My View by Silvio Canto, Jr.: 03/31/23

What could go wrong? You elect a leftist in Brazil, China comes calling and the U.S. president is too busy with what he calls equity. Well, the Brazilians sing you a samba called "adeus norte-americano" or goodbye, North American. Yes, nice knowing you and your "Dinheiro" (money) but we are turning "chinês" (chinese). To paraphrase that song from the 1980s, Brazil is turning Chinese -- I really think so.

Well, here is the story:

The deal, announced Wednesday, will enable China and Brazil to carry out trade and financial transactions directly, exchanging yuan for reais -- or vice versa -- rather than first converting their currencies to the U.S. dollar.
The Brazilian Trade and Investment Promotion Agency (ApexBrasil) said the new arrangement is expected to "reduce costs" and "promote even greater bilateral trade and facilitate investment."
China is Brazil’s largest trading partner, accounting for more than a fifth of all imports, followed by the United States, according to the latest figures. China is also Brazil’s largest export market, accounting for more than a third of all exports.
China overtook the United States as Brazil’s top trading partner in 2009. Today, Brazil is the largest recipient of Chinese investment in Latin America, driven by spending on high-tension electricity transmission lines and oil extraction.
Officials from both countries reached a preliminary agreement to ditch the U.S. dollar in January and the deal was announced after a high-level China-Brazil business form in Beijing.

Brazilian President Luiz da Silva, sworn in on January, has moved to strengthen ties with Beijing after a period of rocky relations under his predecessor, Jair Bolsonaro, who used anti-China rhetoric on the campaign trail and in office.

"Come on, man…" everything is great.

Down in Argentina, China is learning to tango quickly: "Argentina and China formalize currency swap deal."

Beyond trade and currency, this is a slap in the face because other countries will see this as China rising and the U.S. falling. That's exactly the image that China wants to project to the Third World. In other words, China is the future and Washington is the past.

During the campaign, we were told that the smart people had to replace the crazy Trump. We needed Biden's experience to work out all these foreign policy issues. So far, it looks like the only smart people here are the Chinese.

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My View by Silvio Canto, Jr.

Friday, March 31, 2023

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Brazil turning Chinese -- I really think so