Part 3/7:
Brazil has emerged as a focal point of this crisis, with its currency—the real—facing a steep decline despite aggressive measures from the central bank, including interest rate hikes and direct market interventions. As Brazil's economic woes deepen, it serves as a stark example of how attempts to artificially inflate economic performance through spending have backfired.
The Brazilian government, under President Lula, implemented a spending spree aimed at revitalizing the economy. Initially, this approach seemed successful, but it quickly became clear that the perceived recovery was merely an illusion. The growing public debt, currently standing at alarming levels, has put immense pressure on the currency.