Germany And Brazil Torpedo Currency Deal At The G20

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If you were wondering who to blame for the meek G20 result look no further than Brazil and Germany, according to the Financial Times.

South Korea and the United States had agreed to a plan to limit trade surpluses and deficits. The limits weren’t too strict, at 4% of GDP either way. China even felt they were acceptable.

But Brazil and Germany said no because their exporters wouldn’t have it, according to the FT.

So if Brazil starts complaining about hot money flows from QE 2, or Germany about the yuan-euro exchange rate, it is likely to fall on deaf ears.

Check out what emerging nations are doing to fight Bernanke’s hot money blitz >

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