Argentina and Brazil take steps toward creating a common currency

[Judi Lynn]

September, 3 - 6:49 AM

Argentina and Brazil take steps toward creating a common currency

SAO PAULO.- Brazil and Argentina have taken this week the first effective step since the foundation of Mercosur in 1991, towards the creation of a common currency, they have decided to elaborate a project aimed at not using the US dollar as a bilateral interchange currency.

Starting 2007 their bilateral interchange will be compensated in pesos and reales.

Ministers Felisa Miceli (Economy Minister, Argentina) and Guido Mantega (Internal Economy – Hacienda -, Brazil), argued that the moment justifies the beginning of this process, particularly between Argentina and Brazil, with modest but realistic measures.

"Five or six years ago there were no conditions for this", emphasized Miceli, while Mantega explained the project was impelled by the two biggest Mercosur partners in a specialized ministerial meeting celebrated in Rio de Janeiro, because together they concentrate the greatest regional interchange parcel.
(snip/...)

http://www.dominicantoday.com/app/article.aspx?id=17086

[Vidar]

1. Very good & for their own sakes leave the US out of it.

[zdux0013]

8. yeah

yeah

[Judi Lynn]

2. Mercosur members demand greater voting power in IMF

Mercosur members demand greater voting power in IMF
The Associated Press

Published: September 1, 2006


RIO DE JANEIRO, Brazil The South American trade bloc Mercosur on Friday demanded greater voting power in the International Monetary Fund.

"We think that as a bloc of South American countries, our participation should be bigger," Brazil's Finance Minister Guido Mantega said after meeting with Mercosur finance ministers in Rio de Janeiro. "Our representation is not proportional to our political or economic importance."

The IMF is expected to finalize a decision to grant China, Turkey, Mexico and South Korea a greater voting share in its operations at a meeting this month in Singapore, giving them more say over which countries get IMF loans and what economic measures they must adopt to qualify.

Mantega said the fund also should increase the voting power of South American nations.

Brazil, Argentina, Uruguay, Paraguay and Venezuela are full members of Mercosur. Bolivia, a Mercosur-associate, also participated in Friday's meeting.

Argentina's Finance Minister Felisa Miceli said Mercosur's finance ministers were united in their call for a greater voting share in the IMF. Developing countries in general should have more participation in the fund, Miceli said.
(snip/...)

http://www.iht.com/articles/ap/2006/09/01/business/LA_FIN_Brazil_Mercosur.php

[loves_dulcinea]

3. hopefully,

argentina won't have to go through that whole hyperinflation thing ever again.

[robcon]

4. Brazil's hyperinflation was no picnic either.

This is a good idea - to create a stronger currency.

Ecuador's idea: to use U.S. dollars instead of their own currency, has worked out well, too.

[pitohui]

6. panama uses the dollar also

it would be great if the americas could use one currency, unfortunately, i guess too many noses would be put out of joint and too many banks would lose out on fees if that were to happen

[Peace Patriot]

5. Before I read the rest of the article, I was thinking: this show of

independence and regional solidarity and commitment to self-determination goes back to two events:

1. The popular revolt in Argentina against the World Bank/IMF and its onerous loan policies--which required draconian cutbacks in all social programs. It nearly destroyed Argentina's economy and social fabric. The poor and middle class banded together, and took little hammers and broke every bank ATM display window in Buenos Aires. They brought down the corrupt, rightwing, corporatist government, and finally got a government that promised to free Argentina from the World Bank/IMF. They have now done so--paid off all the debt, with the help of Venezuela (!), and have vowed never again.

2. Chavez's election and re-election in Venezuela--his survival of a US-supported military coup, US-taxpayer funded Recall election, US and big oil-backed crippling oil professionals' strike, as well as constant bad-mouthing by the Bush Junta and its lapdog corporate news monopolies--and thus the survival of his policy of Bolivarianism (which stresses just these things--regional solidarity, self-determination) and generosity with oil profits to the mutual benefit of Venezuela and other Latin American countries. Venezuela is now a member of Mercosur, and has the backing of the Latin American countries to take a seat on the UN Security Council next year.

The rest of the article reads:

"Additionally, Argentina and Brazil have reduced substantially their national debts, they are in control of fiscal accounts, and they count on an excess of foreign currency flow in their markets, he added.

"Both Ministers said the protectionism shown in world commerce, forces the South American countries to protect their own, hoping this pilot program will integrate other Mercosur partners."

These policies are people-driven. Democracy-driven. What a wonder to behold!

[zdux0013]

7. yeah

yeah

[mmonk]

9. Funny how the neocon plan is working in reverse.