Brazil Refuses to Pay for Those “Who Turned World into Giant Casino”

Singh, Mbeki and Lula Brazil's President, Luiz InΓ‘cio Lula da Silva, said during his visit to India that emerging countries, such as Brazil, India and South Africa, must operate in tandem or "be dragged down" by the international financial crisis.

In his opening address at the 3rd Summit of the Ibsa (a political group comprised of India, Brazil and South Africa), in New Delhi, he stated that isolated measures by each country are not going to suffice for safeguarding national interests.

Lula said it is "unacceptable" that developing countries should "pay for the irresponsibility of financial speculators." "We are at risk of falling victims to a financial crisis generated in wealthy countries. This is not fair. Our countries have rebuilt their economies with great effort.

"Thanks to that, these countries are experiencing an exceptional phase of expansion and macroeconomic balance. Thus, it is intolerable that we should pay for the irresponsibility of speculators who turned the world into a giant casino," he stated.

To the president, Brazil, India and South Africa should engage more actively in a coordinated international effort to fight the financial crisis. Problems in the world economy were also mentioned in the addresses of the prime minister of India, Manmohan Singh, and of the South African president, Kgalema Motlanthe.

Manmohan Singh also underscored the need for reforming international decision-making frameworks, such as the United Nations (UN). "We must also work to conclude the Doha Round with an emphasis on promotion of development and inclusive growth," he said.

The heads of state of the Ibsa countries have decided to summon an urgent meeting of ministers of Finance and Trade, and of presidents at the three countries' Central Banks, in order to discuss joint measures that may prevent the international financial crisis from affecting them more intensely.

"Can the crisis get to emerging countries? In case there is a deep recession in the European Union and the United States, it can, because they are buyers and we are sellers. That is why we must diversify our trade relations. Brazil and India are still tapping less than 10% of their potential. Brazil and South Africa are far from realizing their potential as well," he asserted.

Lula stated that there is a need for strengthening the domestic market, not interrupting any ongoing infrastructure work, and wait for the "money that is hiding away to appear, so as to ensure liquidity in the international financial system."

The president once again called for greater regulation in the financial system of wealthy nations. He said that he expects, for example, the International Monetary Fund (IMF) to "tell the United States" what is the limit for the operation of institutions, and the Central Banks in those countries to set the boundaries for the operation of investment banks.

"I first mentioned the subprime [the mortgage loan system that allegedly triggered the financial crisis in the United States] in September 2007. This is already October 2008, and only in the last two weeks did the main heads of state in Europe and the United States become attuned to the fact that there was a crisis going on in their countries," said Lula.



  • Show Comments (3)

  • Falupa

    These emerging markets will be effected the most. They will be hit hard by sinking financial markets. Now that the world financial market is completely destroyed and continuing to collapse, I believe that emerging markets are some serious contenders right now. Especially since China is buying up American companies right and left and a lot of outsourcing is going to India and Brazil.

  • ch.c.

    continued for Falupa !
    And just think about that ones you forgot to take in account :
    – Brazil is so competitive in producing steel that it is CHEAPER to ship iron ore to China, transform it to steel, and China became the World Largest Steel Producer and EXPORTER !
    Simple demonstration Brazil is NOT COMPETITIVE AGAINST CHINA, despite you iron ore productions and your inneficient steel mills
    – Sugar…Sugar….Sugar !
    You are quite sure to be the world most competitive ! Right ? May be not so !
    India is going to import some Brazilian RAW Sugar, transform it to WHITE Sugar…..FOR RE-EXPORT ELSEWHERE !!!!!!!!
    Dont worry…it will be on limited quantities ! But….but…this was just another example within many others !

    But overall, a clear demonstration that BRAZIL can mostly export ONLY —–RAW AND BULK COMMODITIES.
    And none of the “Brazilians cars” are brazilians but 100 % are foreign cars manufacturers.

    Even for your Parana farmers, some prefer to ship grains to Rosario in Argentina, then for exports overseas, rather than through
    the Brazilian ports. Due to costs and handling inneficiencies….in BRAZIL !!!!!!!!
    On top of this, transforming soyabeans to soyabean meals and soyabean oil is cheaper when done in Argentina than in Brazil !!!!!!

    πŸ˜‰ πŸ˜€ πŸ˜‰

  • ch.c.

    Hey…hey !!!!!
    Why doesnt Bin the Crook first penalize the Brazilians companies who SPECULATED on the USD/BRL and lost a bundle just recently ??????

    Worst question of all :
    What about the Brazilian GOVERNMENT which acquired US$ daily for years…while the currency WENT DOWN ?
    Even today…the Brazilian GOVERNMENT is losing trucks and trucks of money….due to their “smart” visionaries !!!!!!!

    And to Falupa, the China stock market went down 70 % in less than one year !!!!!!!!

    And as to the outsourcing……..just look at what it represents to the U.S. GDP !!!!!!! A drop in the Ocean !
    65-75 % of the U.S. trade deficit is due to the oil import !
    Furthermore outsourcing is VERY GOOD in 2 ways :
    – cheaper cost in the USA, meaning let say instead of buying 1 you can buy 2. While in Brazil due to interests rates, you buy one and pay for 2 ! Quite a difference.
    – and do you believe it is only China and Brazil that earns money on GM cars produced in China or Brazil ?????? Simple example you can multiply by 1000 various NON CHINESE AND NON-BRAZILIANS COMPANIES !!!! Think twice…about the how and why in outsourcings !!!!

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