For Lula, 2006 Will Bring the Brazil He Dreams Of

In his weekly radio program, "Breakfast with the President," Brazilian President Luiz Inácio Lula da Silva avowed that Brazil will develop more in 2006 and that growth will be "more vigorous and solid."

According to the President, this is grounded on what has been accomplished during the first three years of his mandate. "I am not promising, I am guaranteeing the Brazilian people that we will have a Brazil developing much more in 2006."

Lula underscored that his Administration will strive to consolidate what has already been accomplished, because, according to him, "everything is in place for the Brazilian economy to grow."

He pointed out that the lowering of interest rates will permit more investments in 2006, creating more industries and more jobs. "More investments will mean more salaries, more purchases in stores, more orders for firms, and the development of Brazil as I and all Brazilians dream of," he added.

In the President’s view, the lowering of interest rates is not a momentary phenomenon. "We made some sacrifices so that we could control inflation. Now we have what I consider a steady policy of lowering interest rates, including the good news from the National Monetary Council that the BNDES long-term interest rate has been reduced from 9.75% to 9%," he affirmed.

Analyzing next year’s political contest, Lula said that the president’s role is not to allow it "to take over the administrative routine and the country’s development."

"The elections cannot and should not interfere with [the country’s growth]. In our favor we have the figures from the IBGE, the figures on the economy, and three years of experience and serenity that show the Brazilian people that the Administration remains unflappable, however serious the situation. After all, that’s the way an Administration should behave," he said.

The "Breakfast with the President" program was recorded on Christmas Day. Lula responded to Luiz Fara Monteiro’s questions over the phone from his home in São Bernardo do Campo, where he went to spend Christmas.

Agência Brasil


  • Show Comments (3)

  • Guest

    WRONG !
    – foreign debt is NOT at 1.4 times the GDP.
    – 4.5 millions jobs created BUT he promised 10 millions during his first mandate. Quite a difference.
    – foreign debt was NEVER at 4.4 times the GDP.
    – Your surplus is BEFORE interests on debts.
    AFTER interests payments ( foreign and local) the budget is still in deficit.
    – You paid back some foreign debst but compensated them with much higher local borrowing.
    – Your total debts were not reduced BUT INCREASED by 20 % from 782 billions to 959 billions Reais in ONE year, at a time and despite spending austerity ! Curious !
    – Your interests on all debts amounted to 156 billions Reais in the first 11 months only.
    Borrowing at 18 or 20 % has a price and you know the price now : 156 billions Reais just for interests in 11 months.

    Please review your sources.

    For your info a growth rate of even 15 %compounded annually would make total debts DOUBLE every 5 years or QADRUPLE every 10 years !
    Actually your growth rate in debts is 20 % annually. That makes total debts DOUBLE every 4 years and multiplied by 6 every 10 years.
    YOU citizens, at the end, will have to pay back, one way or anothe, ALL debts.

    Good luck !

    On repayments times, please dont forget how Lula was “good” !
    New heavy depreciation of your currency, recession looms ahead sooner (a few years) rather than later !

    Again and again you have not learned lessons of the past.

    BOOM and BUST economy is the Logo of Brazil. In the last 50 years, at every peak you said this time is different and it will be sustainable. EVERY time you have been wrong. This time is not different, unfortunately for you, because you dont recognize problems when they are created but only a few years later when time has come to pay previous errors.

    Your nickname has not changed yet. BOOM and BUST economy you remain because no one in this world can grow their debts at 20 % annually with a GDP average growth of only below 3 % and have a government that borrows at 10 to 12 % ABOVE inflation rate.

    This is UNSUSTAINABLE and NOT sustainable !

    Common sense and simple maths will prevail.
    Magic maths dont exist but strange maths applied by your government will make you believe that all is rosy, until true maths readjust the manipulation done in the numbers. TOO late when repayment time is due. No one can for ever avoid the reality.

    Smile and Cheers !

  • Guest

    LULA president in 2006!!!!
    LULA is the right man to rule Brazil four more years. He is responsible and points the main goal of his government to development of Brazil’s economic potencial. I have no doubt that Brazilian people will re-elected LULA president in 2006!!!!

  • Guest

    Lula\’s miracle
    Lula has been in government for just 3 years and has already succeed to reinsert Brazil in the way to development. INFLATION is well controlled in a 5% year rate; EMPLOYMENT rate is rising up slowly, but regularly ”“ 4,5 million new jobs has already been created by Lula’s Government; FOREIGN DEBT being honored and corresponds now to 1.4 times the country’s GDP, 3 years ago it was as high as 4.4 times the GDP! ”“ also the country has fully repaid IMF in advance; FOREIGN TRADE performing exceptional results – in 2005 hit an astonishing US$44 billion trade surplus; Healthy INTERNATIONAL RESERVES valued U$57 billion – the highest ever registered; FISCAL POLICY is highly responsible, recording annual surplus of 5.6% in the domestic accounts, pushing down the domestic debt (unfortunately in the previous government the debit skyrocketed out of control ”“ Mr. Fernando H. Cardoso’s rule was a terrible nightmare of irresponsibility).

    Besides the optimistic economical figures, the social policy in Brazil has being effective and its results also starts to show up: for the first time in oficial statistical historical series the abyssal income difference between richest and poorest population started to decrease.

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