Commodity producing countries under pressure (political/economic - Brazil) - Brazil to Tim Geithner 'You and that lunatic Fed chairman are...

...fucking slugs

(update 12)

My Portuguese isn't too good, but under his breath and his subconscious thoughts would translate the above sentiment towards the joke that is America's financial custodians

CHICAGO (Dow Jones)--Brazil Central Bank President Henrique Meirelles on Thursday became that country's latest official to criticize the U.S. Federal Reserve Board's move to stimulate the U.S. economy by buying bonds from the market.
The move has "negative consequences for other countries, which is the case for Brazil," Meirelles told reporters after a speech at the University of Chicago Booth School of Business. "The quantitative easing creates excessive liquidity which overflows to countries like Brazil, and then we have to take measures to address that issue," he said. "It does create a problem."
Meirelles confirmed that Brazil, at the Group of 20 meeting next week in Seoul, will present proposals "to several countries, the U.S. and China and others, to reach a different agreement not to generate so many distortions for countries like Brazil." He did not offer specifics about the proposals.
On Wednesday, the U.S. Federal Reserve announced it would purchase some $600 billion in bonds from the market over the next eight months. The move will sharply increase liquidity in the U.S. and markets worldwide.
"The Fed is doing what the Fed thinks is right for the United States. Period," Meirelles said. His comments came after Brazilian Finance Minister Guido Mantega, speaking in Brasilia on Thursday, called the Fed decision "an error." Mantega said much of the increased liquidity will flow to emerging market countries, such as Brazil, in the form of unwanted short-term investment inflows. "The latest Fed move will lead to greater disequilibrium in world markets," Mantega said.
Brazil's government has been struggling to cut down on short-term inflows, which have led to a sharp appreciation of the Brazilian real against the U.S. dollar. The real has gained more than 30% against the greenback since March of 2009. The strong real hurts Brazilian exports.
Economists agreed that the Fed move will mean more inflows into Brazil. Brazil's government last month raised the country's financial operations tax, known as the IOF, on incoming investment in fixed-income securities to 6% from 2% previously, in an effort to slow heavy foreign portfolio investment. The government also raised the tax on guarantees for futures and other derivatives operations.
Meirelles and Mantega are slated to accompany Brazilian President Luiz Inacio Lula da Silva and President-elect Dilma Rousseff to the G-20 conference. Mantega said they "will try to convince the U.S. to change its position [on Federal Reserve purchases of bonds]."

Massive capital control protectionism via South America in full effect. It's going to get really nasty very quickly.