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2007 -
January 2007
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Written by Luke McLeod-Roberts
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Wednesday, 17 January 2007 08:43 |
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Assuming a second term of office, Brazilian President Luiz Inácio da Silva told Congress: "One of the deepest commitments that I have with myself, is that of never forgetting from where I came." The president's personal history of poverty, migration from the northeast and a childhood lost to gruelling work is well-known among Brazilians and resonant of the struggles many of his compatriots face.
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- His social investments are mainly the 8 billion Reais for 45 millions citizens, or the equivalent of 0,45 reais per day, representing less than 2 % of the federal budget for 23 % of the poorest citizens. Not so social.....in my view. !
As for the economic growth, Lula totally failed to deliver during his first mandate by having the lowest growth rate of all comparative countries...on this planet. Thus if he intends to continue that same way...guess what will be the growth rate of the next four years ! Lagging everyone....again....probably !
Despite your actual "low" rates, they are still the highest in the world......after inflation ! Thus they are still very high
these apparent low rates.
Far worse is the lending rate of the banking industry. Unheard of.....on this planet too ! Well above 130 % for overdrafts,
around 55 % for individals, 30 % for small and medium companies, and below 10 % for large companies....as they are financed and subsizided by the government through the BNDE.
And all this while your inflation is below 4 %. Truly a license to steal accepted.....by a leftist ! Curious ! There is no other country on this planet where bankers could do the same....without the risk of being jailed !
Therefore the Brazilian common saying of : buy one...but pay 2 or 3....is quite accurate.
Or the other common saying : if you buy 1 good for you....you must offer 1 or 2...to your banker.
A real official and accepted license to steal. A verbal and secret deal...with Hell (Lula) : steal as much as you wish from the population.....as long as you vote for me and dont bother me !
Sadly that same type of backstage deal has been in force with ALL the corrupted politicians.
Therefore Lula and his gang will still say how much the consumers loans increase, but hide the reality that it is from a very low
starting base and with interests rates unheard elsewhere !