EUARTE

What Brazil's New Tax Could Mean for Its ETFs

What effect has this on the Real? I think it should make the dollar buy more R$. Sim?

The Future of Brazilian Markets: A Private Equity Perspective

Another factor in Brasil is inflation. The government has lowered interest rates saying that inflation is low. Visit any supermarket and view the weekly rise in prices. There is higher inflation that the government is not catching or is ignoring.

The continued depression in the US and EU will effect Brasil over the long run. Brasil is counting on exports. China is decreasing it's pruchases and obviously so has US and EU.

The strength of the R$ against the U$ hurts the exporters. Brasil will have to weaken it's currency. This can be accomplished by lower the official interest rates even more. They have to do something about the carry trade. A tax on flows of carry trade money in and out would help.

Brasil always has to be watched carefully. It has made enormous positve moves over the last 15 years. However, there is still a 3rd world mentality there. Corruption at all levels is a way of life. You can not do business with the government or even the private sector without bribes. I do not mean small bribes.

After Lula what will happen. With all is left wing talk he allowed the capitalist system to work it's way to prosperity. Lula will soon leave office. There is no one out there with his vision and common sense. If one of the old type hacks gets in the game is over.