{"id":14962,"date":"2015-12-02T06:54:58","date_gmt":"2015-12-02T11:54:58","guid":{"rendered":"http:\/\/olduvai.ca\/?p=14962"},"modified":"2015-12-02T06:55:29","modified_gmt":"2015-12-02T11:55:29","slug":"pretty-soon-we-have-to-start-labeling-this-a-depression-goldman-sachs-on-brazil","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=14962","title":{"rendered":"\u201cPretty Soon We Have to Start Labeling this a Depression\u201d: Goldman Sachs on Brazil"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/12\/01\/brazil-just-keeps-getting-worse-and-worse\/\" target=\"_blank\">\u201cPretty Soon We Have to Start Labeling this a Depression\u201d: Goldman Sachs on Brazil<\/a><\/h3>\n<p class=\"entry-meta\"><strong>It Just Keeps Getting Worse and Worse<\/strong><\/p>\n<\/header>\n<div class=\"entry-content\">\n<p>Brazil, the largest economy in Latin America, now the 8th largest in the world, down from 6th place during the glorious BRICs days of 2011, is sinking deeper and deeper into trouble.<\/p>\n<p>An epic corruption and kickback scandal surrounding state-run oil company Petrobras is spreading up the government pyramid to the highest levels \u2013 a week ago, the government\u2019s Senate leader was arrested for allegedly trying to meddle in the investigations. As the scandal is metastasizing, political decision-making is gridlocked, and the confidence of consumers and businesses has been demolished.<\/p>\n<p>The budget deficit is ballooning as the economy is spiraling down. On Monday, the government imposed a partial shutdown and froze discretionary spending. Standard &amp; Poor\u2019s has slashed Brazil to junk, citing government finances, the political mess, and the deepening economic nightmare. Moody\u2019s and Fitch still rate it just above junk, with their downgrade fingers itching to pull the trigger.<\/p>\n<p>All this comes at the worst possible moment for the economy. GDP fell 1.7% in the third quarter, the national statistics institute (IBGE) announced today. Year over year, GDP plunged 4.5%, the sixth contraction in a row, and the worst since the beginning of modern records in 1996.<\/p>\n<p>\u201cThere is no room for any growth in the coming quarters,\u201d Andre Perfeito, chief economist at Gradual Investimentos in Sao Paulo, told\u00a0<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-12-01\/brazil-gdp-falls-more-than-analysts-expected-as-demand-withers\"><u>Bloomberg<\/u><\/a>. \u201cThe situation is really, really bad,\u201d he said, likening the GDP report to \u201can obituary.\u201d<\/p>\n<p>This is what Brazil\u2019s annualized GDP growth rates look like for the past 12 quarters:<\/p>\n<p><a class=\"image-anchor\" href=\"http:\/\/wolfstreet.com\/wp-content\/uploads\/2015\/12\/Brazil-GDP-growth-annualized.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-19771\" src=\"http:\/\/wolfstreet.com\/wp-content\/uploads\/2015\/12\/Brazil-GDP-growth-annualized.png\" alt=\"Brazil-GDP-growth-annualized\" width=\"496\" height=\"390\" \/><\/a><\/p>\n<p>The economy was dragged down at all corners. Manufacturing fell 3.1%. Business investment dropped 4%, down for the ninth quarter in a row. But this year, even consumer spending is plunging, whacked by rising unemployment \u2013 now at 8.9%, according to the official unemployment rate \u2013 and soaring inflation, now over 10%, which is sapping the purchasing power of the lucky ones that still have jobs.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u201cPretty Soon We Have to Start Labeling this a Depression\u201d: Goldman Sachs on Brazil It Just Keeps Getting Worse and Worse Brazil, the largest economy in Latin America, now the 8th largest in the world, down from 6th place during the glorious BRICs days of 2011, is sinking deeper and deeper into trouble. An epic [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[90,2310,376,4254,6118],"class_list":["post-14962","post","type-post","status-publish","format-standard","hentry","category-economics","tag-brazil","tag-depression","tag-goldman-sachs","tag-wolf-richter","tag-wolf-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14962"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14962\/revisions"}],"predecessor-version":[{"id":14964,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14962\/revisions\/14964"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}