On Wed, 26 Feb 2003, Brad DeLong was quoted in The Economic Times (India) saying:
> More demanding are the expectations of speculators and investors in New York
> and London. They expect Lula to accomplish the equivalent of Nixon's trip to
> China - to be the leftist who hard-headedly balances Brazil's budget,
> eliminates foreign investors' fear of debt repudiation via hyperinflation,
> and gives them fat capital gains on their Brazilian stocks and bonds.
Why would investors in New York and London fear "repudiation via hyperinflation?" Aren't all their loans in dollars?
So if that's not a real fear for them; and the whole purpose of balancing the budget is to allay it; then their only remaining listed expectation, for which poor people should patiently suffer, is "fat capital gains on their Brazilian stocks and bonds."
That's a rather bald statement of the equation.
Michael