Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Argentina, Brazil to drop U.S. dollar in bilateral commercial transactions
Xinhua ^ | 16 Mar 2008 | Xinhua

Posted on 03/17/2008 3:47:03 AM PDT by BGHater

Argentina and Brazil are to scrap bilateral commercial transactions in U.S. dollars and start using their own currencies from August, an official in charge of currency settlement at the Argentine Central Bank said here Saturday.

The new payment system is aimed at reducing costs in commercial transactions and would benefit small and medium-sized enterprises, the official said.

Under the new system, there will be a unified exchange rate between the real and peso, the so-called reference rate, which will be applied by Brazilian and Argentine central banks at the end of each day.

Brazilian President Luiz Inacio Lula da Silva reached an agreement to establish a new payment system with his Argentine counterpart Cristina Fernandez de Kirchner during his visit to Argentina in February.

Technical preparations are underway for the new system, which the two countries will adopt in several steps due to the large amount of bilateral trade.

Brazil is Argentina's largest trading partner, while Argentina is Brazil's second-biggest trading partner after the United States.

Bilateral trade stood at around 23.6 billion U.S. dollars last year


TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: argentina; brazil; dollar; transactions
Navigation: use the links below to view more comments.
first 1-2021-33 next last

1 posted on 03/17/2008 3:47:05 AM PDT by BGHater
[ Post Reply | Private Reply | View Replies]

To: BGHater

More than anything else, this will cause some fiscal conservatism on the U.S.Government. With the dollar way down against other currencies, and no longer a “reserve” currency, our imports will of necessity drop and our money supply will have to tighten up.


2 posted on 03/17/2008 3:56:12 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BGHater

The successive US Congresses have utterly failed in their obligation to:

Art 1, Sec 8, Cl 5:

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures


3 posted on 03/17/2008 3:57:58 AM PDT by djf (She's filing her nails while they're draggin the lake....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: djf

The more you print, the less it’s worth...


4 posted on 03/17/2008 4:15:39 AM PDT by DB
[ Post Reply | Private Reply | To 3 | View Replies]

To: DB

Yup.

And while everybody is thinking about Wall Street and their own wallet, here’s the bottom line.

WORLDWIDE HYPERINFLATION.

Read between the lines. Get out of debt as soon as practically possible. Buy Macaroni and cheese.
I’m series here folks.
This is hugh.

(I’m just jokin. Tomorrow, gas gonna be $1.17 a gallon. And bread will be .89 a loaf)


5 posted on 03/17/2008 4:25:52 AM PDT by djf (She's filing her nails while they're draggin the lake....)
[ Post Reply | Private Reply | To 4 | View Replies]

To: djf

Paying back debt with devalued dollars isn’t such a bad thing as long as you can come up with them. The losers are the ones who lent the money when it was worth more.


6 posted on 03/17/2008 4:35:55 AM PDT by DB
[ Post Reply | Private Reply | To 5 | View Replies]

To: Jimmy Valentine

Don’t hold your breath.


7 posted on 03/17/2008 4:36:05 AM PDT by TheBattman (LORD God, please give us a Christian Patriot with a backbone for President in 08, Amen.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Jimmy Valentine

>> More than anything else, this will cause some fiscal conservatism on the U.S.Government.

I can’t decide if you’re optimistic or gullible! :-)

But I hope (against hope) that you’re right.


8 posted on 03/17/2008 4:40:34 AM PDT by Nervous Tick (I'm not voting FOR John McCain -- I'm voting AGAINST Hillary/Obama)
[ Post Reply | Private Reply | To 2 | View Replies]

To: DB

Paying back debt with devalued dollars...

Kinda makes a mockery of the idea of a contract don’t it?
Who is the sucker?
Who is the thief?


9 posted on 03/17/2008 4:44:31 AM PDT by djf (She's filing her nails while they're draggin the lake....)
[ Post Reply | Private Reply | To 6 | View Replies]

To: djf
Read between the lines. Get out of debt as soon as practically possible. Buy Macaroni and cheese.

Actually, people who are IN debt win in hyperinflation. They can pay pack with worthless paper, while those who have saved assets will have to go to work as Wal-Mart greeters.

10 posted on 03/17/2008 4:47:50 AM PDT by BlazingArizona
[ Post Reply | Private Reply | To 5 | View Replies]

To: TheBattman

I second that emotion.


