plan to create its own JUNK CURRENCY ?
- Doesnt UN(A)SUR has its own plan to eventually create its own JUNK CURRENCY ??????
- Do you believe that Brazil, or whoever in LATAM would be welcome in the Euro currency ?

Just think about it...IDIOT !

Ecuador pegged its currency to the US$. later when oil price was bubbling the junkie Correa threatened to DE-PEGG because the US£ was "too low" and 6 months later threatened to DE-PEGG because the US$ was "TOO HIGH" !

And short memory that BRAZIL PEGGED their currency to the US$ in 1994 just to DE-PEGG IT...in 1999 ???????????

Idiots in Latam are by the hundreds of millions. And you are just one of them. LOSERS WILL REMAIN LOSERS....whatever happens, until proven otherwise !

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...
written by João da Silva, June 17, 2009

quote]They only wish their Yuan to control the world!


It sounds true! During the summit of the heads of BRIC countries yesterday, Mr.Jintao remained silent when the issue of aleternative trading currencies was being discussed!! There was no news about the position of India and so we really do not know their line of thoughts.Considering that I & C are two countries with economies still growing in spite of the world recession, they seem to be happy with the status quo and do not want to upset their major trading partners in the West. I do not blame them either for their lukewarm reception to the idea of alternative currencies for they have their own huge populations to take care of.IMHO, both I & C will keep on participating in numerous summits on this "Alternative Currency" without coming to any definite agreement.Just like "Doha rounds of Talks"

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THINK ABOUT IT
written by Forrest Allen Brown, June 17, 2009

we all should just go back to gold coins .
no paper money for the governments just to print like wall paper .
can not devalue it . burn it

it is real

let the real wealth come out not printed wealth

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Forrest
written by João da Silva, June 17, 2009

let the real wealth come out not printed wealth

Do you think that anybody is going to listen to ya?

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Ricardo C. Amaral
written by Tom Lloyds, June 18, 2009

And short memory that BRAZIL PEGGED their currency to the US$ in 1994 just to DE-PEGG IT...in 1999 ???????????

Ricardo pegged Brazil's currency to Euro and then De-pegged it later, and then pegged it to the New Asia Currency! Even Warren Buffet invested in Brazil's currency, Real! However, the grand son of grand son of grand son of grand son of .... grand son of the father of Brazil, Ricardo is not confident of Brazil's own currency and always wishes to ask Brazilian to put their future on foreign currency.

The Chinese is confident that their Yuan will rule the world one day. They do not need any New Asia Currency!!

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Ricardo C. Amaral
written by Tom Lloyds, June 18, 2009

Ricardo C. Amaral: Brazzil Magazine – October 2007 - "The Smartest Thing China Could Do Right Now: Invest US$ 200 Billion in Brazil" - Written by Ricardo C. Amaral

Chinese has been smart enough to invest in Australia, Russia, Africa... even USA and many other countries to gain access to commodity. They have done this for a long time. At last they put some money in Brazil. This article has nothing new! It carries zero intellectual value!

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ch.c
written by João da Silva, June 18, 2009

The Chinese is confident that their Yuan will rule the world one day.

Your opinion on Yuan ruling the world one day?

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Tom Llyods
written by João da Silva, June 20, 2009

Hi Tom,

You made the following statement:

The Chinese is confident that their Yuan will rule the world one day.

I asked our good friend ch.c his opinion on your statement.Here is his reply to my question he posted on the other site:

Joao
written by ch.c., June 19, 2009

sorry I didnt see your question.
My answer is simple :
NO WAY ! it is not a free market currency ! Just manipulated by its government !
What is China going to do over time with their exports to the USA ?
China is totally dependent for exporting to the USA and the EU.
Their trade surplus is about US$ 450 billion with the USA & the EU but have a trade DEFICIT of about US$ 200 billion with other
emerging nations, notably due to their commodities imports !
Brazil and other BASIC commodities countries export their Noooo value added commodities to China. China transform these commodities to more value added goods and then re-export these goods to developed nations.

What is globalization ?
Developed nations allow more imports only if the exporter IMPORTS...POLLUTION !!!!!!
End result ?
China is already by now the World largest polluter ! Brazil is also a large polluter when you measure on a PER OUTPUT BASIS !!!
Example : Brazil has a heard of 200 millions cattles. Right ? But every cattle pollute far more than a...CAR !
No doubt that I say....VIVA BRAZIL when you export more...MEATS !
Every cattle produces 12 dungs...PER DAY !
KEEP THEIR DUNGS...AND WE WILL BUY MORE MEATS FROM YOU...OVER TIME ! PROMISED !

The certainty is that developed nations will have FRESHER AIR but emerging nations have already POLLUTED AND SMELLY AIR AND FAR MORE POLLUTED SOILS AND RIVERS/LAKES.
Your further pollution growth rate is GUARANTEED !
And who produces the most pollution on a per output basis ON EARTH ? SAUDI ARABIA !!!!! Guess why !
Why do you think the USA have not built ONE oil refinery over the last 30 years ? Due to lack of money, know how ? Hmmmmm !
Better to import MORE AND MORE...GASOLINE, DIESEL from Saudi Arabia and no doubt from.... BRAZIL in the future...in view of the welcomed Petrobras decision to build many refineries so that YOU COULD ADD A LITTLE VALUE TO YOUR FUTURE OIL PRODUCTION AND FUTURE GASOLINE/DIESEL EXPORTS...TO THE USA AND THE EU !!!!!

Just think about it !

Hopefully China will also in the future EXPORT some gasoline/diesel after having imported far more oil ! No problem for developed nations as long as supplies are diversified to guarantee the availabilty of gasoline/diesel in case of political crisis !
And so that they will compete with other Saudis or Brazilians refineries.

Do you have anything to say?

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João da Silva & ch.c
written by Tom Lloyds, June 21, 2009

I said, "The Chinese is confident that their Yuan will rule the world one day."

It is not a freely exchange currency but now Chinese is the world's largest creditor with the so-called developed countries are the world's largest debtors. As we see recently, the leaders of the so-called developed countries lying along the queue begging the Chinese to lend them more money, we can tell where the center of the world will be. "Please buy more our national bonds! It is safe!", said one of the leaders of the so-called developed country.

Money is power! As the Chinese controls more the world's money, the more powerful their money is! Recently, Hong Kong complains China's plan of developing Shanghai to be an international financial center. If Chinese wishes to develop Shanghai as an international financial center, don't you think that Chinese will not allow their Yuan to be freely exchanged? It is only a matter of time of freely exchange!

USA is and was the biggest polluter in the world. Like it or not, US dollars is and was the world's reserve currency. In the 19th century, the British Empire was the largest polluter in the world as the British Empire burned more coal than anybody else to power their industry revolution. The British pound was the world's reserve currency. Therefore, it encourage Chinese to pollute more such that their Yuan will be more powerful. By the way, as per capital or as per Chinese human being, Chinese pollute much less than the so-called developed world. So, as the Chinese pollutes more, their Yuan will be become more powerful!

As Chinese trades more with the so-called developed world, Chinese is moving their money back to China while giving a small part to the commodity countries. As the renowned economist and investor, Marc Faber once said,"The federal government is sending each of us a $600 rebate.
If we spend that money at Wal-Mart, the money goes to China.
If we spend it on gasoline it goes to the Arabs.
If we buy a computer it will go to India.
If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala.
If we purchase a good car it will go to Germany.
If we purchase useless crap it will go to Taiwan
and none of it will help the American economy.
The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part."

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João da Silva & Ch.C
written by Tom Lloyds, June 23, 2009

João da Silva & Ch.C

What do you think about Marc Faber's statement? Do you have anything to say?

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Tom Llyods
written by João da Silva, June 23, 2009

What do you think about Marc Faber's statement? Do you have anything to say?

Yes Tom, the only thing that I want to say is that Marc Weber could be a "business consultantg" of all the countries he has listed and he is generating plenty of business for himself!

To write off the good ole U.S.of A as a "declining empire" is a big folley and I bet even the Chinese, Indians, Vietnamese, etc; know it.Though their politicians would like to bash the U.S., as it is a big vote getter.

I wonder what ch.c´s answer is.

BTW, you should participate more often in this forum.

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João da Silva
written by Tom Lloyds, June 24, 2009

Hi, I agree with what you said. Some US products are excellent, like Apple computer, ipod, HP .... American invented the internet .....

But Marc Faber made a mistake ... "If American really knows how to drink beer, the money will go to Germany as well!"

BTW, you should participate more often in this forum.

Well, it is a surprise to me. I thought that I was an unpopular figure here. Thank you for your invitation.

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...
written by João da Silva, June 24, 2009

Well, it is a surprise to me. I thought that I was an unpopular figure here. Thank you for your invitation.

Not exactly an unpopular figure,Tom, but quite informative,except when you indulge in personal name calling of Ricardo when you do not agree with his view points! I do differ from his views too,but I strongly believe in civilized debates to correct and better a plan. I am looking forward to reading his new article and hopefully, we will be able to interact more.

Hi, I agree with what you said. Some US products are excellent, like Apple computer, ipod, HP .... American invented the internet .....

Not only that.They have the best brains native as well as imported, good R & D facilities (and Universities), etc; They can develop products for both Commercial and Military applications and outsource the manufacturing to any other country. Nothing prevents them from slapping heavy import duties on clothes,food,etc; to "protect" their domestic industries. But they know that it is not in their long term interests to do so.For obvious reasons!!

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An Open Important Question to Ricardo C. Amaral
written by Tom Lloyds, December 21, 2010

You have proposed Brazil to join Euro and later changed you mind to that New Asian Currency.

Now the three "PIG European countries" hold their Euros and are asking for help to pay down their debts. Will Brazil pay the bill if Brazil was so stupid to listen to you to join Euro? EU was not smart by not listening to you to let Brazil into the game. You have written to EU to beg for the Euro membership into the Euro zone, haven't you?

I have told you that the world will come to China to ask for money. Look at what is happening nowadays. Yuan will rule!

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