Good Explanation Concerning Economic Probelms Here

[ihpguy]

I think this is piece from the NY Times is quite informative of the problems endemic to the nation. Whether it is the new railroad in the north, the Belo Monte dam in Para or the new refinery complex in Itaborai, just to the northeast of Niteroi, problems here continue to appear. Less than a year to go to the Olympics and this city is still a mess. I'll be amazed if the new museum by Calatrava, the aquarium, line 4 of the Metro, parts of the the new VLT tram system as well as all of the Olympic installations are completed correctly and not like what happened for the PanAm games in 2007.

http://www.nytimes.com/2015/08/09/business/international/effects-of-petrobras-scandal-leave-brazilians-lamenting-a-lost-dream.html?emc=edit_th_20150809&nl=todaysheadlines&nlid=65920222&_r=0

[AdamSmith]

This piece notes how China's currency devaluation will add to Brazil's economic woes because of China being such a huge export market for Brazil.

China's currency move will hurt one country more than any other

https://www.yahoo.com/finance/news/chinas-currency-move-hurt-one-194619901.html

[MsGuy]

AS, my understanding is that China did not devalue its currency so much as cut it loose from its (not quite formal) peg to the US dollar. The dollar is up about 20% in the last year on nearly all major currencies, dragging the yuan up right along with it. In effect the Finance Ministry of China has been allowing the US Federal Reserve to set the yuan's exchange rate.

What China did was knock 2% off the official exchange rate and announce that in the future it will allow the market to set the rate (with the usual Chinese caveat of 'in so far as we see fit)'. I know this is being sold as a devaluation by the media but really it's more of a reaction to the sky high valuation of the dollar so far as I can see.

Too bad for Brazil but its troubles are clearly home grown not stamped 'Made In China'.

[RA1]

I agree with you MsGuy. The Business Insider article (blog?) could have describe the US except it would have to be noted the 10% inflation rate is for "normal" goods, not the basket used to rate inflation here. Otherwise the corruption, etc. apply as stated.

Funny how the "media" slants things, isn't it? Not.

Best regards,

RA1

[AdamSmith]

Further to MsGuy's enlightening seminar:

China halts yuan devaluation with slight official rise against US dollar

http://www.theguardian.com/business/2015/aug/14/china-halts-yuan-devaluation-with-slight-official-rise-against-us-dollar

[MsGuy]

"...in so so as we see fit."