. February 2, 2006 SouthAmerica: Here is another current example of the declining influence of the United States in Brazil â and at the same time it is also an example of how the Bricâs are building its foundations for the future. (Bricâs is the emerging superpower of the future = Brazil, Russia, India and China) On January 31, 2006 the Financial Times of London published an article âONGC set to buy stake in Brazil oilfieldâ by Khozem Merchant in Mumbai. The article said: â Indiaâs state owned Oil and Natural Gas Corporation has agree to pay $ 1.4 billion dollars to buy Exxon/Mobilâs 30 percent stake in a field in Brazilâs Campos Basin, securing its first asset in the region⦠The other two partners in that project are: Petrobras (The Brazilian oil company) and Royal Dutch Shell with 35 percent share each. ******** SouthAmerica: I donât understand the United States position regarding oil â the United States starts a war with Iraq to secure future oil supplies to the United States and at the same time American companies are selling oil assets in a war free area such as Brazil. China is taking away from the United States a major source of its oil supply right next door in Venezuela. Saudi Arabia just made an agreement for the Chinese to help them to develop new oil fields in Saudi Arabia and sell the oil to China. It is just a matter of time for the oil fields of Iraq to be under Iranâs complete influence. The Russian oil will supply Europe - which is closer and also needs lots of oil. .
usual retarded third world anti-american rhetoric americans are evil abusive imperialist morons and only care about money but that's ok because they are going to be crushed by the russian/japanese/china-india (choose according the year) blah blah blah boring
. Buzzy2: usual retarded third world anti-american rhetoric ******* February 2, 2006 SouthAmerica: Based o your comments I assume you donât have a clue about what is happening in South America; including Brazil. Brazil had a favorable balance of trade with the rest of the world in 2005. The United States had a balance of trade deficit of over $ 700 billion dollars. Brazil which had the highest debt held by the âIMFâ (International Monetary Fund) â Brazil has paid all its debt to the IMF as of the end of 2005 â Brazil also paid the remaining balance of debts with the âParis Club.â Total Brazilian foreign debt as of the end of 2005 was very small - below $ 80 billion dollars. In the other hand, the United States has to borrow from foreigners over $ 2 billion dollars per day for its economy to stay afloat â the US has mortgaged the future of the US economy for many generations to come â The cumulative debt of the US government is over $ 8 trillion dollars â the states and counties have another $ 2 trillion dollars on outstanding debt on top of that. The US government also has other liabilities that are coming due regarding the baby boomers of an estimated $ 70 trillion dollars. Today, the best export item from the US economy â and there is no question about it - are good paying jobs. I have no idea how the United States will be able to pay its bills in the future. I did not mention above the extra $ 2 trillion dollars the US will have to spend related to the fiascos in Iraq and Afghanistan. In summary: Brazil is on its way to become a country of the first world. Based on the above information we can see that the United States is on its way to become a âBanana Republic.â The real figures donât lie!!!!!!!!! The reality is the United States is in a process of a meltdown and you will understand why when you read my next article that is almost ready for publishing. (I started writing that article in late October 2005 but only now I am finally polishing it for publication.) .
The most amusing part of SA's articles is that he fails to put together the relationship of the 'US, CHINA and Brazil. SA if the US turns into a banana republic what do you think happens to China and in turn Brazil?? How anybody with any credibility could print one of your half truths is amazing to me.
. Sputdr: How anybody with any credibility could print one of your half truths is amazing to me. ****** February 2 2006 SouthAmerica: Tell me what do you think was a half truth in the above information? Do you believe that the rest of the world will continue to lend to the United States 89 percent of global savings year after year as long as Americans want to live in the world of illusion? If you believe the United States has unlimited credit from the rest of the world â then you must be crazy. You will be surprised how fast things are going to change in the future â and believe me the United States will no longer be the only game in town in the coming years. .
Let me help you a little bit- Why don't you do a little bit of research and find out just how much in dollars and us assets China owns and then study what would happen to China if the US defaulted on that debt and the dollar plunged to next to nothing. Then think about the amount of money china makes in imports to the US and the US could no longer afford to buy Chinese goods, what do you think would happen then? Do you think Brazil could pick up the demand? I think not. See SA, we live in a global economy where everyone is connected in one way or another and disaster for the US economy means disaster for most others too and China doesn't have a central banking system and Brazil probaby wouldn't be able to handle a disaster of that magnitude without the assistance of a crippled US. you stated you dont understand why oil companies are selling assets to brazil etc. I'll try and put this in simple terms for you to understand. Just think if you owned 100 shares of AT&T. Your'e original purchase was at 10 and now the stock was trading at 20 and you didn't think it would hold that value. You would sell it right? Take some profits? maybe the oil companies are selling petrobras assets because they don't think the assets are worth it to hold anymore or possibly overvalued. You just need to think of the big picture and not be so stuck on your hopes the US falls because if we do you beloved toilet brazil will fall much harder and faster.
if the us fails (i dont think it will, but...for arguments sake ....) then brazil will be a lot better off. most of its remaining debt world be written off. i dont think brazil exports much to the us (many banks wont even take amex), so i dont think it will be losing any big markets.
My contention is that if the US fails, then China is in deep shit and if China is Brazil's main trading partner then they will get hurt too.
China's a self-sufficient country producing their own food, clothes, electronics etc, they are not living large even right now, if the US fails they'll manage, we won't. Right now they give us their very real goods and take our [worthless] paper dollars in exchange. I fail to see how green pieces of paper they keep in their banks improve their quality of life now and why their quality of life will detiriorate if this country defaults, stops taking their goods and stops supplying them with green paper. PS You're right, China does not want the US to default on its debt but that does not mean we won't and that does not mean there is anything they can do to prevent this country from financial self-destruction.
China has no central bank in a time of crisis they will get clobbered. Now Japan and the US are China's biggest trade partners and also I believe the two biggest owners of US debt, therefore if the US fails Chinas two biggest trade partners have a financial crisis not to mention europe too. To believe it won't get clobbered is foolish anyways. The last asian financial crisis started in Thailand and rippled throughout Asia. If the Thai economy has an effect that big what makes you think the US failing wouldn't be catastrophic? We are China's biggest trading partner or the 2nd but either way Japan owns a ton of our treasuries as well so if China's two largest financial partners had a financial crisis China would have a financial crisis and it would trickle right down to the 3rd world-ie brazil. I think your common sense if blinded by your hatred for Bush. It's not gonna happen anyways but you can always hope I guess.