S&P Downgraded Brazil’s Government Debt to “Junk" Status

From a Casey's Report email!

Last week, credit rating agency Standard & Poor's (S&P) downgraded Brazil's government debt from “investment grade” to “junk” status. “Junk” status means Brazil's bonds are at a high risk of default.

This is no surprise…

In 2011, socialist Dilma Rousseff took over as president of Brazil. She has wrecked the country's finances in just four years.

Brazil's government had a significant surplus when Rousseff took over in 2011. But last year the Brazilian government racked up its largest deficit in history. It spent $129 billion more than it took in.

As you can see, Brazil's government surplus has shrunk every year since Rousseff took power. It finally turned to an outright deficit last year.


http://d1w116sruyx1mf.cloudfront.net/ee-assets/channels/article_default/BrazilGovernmentSurplusDeficit.png

Comments?

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Don't buy their bonds

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What about the already bought ones?

Fred wrote:

Don't buy their bonds

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Xeeschan wrote:

What about the already bought ones?

Fred wrote:

Don't buy their bonds



b

If you can get the certificates they may make good toilet paper...... :lol:

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Well, it's an ill wind that blows no good. The Real has lost 40% of its value against the Canadian Dollar over the same period, so James (Our Man in Brazil)'s Canadian pension should be making him a rich man. I hope that's right, James!

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Xeeschan wrote:

What about the already bought ones?

Fred wrote:

Don't buy their bonds



LINK

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Talk about some expensive cr*p going down!  :joking:

stumpy wrote:

If you can get the certificates they may make good toilet paper...... :lol:

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40% ??
I guess with that kind of rise, James can actually afford to act out Stumpy's suggestion!  :lol:

Gordon Barlow wrote:

Well, it's an ill wind that blows no good. The Real has lost 40% of its value against the Canadian Dollar over the same period, so James (Our Man in Brazil)'s Canadian pension should be making him a rich man. I hope that's right, James!

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I think I like Fred's idea better than our good man Stumps!!  :D

By the way, check out another creative one! Rabbit

By the way, no idea why that music is playing in the background.. Might as well have played Sabbath's Iron Man, or in this case, Iron Bun! : P

 

Fred wrote:

LINK

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Gordon Barlow wrote:

Well, it's an ill wind that blows no good. The Real has lost 40% of its value against the Canadian Dollar over the same period, so James (Our Man in Brazil)'s Canadian pension should be making him a rich man. I hope that's right, James!


Better than that Gordon... I finally managed to open a bank account back in North America after having foolishly let my Canadian account get closed due to inactivity. This account where my pension is now deposited is in the US, so I lose a bit on the exchange from CAD to USD, but I'm dancing in the streets when I hit the ATM with the greenback at R$4 and higher.

El's comments have pretty much summed up things here in Brazil with total accuracy, it's all gone down the dumper in the past 4 years. If this government doesn't wake up to the idea that you don't raise taxes or create new ones in the midst of an economic crisis this country is doomed. Standards & Poor won't hesitate to drop Brazil's rating even further and that would guarantee an end to foreign investment coming into Brazil. Who in their right mind would invest in a country that has one of the highest tax rates in the civilized world, the most complex tax laws and adds 46 new ones every day, has a crushing bureaucracy involving business start-up and registration, and labor laws that almost completely prevent employers from getting rid of unproductive or larcenous employees???

We're already on that slippery slope, but the idiots in Brasília just keep pouring on more olive oil.  :o

Cheers,
James     Expat-blog Experts Team

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Xeeschan wrote:

Talk about some expensive cr*p going down!  :joking:


Try this one

https://www.youtube.com/watch?v=PzPgMuA0m8E

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Way off topic, save the value of the bonds being about that of a bum sausage, this is rather nice.

https://www.youtube.com/watch?v=uQerZSWZ4hw

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'Using your hands, I dont recommend!'

The talented Shomron family!!

HAHAHAHA.. The lyrics!! :P

Fred wrote:

Try this one

https://www.youtube.com/watch?v=PzPgMuA0m8E

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HAAHAHAAHHAAA..
Oh hey Fred, another one off topic, but I just found it SO close to Willem Defoe reading Poe's the Raven on Lou Reed's album of same name! especially at this moment..

'No sooner had she shut the door, that there came a dreadful roar!!'

Enjoy this! I dont know if you are a big fan of Reed, but this one is a masterpiece in spoken word performances.

Lou Reed 'The Raven'

Z



Fred wrote:

Way off topic, save the value of the bonds being about that of a bum sausage, this is rather nice.

https://www.youtube.com/watch?v=uQerZSWZ4hw

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What an apt description James!

James wrote:

We're already on that slippery slope, but the idiots in Brasília just keep pouring on more olive oil.  :o

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More and more scandals surfacing every day, now the President of the Congress, Eduardo Cunha, is being investigated for corruption, some R$23 million (USD $6.2 million) in a Swiss bank account when he swore under oath in Congress that he has no offshore accounts. President Dilma Rousseff worried that Cunha may even accept one of the remaining petitions for her impeachment. Former president Lula's son implicated in receiving bribes. The government's 2014 accounts rejected by the Federal Auditing Court, and the Electoral Supreme Court rumblings about cancelling the mandates of both Dilma and Vice-president Temer. With the political instability it is all causing I wouldn't be at all surprised if Standards & Poor downgrades Brazil even further. It's starting to look more and more like the inmates have taken over the insane asylum.

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