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Despite Promises Lula Did Less for Land Reform than His Neoliberal Predecessor PDF Print E-mail
2010 - February 2010
Written by Chris Tilly, Marie Kennedy and Tarso Luís Ramos   
Saturday, 20 February 2010 00:00

Landless Workers' Movement The Landless Workers' Movement (MST) of Brazil, which has mobilized more than a million Brazilians to occupy and farm large landholdings, was cautiously optimistic when Luiz Inácio Lula da Silva of the Workers Party won the presidency in 2002. "We campaign for Lula," remarked MST organizer Jonas da Silva (no relation) during the campaign, "even though we are critical of him for shaping his discourse for the middle class."

In the country with perhaps the most unequal land distribution in the world, electing a pro-worker, pro-poor president marked a potential turning point.

But as Lula finishes up his second term (new presidential elections take place in October 2010), the MST's assessment is grim. Land redistribution has stagnated, the government continues to bet on agribusiness as a development strategy and, most threateningly, powerful regional politicians are moving to criminalize the land seizure movement as "terrorist."

The MST is doing its best to fight back, but controversial recent MST strategies and antagonistic mass media have diminished the popularity of a movement that once enjoyed widespread national support.

Lula followed on the two presidential terms of Fernando Henrique Cardoso, who had implemented an unapologetic neoliberal program of free trade, privatization, and containing the demands of workers and the urban and rural poor. There was good reason for hope, since the Workers Party had formed close alliances with the MST and a variety of other social movements.

The post-dictatorship constitution of 1988 affirms that land is for socially productive uses, a requirement past governments have at times invoked under pressure to confiscate and redistribute property. But to the dismay of landless families hoping for a plot to cultivate, land redistribution actually moved slightly more slowly in Lula's first term than under Cardoso.

As the end of his second term approaches, it seems unlikely that Lula will manage to settle more families through agrarian reform than his neoliberal predecessor. What's more, three-quarters of the land redistributed by Lula has been in the remote (and in many cases ecologically fragile) Amazônia region, far from the concentrations of people petitioning for land, such as in the impoverished Northeast. Nearly half of Cardoso's land grants were in Amazônia.

Despite the slow pace of land reform, there are some signs of progress. João Paulo Rodrigues, a MST National Directorate member based in São Paulo, noted, "Lula has provided better supports for small farmers in the form of credit, technical assistance, education, electrification, and roads" - though still not enough.

He added that the Lula administration has dropped the Cardoso government's campaign to criminalize the MST (though, as we will explain further below, various state governments have revived that effort). While the number of killings of landless activists surged the first year Lula was in power as the movement shifted land occupations into high gear, violence has now abated to a lower level than under Cardoso.

"There is a change in the form of persecution," explained Maria Luisa Mendonça of Social Network for Justice and Human Rights (Rede Social), a human rights group that works closely with the MST. "Instead of killing activists, now they (state governments, which are chiefly responsible for law enforcement) arrest them. It's better than killing them, but it doesn't mean that the persecution has ended."

Lula's government has also undertaken other progressive reforms, most notably the "Bolsa Família" (literally, family pocketbook) program that provides a basic income to the very poorest families. Though the aid does not confront the structural causes of poverty, it provides a crucial margin of survival and offers incentives for families to keep their children in school.

Responding to criticism that Bolsa Família is a form of clientelism, the MST's Rodrigues reasoned, "Yes, it's clientelism. But given the extreme poverty in Brazil and the large numbers of people going hungry, these clientelist policies are necessary." He quickly added, "Necessary, but insufficient." The MST's support (if grudging) is notable, because arguably the stipend reduces the incentive for families to take the risk of occupying land, potentially weakening the landless movement's social base.

The MST's biggest disappointment with Lula has been the former militant union leader's enthusiastic embrace of agribusiness. The Brazilian economy rode high on the commodities boom of the 2000s, with huge expansions in soy, sugar cane, and eucalyptus plantations (the last primarily for paper production).

Factory farming is expanding at a ferocious clip: according to MST leader Rodrigues, in three years in the southern state of Rio Grande do Sul alone, 300,000 new hectares of eucalyptus have been planted (a hectare is about 2.5 acres), dwarfing the 100,000 hectares the MST has put into cultivation in its entire 25 years of activity.

The environmental consequences have been predictably negative: monocropping, heavy use of chemical inputs and genetically modified strains, voracious water consumption (eucalyptus plantations have been dubbed "green deserts"), toxic by-products, and expansion into wetlands in the Amazon and other areas - especially in the case of sugar cane.

Ironically, much of the sugar cane goes into Brazil's massive "eco-friendly" ethanol fuel industry. Unlike the U.S.'s corn-based ethanol industry, Brazil's cane-based system makes money without subsidies - but this accounting overlooks the unmeasured costs of environmental devastation and labor exploitation (or the fossil fuel used in its production and, in the case of export, transportation).

