Read more about the article Links of the Weakly News

Links of the Weakly News

I collected several articles this week that exemplify the incorrect reasoning that is endemic in the Brazilian news when it comes to how the economy works and/or what it needs. This bad math/logic is what is killing the economy. The trick is to learn how it is killing the economy and bet timely against it to win... Governo tenta votar projeto que abre caminho para conta em dólar no Brasil Who is this for? The rich. If you read the article you notice that they think this was something important to pass now. I would think so too, they are destroying the currency, it is damn well important if you are rich to get your wealth out of the Real! The poor, on the other hand, well, they are just…

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Read more about the article On Hyper-Inflation

On Hyper-Inflation

Hyper-Inflation. Scary stuff. Most 40+ people in Brazil know what that means, and what life is like in that scenario. How likely is it that it will return? How likely is it that it would have happened had the PT party stayed in power? How likely is it now that a right-wingish party is in power? All good questions. Here is an attempt at answering them: 1) Very likely. Brazil has a right-wing party but its populist, so it has a tendency to spend money to please the populace, while being dumb and believing that the government has a spending limit, and that spending generates inflation no-matter-what. So it is on a suicidal path by destroying supply, either through currency devaluations or demand suppression, all under the religious belief that…

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Read more about the article Second post

Second post

I am just going to write something here to get started and break the ice, get over the first real post "writer's block". I have been watching Brazil deteriorate from a safe distance for some time now. Outdated and ineffective orthodox principles are being used to determine policy and its killing the economy, the population, and everyone's future. Its as if the tribal bullies got together and decided to make everyone drink poison to attract good spirits. The tribal bullies being the opinion makers and powerful actors, the poison is the suicidal economic policies, and the good spirits are the "investors" (both imaginary beings). I don't know where or how this will end, but I see no reason why it will end well. It will take something drastic to turn…

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