The higher credit rating is making life more difficult for Brazillians and our credit worthiness is a significant advantage although it doesn’t extinguish our debt, it increases it. What it extinguishes is our budget deficits by borrowing money to pay for them. Its much easier for us to run a deficit than for Brazil as our credit is of much higher quality.

Lula is taking surprising action. I hope his plans work and he can get through the tough times ahead. It will be interesting to follow.