Risk Market or Confiscation

Brazil has been living a period of socialist domination with economic uncertainties, threats of the people to lose everything to the state, to lose everything by invasions or by vandalism. However, two weeks after the election of President Bolsonaro, the nuances of the economy indicate good weather and what we see is surprising; the Dollar lowering without hiccups of the Central Bank and Ibovespa rising to levels never reached. We look forward to the manifestations of international risk agencies; Moody’s, Fitch, or Standard & Poor’s to restore Brazil’s confidence in the investment market.

The fiscal greed in the investment environment has made Brazil the smallest of all the world’s investment bonds, with a total of US $ 65 billion a year, while other Latin American countries total US $ 905 billion, Africa and Russia above US $ 300 billion. These investors are certainly Brazilians, because they leave here, as if they were under their mattresses. But when the government moves Libor, the disaster is immediate, there is a threat of inflation with the tenebrous index of the tomato, with its 0.79% of GDP can cause damage of 15% of inflation. When the newspapers announce the rise of prices, they do nothing more than Lenin’s secular order, “provoke the population’s panic with inflation.”

This small foreign investment in Brazil takes destructive force of the economy when the socialist media announces the withdrawals of the investors who really suffer great foreign exchange losses that are not market risk, but the true and illegitimate confiscation. It happens because this money does not belong and never belonged to Brazil, they are investments of third parties that should not be harassed, or abused. When we go to a mall, or supermarket where there is a large parking lot, our vehicles do not belong to those companies, but to us the customers. Never, any of the establishments placed in their accounting assets the values of the vehicles in their establishments in their accounts, or made use of them. When customers leave the establishments, the happy owners of the establishment greet and thank them for their preference, without any pain or traumas.

In Brazil, the media acts in reverse, when foreign investors make the withdrawals. At the signal of loss, investors are embracing huge losses with the exchange rate; what a shame! The investor who made the contribution of $ 10,000 in 2011 took back in 2015 $ 5,843.00.

Adm Egberto F Ribeiro

Curitiba, January 16, 2019