This time from Brazil. As pointed out recently, international currency reserves cost money to hold and once they get to a certain level a government is much better off finding a decent use for the revenues received. The previous example was Bolivia, this time it's Brazil. The point being made is exactly the same, that social programs funded by these incomes are not expensive at all (as the dumbasses like to make out as they jump to ill-informed conclusions), but a cost-effective method of sharing the bonanza and promoting growth.
Dec. 22 (Bloomberg) -- Brazil should stop increasing international reserves as the local currency stabilizes and economic growth quickens, former central bank director Carlos Eduardo de Freitas said.
“It’s a totally logical moment for the central bank to stop buying reserves,” Freitas, who was part of the central bank’s monetary policy committee from 1999 to 2003, said in a telephone interview from....
"...“If they don’t stop buying reserves now they will be paying a high cost for no reason,” Freitas said yada yada continues here
There is one difference between Brazil and Bolivia on this subject, however. Brazil will get praise from the chattering classes for its sound macro policy, while Bolivia will get ignorant pseudos criticizing it once again.
Learning anything yet, CentellasFool?