TheEconomist

Brazil is ok, I´m ok and you are ok - that´s more or less what some people in Europe heared from president Lula da Silva today or yesterday, don´t know for sure why.

The story is about the trend in short terms for basic  interest rates reduction in Brazilian economy - Lula didn´t showed any interest in stopping his own plans with a bit of basic economics.

-People is willing, mister, to invest in Brazil, you know? Alcohol, yeaj, ethanol and all that.

Inflation acceleration:

-Oh no, forget it , if what you want is to keep on making money on me, man, forget about it…

-?

Stock markets in Sao Paulo closed today in good shape, following this other story wiring all over, about the very true futurology by the  Federal Reserve´s decision already taken: to reduce basic interest rates by some 0,25 pp next Thursday (18).

Lula wants to keep on going. His plans before global finance crisis are to be taken seriously, about  promoting domestic economic growth in order to answer the main national problem here - create jobs for millions.

Next Tuesday (18) there will be another meeting at Brazilian Central Banco´s committee on monetary policy, probably to annouce a cutting by 0,25 pp instead of 0,5 pp on basic interest rates.

Here, like there.

Diference is that United States faces the challenge of recesion next year and Brazil is on the good part of the curve, with his alcohol driven  million of cars and now the ethanol run - basides strong economic fundamentals that could help to atract direct investments.

But in order to atract foreing capital that Brazil needs the “invest grade” by JP Morgan - so get it, just with low interest rates.

Nothing like a day after another one, says the Portuguese.

Everything looked nice today in Brazilian economy - even the stock markets went up again in Sao Paulo (2,11%), following Wall Street (Dow Jones up 1,9, Nasdaq 2,5%).

And, basically, the exuberance spread around by US Federal Reserve with a few more billions given to save banks.

Exchange rates in Brazil keeps on floating, as it should be in this world finance crisis:

US dollar was negotiated by the end ot the day at R$ 1,966 for US$ 1,00 (better than crisis breaking point of 2,0).

All figures are far out in Brazilian economy, at least to Banco Central:

* Foreing Reserves are up again in few days, from US$ 158 billions to US$ 161 this Wednesday;

* Inflation is under control (small pressure on July prices);

* Foreing commerce must end this year with a surplus around US$ 44,5 billion, as Central Bank´s directors told the press this evening in Brasilia.

The balance of commerce registered a surplus of US$ 44,3 last month, just a little bit lower than June´s figures (US$ 44,3 bi).

Well, as a friend from Rio said today at an internet meeting, the only thing President Lula is in debt with Brazil is a deep economic reform.

To cut public expenditures (which are growing as GDP´s 5%) to modernize the country and GNP growth at sustained 7% yr without destroing Amazon forest for that purpose.