Brazil: Canary in the Global Economy Coalmine?

Brazil is transitioning to a greater political crisis based on events of the past week, May 2017. The origins of the political crisis, however, are economic. Business and right wing forces precipitated the legal coup of 2016 to put their political representatives in direct control to enrich themselves again. The coup, however, was made possible only by the Brazilian economy’s deep recession of recent years, which was precipitated by its central bank raising interest rates to 14.25%, in order to prop up the value of its currency and prevent the collapse of assets of the wealthy.

How the Brazilian economy collapsed into recession was addressed in chapter 3, ‘Emerging Markets Perfect Storm’, in my 2016 book, “Systemic Fragility in the Global Economy”, Clarity press, 2016. (see the book icon on the front webpage of this website for reviews and more detail).

To read the chapter’s excerpt on Brazil’s economy, go to the following url to the ‘articles’ subpage on my website.

http://www.kyklosproductions.com/articles.html