And the financials drug starts killing
24
Jul
When a left-wing government adopts supposedly right measure can be two
things: despair or distemper, perhaps in our case is both. The government announced Wednesday (22/04) reduction of the fiscal target of 1.5% to 0.15 and this means that the crunch (reduced salary), unemployment and maxi-tax cost nothing. When the first effects of right-wing politics of Levy minister began to take effect, I wrote a post June 8 that the drug could kill the patient, and now we begin to see signs of necrosis, and means it can get worse, and now? Now the dollar shoots up, why? The answer is simple, high dollar means little cash outflow, cheapening of domestic products out there, but it means more crunch, expensive products internally and difficulties of traveling abroad, but the worst is the loss of credibility. The reaction was immediate, the Financial Times says that Brazil “seems an endless horror film” of course are concerned about the money put here, but this means the end of easy credit.
