Brazil president finds 'risk free' U.S. economy laughable
Posted: Saturday, May 10, 2008
BRASILIA, Brazil (AP) -- President Luiz Inacio Lula da Silva marveled at America's "zero risk" financial rating on Friday, raising some laughs as he wondered how ratings agencies could call the troubled U.S. economy perfectly safe.
"I'm amazed to see that the American risk is zero. It's in a miserable crisis, and there's no risk," Silva said, drawing chuckles from a crowd at the inauguration of a gas pipeline in Espirito Santo state.
"Brazil's risk, Russia's risk increase, but the Americans, who are in debt up to here, have zero risk," Silva said. "It's an invention of the ratings agencies, that's what I think."
Last month, Standard & Poor's Ratings Services raised Brazil's debt rating to investment grade, a benchmark long awaited by Latin America's largest country. The country's decades-old debt crisis is over, and Brazil has emerged as a net foreign creditor.
"Brazil is living a magic moment," Silva said. "With this long-term growth, we are building the solid bases of a highly industrialized country."
He added: "The American crisis hasn't come here yet."
Brazil is riding an economic boom, with annual growth of about 5 percent and high overseas demand for key exports such as beef, steel and soy.
"I'm amazed to see that the American risk is zero. It's in a miserable crisis, and there's no risk," Silva said, drawing chuckles from a crowd at the inauguration of a gas pipeline in Espirito Santo state.
"Brazil's risk, Russia's risk increase, but the Americans, who are in debt up to here, have zero risk," Silva said. "It's an invention of the ratings agencies, that's what I think."
Last month, Standard & Poor's Ratings Services raised Brazil's debt rating to investment grade, a benchmark long awaited by Latin America's largest country. The country's decades-old debt crisis is over, and Brazil has emerged as a net foreign creditor.
"Brazil is living a magic moment," Silva said. "With this long-term growth, we are building the solid bases of a highly industrialized country."
He added: "The American crisis hasn't come here yet."
Brazil is riding an economic boom, with annual growth of about 5 percent and high overseas demand for key exports such as beef, steel and soy.
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