The Smartest Thing China Could Do Right Now: Invest US$ 200 Billion in Brazil.

Quote from oraclewizard77:

What's funny is that the op wants other countries to invest in Brazil, while trying to get the government to take over their companies like PBR which would mean stealing all of the money from the public shareholders.

You can't have it both ways. Either keep all companies private, or don't have anyone invest in your country
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He doesn't want it both ways. He wants the world to invest in Brazil, then seize all the wealth like big government losers everywhere always do. Anybody misguided enough to invest in Brazil deserves exactly what they get.

There's nothing new or surprising here. Nothing at all.
 
Have you not played monopoly? Invest $200B in Canada, another $200B in Mexico and poof! You just bought the entire North American Continent.
 
Quote from Tom B:
Why would any country want to invest in Brazil? Brazil is a banana republic. ...
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I already exposed how ill informed Tom B is 6 posts back, but could not then document my source. Here is more of the same, from another with source, which is given:

“… Brazil has also proven that it has a strong consumer base of its own ready and able to fuel economic growth, even as exports falter. In fact, exports account for a mere 12% of Brazil’s $1.5 trillion economy.

From 2001 to 2007, the poorest 10% of the population enjoyed a 49% increase in real income, Brazilian economist Marcelo Neri told the Miami Herald, describing what he called "Chinese-like growth."

Roughly 27.8 million Brazilians – out of a population of nearly 200 million – joined the consumer economy from October 2003 to October 2008, according to Neri. {Most of them were self sufficient, living on small farms outside of the "cash economy" - grew their own coffee, tobacco, etc. But now are adding to internal commercial demand.}

About 8 million jobs have been created in that time, while the minimum wage has increased 45%

That makes Brazil a very attractive destination for investment. …”

From: http://www.moneymorning.com/2009/08/12/brazil-economy/
 
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September 1, 2010

SouthAmerica: When I wrote the enclosed article in 2007, the current deal that is being negotiated in Brazil with The State Grid Corporation of China (SGCC) – that is not what I had in mind.


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Brazzil Magazine – October 2007
"The Smartest Thing China Could Do Right Now: Invest US$ 200 Billion in Brazil" - Written by Ricardo C. Amaral

…The final conclusion is: It's imperative that China move forward in an aggressive fashion and implement with Brazil the plan described in this four-part series of articles. And China should look at it as a matter of national security and future survival.

Monday, 01 October 2007 - Part 1 of 4
http://www.brazzil.com/component/content/article/184-october-2007/9977.html

Friday, 05 October 2007 - Part 2 of 4
http://www.brazzil.com/component/content/article/184-october-2007/9979.html

Thursday, 11 October 2007 - Part 3 of 4
http://www.brazzil.com/component/content/article/184-october-2007/9983.html

Tuesday, 16 October 2007 - Part 4 of 4
http://www.brazzil.com/component/content/article/184-october-2007/9985.html


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“State Grid to buy Brazilian power giants”
By Li Woke
People's Daily Online - August 27, 2010

The State Grid Corporation of China (SGCC) will buy seven Brazilian transmission companies from Plena Transmissoras for $1.72 billion, the Beijing News reported Thursday.

State Grid can have access to 3,000 kilometers of transmission lines in Brazil after completion of the deal.

The acquisition, which includes Plena's debt worth a total of $713.78 million, still needs to be approved by Brazilian National Electricity Regulatory Agency.

Covering 88 percent of the country, State Grid is the largest electric power transmission and distribution company in China and the world.

The company has subsidiaries for North China, Northeast China, East China, Middle China and Northwest China.

State Grid is ranked 8th on the Fortune Global 500 list of the world's largest companies by revenue this year, up from last year's 15th.

The deal's target assets include a 100 percent stake in Ribeirao Preto, Serra Paracatu, Poc os de Caldas, Itumbiara and Serra de Mesa and 75 percent stake in Expansion Transmissao de Energia Eletrica and Expansion Transmissao Itumbiara Marimbondo, as well as total liabilities of 1.3 billion Brazilian Real, according to earlier report

Phone calls to State Grid went unanswered.

State Grid initiated the deal through its subsidiary State Grid International Development (SGID), which was set up in 2008 to oversee investments in overseas power transmission projects, electrical equipment procurement services and other related investments.

"The $1.7 billion deal is part of SGID's efforts to exploit overseas markets for State Grid's transmission technology and equipment products and services," the 21st Century Business Herald said.

"State Grid is clearly trying to forge a complete industrial chain with SGID as its platform to turn itself into an international power giant," the newspaper said.

In 2007, State Grid won the rights to operate the Philippine power grid with a $3.95 billion bid for up to 25 years.

