Media Reaction-Global Economy: Financial market crisis;

UNCLAS SAO PAULO 000161 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-Global Economy: Financial market crisis; Slaying One Dragon at a Time; In action, the dollar factory Sao Paulo; March 20, 2009 Title- Slaying One Dragon at a Time Editorial in liberal Folha de S. Paulo (3-20) states: "....When the recession is over....the money in excess in the market and the debt accumulated by governments, especially the U.S., may turn into a source of problems....The public debt rollover, in the rebound phase, may pressure the financial markets and force interest rate increases, creating difficulties for all countries. All governments, including the Brazilian, should think about this" Title- In action, the dollar factory Editorial in center-right O Estado de S. Paulo (3-20) says: "From all the actions known to curb the pace of the [worsening] economic crisis, it seems there is none left within the Federal Reserve. The U.S. central bank made it official yesterday with its most radical effort in the fight against depression. It is going to print money, a bunch of it....But printing money at this speed, says the textbook, echoes with inflation....judging by the first reaction, the Federal Reserve's move worked....[but] the risks of this Fed's operation going badly are considerable....Nevertheless, the U.S. has no option. It must slay one dragon at a time - and the monster of depression is the one that scares the U.S. today." WHITE