Just As Brazil Hits Rock Bottom, Things Are About To Get Even Worse | WHAT REALLY HAPPENED

Just As Brazil Hits Rock Bottom, Things Are About To Get Even Worse

For anyone who might have missed it, Brazil is in trouble.

The country is "at the center of a triple unwind of EM credit, China’s leverage, and US monetary easing" (to quote Morgan Stanley) and as Goldman recently pointed out, faces a stagflationary nightmare.

Last quarter, Brazil suffered through the worst growth-inflation mix in over ten years. As Goldman put it, "since 1Q2004 there has not been a single quarter in which we had simultaneously higher inflation and lower growth than during 2Q2015."

And then there's the twin deficit problem.

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