This document discusses the problem of commodity dependence for Brazil in the context of global imbalances. It outlines how the US, China, and Brazil contributed to the creation of global and financial imbalances. Brazil relied heavily on commodities and faced low investment and technology in manufacturing. Rising private sector debt in Brazil to finance imported manufactured goods leaves it vulnerable if commodity prices or the real exchange rate changes. Deindustrialization and continued dependence on commodities and foreign creditors could exacerbate problems for Brazil's economy.