Whether or not the Olympics in Brazil go off without any serious difficulties is actually an open question. There have been some athletes refusing to attend due to concerns over the Zika virus, while police and firefightersgreeted travelers flying into the country through Rio’s airport with a sign that said ‘Welcome to Hell.’ There are rumors reported in the Portuguese news that the public health system is close to collapse, with no money to pay doctors and nurses as well as police and firefighters. With the eyes of the world nearly upon it, the nation of Brazil seems ready to show off instead what happens in an acute ‘dollar’ shortage.
The devastation in the Brazilian economy is really unlike anything seen in its modern history, and Brazil is unfortunately no stranger to grand economic and financial difficulties. That tortured past had at one time not so long ago seemed an ancient memory, trouble for only historians. As recently as early 2012, Brazil appeared to be mending after its brush with the Great Recession. The mid-2000′s had built up what appeared to be the foundation for at last lasting prosperity no matter what the rest of the world was doing.
Yet, in 2016 we find instead some of the most extreme cases of malaise and contraction. This is no recession, as what is taking place would be categorized if it were a financial price or indication as a total unwinding. It really does seem as if all of the wealth created by Brazil’s 21st century expansion is coming apart and just vanishing into the political chaos of an unsettled social state.
This post was published at David Stockmans Contra Corner by Jeffrey P. Snider ‘ July 6, 2016.
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