Latin American
At the moment, the American currency does to R$ 1.839 in Brazil and $ 547.35 in Chile. Carry trade is striking completely in the competitiveness of these economies, affecting mainly to the Chilean economy whose exports represent around 32% of their GIP. The monetary policy of inflation goals finds limitations before this type of operating since it cannot take part in the magnitude that the situation requires to maintain the type of change. For worse, this operating one than is seeing so much with these Latin American currencies as also with the Australian dollar or rand South African also replica in the commodities whose quotes have recovered hard in which it goes of the year (probably more of the account) threatening the dynamics of this operating one generating a new bubble speculative. And what can be said about the regulators? The regulators have still not occurred by found out the risky thing of this situation. Although it already makes a pair of decades that operating one takes ahead this, the risk that is implying the generalization of the same has discharges probabilities of transforming it into a new cause of crisis when not yet we have left the problems originated prevails by it. It draws attention enough to me that neither the central bankers nor the people in charge of economic policy of the main countries raise some resource of action to restrain the operating resurgence of this so dangerous one for the economies.
Certainly I understand that the benefits of shortest term that carry trade can generate to accelerate the recovery of the global economy are paying the silence of the hacedores of policy of the main economies. Surely if this drift in a new crisis, we are with one long row of people in charge of the governments and international organisms that with great authority will cheer up to accurately identify the problem that gave to origin to the crisis and necessary the regulatory solutions so that it does not become to produce. Already for that height, the speculators will find another alternative of investment of high risk for the stability of the economies they will use and it in front of the own noses of the regulators that will choose to watch towards another side. Horacio Pozzo GLOBAL VALUE +17% IN 45 DAYS The subscribers of our new one newsletter of investment, Global Value, not only recovered the cost of the subscription, but they are gaining a 17% in its portfolios when investing in the companies that we recommended to them. It wants to know which are? It can try entering here to find out it and to begin to invest in the new ones recommended of August. Details can write me to or for majors. Original author and source of the article.