The Brazilian government was to announce regional zoning barring sugar cane from Amazônia in February 2009, but that declaration has not yet materialized and human rights advocate Mendonça states flatly, "I don't think it's going to happen."

But if the environmental consequences of agribusiness have been dire, the social consequences are at least as ominous. Far from displacing Brazil's traditional landed oligarchy, the agribusiness boom has forged a new alliance between giant landowners, chemical-agricultural transnationals such as Monsanto and Syngenta, and the national government.

The plantations generate exports, but few jobs: the MST estimates that eucalyptus monocropping creates one job per 185 hectares, as compared to one job per hectare for small-scale farming. Those jobs created are often poor, sometimes to the point of being subhuman.

Social Network found that in 2007-8, half the reported cases of slave labor in Brazil (3,000 of 6,000 cases) were found in the sugar cane industry. Despite such concerns, the scale of government support has been nothing short of astounding.

According to American University political scientist Miguel Carter, "from 2003 to 2007, state support for the rural elite was seven times larger than that offered to the nation's family farmers, even though the latter represent 87 percent of Brazil's rural labor force and produce the bulk of food consumed by its inhabitants."

The reason for this asymmetry is not just economic pragmatism, but also political arithmetic: despite a nominally democratic system, the tiny minority of large landowners controls the majority of seats in Congress. As the MST's Rodrigues wryly observed, "Lula has a majority in the House of Representatives and only falls a little short in the Senate. But he gets that majority by proposing policies that serve agribusiness."

From Escalation to Criminalization

Sizing up the agribusiness menace and the opportunity posed by Lula's victory, the MST made two fateful decisions in 2003. One was to accelerate land occupations to force the land question with Lula's government. The second move was to depart from its historic policy of only taking lands that were fallow or where major violations of labor rights were taking place, and adding to its targets productive agribusiness plantations, which the movement sees as the principal threat to the survival and expansion of small farms in Brazil.

In some cases, activists have adopted disruption, as when close to 2,000 women affiliated with the Peasant Women's Movement (MMC) - which, like the MST, is a member of the global peasant coalition La Vía Campesina - entered a facility of the Aracruz Cellulose corporation and speedily destroyed greenhouses and nearly eight million eucalyptus saplings on International Women's Day in April 2006.

The protest was particularly embarrassing to Lula's government, taking place as it did just outside the city of Porto Alegre where the president was busy hosting the United Nations' International Conference on Agrarian Reform and Development (ICARRD) and positioning his government and Brazil as a world leader on land reform.

The major Brazilian media, as tightly tied to the big landowners as is Brazil's Congress and always quick to find fault with the MST, cried foul. They were joined by a number of prominent intellectuals, such as José de Souza Martins, the country's best-known rural sociologist, who, even before the action, had branded the MST as Luddites.

Tactical escalation combined with media condemnation turned Brazilian public opinion, quite favorable in the late 1990s, against the MST. This even extends to likely supporters: in a mid-2009 interview, a youth organizer in a São Paulo favela (slum), whose philosophy and organizing approach mesh closely with the MST's, decried the organization's alleged violence and confrontational attitude; he conceded that his source for the information was the same media he didn't trust as a source on urban issues.

A Social Network review of 300 articles about the MST in Brazil's four largest-circulation dailies found only eight that were neutral or partly positive.

Complicating matters, being the largest and best-known agrarian reform movement in Brazil, the MST is saddled with the negative press coverage given to other radical groups working for land redistribution. Even as public opinion turned against the Landless Workers' Movement, former close MST allies such as the left-leaning Unified Federation of Workers (CUT) union closed ranks with the Lula administration against threats from the right, distancing themselves from the MST.

The worst was yet to come. In 2006, conservative Yeda Crusius won the governorship in Rio Grande do Sul, a state with strong MST organization and a high pitch of militant land struggles (including the Aracruz action). Crusius set out to target the MST. She attempted to eliminate the so-called "itinerant schools" that provide funding for teachers to travel to rural areas - a keystone of the infrastructure of the temporary encampments where MST families live while fighting to obtain land.

The MST has developed its own curriculum and teacher training (based on Freirean pedagogy), oriented to the realities of rural life and a participatory vision of citizenship, and closing the itinerant schools would have wiped out this curriculum and compelled children to travel to the cities for their education.

Crusius' administration spoke of "saving children from aggressive indoctrination." The governor finally backed off in mid-2009 as international criticism mounted, and the mayors of the state made it clear that they did not want farm children flooding their schools.

But even more significantly, once she was elected, Crusius swiftly mobilized the Office of the Federal Prosecutor to criminalize the MST, dusting off the dictatorship-era National Security Law to charge eight movement leaders with belonging to an organization that uses violent means to undermine democracy (charges were later dropped against two of the eight).

The case includes far-fetched allegations, for example that the MST is allied with Colombia's rebel Revolutionary Armed Forces (FARC), but the prosecutions are bolstered by what lawyer/advocate Aton Fon Filho of Social Network calls "the most conservative judiciary in the country." Fon, who is defending the MST activists, said, "We think we'll win the case. But meanwhile, it has a huge propaganda impact - all those headlines saying 'MST leaders charged with terrorism!'"

The MST is not the only land rights organization suffering from a government crackdown. "There is more organized persecution of social movements in general," said Fon, though other prosecutions involve individual charges rather than an attempt to criminalize an entire organization.

For example, in the state of Tocantins in the north, the government has arrested 16 activists of the Movement of Dam Affected Peoples (MAB). And the killings of land reform leaders have not ended. Two activists from the Pastoral Land Commissions (the Catholic Church-based organizations that spawned the MST) in Mato Grosso do Sul were killed in June 2009.

And in the Amazon state of Pará, trials are continuing of the accused in the 2005 murder of American nun Sister Dorothy Stang, who challenged deforestation and supported redistribution of lands the military dictatorship had awarded to local elites. According to Fon, "The person convicted of ordering the murder is free pending a fourth trial in the case while the rancher suspected of actually orchestrating the plot has yet to be tried."

A Cloudy Future

One could criticize the MST for ramping up its tactics at a delicate moment, but that would be missing the point: through its entire history, the MST has only been able to chip away at the disproportionate power of the landholding minority via high-profile tactics of civil disobedience and disruption. Others might argue that the MST is holding Lula's feet to the fire in terms of accountability and promises made on agrarian reform.

But that said, what are the prospects for near-term success? "Agrarian reform depends on two things," the MST's Rodrigues explained. "The organization of the people, and a progressive government willing to work with us. In 25 years of work, we have made much progress in organizing, but we have not encountered a people's government truly committed to agrarian reform."

The 2010 presidential elections do not hold out much hope in this regard. The two likely leading candidates are Lula's chief of staff, Dilma Rousseff of the Workers' Party, and José Serra of the Brazilian Social Democratic Party (the party of Cardoso and Crusius).

"Both are to the right of Lula," commented Rodrigues. Given the political context, the MST is doing its best to fend off legal challenges, build new alliances, and continue organizing.

International support can be tremendously important, as in the case of the itinerant schools in Rio Grande do Sul. And the underlying social issues are not going away. At bottom, as long as the distribution of land in Brazil remains so lopsided, there will be a mission and a social base for organizing the landless.

Marie Kennedy is professor emerita of Community Planning at the University of Massachusetts-Boston and visiting professor in Urban Planning at UCLA. She is a member of the board of directors of Grassroots International.

Tarso Luís Ramos is director of Political Research Associates in Somerville, Mass., and a member of the board of directors of Grassroots International.

Chris Tilly is a Dollars & Sense Associate and director of the Institute for Research on Labor and Employment and professor of urban planning at UCLA.

This article appeared originally in Dollars & Sense: Real World Economics - www.dollarsandsense.org.



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Comments (19)Add Comment
Agrarian Reform - Land Redistribution - Ideas of a time long gone....
written by Ricardo C. Amaral, February 20, 2010

Ricardo: The writers of the above article have their little agendas based on a time and world long gone and they are missing the new realities and the big picture of today.

The ball game has changed drastically in a very short period of time the world will reach 7 billion people in the near future – and we can’t still have theories and act as if we still living in the 18 and 19 centuries with a fraction of the global population that we have today.

Wake up - we are in the 21st century with global problems such as overpopulation, global warming, freshwater shortages, and so on….

I would suggest that they should read at least part 3 of the enclosed articles plus the comments following of that article.


*****


Brazzil Magazine – October 2007 - "The Smartest Thing China Could Do Right Now: Invest US$ 200 Billion in Brazil" - Written by Ricardo C. Amaral

…The final conclusion is: It's imperative that China move forward in an aggressive fashion and implement with Brazil the plan described in this four-part series of articles. And China should look at it as a matter of national security and future survival.

Monday, 01 October 2007 - Part 1 of 4
http://www.brazzil.com/compone.../9977.html

Friday, 05 October 2007 - Part 2 of 4
http://www.brazzil.com/compone.../9979.html

Thursday, 11 October 2007 - Part 3 of 4
http://www.brazzil.com/compone.../9983.html

Tuesday, 16 October 2007 - Part 4 of 4
http://www.brazzil.com/compone.../9985.html


.
Ricardo Amaral
written by Lloyd Cata, February 20, 2010
The Brazilian economy will be better off in the long run under the new Asian currency system than under the fragile, weak, and old Brazilian currency system.

If this is your view, sir, is it your contention that Latin America and its economies are too immature to build an economic model outside the influence of East-West economic conflict? Given your animosity to 'Mercosul' and apparent dismissal of a common currency in Latin America(Bolivar?) then doesn't your recommendation, in fact, hasten the crisis of destabilising the region by moving to a formula that would crowd out Western investment and lead to armed conflict?

The nature of this recommendation is not without consequences, and I'm sure you are intimately aware of these 'consequences' throughout the region. Of course, anyone can see the 'short-term' advantages of such a policy for those doing 'business' with the presently rich Asian economies, but does it conform to the Brazilian policy of 'non-alignment' or does it simply trade one monolithic and "Communist" economic policy for the present Western model?

Many years I have been telling my children and the parents of other children that there is a Chinese person in their future. Whether it is in the economic marketplace or on the battlefield this has remained true. I see no reason to wholeheartedly bring Brazil into this fight on one side or the other.
Ricardo Amaral
written by Lloyd Cata, February 20, 2010
Basically, you don't have to look further than the savings and loans crisis of the 1980's that cost over US$ 200 billion in taxpayer money to clean that mess. Then we had Enron, WorldCom, Adelphia Communications, Global Crossing, Citibank, Tyco, mutual fund industry scandal, the hedge fund industry scandal, Halliburton scandal and so on....

So there is certainly nothing wrong with your vision, it appears we have a difference of perception and response. Truly, some of your notions are quite extreme and really unrealistic except under the type of authoritarian rule that would be required to carry out such policies, such as your plan of 'population control'. I really can't imagine that this thinking has much following among even the elite in Brazil. I am quite prepared to admit my error if this should be incorrect because, after all, the premise of this publication is "Trying To Understand Brazil" which is something I may never accomplish. The road is long...but...but...but, other sources like the authors of this article seem to agree more with me than with you, and the more I find this the more I become suspect of your credibility, methodology, and formulations. Let me say, for your information, that I was an officer of a major bank during the merger of banks and trading houses following the repeal of Glass-Steagal during the '80's. In fact, you may know the firm which owns the black building next to what was the WTC(which is stll in dispute 8 years later). That also was my neighborhood for many years on Wall Street.
For better information and analysis on this period and consequences;

http://www.cato.org/pubs/journal/cj10n2/cj10n2-4.pdf

Perhaps you should really try linking to credible sources outside your own extreme and authoritarian statements. I am not unaware of your infatuation with the tyranny under the generals, but that seems the basis for a solution to 'all' the issues. If you insist on linking to yourself, please provide a link to something that would benefit and effect for the better 'all' Brazilians. Can you show me that?
HHHHhhhmmmmm ...... You Can't Fool All The People
written by Lloyd Cata, February 20, 2010
*** Ricardo ***
With the indulgence of the author I will reprint a response that I found most fitting for your premise;

written by conceicao, October 17, 2007
Chinese economic development has been tranformative for Brasil. When China started buying multi-billion-dollar amounts of soybeans, iron ore and other commodities, the terms of trade between Brasil and the developed world changed in Brasil's favor. But, the last thing that Brasil needs is to offer itself up as China's bitch. What Brasil really needs is as close an approximation as possible of the golden age of free trade in commodities that existed in the period 1840 - 1860 (see p.278 of the Greenspan book).
Just as energy independence was borne out of Brasil's comparative advantage in biofuel feedstuff production, general economic development and the attainment of relative affluance would be borne out of Brasil's current comparative advantage in agricultural, mineral and water resources. The Brasilian people don't need anyone to tell them how to do anything, they just need a fair price for their commodity exports and the rest will follow. The answer is not more government jerry-rigging of trade relationships. THe answer is for government to get out of the way so that people around the world have the right to pay up for what Brasil has to offer at a fair price in a free market.


But don't despair that I have given up with you because your analysis of the bio-fuel industry from its inception to your correct disagreement with using bio-fuels as an export commodity was very good. Kudos!
smilies/wink.gif
...
written by Nicholas (usa_male), February 23, 2010
Factory farming is expanding at a ferocious clip: according to MST leader Rodrigues, in three years in the southern state of Rio Grande do Sul alone, 300,000 new hectares of eucalyptus have been planted (a hectare is about 2.5 acres), dwarfing the 100,000 hectares the MST has put into cultivation in its entire 25 years of activity.

Conclusion: The MST is an uninefficient progressive (progressive, pc language for radical left wing, communism, socialsm etc)organization controled by a group of "intellectual" crooks, don't care about the people then themself.

"Agrarian reform depends on two things," the MST's Rodrigues explained. "The organization of the people, and a progressive government willing to work with us.

There you go: they need a crazy liberal administration, to complete the mission. If MST were an american organization, (well actually we have one "similar" like them, ACORN) oh boy, they would feel home here with the obama administration who's full of radicals. Oh by the way, want to know more what you can expect when "real" friends of the MST are in charge, create big government and control the economy? Just read some history of Peru when it was under control by radical left wing nut called Velasco, supported by the shining path. I bet you will say..mmm, that sounds or looks familiar to me. Make no mistake with those criminals, they come with different names, tactics and faces, everywhere, but the agenda is the same. It's all about control,power.
Chris Tilly, Marie Kennedy and Tarso Luís Ramos
written by Adriana A.,, February 23, 2010
This news is for you all since you all care about the condition of the less privileged. Right? Or no? Or just a select and specific group to fit your agenda?

Orlando Zapata Tamayo 42 y.o. died today after has spent 85 days without food in a Cuban Jail. He was there since 2003 and decided to go without food after his sentence was extended to 36 years in jail. He was recognized by Amnesty International. This is Lula's 3rd visit to Cuba and he already said that he is not going to meet with the Cuban dissidents or any Human Rights groups as he was asked last week. This is how this "individual" called Lula is concerned with Human Rights. Shame on you, Shame on you! You are going to live with that in you concious (if you have one)for the rest of your life. And do Brazilians and the world a favor, don't talk anymore about the disadvantaged and the poor and the oppressed; you are loosing credibility if it is not lost already. I trust this nightmare will be over in October, specially after the newest PT scandal -TELEBRAS. Thieves!!!

P.S. Oh no, I forgot. He is going to meet with the Iranian President in May. I will be doing lot's of meditation by then.

Interesting that people complaint about social injustice in Brazil, but the most weird detail is that Lula and his Gang has been in power for soon to be 8 years at Federal level, HE IS THE PRESIDENT FOR GODS SAKE!!! WHAT ARE THEY DOING, 8 YEARS!!! Even Lula when he went to Maranhao the poorest state in Brazil with Jose Sarney on his side, talking to the people there and saying things like: it's not fair, the way you guys are living here, this is not humane. Jesus, he is the President! People will notice that, this contradiction. I mean, is not like he cannot do anything, he is the president.

HeHeHehehe ...Now Are We To Accept Comedy For 'Conclusion'?
written by Lloyd Cata, February 24, 2010
Rio Grande do Sul alone, 300,000 new hectares of eucalyptus have been planted

Wonderful 'progress' if you can magically produce 300,000 hectares that will magically appear before the eyes of the world. Good trick!smilies/wink.gif
Now let's see...I'm figuring no less than 5000 people would have been removed from such an area suitable for farming, eh? Too low, I know! Well, we should agree then that they were all vagabundos, eh? Why not! They will simply have to camp somewhere else, because I have a judge who will enforce their removal, or allow my 'boys' to 'take away the trash', no? Si!
They must understand that I 'must' be productive to my investors, and the tax, and the governors people, and the judge, and the mayor, and my boys. Everyone depends on me now. How productive I am to support so many worthy causes. If only I could get rid of the tax!!! It only goes to feed those worthless vagabundos who now collect the Bolsa......aaaayyyyy, such worthless people!!!

Now who are these MST people stirring trouble when everything was settled with so many payoffs? Why do they wish to take what is so productive? Why do they torment me when I am paying already to so many people for my productivity? Do you like my watch, Cartier, from New York?

"The organization of the people, and a progressive government willing to work with us."

Now those 'people' removed from 'their' property in order for increased productivity have no share in anything. Perhaps not even to qualify for the Bolsa with no address. Truly vagabundos! Yeah, some scatter to the wind, but others stick around, and organise, and find friends who understand injustice, and find more friends to investigate the judge, and more friends to investigate the governor, and more friends in the press.

Eventually they will come for me. Just me and the 'boys' will have to stop them. Why doesn't the police come and save me? Don't I pay every price to protect what is 'mine'?
Conclusion
written by Lloyd Cata, February 24, 2010
The thief is always more productive than the working man, until it becomes clear that he is just a thief.
Reply to Lloyd Cata
written by Ricardo C. Amaral, February 24, 2010

Brazzil magazine - July 9, 2009 - “With US Capitalism’s Demise It’s High Time for Brazil to Adopt the New Asian Currency” – Written by Ricardo C. Amaral
http://www.brazzil.com/compone...l#comments

Quoting from my posting on the comments section of that article:

Reply to Mr. Manfred - Part 2
written by Ricardo C. Amaral, August 09, 2009

Manfred: The reason why I am writing to you about this is that I see here an opportunity for South America to move ahead. Yes, new institutions, credit, a unified currency, etc. are needed; but also widespread, positive self-esteem and a feeling of empowerment.

… A South American unified currency would give collectively the people the experience of and a feeling for pride in having accomplished some independence (¡Sí, podemos!) and will free them to focus more on matters at home instead of blaming the new emperor(s).


*****


Ricardo: You should read some of the articles that I added at the end of my article about the “New Asian Currency”. If you read these articles then you will understand the reasons why I am suggesting that Brazil should adopt the “New Asian Currency.”

Creating “The Bankrupt” as the new mega currency for South America is not going to accomplish any of your goals. You don’t have all the economic foundations and financial structures necessary for this currency to be considered a major foreign exchange reserve currency.

If South America decides to adopt “The Bankrupt” it will be just an empty and marginal currency without the necessary foundations necessary for that currency to be taken seriously by the international monetary system.

You don’t create a new mega currency just to make people feel a positive self-esteem and a feeling of empowerment. In Brazil we have soccer tournaments that serve for that purpose.

Brazil has been independent of Portugal since 1822, and I doubt that there is a single soul in Brazil who still is blaming what is happening in Brazil today on what happened 200 years ago when Brazil was a colony of Portugal.

Brazil is larger than Europe, and Brazil is 50 percent of South America. Besides, Brazil already has a population approaching 200 million people of whom 100 million people are destitute and live in complete poverty.

Please tell me why Brazil should unite with a group of very poor countries and triple the number of uneducated people who are living in complete poverty?

We are in the 21st Century and it does not matter where a country is located – that country will be able to choose any mega currency that is the best choice for each individual country based on trade and many other economic factors. Technology changed everything, and the rules for the new international monetary game has been drastically changed since the creation of the euro.

The reason I changed my mind about 4 or 5 years ago about Brazil adopting the “New Asian Currency” instead of the euro has to do with what is the best economic strategy for Brazil regarding the coming decades.

Please tell me what is better for Brazil regarding the coming decades. Here are your 2 choices:

1) Brazil adopts the “New Asian Currency”

The Brazilian economy prospers beyond imagination under the umbrella of a very stable “New Asian Currency” – a monetary arrangement among countries such as China, Japan, India, South Korea, Singapore, Thailand, Hong Kong, Taiwan, and Brazil.

A new currency arrangement with a very strong, stable and state-of-the-art financial market and very low interest rate – and this financial stability help all the members that adopted this currency to develop and implement all kinds of long-term projects – it is good for local governments and to private industry as well.

The currency stability and a strong financial market mean that long-term capital can be raised, and also paid in local currency.


2) Brazil adopts “The Bankrupt”

“The Bankrupt” would be a monetary arrangement among countries such as Brazil, Argentina, Bolivia, Paraguay, Peru, Chile, Colombia, Uruguay, Ecuador, and Venezuela.

No financial stability, very high interest rate, high inflation around the corner, and the concept of a long-term investment boils down to just a few months in the future.

If anything under such a monetary arrangement the interest rate for Brazil would be higher than if Brazil stayed with its current currency - the Real.

Brazil has nothing to gain by adopting “The Bankrupt.”

Sorry to disappoint you. But that is the economic reality of South America, and I know my answer is not what you were expecting.

Ricardo C. Amaral

.
Reply to Lloyd Cata
written by Ricardo C. Amaral, February 24, 2010

By the way, you asked me why I don’t quote other sources of information and quote mostly my own articles?

I can’t quote other people when I am the only game in town on that subject. I am the only person that I know of that have been writing about Brazil adopting the euro as its currency and in the last five years have been writing about the “New Asian Currency”.

When you find other articles on this matter they are from other people commenting on my articles.

You also should read the following to better understand this subject:

Brazzil Magazine - March 2, 2007 - “Here Is Why Brazil Should Adopt the New Asian Currency” - Written by Ricardo C. Amaral
http://www.brazzil.com/compone.../9821.html

…The global economy is in the process of being rearranged and these changes are the result of globalization combined with the development of state-of-the-art new technologies such as a world that is connected by fiber optics, the constant increases in computer power, a growing global Internet system that is connecting everybody, and the astronomical developments in global communications that has been making it easier to communicate and send information via satellites, Internet, email or telephony.

Globalization, technology, and the amount of money that is moving around the world at the speed of light are forcing countries around the world to form these currency unions.

.
Reply to Lloyd Cata
written by Ricardo C. Amaral, February 24, 2010

By the way, Mr. Manfred sent me a private email after reading my article about the “New Asian Currency” and he asked me many questions regarding a currency for South America.

Mr. Manfred is a European economist who was doing work with various Spanish-countries in South America in the area of economic development.

After I sent him a reply to his email I also posted some of the information on the comments section of that article without identifying Mr. Manfred’s full name to protect his identity – Manfred is his first name and not his family name.

.
...And Around, And Around You Go. Where You Will Stop, Nobody Knows!
written by Lloyd Cata, February 24, 2010
Ricardo - The Brazilian economy will be better off in the long run under the new Asian currency system than under the fragile, weak, and old Brazilian currency system.

Lloyd - If this is your view, sir, is it your contention that Latin America and its economies are too immature to build an economic model outside the influence of East-West economic conflict?

I take it sir that your answer is yes, "Brazil and Latin America are too immature to build an economic model of their own." With such an opinion, of course supported by any number of 'influential' friends in Europe and elsewhere, there seems little chance of such a historic event.

Well, sir, there has just been a 'little' meeting in Mexico to address this problem and find a 'framework' for Latin American and Caribbean economic freedom. I'm sorry your US, Euro, and Asian friends were not invited, but I am sure they are watching closely.smilies/wink.gif

Ricardo - the best economic strategy for Brazil regarding the coming decades.

Lloyd - But...but..but...your Euro prediction only lasted 5 years, and now this is a complete reversal to adopt a Communist economic model. I can understand the short term gains that this may look tempting. Yet you understand that there are short-term bonds and long-term bonds(50yrs). Such a strategy would commit to the 'long' view, and place Brazil in the grip of Eastern bankers versus their present Western criminals.

I am trying to understand your callous attitude toward not only the rest of Latin America and the region, but to the 100 million 'Brazilians' who you clearly find of no use. I don't like to put labels because people misunderstand, but, again, your recipe sounds like the alliance between Hitler and Mussolini, or Hitler and Russia(and you know how that one turned out).

You suggest Brazil should play the East-West card to jump on the rising tide. You want to 'bet' on the young, fast horse. I understand as a money manager that would be your preference. Depending on ones point of view, it is fine to gamble with 'your' money. You underestimate, my friend, the still formidable ability of the Empire to affect the monetary policy of the planet. Did you realize that Ronald Reagan stole $2 TRILLION dollars from the Japanese which led to 2 decades of Japanese decline. How do you think he got the money for 'Star Wars' and to halt the Communist economic expansion?

Ricardo - I can’t quote other people when I am the only game in town on that subject. I am the only person that I know of that have been writing about Brazil adopting the euro as its currency and in the last five years have been writing about the “New Asian Currency”.

I am sincerely delighted that your prescription then was ignored, as will be your present prescription, because if they were ever adopted by the majority there would be mass genocide in Latin America worse than anything seen in Africa. Somehow that has not touched your psyche, sir, and if it has, it is all that much more dangerous.


Oh...Oh...Oh...Before I Am Accused Of Ignoring Your Scheme...
written by Lloyd Cata, February 24, 2010
Ricardo -
Here are your 2 choices:
1) Brazil adopts the “New Asian Currency”
2) Brazil adopts “The Bankrupt”


Sorry to disappoint, sir, but a 'free' people do not limit themselves to 2 choices. The first premise of freedom is being able to make your own choice. That appears to be the consensus of the latest meeting in Mexico, whether you agree or not, or whether you like it or not.smilies/cheesy.gif

BTW, much of the present Brazilian economy is based on the “The Bankrupt”, which is the dollar. It's just a matter of not being the last one holding such worthless paper.smilies/shocked.gifsmilies/angry.gif
Begging Your Indulgence....
written by Lloyd Cata, February 24, 2010
Ricardo- You don’t create a new mega currency just to make people feel a positive self-esteem and a feeling of empowerment. In Brazil we have soccer tournaments that serve for that purpose.

If soccer tournaments are the source for a "positive self-esteem and a feeling of empowerment" in Brazil, then I am truly sorry for this condition. Not that I believe it to be true in the slightest, but I can see why a people with no interest in their economic empowerment would be easy to 'manipulate' by Eastern and Western influences. It can certainly be said that the average Brazilian is more interested in their favorite soccer team than macro-economics, but...but...but, I see no reason why the leaders or would-be leaders would behave in such a fashion. Certainly President Lula enjoys a soccer match as well as anyone, but he has the 'responsibility' to ensure the economic security for all Brazilians. Whatever his pride and enthusiasm for soccer, I am quite sure that he is more thankful for having guided Brazil through the 'worst world economic crisis'...and it's not over!

Soccer is a 'sport', my friend. Entertainment...nothing more, nothing less. Great entertainment enjoyed around the world, but are we to compare it to the self-esteem of the nation? It's wonderful when the US wins in sports, and I'm a big football fan, but I cannot think Americans are more concerned about their favorite sports team than they are the security of the nation. Perhaps in Brazil it is different, or is that the Brazil of your limited imagination?
Reply to Lloyd Cata
written by Ricardo C. Amaral, February 26, 2010

Lloyd Cata: …Latin America are too immature to build an economic model of their own.

…Well, sir, there has just been a 'little' meeting in Mexico to address this problem and find a 'framework' for Latin American and Caribbean economic freedom. I'm sorry your US, Euro, and Asian friends were not invited, but I am sure they are watching closely.


********


Ricardo: They already have an economic model – which by the way is very profitable – it’s called the Illegal drug trade.

Mexico is a good place for them to meet and decide how they are going to further expand their illegal drugs trade.


********


Lloyd Cata: Lloyd - But...but..but...your Euro prediction only lasted 5 years, and now this is a complete reversal to adopt a Communist economic model.


*********


Ricardo: You seem very confused. You are suggesting that a “New Asian Currency” for a group of countries including China, Japan, Singapore, Thailand, Taiwan, South Korea, India, and Hong Kong - would be the same as adopting a Communist economic model.

The kind of “Communist economic model” that includes major “Communist” stock exchanges. There are two major stock exchanges in China: the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange.

Maybe you are thinking about the “Communist” stock exchanges like the ones in Japan, Taiwan, South Korea, Singapore and so on…


******


Lloyd Cata: Did you realize that Ronald Reagan stole $2 TRILLION dollars from the Japanese which led to 2 decades of Japanese decline. How do you think he got the money for 'Star Wars' and to halt the Communist economic expansion?


