Identifier
Created
Classification
Origin
09SAOPAULO142
2009-03-13 21:18:00
UNCLASSIFIED
Consulate Sao Paulo
Cable title:
Media Reaction Sao Paulo; March 13- 2009
how-toVZCZCXYZ0015 OO RUEHWEB DE RUEHSO #0142 0722118 ZNR UUUUU ZZH O 132118Z MAR 09 FM AMCONSUL SAO PAULO TO RUEHC/SECSTATE WASHDC IMMEDIATE 9012 INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE RUEHBR/AMEMBASSY BRASILIA PRIORITY 0162 RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9059
UNCLAS SAO PAULO 000142
SIPDIS
STATE INR/R/MR; IIP/R/MR; WHA/PD
DEPT PASS USTR
USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP XM XR XF BR
SUBJECT: Media Reaction Sao Paulo; March 13- 2009
Media Reaction - Global Economy: Financial market crisis; Sao Paulo
March 13, 2009
Title: The G spot and the Zero Spot
Op-Ed in liberal Folha de S. Paulo (3-13) by Brazil's former
president and current head of the Brazilian Federal Senate Jose
Sarney states: "....In economics, in times of crisis the G spot is
the time when interest rates equal zero....the current crisis is
contradicting and making inefficient many of the economic
instruments that once were believed to be miraculous and able to
revert expectancies and disasters....almost all countries interest
rates are now close to zero. What happens is that the once heroic
medicine does not take effect anymore? Economists are working on a
new thesis now: that in times of crisis, as the one we are going
through right now, nothing works....Our solution is to try to break
the resistance in investing in our domestic market to create jobs
because the worst, in all crises, is not the banks that collapse,
but the millions of people that lose their jobs and enter the tragic
world of poverty, misery and hunger."
(Note: PA Sao Paulo is aware that G spot is a vulgar reference but
it is consistent with statements made by President Lula in the
past.)
Title: A Dim Scenario
Editorial in center-right O Estado de S. Paulo (3-13) states:
"....The capital flow to emerging markets in 2009 will be the lowest
since the beginning of the decade. Without foreign investment and
needed financing, these countries will invest little in
infrastructure or in the social protection network, and this will
have a strong effect on their capacity to grow....The rebound of the
world economy could improve the situation but this still seems very
distant. The World Bank estimates that 2009 will be the worst year
for the global economy since the end of the World War II."
WHITE
SIPDIS
STATE INR/R/MR; IIP/R/MR; WHA/PD
DEPT PASS USTR
USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP XM XR XF BR
SUBJECT: Media Reaction Sao Paulo; March 13- 2009
Media Reaction - Global Economy: Financial market crisis; Sao Paulo
March 13, 2009
Title: The G spot and the Zero Spot
Op-Ed in liberal Folha de S. Paulo (3-13) by Brazil's former
president and current head of the Brazilian Federal Senate Jose
Sarney states: "....In economics, in times of crisis the G spot is
the time when interest rates equal zero....the current crisis is
contradicting and making inefficient many of the economic
instruments that once were believed to be miraculous and able to
revert expectancies and disasters....almost all countries interest
rates are now close to zero. What happens is that the once heroic
medicine does not take effect anymore? Economists are working on a
new thesis now: that in times of crisis, as the one we are going
through right now, nothing works....Our solution is to try to break
the resistance in investing in our domestic market to create jobs
because the worst, in all crises, is not the banks that collapse,
but the millions of people that lose their jobs and enter the tragic
world of poverty, misery and hunger."
(Note: PA Sao Paulo is aware that G spot is a vulgar reference but
it is consistent with statements made by President Lula in the
past.)
Title: A Dim Scenario
Editorial in center-right O Estado de S. Paulo (3-13) states:
"....The capital flow to emerging markets in 2009 will be the lowest
since the beginning of the decade. Without foreign investment and
needed financing, these countries will invest little in
infrastructure or in the social protection network, and this will
have a strong effect on their capacity to grow....The rebound of the
world economy could improve the situation but this still seems very
distant. The World Bank estimates that 2009 will be the worst year
for the global economy since the end of the World War II."
WHITE