We constantly hear about what the U.S. needs to do to regain a stronger leadership role in Latin America. A quote from Brazil is a reminder that the U.S. is losing ground when it comes to economic policy. Has there ever been a time when U.S. style consumerism has been mocked by governments that are not so far away ideologically?
That concern was repeated by former central bank President Arminio Fraga, who said on the Charlie Rose television program that Brazil is focusing too much on consumption and not enough on saving and investing. That "American" style of consumerism could lead to a credit crisis within the decade, Fraga said.
Of course, this comes on the heels of the U.S. employing bailout strategies that it pressured Latin American governments not to employ in the 1980s.