11 posted on 03/17/2008 4:49:27 AM PDT by DeaconBenjamin
[ Post Reply | Private Reply | To 7 | View Replies]

To: djf
Paying back debt with devalued dollars... Kinda makes a mockery of the idea of a contract don’t it?

It's been a long time since there has been any deflation in the US dollar. So both parties knew the contract would be paid back in devalued dollars. The only question was how large the devaluation would be.

12 posted on 03/17/2008 4:51:01 AM PDT by DeaconBenjamin
[ Post Reply | Private Reply | To 9 | View Replies]

To: BlazingArizona

>> Actually, people who are IN debt win in hyperinflation...those who have saved assets will have to go to work as Wal-Mart greeters.

Hmmm... would that be that so-called “moral hazard” that Paulson says they’re “aware of”?

“...we’re aware of the moral hazard, but so what?”, say Paulson and Bernanke. “Suffer and die, you financially responsible chump!”


13 posted on 03/17/2008 4:56:05 AM PDT by Nervous Tick (I'm not voting FOR John McCain -- I'm voting AGAINST Hillary/Obama)
[ Post Reply | Private Reply | To 10 | View Replies]

To: DeaconBenjamin

Well, then, now you see the true crisis we are facing.

Who in their right minds will write a contract and get paid back with something that is worth less?

And such must ALWAYS happen in a system that is interest based. We were warned against usury a long, long time ago.


14 posted on 03/17/2008 4:57:58 AM PDT by djf (She's filing her nails while they're draggin the lake....)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Jimmy Valentine
More than anything else, this will cause some fiscal conservatism on the U.S.Government.

Or it will create opportunities for ever more power grabs on the part of our betters in D.C.

But I hope you are right.

15 posted on 03/17/2008 5:01:18 AM PDT by decimon
[ Post Reply | Private Reply | To 2 | View Replies]

To: Jimmy Valentine
With the dollar way down against other currencies, and no longer a “reserve” currency,

Who says the dollar is con longer a reserve currency. Not only is it still a reserve currency, but it's a de facto currency in many places.

16 posted on 03/17/2008 5:04:06 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Nervous Tick
In 1923, at the peak of the German inflation, the prices of goods in Berlin as denominated in pounds sterling were higher than the prices of the same goods in London. Why? Because production had collapsed. The division of labor had collapsed. To get goods imported from outside the country, entrepreneurs had to take greater risks. Uncertainty increased. Because the orderly markets had disappeared in the wave of price inflation, supplies of everything became much tighter than outside Germany. Buyers in other nations could outbid German buyers, even in those cases where German buyers had foreign currencies and gold.

Gold and foreign currencies kept families alive. It did not make them rich.

Then who won? The great winners were farmers. They easily paid off their pre-War debts. Even before 1923, a farmer could pay off all of his debts by the money generated by the sale of a single egg.

What counted most in 1923 was your ability to keep your job. What made jobs desirable were products to sell that everyone wanted: basic foodstuffs, coal, and liquor. People in cities sold off their prized possessions and heirlooms in order to get food. The flow of grand pianos to German farmers never again reached such a rate.

There was almost no way to get rich in cities. There was no asset, other than stored food and coal, that could have made someone rich. But rich as measured in what? The greatest urban wealth was food and coal. Holders refused to sell.

What Will You Do With Your Gold?

17 posted on 03/17/2008 5:15:44 AM PDT by DeaconBenjamin
[ Post Reply | Private Reply | To 13 | View Replies]

To: djf
Who in their right minds will write a contract and get paid back with something that is worth less?

Putting it in terms of a contract of sale--someone who believes that the value of the money they receive in the future (including interest) will be more than the present value of the product they sell.

18 posted on 03/17/2008 5:17:58 AM PDT by DeaconBenjamin
[ Post Reply | Private Reply | To 14 | View Replies]

To: Moonman62

That is changing rapidly.


19 posted on 03/17/2008 9:00:07 AM PDT by TheBattman (LORD God, please give us a Christian Patriot with a backbone for President in 08, Amen.)
[ Post Reply | Private Reply | To 16 | View Replies]

To: TheBattman

How so?


20 posted on 03/17/2008 9:11:10 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
[ Post Reply | Private Reply | To 19 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-33 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson