A hilarious article on Marketwatch quotes some Wells Fargo “senior economist” named Bill Adams saying, “Brazil’s expansionary monetary and fiscal policy in the aftermath of the global recession caused it to lose policy credibility, and that’s why Brazil has high interest rates and high inflation today”. The article also notes:
“As the financial crisis rippled through global
financial markets, the Central Bank of Brazil slashed its benchmark
short-term SELIC rate from 13.75 in December 2008 to 8.75 by July 2009. Lower
rates produced a surge in wage growth, which pushed prices higher. But as wage
growth has slowed, prices have continued to rise, compounded by the
depreciation of the real.
The Central Bank of Brazil said Thursday that it
expects inflation to hit 7.9% in 2015, while it expects economic growth to
contract by 0.5%.”
Besides the fact that this typical economist simply fails to fill in the reality on the ground in Brazil, where for over a decade their economy enjoyed growth and praise as one of the pillars and models of growth for the 21st century, absorbed huge amounts of investment from outside investors, was a key member of the so called BRIC countries that experienced a boom in growth partially thanks to the global commodity price surge (indirectly from the Chinese pumped up government orchestrated “growth” model) along with billions in controversial stimulus spending after the credit crises related to preparing for the 2014 World Cup, which essentially completes the "dream scenario" talked about by economist, he is a complete Hypocrite!!
The shallow tone of the article and shallower coverage of reality on the ground in Brazil can only cause one to be cynical about these so called economists views when at the same time Brazil is being criticized for their monetary policies EVERY “developed” economy in the world has their central banks printing trillions of “dollars” while doing everything in their power to keep interest rates at virtually zero without loosing credibility!?! Yet when Brazil attempts the SAME policies, they are quoted as “loosing credibility”? Yea, global imperialism is still alive and well and if you don’t have a “reserve currency” you are still F%&#@d in the world of global capitalism.
