Brazil: Brink of Bankruptcy

It took months to prepare the way. An emergency plan had to be designed to curb Brazil's breakneck inflation, which has raised the cost of living 5-5.4% since February 1962. President Joao Goulart, who built his political reputation as a wage-boosting leftist demagogue, had to take steps aimed to prove that his ways had changed. Last week, when all was ready—or as near ready as possible, Brazil formally asked the U.S. to save it from bankruptcy.

Broad Potential. In many ways, the man who brought the rescue plan to Washington was characteristic of today's...

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