Meanwhile in South America...

Often students ask me about Brazil and where its economy is headed. Alas, I'm very bearish about the current government and their views on what needs to be done.






While the government remains in the fantasy-land and believe that all is well, the economy is sending many signs that it is reaching breaking point.


I particularly find the following graphs interesting:

What will happen in 2014 with the elections and the World Cup? We'll find out soon...