The beatings will continue until morale improves!

So to answer the question from the previous post: yes, the recession is on purpose. The US Fed just admitted it: they want to create unemployment to improve the job market. They also want to cool the housing market, but their indicators are backward looking, not forward looking.  The Brazilian government has been running a surplus all year, and thus removing money from the economy, to a total sum of R$ 150 billion until the end of July. This cannot end well. The US government has been running a deficit, although not a big enough one to counter the effects of the rapid rise of interest rates. Links: The Fed to reset the U.S. housing market through a ‘difficult correction’—5 things to know about the plan The Rate Hikes Will…

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Is the recession on purpose?

 See Bill Mitchell's blog post below. He argues (and well argued in my opinion) that the elite wants to inflict pain on the economy, regardless of the current situation. Brazil's inverted interest rate curve clearly indicates that the financial markets expect recession to come, that inflationary pressures are transitory, yet the Brazilian Central Bank will have to keep interest rates high to counteract the Fed's hawkishness, or risk currency devaluations and higher inflation from that. Brace yourselves, recession is on purpose, and its meant to make you poorer. Bill's blog post: Elites using monetary policy to deal with paranoid fears that power might shift towards workers From Bloomberg: ‘Inflation Fever’ Is Finally Breaking — But Central Banks Won’t Stop Hiking Rates

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When the Economy Minister and Central Bank Chief have offshore accounts…

Such sad news that the entire country is facing skyrocketing inflation due to these guys deciding to devalue the currency, while significantly enriching themselves due to their offshore accounts in a foreign currency... This is just criminal. Plain and simple. And then it gets worse, as we learn they were against taxing of offshores! https://www1.folha.uol.com.br/mercado/2021/10/dono-de-offshore-guedes-defendeu-excluir-taxacao-de-paraiso-fiscal-de-proposta-do-ir-veja-video.shtml https://www1.folha.uol.com.br/mercado/2021/10/guedes-disse-a-comissao-de-etica-que-adotaria-medidas-para-prevenir-conflito-de-interesse-sobre-offshores.shtml Corruption in the government is alive and well. The right is no fancier than any other party when it comes to benefitting themselves from power...

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