QUESTION: Mr. Armstrong, Like so many others, I can’t specific my gratitude for creating Socrates. You present forecasting for your complete world. In Brazil, Socrates has been a lightweight in the course of darkness. Our central financial institution has needed to intervene 4 instances, desperately making an attempt to forestall the collapse of our forex, as we see nothing however hovering funds deficits. We’re witnessing the wholesale unfold throughout property. Our authorities greenback bonds are declining regardless of being denominated within the US greenback. Our hopeless president, who the West cheered, Luiz Inacio Lula da Silva, proposed new revenue tax breaks alongside a plan to chop over $11 billion in spending final month. Lula has no thought concerning the economic system.
Might you please touch upon Brazil as we go, so does South America?
Enzo
ANSWER: It’s so essential to take a look at your complete world. We’re all linked. Nonetheless, trying on the array for South America it doesn’t counsel that everybody will comply with Brazil. Nonetheless, the US greenback ought to proceed its advance into 2025. I might be involved concerning the Might/June time interval subsequent yr. We’re trying on the collapse of socialism. The election of Lula da Silva was an act of financial suicide for Brazil. Silva was elected in 2022 to be the president of Brazil. That was a surprising comeback following a really tight run-off race that was not with out controversy. His victory heralded a political about-face for Latin America’s largest nation. You may see the financial penalties ever for the reason that US greenback reversed route and was projecting going into 2025 for a significant excessive. Bolsonaro is forward of da Silva within the polls for the following 2026 election. It actually seems that the US greenback will rally into 2025, impacting your 2026 election.
A year-end closing above 5.98, which the market is buying and selling above at present, ought to verify a brand new excessive for the greenback into 2025. Wanting into subsequent yr, the overhead resistance will stand at 6.31, 6.79, and seven.27. Brazil is a founding member of the BRICS. The collapse of their forex recordsdata within the face of propaganda about how the BRICS will kill the greenback. They lack the economic system and positively the monetary functionality. As you talked about, they needed to difficulty debt in {dollars} to lift cash. Because the greenback rallies, these rising markets that issued dollar-denominated debt are being pushed nearer and nearer to default in 2025.