Sunday, March 06, 2016

Ms Rousseff: an 83 billion gift

"Folha de São Paulo" published on January 29th:
"In an effort to revive the economy, the government announced on Thursday (28) measures to unlock up to R $ 83 billion in credit to sectors such as housing, agriculture, infrastructure and small and medium enterprises.
The package includes the active participation of public banks and the use of FGTS (Time of Service Guarantee Fund), providing even the possibility of workers using resources of their own balance in the fund to obtain payroll loans.
The announcement was made during a meeting of the Council for Economic and Social Development, which brings together 92 participants, including businessmen, trade unionists and representatives of civil society. "
What does that mean?
That ms Rousseff is giving 83 billion reais for entrepreneurs, providing them, via BNDES loans, public money at low interest rates.  BNDES interest rates are much lower than those practised by private banks.
That means, Ms Rousseff, in spite of Brazil's delicate financial situation, has decided to let cheap public money to enterprises, thus increasing Brazilian public deficit by 83 billion reais. To cover the shortfall she's been purposely causing to Brazil's finances without any need at all, she wants to recreate the CPMF - a tax levied on every banking transaction made, regardless of its profitable or non-profitable character.  Brazilian people must understand that nothing justifies this colossus of public money being given to companies and entrepreneurs.  The country's Treasury is in deficit, so that the President wants to impose the return of the CPMF! If the country lacks money, why on Earth does the President make such a decision?
More: no, NO benefit at all shall such expenditure bring nor today, nor tomorrow, nor on Sunday.  It's a gift, a prize for those who are incapable, by their own means, of producing anything competitive;  those who could obtain banking loans, but refuse interest rates everybody else pay.  Maybe otherwise such amounts are destined to those who won't create anything at all.  And more tax pedaling. More attack on the resources of public banks. But profligacy to favor a few and increase public deficit and inflationary pressures.
This Nelson Barbosa: we ought to demand his resignation.
Dilma: the disastrous decision to create an 83 billion expenditure as a gift for entrepreneurs, while demanding that people pay its bill with heavier taxation, is just one amongst several other proofs that Dilma does not know how to  perform her duties, her rule has no legitimacy, is despotic and unprepared, and reckless most of all.  No decent public manager would decide to  lend almost 100 billion to alleged "investors", thus increasing public deficit,  especially in an already indebted country as Brazil.
This is more than enough to impeach Dilma. Who says no is either stupid or a fawning flatterer, a doormat, or an outlaw. Simple as that.

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