The process of the dollarization of the foreign debt of Brazil ‘could explode in the first quarter of 2023.' The forecast is from U.S. economist Lyndon LaRouche, in warning of the risks that the world economy, and especially Latin America, runs in the face of the U.S. monetary imposition, with the support of the IMF.

Close to 30% of Brazil's public debt, which totals R$ 684.3 billion, are bonds indexed to variations in the exchange rate. In addition to this, the latest operations of the Central Bank in the financial markets leave as a legacy for the next government, R$ 115 billion in debts which come due by the first quarter of 2003. Of this total, a little more than 10% are paper linked to the dollar.

LaRouche spoke on "The Global Systemic Crisis and the End of ‘Free Trade', in the auditorium of the Latin American Parliament. The economist, who suffered persecution by the rightwing of the U.S. for his positions against neo-liberalism, was honored by the Sao Paulo Municipal Council. In his view, the world monetary system ‘is finished,' but ‘out of fear, the people responsible deny this reality.' ‘You should not think that Argentina and the U.S. are different from one another.'

According to LaRouche, ‘the US lives off not paying the debts of its exports [sic]. Perhaps it would be good if the IMF turned its eyes on the US, as it does in Argentina," he said ironically.

After characterizing the US strategy as ‘a financial swindle,' LaRouche said, that if you compare the debt to the total already paid, ‘Latin America doesn't owe anything more.'

He forecast that, if current conditions continue, August, September, or October could bring conditions identical to those of the First and Second World Wars.

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