Article Image

IPFS News Link • Economy - International

Tracking the Implosion of Brazil;

• globaleconomicanalysis.blogspot.com

Perfect Storm

Reader Lucas from Brazil writes about the "perfect storm".

Hello Mish

Brazilian interest rates are skyrocketing. Rates went up more than 2 percentage points in a month. Bond trading was suspended due to the quick devaluation.

Nobody is talking much about it, but energy corporation Petrobras is down 95% from the peak (in dollars). They have a high dollar exposure, and some estimates say that since June, Real devaluation alone was responsible for a +R$100B increase in debt.

Brazil's majors oil investments are in (really) deep water drilling, and they may be not worthy anymore. Petrobras debt is now equivalent to 8% of the whole country GDP.

And while. our president doesn't have support to do anything.

It's a perfect storm here.

Lucas


 


www.universityofreason.com/a/29887/KWADzukm