Monday, October 27, 2014

Brazil on Stays the Downward Course

As an investor I retain a negative outlook on Brazil because of the re-election of Dilma Rousseff not because she is a Socialist, but because she is a poor steward of Brazil's economy.  Bill Clinton's "Its the Economy Stupid" is worth observing the world over.  You can use your economic machine to fund a social safety net, just keep the machine efficient.  Sweden is Socialist and yet admirable on how they handled their 1990's crisis with a no nonsense elimination of corporations not pulling their weight. The priority is welfare is for its citizens not corporations.  Dilma use of Petrobras to curry political favors rather than of promoting it's efficient exploitation and then taxing it for the benefit of Brazil is symptomatic of her administration and is similar to Mexico's ruinous Pemex's politicization as an example of a poor running national asset.        

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