Source: Global Times

http://english.people.com.cn/90001/90778/90860/7119563.html

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Just finished viewing the brilliant discussion about China and, other countries, to a lesser degree. To say that Mr. Rose does his best is to say a great deal for truly he is an expert at interrogating and drawing forth information from his guests. Some of my previously held thoughts on China were confirmed by Henry Kissinger and the three professionally trained China experts, Cheng Li, Orville Schell and Perry Link. Watching the program, as I ate lunch, certainly added to the quality of the meal, however, I did suffer a bout of heartburn, which heartburn was brought about by the "Paddy Wagon" remark made by Sinologist Perry Link. There are of course those who suggest that the term Paddy-Wagon was never used to defame the Irish but I would suggest that those believers are in a minority. I also believe that in a discussion of democracy, diplomacy and human rights, participants ought not use such a derogatory term, whether the etymology of the term is real or imagined.
 
In this environment I'd say stay out . . . Caution, caution, caution, first and foremost. . .

Look, even the greatest players such as Jim Rogers, Linda Raschke, Marc Faber, Michael Covel, Dr Brett Steenbarger and Mark Mobius are having a hard time playing this market.

I'd say stay out, try to focus on what you do best and let the pros invest. Maybe buy some coins, but I wouldn't go any further than that.

HiddenAgenda
http://dr-morpheus.blogspot.com/
 
September 10, 2010

SouthAmerica: It looks like the Chinese have been paying close attention to my articles published on Brazzil magazine.

Here is another example:


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Soybean and Corn Advisor - June 29, 2010
“Foreign Ownership of Farmland in Brazil Could be Restricted “

There has been a lot written in the Brazilian press recently about potential changes in the amount of farmland a foreign individual, corporation, or government is allowed to purchase in Brazil. Recent comments by the Brazilian president and various Brazilian senators indicate that something will be done concerning this issue.

What really caught everyone's attention in Brazil was the fact that the Chinese government (through one of its holding companies) purchased several hundred thousand hectares of land in the state of Bahia. Brazilians are uneasy with the concept of foreign individuals buying up Brazilian farmland, but they are absolutely appalled when a foreign government purchases farmland in Brazil.

One of the problems is that it is difficult to determine just how much land has already been purchased by foreigners. In Brazil, if a foreigner want's to purchase land they must have a Brazilian partner who owns at least 1% of the enterprise. As a result, there are Brazilian holding companies who supply this service to foreign buyers. Additionally, some foreign companies set up Brazilian holding companies who purchase the land legally, but in reality, the foreign company still controls the enterprise. This requirement for a Brazilian partnership can hide the true ownership of the land. No one knows for sure how much land has been purchased by foreigners and estimates vary from between 1 to 4 million hectares.

Land ownership in Brazil holds a special place in the heart's of Brazilians. Virtually everyone in Brazil would like to own a piece of land they could call their own. Almost without exception, every wealthy Brazilian owns some rural land. Large ranchers and farmers hold a very special place in Brazilian society. As a result, land being owned by foreigners is almost an affront to Brazilian's pride

It is yet to be determined what the Brazilian Congress will do about this issue, but it is virtually certainty that foreign governments will be prohibited from purchasing farmland. As far as foreign corporation or individuals are concerned, it is more complicated. Brazilians do not mind if actual foreign farmers move to Brazil to buy land and start farming, but they certainly do not like large speculators such as hedge funds, banks, or the super rich coming to Brazil to purchase land just as an investment.

The size of the property in dispute is also important. The Brazilian government might be able to stomach a foreign farmer owning a few thousand hectares on which he actually operates his farm, but I think the era of foreigners purchasing several hundred thousand hectares as an investment will come to an end.

There is also speculation that any new restriction might be made retroactive and that the titles to land already purchased could be revoked. Once again, this will depend on who the foreign owner is and the amount of land in question. It is possible that land purchased by foreign governments would be nullified, but it would be harder to do for smaller properties purchased by individual farmers.

The Brazilian government still encourages foreign investment in Brazil, but investing in farmland may become more difficult in the future.

http://www.soybeansandcorn.com/news...hip-of-Farmland-in-Brazil-Could-be-Restricted

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September 10, 2010

SouthAmerica: I have been posting information on Brazzil magazine for the Brazilian government to restrict the foreign ownership of farmland in Brazil.

My next article will be on that subject, and much more.

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"Big crackdown on foreign firms' land ownership in Brazil"
Morning Star (UK)
Wednesday 25 August 2010

A significant reduction in foreign ownership of land in Brazil was announced on Tuesday by the government.

The Solicitor General's Office confirmed that foreign or Brazilian subsidiaries of foreign companies cannot own more than 5,000 hectares and no holding can exceed 25 per cent of the total area of the municipality where the land is located.

From now on, land owned by foreigners can be used only for farming, cattle-raising or industrial activities that must be approved by the Agrarian Development Ministry.

Attorney General Luis Inacio Lucena Adams explained that the restrictions were necessary to preserve national control over land ownership.

Earlier this year the ministry confirmed that by 2008, 4 million hectares of land were registered under foreign ownership.

http://www.morningstaronline.co.uk/news/content/view/full/94474

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