Brazil & Argentina: Big Two in Trouble

BRAZIL & ARGENTINA

Brazil and Argentina, the two biggest nations in South America, are both suffering from the same disease—political unrest based on economic difficulties, as well as (to put it the other way around) economic trouble brought on by politics. Of the two, Brazil's economy is in much the worse shape.

At his press conference last week, President Kennedy bluntly outlined the situation in Brazil: "almost unprecedented" inflation, boosting the cost of living 50% within a year, causing "the most severe dislocations. I think that the Brazilian government is aware of the strong concern that we have for this...