Brazil’s Financial Position as U.S. Edges toward Default

With the U.S. teetering at the precipice of default, countries around the world are struggling to understand how they might be affected. Brazil’s current economic situation is a mixed batch: on the one hand, it is stable and flush with reserves (about US$350 billion); on the other hand, investors looking to diversify out of the dollar may be lured to the Brazilian markets because of the country’s high interest rates, putting further pressure on the much sought Brazilian Real. While undoubtedly a downer for the manufacturing sector, a...

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Large, Insular Countries

It’s a peculiar thing about countries with large populations that they often tend to be insular, uninformed about what goes on in other parts of the world, and mildly paranoid, if not xenophobic. The U.S. provides a leading example: the intermittent periods of “isolationism” provide a testament to insularity. Proverbially clueless about the world outside their borders, Americans have also gained fame for their paranoia and xenophobia. But the prominence of these characteristics is tempered by the country’s historic openness, large...

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Brazil: Culturally Self-Possessed.

I admire Brazil most for its self-possession. Its culture is uniquely distinct and, as I will write about next entry, it even follows political and economic policy that is out-of-step with the dictates of first-world orthodoxy. For the most part, the country’s self-possession is accidental– it’s the sole Portuguese-speaking country in the Americas, and its large population and young median age allows its large market and wealth of human resources allows it to be more self-contained than other countries. One of the reasons...

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