Hardcore leftist next probable President of Brazil
He attended only primary school, went to work in a machine shop at 15 and was jailed as a firebrand leftist leader by the former military regime. But eight days before a landmark presidential election, opinion polls show Luiz Inacio Lula da Silva is within a stone’s throw of sweeping to the highest political office in Brazil.
The World Bank / IMF / US do NOT want him to win as he will not be pliant on debt, privatization, and in letting them do as they please.
Although more Brazilians than ever appear ready for Lula (as he’s commonly known), both Brazilian and foreign investors are hedging their bets.
They pounded Brazil’s currency, stocks and bonds this week, fearing he represents a sharp break from the market-friendly policies of current President Fernando Henrique Cardoso, who leaves office in January after eight years.
Financial woes hit pre-election Brazil
As soon as the election is over, according to this hopeful argument, and Lula shows that he is no longer the radical he was and puts some market-friendly names in charge of the economy, then everything will go back to normal. <translation: If Lula will only pledge fealty to DC, then all will be safe for the World Bank>
But a growing number of voices express worry that Brazil’s problems may be more deep-seated. It is the size of the debt, they argue, which is crippling the economy, and they say Brazil should never have opened up so quickly to outside capital, which in a climate of global uncertainty is bound to take its money to safer shores.
They also warn that the market, by pushing down the currency and stocks to record lows, is creating a self-fulfilling prophecy. As the currency devalues, it gets harder and harder for the government and companies to pay debts based in dollars.
Fearing a debt default, international investors are creating the conditions to provoke one.
Will we be seeing coup attempts soon in Brazil – similar to what recently happened in Venezuela? Keep on eye on this. There are powerful forces that do not want a leftie as President of Brazil.