Here is why the world’s smart money is being invested in Brazil.

Discussion in 'Economics' started by SouthAmerica, Sep 7, 2006.

  1. aie aie...
     
    #141     Aug 20, 2009
  2. .

    August 20, 2009

    SouthAmerica: Reply to snbthetrue


    *****


    June 16, 2008

    SouthAmerica: Reply to Banjo

    The solution to fix the problem brought up by the enclosed article is to implement a complete system of mechanized harvesting in Brazil as it happened in the past, and do the same thing as they did in the past when the Brazilian government gave a piece of land in the Amazon area to the displaced farmer workers - to see if the newly displaced farm workers can also help speed up the quicker destruction of the Amazon area.

    In the 1960’s when they last changed the farming system in Brazil when they started the harvesting mechanization they decided to offer the displaced farmer workers a piece of land in the Amazon area. The government was expecting that about 500,000 of these displaced farm workers would show up to claim their piece of land, but to the government’s surprise 5 million people did show up to claim their little patch of land and most of these people have been destroying the Amazon ever since. And today that original 5 million people has multiplied to at least 20 million people.

    That is what quick and easy solutions for today’s problems it will get you in the future.

    http://www.elitetrader.com/vb/showt...960721&highlight=displaced+farmer#post1960721

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    #142     Aug 20, 2009
  3. sosueme

    sosueme



    SA

    Who is Brasil defending itself against with the Gripen and what will they be flying

    sosueme
     
    #143     Aug 20, 2009
  4. .

    August 20, 2009

    SouthAmerica: Reply to sosueme

    You asked me: “Who is Brazil defending itself against with the Gripen and what will they be flying?”

    You can find the answer to your question on the above article and in the comments section following that article:

    Brazil Worried US Is After Its Oil and the Amazon
    Written by Raúl Zibechi
    Brazzil magazine - Tuesday, 18 August 2009

    http://www.brazzil.com/component/co...is-after-its-oil-and-the-amazon.html#comments

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    #144     Aug 20, 2009
  5. sosueme

    sosueme

    Yes, I have read that article, but I cannot imagine flying Gripens against an american battle group.
    The Russians/Chinese have far better missile hardware without the need for pilots.

    sosueme
     
    #145     Aug 23, 2009

  6. These jets are not to confront the US airforce, it is to keep Chavez in check.

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    #146     Aug 24, 2009
  7. .

    October 20, 2009

    SouthAmerica: A 2 percent tax on foreign capital is not a solution for Brazil.

    I did suggest on my article “Brazil, China and the New Asian Currency” that the Brazilian government should tax any profits made by any foreign investment in Brazil as follows:

    Quoting from my article: “To reduce the risk of this kind of devastating event to repeating in the future in Brazil, the Brazilian government should adopt a new set of rules with heavy penalties to keep the global hot money away from the Brazilian economy. The tax on these foreign investments should be designed in such way as to discourage short-term gains with the heavy exit tax of around 80 percent for moneys leaving the country up to one year from date of investment; after two years the exit tax should be around 50 percent, after three years 25 percent, and so on…and the system should be designed to encourage mostly long-term foreign investment of at least 5 years.

    The Brazilian government should find a way and develop a system to penalize with very heavy taxes the foreign “hot money.” They should build a system to discourage the international “hot money” from investing in Brazil.

    Brazil has to build a system to avoid in the future the “hot money” that rushed in and out of emerging markets during 2008 and caused a market crash in these countries – hot money that came from irresponsible banks, hedge funds, insurance companies and many other types of speculative capital that flows regularly between financial markets in search of the highest short-term interest rates possible, and other short-term investment opportunities.

    Finance dictionary gives the definition of the kind of money that I want the Brazilian government to keep away from Brazil with this proposal as follows:

    In international finance “hot money” is extremely volatile short-term capital that moves on a short notice to any country providing better returns. Powerful speculators can quickly pump massive sums into a high-yield economy, giving it an artificial aura of success and propriety. But, on a mere suspicion of a downturn or other negative factor, they can (and do) withdraw it almost overnight causing a near collapse of the country’s financial structure.”

