Brazil depreciation will bring prices down
Brazil, just like Argentina had 1991-2001, a overvalued currency; it can bring growth since it brings stability; importing high-tech becomes 50% discount, which stimulates growth.
Argentinas convertibility fell when exports and the constant expectation of a fall of the system had led to a yearly higher and hinger capital flight.
When the Peso fell, from 1:1 to 1:4, the Argentines with wealth, came back and bought, what they sold a few years ago for 3 times more.
This has repeated itself since BNP / capita growth stagnated permanently in the 1960th. In various forms of currency manipulation.
Brazil exports are not high-tech and are sensible to fall of demand of raw material or products with low added value.
Like China and Russia.
[URL]http://www.global-rates.com/interest-rates/central-banks/central-banks.aspx[/URL]
With 14% interest rate and 10% inflation; Brazil have had it's period of growth, by a certain system.
Now the country has to become cheap again, to attract FDI, tourism, mongering, create work by a desperation about, long-term 50%.
The problem is to find a strategy for this change, the risk of hyperinflation is very high, but a change is a must.
Foreign debt is also a catch 22. It's very high, so a depreciation (devaluation) will of 50% will double it. Brazil is stuck.
IMF programs can buy Brazil time; but the country needs a new strategy.
Letting the interest rate down from 14% to 5% in combination with IMF program. That would be an organized retreat.
Remember Argentinas default 2002!
1998 Argentia was called "Economic Tiger", before a first crisis came, sweeping down the currencies of Russia and hitting the South East Asian "Economic Tigers".
Brazil have build strong institutions, but that doesn't mean constant high growth. Crisis and for us mongers a healthy 50% discount and 200% supply of Hotties, like Help, but 5 one's in every metropol or million city; that is good news for us.
Just like Argentina had to swallow it's pride and restart, Brazil are getting closer and closer to that inevitable depreciation.
Marcia to San Fernando Valley as Brazil MILF
[URL]http://www.salon.com/2014/02/24/when_porn_stars_become_escorts_lucrative_new_trend_could_also_be_risky/[/URL]