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Brazil’s Credit Rating and the US inflation problem. In 1989 Moody’s changed the credit rating of Brazil to BB- without a reasonable justification, causing enormous suffering and strife to the Brazilian population and government. Moody’s and S&P, and most Americans, have yet to realize the concept of Real Interest rates, rather than Nominal Interest rates. But it is about time the American investors realize that Nominal Interest Rates is a form of false advertising, bad pricing model, since part of that ...
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