BRASIL: Terrible Drought Plagues NE; Dilma Doubles Down On Public Spending.

http://www.reuters.com/article/2013/01/04/us-brazil-rousseff-idUSBRE9030ID20130104
        Longish analysis

      It's no secret that Brasil's economy has been struggling lately.
      The once proud letter B in the BRIC of emerging economic powers...notched just 1% growth in 2012...and was overtaken by Mexico as the new latin flavor of the month for foreign investors.
      After briefly surpassing the UK as the globe's 6th biggest economy...Brasilia slipped back to 7th place.
      But President Dilma Rousseff...a left-leaning trained economist...has controversial plans to re-energize her economy...during this age of austerity chic.
     Dilma wants to increase public spending...while keeping benchmark rates at historic lows...jawbone banks to lend more at lower rates...and privatize some infrastructure projects...but with lower returns.
     Inflation in 2012...was 5.78%...well above the cbank's target rate.
     Will it work?
     Some critics say Brasil's age-old enemies...high inflation, slow growth and chaos await. 

     Meanwhile...Brasil's northeast...with important cities like Salvador and Recife...is suffering a historic drought...the worst in 50 years...that threatens hydro power...causing more blackouts...crops and cattle.
    To Read:...about historic drought impact.
http://www.reuters.com/article/2013/01/04/us-brazil-drought-idUSBRE9030HM20130104