    Brazil, China and the New Asian Currency
    http://www.rgemonitor.com/emergingmarkets-monitor/257250#183003


    *****


    Folha de Sao Paulo
    20/10/2009
    “Taxar capital estrangeiro não pode servir para adiar reformas, diz FMI”
    da BBC Brasil

    O diretor do Departamento de Hemisfério Ocidental do FMI (Fundo Monetário Internacional), Nicolás Eyzaguirre, disse que a decisão do Brasil de taxar aplicações financeiras internacionais em 2% não pode servir como um pretexto para que o governo adie reformas fiscais e estruturais fundamentais.

    "Estes tipos de impostos oferecem algum espaço para manobra, mas não é muito, então os governos não devem se sentir tentados a adiar outros ajustes fundamentais", afirmou Eyzaguirre, na segunda-feira durante uma entrevista coletiva na sede do FMI.

    Eyzaguirre disse ainda que "implementar estes impostos é muito complexo, porque eles precisam ser aplicados a todos os possíveis instrumentos financeiros".

    "Com a engenharia financeira de hoje em dia, não é muito difícil disfarçar fluxos financeiros puros com fluxos comerciais ou até investimento estrangeiro direto", acrescentou.

    O FMI acredita que o êxito da operação de controle de capital estrangeiro que o Brasil implementou no longo prazo está condicionado à adoção de reformas estruturais.

    Medida

    A taxação a aplicações estrangeiras na Bovespa (Bolsa de Valores de São Paulo) e nas aplicações em renda fixa foi anunciada pelo ministro da Fazenda, Guido Mantega, como uma maneira de evitar a sobrevalorização do real e um excesso de especulação.

    O ministro informou que a medida, que entra em vigor nesta terça-feira, se dará somente sobre o ingresso de capital estrangeiro no país e não sobre investimentos externos diretos no Brasil.

    "Adotamos as medidas para evitar que haja um excesso de especulação na bolsa ou no mercado de capitais em função da grande liquidez que existe hoje no mercado externo e forte atrativo que o Brasil exerce no mercado internacional", afirmou Mantega.

    "Nossa preocupação é que haja um excesso de aplicações no Brasil, naturalmente especulativas e que venham a fazer uma bolha na nossa BM&F (Bolsa de Mercadoria e Futuros)", disse o ministro.

    http://www1.folha.uol.com.br/folha/bbc/ult272u640397.shtml

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    #147     Oct 20, 2009
  8. gkishot

    gkishot

    I would like to hear your argument behind this statement.
     
    #148     Oct 20, 2009
  9. Another option would be size limitations.

    ie . Any securities account cannot own more than 10,000 shares of a company unless approved by government....

    The new future is going to be truly universal direct access electronic accounts....and who knows....the electronic exchange is nothing more than an electronic time stamp machine and should cost almost nothing....and could be located anywhere....and easily electronically regulated....could easily be centered in Brazil ....or any other country....but the first country to start the process will win the rewards of universal and welcomed capital....

    Capital may be limited but not taxed ....because taxes make capital less efficient....and efficiency is what is most important....

    This would provide for worldwide interest and appeal by a massive public audience.....this logic should be true for any country....

    This method is also what will make currencies converge....regardless of their labels....
     
    #149     Oct 20, 2009
  10. Onlygold

    Onlygold

    Hot money is simply detrimental to global economic stability and progress. It should not be around.

    The ultimate cause of our recent economic meltdown might be a culmination of the ill effects of fiat money and fractional reserve banking. The consolidation of the powers and greed of banking was represented by the creation of the US Fed in 1913.

    The Gold Standard is equal to a fiat money standard (FRB ?) if the money supply is as limited as the supply of gold is. The problem is man cannot be trusted concerning transparency as to the quantity of money. So the Gold Standard is largely a better choice due only to the fact that gold cannot be fabricated and nothing could be manipulated concerning the quantity of gold.

    The workings of these international hot money of the past 3/4 decades could have laid the seeds that make a Great Depression of the 2010s' inevitable. These hot money could only have happened only through the consolidated powers that western bankings have over the global financial order. The current state of the Fed and the US dollar might offer clues that they have reached their zenith and likely to go on a decline into the future as a matter of course. The global financial and monetary order may evolve to quite unlike what we recognized within the next 20 or 30 years.
     
    #150     Oct 20, 2009