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World Crisis Too Serious to Be Solved by Speculators, Says Brazil’s Lula at UN

Brazil's Lula at UN If they are  to overcome the crisis in global financial markets governments must demonstrate decisive leadership, Luiz Inácio Lula da Silva, the President of Brazil, told the General Assembly this Tuesday, September 23, calling for the United Nations to take the lead in responding to the threats raised by the current economic strife.

Lula told dozens of world leaders gathered for the Assembly's annual high-level debate, held at the UN headquarters in New York, that they were meeting at a time when long-predicted economic crises have become "today's harsh reality."

His remarks echoed the comments of Secretary-General Ban Ki-moon, who earlier urged world leaders to rise to the "challenge of global leadership" to defeat the most pressing problems, including the current financial crisis.

"Only decisive action by governments, especially in countries at the heart of the crisis, will be able to control the disorder that has spread through the world's financial sector, with perverse impacts on the daily lives of millions of people," Lula said.

He warned that "a crisis of such magnitude will not be overcome with palliative measures. Mechanisms for both prevention and control are needed to provide total transparency to international finance.

"International economic institutions today have neither the authority nor the workable instruments they need to inhibit the anarchy of speculation. We must rebuild them on entirely new foundations."

The Brazilian President cautioned that the crisis was too serious "to be left in the hands of speculators," adding that all too often their profits were privatized while their losses were socialized.

"The global nature of this crisis means that the solutions we adopt must also be global, and decided upon within legitimate, trusted multilateral fora, with no impositions. The United Nations, as the world's largest multilateral arena, must issue a call for a vigorous response to the weighty threats we all face."

He stressed that the world was facing many other "equally serious matters," including the food crisis, the spike in energy prices, the deadlock on talks to reform international trade, and the continuing degradation of the environment.

The President said Brazil's own experience illustrated that sugar cane ethanol and biodiesel production can reduce global dependency on fossil fuels and at the same time create jobs, regenerate degraded land and expand food production.

"Attempts to tie high food prices to the dissemination of biofuels do not stand up to an objective analysis of reality," he added, calling for a multilateral approach to solve the food and energy crises.

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  • Show Comments (8)

  • dnbaiacu

    The U.N Cheerleading has begun….
    [quote] Luiz InÀƒ¡cio Lula da Silva, the President of Brazil, told the General Assembly this Tuesday, September 23, calling for the United Nations to take the lead in responding to the threats raised by the current economic strife. [/quote]

    Bush had his last pom pom shaking today before the General Assembly before he leaves officers.
    These jokers know exactly what they are doing. We pay them to look stupid and tickle our ears.

  • aes

    Ch.c
    An annual 14.5% government bond seems like a good foreign investment if you live in a country with a low inflation rate. The Real being strong vis a vis the dollar et al there is nothing wrong with the investment.

  • CH.C.

    Better yet……
    Funny that the Brazilian Government rates are at 14 % or so !!!!!!
    Is it becdause Brazil is great, average, or very bad ???????
    Does a good borrowing country needs to pay 7-8 % above inflation rate.

    Facts :
    NOT EVEN BRAZILIANS TRUST THEIR OWN GOVERNMENT !
    Otherwise they would lend money at a much lowert rate.

    Facts :
    NOT EVEN YOUR LARGEST PENSION FUNDS TRUST YOUR GOVERNMENT !
    70 % their assets are invested in stocks, 30 % in debts instruments, DESPITE the law limit the ratio at 50 % !!!!

    Stupid question 1 :
    what do you think your own pension fund performance did……lately ?
    Whooaaaaaaaaaa ! laugh….laugh….laugh !
    Dont worry, your government already told them they cant force pensions funds to sell when the markets are down !
    Smiles

    Stupid question 2
    What will your pensions funds do…..if the market continue deteriorating due to the reluctance of foreigners taking risks, thus further reducing their actual exposure or not adding new money ?????

    Stupid question 3
    What will be the performance of YOUR pension fund ??????

    You certainly have the very good ingredients for a major problem just waiting to happen !

    This will be another AUTOGOAL you are so good at when looking at your history !!!!!

    Only idiots are sure to invest SAFE & CONSERBTAIVE money, that will reward them at more than WELL ABOVE 7-9 % their own
    inflation rate, LONG TERM !!!!

    Had I been a Brazilian pension fund manager, I would have invested 70 % in local debts instruments, and only 30 % in stocks.
    This would have provided more money to the government, thus lowering their rates, but I would also have profited because THE BOND PRICES WOULD HAVE GONE……UP….TREMENDOUSLY !!!!!!!!!!

    Everyone would have been a WINNER :
    – The government with more available money for infrastructure developments, education, social programs etc etc
    – The government again who could borrow at a lower rate
    – The actual and future pensioneers due to the high rate provided in Government bonds
    – The WHOLE society who could borrow at lower rate, thus making purchases more affordable.
    – The Brazilian companies would produce more if they could borrow at a lower rate and have their sales increased because
    their goods are more affordable to the general public !!!!!!!

    Conclusion : WHATEVER WAY YOU LOOK AT….YOU SHOOT IN YOUR OWN FOOT !

    Worse than the Brazilian way of thinking and doing things, there are none on earth !!!!

    But….but…..Viva these idiots, they provide easy and lot of money to those understanding YOUR NON COMMON SENSE !!!!!

