Brazil has declared a fresh “currency war” on the US and Europe

[Pipedreamer]

Brazil has declared a fresh “currency war” on the US and Europe, extending a tax on foreign borrowings and threatening further capital controls in an effort to protect the country’s struggling manufacturers.Guido Mantega, the finance minister who was the first to use the controversial term in 2010, said the government would not “sit by passively” as developed nations continue to pursue expansionary monetary policies at the expense of Brazil.“When the real appreciates, it reduces our competitiveness.

I thought they benefited in the hiking commodity prices, and it's time they start to bear the cost of that euphoria. world is even in the end.

http://www.ft.com/cms/s/0/76d1d4d0-6...#axzz1qTEBwQQa

[joethesixpack]

They are starting a fight they cannot win. Smart.

[SuchIsLife]

They are starting a fight they cannot win. Smart.

How so?
They are the worlds 7th largest economy overtaking the UK and have a decent growth forecast.

[burek2000]

How so?
They are the worlds 7th largest economy overtaking the UK and have a decent growth forecast.

They have overtook UK thanks to currency appreciation and they grow is slowest in BRIC block...if they win they battle they will lower they GDP below UK's but they will become more competitive in global trade and may help revive grow..either or they are to blame for they situation ( high interest rates to attract foreign capital ) and based on this country monetary tradition they " war " will just do a mess ( maybe they got tired REAL and want to change they currency again )

[SkyUS]

http://www.ft.com/cms/s/0/76d1d4d0-6...#axzz1qTEBwQQa

I see nothing wrong in that. Facing the recessionary period of slower growth expansionary policy makes sense. Why Brazil didn't pursue it earlier is a mystery to me. they act as if everybody is hurting them deliberately by devaluing their currency. that's silly.

[burek2000]

The blaming game its just politics, mostly design for domestic audience...foreign nations are just scapegoats for lousy growth numbers...

[ABN MP]

How so?
They are the worlds 7th largest economy overtaking the UK and have a decent growth forecast.

7th largest economy and still require foreign aid. Maybe they should spend that economic grothw on their own people.

[burek2000]

7th largest economy and still require foreign aid. Maybe they should spend that economic grothw on their own people.

I just got back from Brazil ( Belo Horizonte and Vitoria ), trust me they still need help, a lot ( and I thought Mexico was bad..lol )

[CJvR]

Maybe they should spend that economic growth on their own people.

Nah... Spending on the poor is dull compared to buing national Viagra like new jet fighters and nuclear submarines.