01 March 2012

BRASIL / ECB / USA : Dilma Blasts Cheap Money "Tsunami'.


      President Dilma Rousseff is blasting the ECB, USA and Japan for the 'tsunami' of cheap money that 'cannibalizes' emerging nations...after the ECB unleashed its latest round of $713 /E530 bn 'free money' loans...to 800 banks...with 3 year loans...at 1% interest.
    Brasil's cbank is battling to keep its Real above the 1.70 per usd level.
    The Real has increased by 8% so far in 2012.
    Rousseff blames the rich nations for the invasion of  cheap 'hot money' looking for higher returns...keeping Brasilia's currency highly overvalued...and making its exports costly.
    She has extended a 6% tax on foreign loans...and more radical steps are reportedly being studied.
    Bloomberg reports that direct foreign investments there rose from $49bn in 2010 to $67bn last year.