VZCZCXYZ0000
OO RUEHWEB

DE RUEHSO #0213 0971829
ZNR UUUUU ZZH
O 071829Z APR 09
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9098
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0245
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9103

UNCLAS SAO PAULO 000213 
 
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 Sao Paulo- After the frenzy, Obama 
accelerates History, Exorbitant privileges 04-07-2009 
 
Media Reaction: Global Economy:  G-20 summit readout; financial 
market crisis; Sao Paulo 
 
April 7, 2009 
 
Title- After the frenzy 
 
Editorial in liberal Folha de S. Paulo (4-7) states: "One of the 
most difficult tasks that the group of the 20 major economies of the 
planet has committed to is the fight against so called tax 
havens....The first way to try to reach the proposed goal is through 
political coercion....It is necessary....to formulate a regulation 
able to shed light over the myriad of innovative transactions 
created in the last decades....The White House plan, sent to the 
U.S. Congress, foresees obligatory recording of funds, disclosure of 
information on levels of indebtedness ....and adequate measures to 
require guarantees in financial operations, for instance.  Those are 
basic rules, to which major banks are subject to.  Nevertheless, 
they were ignored in the stages of the [pre-crisis] financial 
frenzy." 
 
Title- Obama accelerates History 
 
Main editorial in center-right O Estado de S. Paulo (4-7) says:"The 
time of international relations has accelerated....[and] the reasons 
for that are evident.  The first is the radical change in the U.S. 
attitude adopted by President Barack Obama and accentuated by the 
financial crisis made in the U.S.  It changed the conventional 
patterns of the unsustainable U.S. hegemony and intensified the 
effects of the new power configuration in the world, which resulted 
with the ascension of major emerging economies, beginning with China 
and Brazil.  The other reason for the acceleration of the pace of 
international policy also relates to the crisis.  The economic 
retraction warned governments of major countries of the imperative 
of opening new multilateral initiatives in an environment more prone 
to understanding them [in comparison] to old divergences." 
 
Title- Exorbitant privileges 
 
Op-ed in business oriented Valor Econtmico (4-7) by FGV [the 
Gertulio Vargas Foundation] professor and director and former Sao 
Paulo State Finance Secretary Yoshiaki Nakano notes: "The truth in 
facts is that the current financial crisis had as its causes the 
excessive expansion of credit and liquidity in the U.S., a country 
that issues the currency of the international reserve, and with this 
its disorganized international payment system....The G20 summit has 
a very important historical meaning, because is the acknowledgment 
of China and other nation's emerging and for now on, international 
economic issues will have to be addressed by a larger group....[But] 
even with the financial crisis and excesses that the Fed and 
Treasury are being obliged to make, the dollar will continue to 
reign." 
WHITE