Amy Mek
Brazil’s controversial President, Luiz InĂ¡cio Lula da Silva (Lula), has completed his first 100 days in office and is quickly reversing the illustrious legacy of his predecessor, Jair Bolsonaro. Lula’s radical socialist agenda includes disrupting fiscal discipline, attacking the independence of the Central Bank, and canceling all scheduled privatizations. Brazil is now burying the liberal path and returning to an embrace of socialism.
The former inmate and now President of Brazil lifted the public spending ceiling planned by Bolsonaro for the fiscal year 2023, expanding spending by more than 145,000 million reais. However, the new programmed expenses did not find their due counterpart in more genuine income, resulting in Brazil losing the primary surplus inherited from Bolsonaro. The financial deficit of the national government increased to 4.55% of GDP in February 2023, the highest in the last seven months.
Lula’s government is also introducing “temporary” withholdings on oil exports with a rate of 9.2%, which threatens national production and the acquisition of foreign currency. In response, the main oil companies in the country announced the cessation of investment.
The President has criticized the Central Bank autonomy law, which was sanctioned and promoted by Bolsonaro, and has appointed two new members to the institution’s Board of Directors. Furthermore, the President disbelieves in the fight against inflation and bids for a reduction of the SELIC monetary policy rate, currently set at 13.75% per year.
Furthermore, Lula has canceled all privatizations programmed by the previous administration, including Petrobras, which promised to be the largest in the history of Brazil. The operating surplus of the federal state companies as a whole represented 0.02% of GDP in February 2023, 75% less compared to the 0.08% registered in the last month of Jair Bolsonaro’s administration.
Overall, Lula’s government is advancing in the diametrically opposite direction of his predecessor, burying the reformist path that sought to converge towards a liberal economy and once again embracing interventionist and socialist ideas. Brazil is isolating itself increasingly from international markets, investment, and multilateral credit organizations, which threatens the country’s future economic growth.
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LULA IS JUST ANOTHER SHIT, LICKING THE ASS OF SCHWAB.
ESPECIALLY URINE VON DER LEYEN, MACRON, MARIN AND TRUDEAU LOVE SCHWAB’S ASS SO MUCH! SAME AS TRUDEAU, MACRON, MARIN, ARDERN, VON DER LEYEN AND ALL OTHER WEF TERRORISTS DO!
That was a different perspective from other articles I have read. Lula’s installation was more communist coup d’etat. Millions of people protested, and were tricked into prison camps, force vaxxed, and children separated from families. Some were killed. I honestly was expecting the people to hang Lula, and drag his corpse around the town square, so people could spit on him? Disappointed and underwhelmed.