VZCZCXYZ0020
OO RUEHWEB

DE RUEHSO #0161 0791914
ZNR UUUUU ZZH
O 201914Z MAR 09
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9033
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0181
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9071

UNCLAS SAO PAULO 000161 
 
SIPDIS 
 
STATE INR/R/MR; IIP/R/MR; WHA/PD 
 
DEPT PASS USTR 
 
USDOC 4322/MAC/OLAC/JAFEE 
E.O. 12958: N/A 
TAGS: KMDR OPRC OIIP XM XR XF BR
SUBJECT:  Media Reaction-Global Economy:  Financial market crisis; 
Slaying One Dragon at a Time; In action, the dollar factory Sao 
Paulo; March 20, 2009 
 
Title- Slaying One Dragon at a Time 
 
Editorial in liberal Folha de S. Paulo (3-20) states: "....When the 
recession is over....the money in excess in the market and the debt 
accumulated by governments, especially the U.S., may turn into a 
source of problems....The public debt rollover, in the rebound 
phase, may pressure the financial markets and force interest rate 
increases, creating difficulties for all countries.  All 
governments, including the Brazilian, should think about this" 
 
Title- In action, the dollar factory 
 
Editorial in center-right O Estado de S. Paulo (3-20) says: "From 
all the actions known to curb the pace of the [worsening] economic 
crisis, it seems there is none left within the Federal Reserve.  The 
U.S. central bank made it official yesterday with its most radical 
effort in the fight against depression.  It is going to print money, 
a bunch of it....But printing money at this speed, says the 
textbook, echoes with inflation....judging by the first reaction, 
the Federal Reserve's move worked....[but] the risks of this Fed's 
operation going badly are considerable....Nevertheless, the U.S. has 
no option.  It must slay one dragon at a time - and the monster of 
depression is the one that scares the U.S. today." 
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