    At the end, whatever way you look at, it will penalize the 95 % of the Brazilian citizens.
    And certainly NOT those who are governing your country.
    They want to keep it that way ? Very good…..for foreign investments !

    Wait….WAIT A SECOND :
    Hopefully each of you understand the basis of investing.
    One of the basic maths is…RISK FREE INVESTMENTS EQUIVALENT !
    Meaning the rate of your government borrowing rate.
    Today an investor can buy a 8 year government bond paying 14,5 % annually, RISK FREE
    Therefore investing in a company, having by its nature MORE RISK THAN THE GOVERNMENT, the expected rate of return
    HAS TO BE MUCH HIGHER THAN THE RISK FREE RATE OF 14,5 %

    More simple than that, there is NOT !!!!!

    And whenever my expected rate of return of my stocks investments for the next 1 TO 3 years falls below the RISK FREE rate your government provide, as a stock investor,
    I will either sell all or part of my stocks or at the minimum NOT add new money !!!!!
    And an entrepreneur will have a longer time horizon of 7-10 years ! But his maths will be the same, based upon the RISK FREE rate of return !!!!

    Feek free to increase your rates as much as you want ! The higher it is, the more expected rate of return will be asked for new investments !!!!!

    And believing otherwise is an heresy ! why should anyone expect a return on a riskier investments to be lower than a risk free investment ???????

    Please please please, continue to shoot in your foot. This is great for more knowlegable investors !

    N.B. : the RISK FREE RATE IS OBVIOUSLY…..AFTER INFLATION !!!!

    LAUGH….LAUGH….LAUGH…LAUGH….LAUGH !!!!

  • CH.C.

    To all Brazilian junkiesm including vinnycarioca !
    Brainwashed people and idiots can just repeat what they have read….and nothing else !
    And ignorants cant make their own analysis or own research for comparative purposes.

    Facts
    Total PUBLIC debts as per GDP
    Japan 196 %

    A much much much higher percentage than…the USA !!!!!

    Is Japan weak or bad…these days ?
    Is the Japanese currency weak ?

    Hmmmmm !!!!!!!

    Only ignorants with not even a feijado in their brains are sure of what they pretend !

  • João da Silva

    VinnyCarioca
    [quote]A great speech indeed?[/quote]

    Vinny, you and Dnb are far beyond your respective tender ages, as Lord Augustus would readily concur with me! 😀

  • Joseph

    everyone guilty
    Lula, leading a country with some of the most predatory lending practices in the world, and most of the money coming from the US via investments…..wants to blame others for what will happen when money runs out for more investment for his bubble economy??

    Sorry Charlie, fix your own house before playing the game that every politician is playing now, “its not me, but someone else” that is to blame for the coming global recession…

  • VinnyCarioca

    A great speech indeed?
    “Only decisive action by governments, especially in countries at the heart of the crisis, will be able to control the disorder that has spread through the world’s financial sector, with perverse impacts on the daily lives of millions of people,” Lula said.

    Translation: Please turn on the monetary printing presses Mr. Bernanke.

    He warned that “a crisis of such magnitude will not be overcome with palliative measures. Mechanisms for both prevention and control are needed to provide total transparency to international finance.

    Translation: Mr. Bernanke, after you increase your country’s national debt to over 11.5 Trillion dollars, let’s adopt a system which would be the antithesis to what inflated commodities and made the Bovespa surge over 600%.

    The Brazilian President cautioned that the crisis was too serious “to be left in the hands of speculators,” adding that all too often their profits were privatized while their losses were socialized.

    Translation: Let’s socialize the losses and then change the rules to maintain the fraudulent perceived values.

    “The global nature of this crisis means that the solutions we adopt must also be global, and decided upon within legitimate, trusted multilateral fora, with no impositions. The United Nations, as the world’s largest multilateral arena, must issue a call for a vigorous response to the weighty threats we all face.” (This one is my favorite)

    Translation: ‘Hello China, this is the U.N. calling. Please stop your currency manipulation and human rights abuses. Thank you for shutting down factories and curtailing traffic before the Olympics, the air quality was splendid and the break your neighbors received from the acid rain was most appreciated. Who would ever know that you folks ran a totalitarian police state? ‘
    ‘Hello ECB, this is the U.N. calling. We know you are very concerned with inflation, but please lower rates so Mr.Bernanke can comfortably do what he only knows what to do….inflate the U.S. money supply.
    ‘Hello American consumer, this is the U.N. calling. Please don’t concern yourself with your zero savings rate and emaciated currency. Your GDP is 73% consumption and we ALL need you to keep consuming. Even though we talk about prevention and controls in the new Pollyanna, transparent, let’s all hold hands, post taxpayer bailout financial world, we need you to keep consuming like in the good old laisse faire, non regulation, unlimited home equity ATM withdrawal days. Also, try to stay away from this talk of energy independence and domestic oil drilling, you’ll depress oil futures.’
    ‘ Hello Global economy, this is the U.N. calling. Just wanted to let everyone know that we are trying our darndest to do away with those dastardly business and valuation cycles that have historically kept economies from expanding and lifting stock markets forever and ever.’

  • João da Silva

    World Crisis Too Serious to Be Solved by Speculators, Says Brazil’s Lula at UN
    I read his entire speech and I would like to congratulate him for being honest and forthcoming in expressing (and sharing) the opinion of billions of people in the entire world. Even his worst enemies will applaud HIM. A great speech indeed.

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