INDEPENDENT NEWS

Cablegate: Global Economy; Financial Crises

Published: Thu 9 Oct 2008 09:00 AM
VZCZCXYZ0013
OO RUEHWEB
DE RUEHSO #0541 2830900
ZNR UUUUU ZZH
O 090900Z OCT 08
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8583
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 9714
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8880
RUCPDOC/USDOC WASHDC 3184
UNCLAS SAO PAULO 000541
SIPDIS
STATE INR/R/MR; IIP/R/MR; WHA/PD
DEPT PASS USTR
USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP ETRD XM XR BR
SUBJECT: GLOBAL ECONOMY; FINANCIAL CRISES
Financial War
Editorial in liberal Folha de S. Paulo (10/08) says: "The news on
the financial crisis evokes a scenario of a world war, with several
fronts spread all over the planet- from Australia to Brazil, from
China to Russia, from Germany to the United States..., The multiple
combatants, however, show themselves weak and dysfunctional facing a
threat that does not respect borders - or even worse, it gains force
when there is a lack of a coordinated action to attack it.
Discredit in the financial system is global, but the approaches to
face it are national, limited and heterogeneous... It would be a
waste that one of the most powerful tools of the Fed, the reduction
of short term interests, were used without articulation with other
countries that are going through the same situation, something that
already causes despair. A worldwide and synchronized decrease in
the cost of loans would increase the chances that the collapse would
be at least staunched. At this moment, the news that the crisis had
reached its limit would already be good news."
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