Brazil's Rousseff: "Major mistake was to avoid Obama's stimulus"
Using her right to defend herself against the accusations that are part of the impeachment process, removed president of Brazil Dilma Rousseff said that her major mistake was not to spend too much money, but not spending sufficiently. She is accused of breaking Brazil's fiscal responsibility law by not achieving the goal of savings to pay debt interest and using funds of public banks to cover treasure expenditures. Rousseff said she should have imitated the Obama policy of stimulating the economy.
"Not reaching the goal of savings did not generate Brazil's crisis. Since 2009, we have practiced a countercyclical policy that worked very well at the beginning, so we had recovered very well from the biggest crisis since 1929. But our mistake was to stop spending money when the recession started here. Contrary to what Obama and European leaders have made with stimulus programs with great success, we started to save money when the economy started to crash here. That was basically my major mistake," said Dilma Rousseff.
What do you opine on that?
Re: Brazil's Rousseff: "Major mistake was to avoid Obama's stimulus"
Gonna be a hard sell with most of this crowd who tend to adhere to the "Bob and Betty balancing the family budget at the kitchen table" view of sovereign fiscal matters. But yes, I'd tend to agree.
Although the commodity and hot money curses are pretty brutal and largely out of her control. When there's a big theme, money floods in but when the story fades the money leaves. Iron ore prices collapsed when the china building boom stopped. Oil prices did too and even worse was that Brazil's prospect in that relied on some very high cost of production projects.
And, oh yeah, the huge amount of corruption that inevitably follows oil around.
Only the ags mostly hanging a little tough. Until recently.