29 March 2011

BRASIL / PORTUGAL: 30 Mar. UPDATE: Lula Cautions Lisboa: Don't Take Bail-out!; New S/P Downgrade Just Above Junk; Dilma May Aid Former Colonial Power By Buying Debt.


   Brasil's ex-president Lula da Silva is warning Portugese pols NOT to take an IMF bail-out...even as Standard and Poor's downgraded Lisboa's debt...to just one notch above a junk rating.
    Lula said: "The IMF won't resolve Portugal's problem, like it didn't solve Brasil's. Whenever the IMF tried to take care of countries' debts, it created more problems than solutions."
    Lula has long criticized the IMF for espousing "orthodox and recessive concepts."
    Meanwhile, outgoing PM Jose Socrates (pictured hugging Lula) insisted again that his government "is determined not to ask" for a bailout. "I'm sick of saying we won't."

UPDATE:  Brasil President Dilma Rousseff is studying ways to help Portugal...either by buying its new debt offerings...or even by buying back some of the debt it currently owns.
    Brasil escaped Portugal's control in 1822.  Its economy is now almost 10 times larger than Portugal's.