Rizal Philippines
October 25, 2015
From Marketwatch
Brazilian President Dinah Rouseff was interviewed today at CNN at GPS over the brewing economic crisis at Brazil. It is experiencing negative economic growth, a downgrade from credit rating agencies, and severe inflation. The Brazilian real took a 3% beating decline vs the dollar after the downgrade. It is Brazil's worst in 25 years. She was an ex rebel who was tortured. She took over dictators govt of the military. Her govt is rocked by corruption charges at Petrobras, the state owned oil company
Z of GPS that there is a great danger that she may be impeached because of the economic and corruption issues.
She is unfazed saying that her govt was responsible for creating a strong middle class, and getting rid of poverty among the poor in a short period of time. Others on Brazil:
"Brazil’s economy has disappointed since she took office in January 2011. Growth has averaged just 1.8% a year; inflation has been around 6%; and the current-account deficit has ballooned, to 3.7% of GDP. Her government has some good excuses. She inherited an overheating economy, the world has grown sluggishly, and cheap money in the United States and Europe prompted an exaggerated appreciation of the real.
But Ms Rousseff has scored some own goals as well. Her predecessor, Luiz Inácio Lula da Silva, left monetary policy to the Central Bank and mostly stuck to clear fiscal targets. By contrast, Ms Rousseff chivvied the bank into slashing interest rates; her officials tried to micromanage investment decisions with subsidies and to cover up the fiscal damage through accounting tricks. Rather than the promised recovery of growth, the result was that Brazilian businessmen and foreign investors lost confidence in the economic team--and just at the wrong time. When America’s Federal Reserve last year announced a possible "tapering" of its bond-buying, the real began to slide. Against the dollar, it is now 17% below its value in May.
From Business Insider
Her govt hired a Chicago University Educated Joachim Levi who was thought could lift Brazil form its predicament. ( A technical challenge) The proposed budget which would water down govt spending was sidestepped by a belligerent Congress. So much for professionals and meritocracy in the govt.
How would you handle the crisis?
How could you as the country's leader have prevented this from happening?
If you were Finance Minister Joachim how would you have really have helped Pres. Dinah get the country out of this hole?
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