Brazil’s Economy Falls Into Record Breaking Depression

The latest economic figures showed Brazil is now heading for its worst decline since the Great Depression of the 1930s.

Unemployment is now at a five year high, inflation is nearly twice the government’s target, the value of wages has fallen about 5% since May 2014, and the nation’s GDP is forecast to shrink about 4%.

Warned the economy was slipping into a full blown depression, impeachment proceedings were initiated late Wednesday against President Dilma Rousseff.

The real strengthened 0.2 percent to 3.8308 against the U.S. dollar as traders bet Rousseff's impeachment could pull the country out of its political paralysis.

Impeachment hearings could take months, involving several votes in congress that ultimately may result in the president's removal.

The majority of Brazilians in public opinion polls agreed that congress should open impeachment proceedings against the president.

Surrounded by top cabinet members, she denied any wrongdoing and said the arguments in favor of impeachment were false.

Drafted by a former member of the workers' party and a retired justice member, the impeachment request accuses Rousseff of manipulating fiscal accounts to mask the size of budget deficits in 2014 and 2015.

Rousseff's ruling coalition on paper has enough members in congress to block impeachment hearings from starting in the Senate.