Wyly Wade

The Chinese colony of Brazil – Part Duex

WSC2013_ClosingCeremony_jpl_0147

WSC2013_ClosingCeremony_jpl_0147 (Photo credit: WorldSkills)

“What happens is you start getting people saying ‘Wait a minute, we are running a huge trade deficit with China. They are investing $20 billion and grabbing up all our resources. Are we a colony?’” says Derek Scissors of the American Enterprise Institute.

While controversial the first settlement of the Brazilian people by the Chinese was in the mid 1400s which has been confirmed by DNA evidence of the Surui of Amazonia. Fast forward 600 years later and let the complaining about Chinese colonization begin. Lets be clear though Brazil seems to be on the move of its own. Visit the Haitian relief, slow as hell rebuild, and you will find hundreds of Brazilian soldiers. Or how about sub-saharan Africa lots of Brazilians and lots of Brazilian money.

This is not unexpected though and makes sound monetary policy. As an economy grows and strengthens a diversification is required to maintain a health trade balance especially during slow growth years. Look at the middle income countries that did not invest externally to their system, Singapore, Korea, Mexico all very exposed to internal shocks and external currency market issues. One of the primary drivers behind the creation and expansion of countries sovereign wealth funds have been to encourage overseas investment both as a use of capital but also as market expansion for the countries companies. The more stabilized and diversified a countries major companies the less effected by a single event can trigger a national crisis, such as the 1997 asian financial crisis which was largely triggered the the bankruptcy of Thailand.

Brazil’s trade with sub-saharan Africa has grown to over 20 Billion USD and a total of 57.2% of all of Brazilian investment ends up in Africa.

Now don’t get me wrong the Chinese military have been all over Brazil for decades especially the area between Paraguay, Uruguay and Brazil; from Salto in the south to Asuncion in the North to Sao Borja.

http://qz.com/142551/brazil-thinks-its-being-colonized-by-china-and-wants-its-economy-back/

Enhanced by Zemanta

Leave a Reply

%d bloggers like this: