Can Free Markets Fix It All? These Times Are Over. Says Brazil President

Lula gets Don Quijote prize in Spain Talking in Spain, Brazilian President, Luiz Inácio Lula da Silva, noted that the days when emerging economies were dependent on the IMF (International Monetary Fund) IMF "are over" and so are over the days when Latin America had no voice in international affairs,

"The story that free markets fix it all is over," he added in an interview with the Spanish daily El Pais.

The Brazilian president in Spain to be honored with the Don Quijote Prize for the promotion of Spanish language added that he was convinced that the current financial crisis would open the way for deep changes in global finances and world balances.

Lula said that Brazil is gradually becoming an emerging regional and global power and emphasized he was convinced that free trade "was the best antidote for the current crisis."

"From Spain I'm leaving for India to talk with Prime Minister Manmohan Singh about the Doha round on free trade, which is paralyzed basically because of a disagreement between the United States and India over agriculture," said the Brazilian leader.

"I'm going to tell my good friend Singh that there could be no better or more positive gesture to begin to overcome the current financial crisis than to conclude the Doha round," he underlined.

The Brazilian president insisted that the Doha round is not an economic problem, "it's political."

Before leaving for India and after having been honored in Toledo together with the Mexican writer Carlos Fuentes, Lula said that Brazil was ready to use foreign reserves and buy bank shares if necessary to defend its financial system.

He recalled Brazil has over US$ 230 billion in reserves it can draw on and is in a stronger position to fight the international financial crisis than any of the world's large economies.

"All of this is money we can use, in the event it was necessary; we are prepared to free up some resources in our reserves, so as long as they pay us with bonds, so that reserves are maintained."

Lula said resources would principally be for Brazilian banks that operate abroad. Asked if Brazil's government was prepared to buy bank shares, the president said it would depend on the situation.

"If there was a bank in a position that we considered that it was necessary, first we would get another bank to buy their portfolio, like Bank of Brazil already bought three. And it has the ability to buy more," said Lula da Silva.

"Second, if it was necessary the government would lend money to the central bank as a lender of last resort. What I think is that we should remain alert."

"Of all the big countries, BRICs and developed, that which faces the least risk is Brazil" he underlined.

Mercopress

Tags:

You May Also Like

Brazil Gave Away World’s Second Largest Mining Complex. The People Want it Back

In a plebiscite organized by 200 social organizations from Brazil, almost four million people ...

US Helps Break Up Brazilian Prescription-Drug Internet Gang

With the help of the American Drug Enforcement Administration (DEA) the Brazilian Federal Police ...

Iraqi Refugee Gets Pass to Become Soccer Star in Brazil

A Brazilian soccer team from Brazil's capital BrasÀ­lia hired its first international football player ...

World Watches While Brazil Balances Booming Economy and Protecting Biodiversity

Expect to hear plenty about Dilma Rousseff in 2011. The former student militant made ...

Another Confirmation of Brazil Government’s Graft Scandal

A former BrasÀ­lia (capital of Brazil) deputy governor revealed it was known that members ...

Sound Excursions

Close to 19 million adult Brazilians have become tired of waiting for government help ...

Brazil’s Oil Multinational Petrobras Strikes Oil Again

Brazil's state-controlled oil multinational Petrobras announced this Wednesday, after the exchange market had already ...

Brazil Supreme Justice Frees Man Accused of Killing Union Leader

A Brazilian Supreme Court justice has suspended the trial by jury of a farmer/landowner, ...

Brazil Plane Bursts into Flames upon Landing. 200 Plus Feared Dead

An Airbus A320 from Brazilian TAM airline caught fire after landing in the airport ...

Looking for Love, Enlightenment and Justice in the Land of Brazil – Chapter I

I had a love so strong that nothing else mattered. Carissia was more important ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`