******


Ricardo: I am sorry to say but you are very misinformed and confused about what happened in the past.

You can read about Ronald Reagan and his administration and the $2 TRILLION dollars pot of gold at:

Brazzil Magazine - June 2003 - “Dear Saudis, Play Safe Bring Your Money to Brazil” Written by Ricardo C. Amaral

http://brazzil.com/p117jun03.htm

...This article describes in detail many of the problems that will bring the Saudi royal family down in the near future. In the last 30 years, there were many sweetheart deals between Saudi Arabia and US companies. The article said: "Just to make sure that no one upsets the workings of this system, perhaps by meddling in internal Saudi affairs, Saudi Arabia now keeps possibly as much as a trillion dollars on deposit in US banks—an agreement worked out in the early eighties by the Reagan Administration, in an effort to get the Saudis to offset US government budget deficits. The Saudis hold another trillion dollars or so in the US stock market. This gives them a remarkable degree of leverage in Washington. If they were suddenly to withdraw all their holdings in this country, the effect, would be devastating."

… Confiscation can also happen to Saudi Arabia's assets in the US and the Saudi Arabia government probably knows that. The US is a country deep in debt and it is very tempting to confiscate the 2 trillion dollars pot of gold. Remember, Saudi Arabia keeps as much as a trillion dollars on deposit in US banks, and another trillion dollars or so in the US stock market.

The Saudi's assets are very tempting. Saudi Arabia would be an easy target for the US, even easier than Iraq.

… If I were the Finance Minister of Saudi Arabia, I would be cashing in, and moving most of Saudi Arabia's assets out of the US for safekeeping.


*********


Lloyd Cata: I am sincerely delighted that your prescription then was ignored, as will be your present prescription, because if they were ever adopted by the majority there would be mass genocide in Latin America worse than anything seen in Africa.


*********


Ricardo: You are saying that if Brazil eventually adopts the “New Asian Currency” – then you are predicting a mass genocide in Latin America worse than anything seen in Africa.

Please I like to read your explanation for such a prediction…

How that would interfere with the Illegal drug trade of these Latin American countries to the point of driving them to genocide worse than anything seen in Africa.

I have no clue about what you are trying to say.

.
Reply to Lloyd Cata
written by Ricardo C. Amaral, February 26, 2010

Lloyd Cata: Sorry to disappoint, sir, but a 'free' people do not limit themselves to 2 choices. The first premise of freedom is being able to make your own choice.


*****


Ricardo: Tell that to the French (French Franc vs. euro), German (German Mark vs. euro), Dutch, Spanish from Spain, Portuguese from Portugal, and so on…Since all these poor people in Europe lack the independence and economic freedom that they seem to enjoy in Mexico according to you.


*****


Lloyd Cata: That appears to be the consensus of the latest meeting in Mexico, whether you agree or not, or whether you like it or not.

BTW, much of the present Brazilian economy is based on the “The Bankrupt”, which is the dollar. It's just a matter of not being the last one holding such worthless paper.


*****


Ricardo: I really don’t give a s**t about any consensus arrived at in Mexico.

Consensus about what? That illegal drug trade is good for Latin America?


******


Lloyd Cata: If soccer tournaments are the source for a "positive self-esteem and a feeling of empowerment" in Brazil, then I am truly sorry for this condition.

…Soccer is a 'sport', my friend. Entertainment...nothing more, nothing less. Great entertainment enjoyed around the world, but are we to compare it to the self-esteem of the nation?


******

Ricardo: I know where you stand with your points of view and your solutions.

“Karl Marx - religion is the opium of the masses.”

******


Lloyd Cata: It's wonderful when the US wins in sports, and I'm a big football fan, but I cannot think Americans are more concerned about their favorite sports team than they are the security of the nation.


******


Ricardo: In Brazil we love soccer, but Americans love a good war: War of 1812, U.S. Civil War, World War I, World War II, Korean War, Vietnam War, First Gulf War, War against Iraq, War against Afghanistan, and so on…just to mention a few.


******


Lloyd Cata: Perhaps in Brazil it is different, or is that the Brazil of your limited imagination?


*******


Ricardo: In Brazil besides soccer we have Carnaval….


By the way, Lloyd Cata where do you live? Are you an American, British, Canadian or Australian?

.
Reply to Lloyd Cata
written by Ricardo C. Amaral, February 26, 2010

Lloyd Cata: BTW, much of the present Brazilian economy is based on the “The Bankrupt”, which is the dollar. It's just a matter of not being the last one holding such worthless paper.


******


Ricardo: The US dollar already has a nickname: "Confetti"

And in the near future the US dollar will be traded by the kg. against other currencies.

.


reply
written by DeboraSchultz30, March 19, 2010
I think that to receive the personal loans from creditors you must have a firm reason. Nevertheless, one time I've received a term loan, just because I wanted to buy a building.
gillein
written by goga, April 02, 2010
hello if you want to know more about physics you should go to nothing I hope you like it.

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