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Brazil Erupting: Stagflation (Inflation UP/Growth DOWN)

I live in Rio de Janeiro
"For a long time we made fun of ourselves for being too apathetic, now the pride is returning to our hearts. Let's see whats going to happen." -- Submitted by Amick/DailyPaul
http://www.dailypaul.com/comment/3111599

About 20 minutes ago in Rio (11pm EST)


http://youtu.be/gStay0Imsiw

Gov't protests started (supposedly) from a 20cent bus fare increase.
I'd have to say.... thhhaat doesn't seem to cover it.

It's the economy stupid...
1. Wages were increased (by decree) to (try) and keep up with inflation (oops!)
2. Costs of production (therefore) increased.. (making products less competitive/more expensive)
3. This curtailed GDP growth as markets found better prices elsewhere.
4. Their central bank responded by suppressing interest rates (oops!)
5. This spurred 'temporary' growth by consumers using CREDIT (oops!)
6. The consumers are (now) maxed out... with 'disposable' income at an all time low (after debt servicing).
7. Govt lowered taxes (to their credit)... but it never took hold (enough) to prevent (this) tipping point after 5 quarters of stagflation.

Like the US... it will work... until it doesn't.

More here:
http://www.bloomberg.com/news/2013-05-29/brazil-s-economic-g...
http://www.businessinsider.com/5-key-charts-on-brazils-econo...

I'm sure there's 'other' social issues involved as well.
but when you're broke...
and outta money...
it ignites everything else in your life.
Doesn't it.
(sigh)

The crowd slogan "NO PARTIES!" demonstrates their loathing of political ineptitude stifling Good Governance... whether that means
1. Provide BETTER for us, or
2. Get out of our way
remains to be seen.

Perhaps some Brazilians here can comment further.
Cheers,
G.



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SteveMT's picture

200,000 Take To Brazil's Streets

http://www.dailypaul.com/...
Tried earlier with this story. Glad to see you getting some action.

http://youtu.be/RrvFCzRebzc

.

When a true genius appears in the world, you may know him by this sign: that the dunces are all in confederacy against him. ~J. Swift

If only those slaves

hadn't given up their guns...

"It is difficult to free fools from the chains they revere".
--Voltaire

It's hard not to be a menace to society when half the population is happy on their knees. - unknown

What the hell is wrong in Brazil?

Don't they Floridate their drinking water? Is Agenda 21 failing there?

I thought

I was watching the trailer for world war z. :p

OMG!!

Wow! I've never seen anything like that. I pray the American People Rise Up in equal numbers someday soon.

When a true genius appears in the world, you may know him by this sign: that the dunces are all in confederacy against him. ~J. Swift

...To also demand more

...To also demand more socialism?

Is rubbernecking the point of these threads? The thrill of identifying with protesters (or rioters)?

I'm seeing a real lack of critical thinking and an emphasis on emotion.

at 1600

Pennsylvania Ave.

To my Liberal Trolls:
"Really Don't mind if you sit this one out. Your words but a whisper, your deafness a shout. I may make you feel, but I can't make you think."
Ian Anderson 1972

If the turnout is 1/2 as good as that this morning

it will make a good difference :-)

"What if the American people learn the truth" - Ron Paul

It's easy to confuse these

It's easy to confuse these large protests as clear cut expressions of anger with corrupt government, but we've seen plenty of large scale expressions of public disgust that actually represent calls for increased socialism and the like. These issues may be somewhat opaque to outsiders initially.

I think you will like this

http://www.salon.com/2013/06/18/no_brazilian_riots_are_not_a...

Brazilians are fighting the shackles of big government.

That story linked read like

That story linked read like just more uninformed conjecture.

Ask a swath of the people marching in the streets why they are doing what they're doing and you'll probably get different answers from each person.

Nailed it!

Brazil is my adopted country and the slaves there, though frustrated and protesting, they are asking the government to do more. I try and try and try to teach libertarian principles there but they, just like here, think if they can get the right kind of people into government they can fix their problems.

I am encouraged by this though...

http://www.mises.org.br/

"It is difficult to free fools from the chains they revere".
--Voltaire

It's hard not to be a menace to society when half the population is happy on their knees. - unknown