Brazil, capitalism managed by Marxists: a history of success


In December 2003, almost one year after the labor leader Lula da Silva had reached the Presidency of Brazil I was in the V.I.P area of Sao Paulo’s Airport and I met a very cultivated man who worked in a high rank position in a Brazilian bank, owned by one of the most tradition old money families of the country and we had a nice conversation given that both flights were delayed. Typically Brazilian airport sign: delayed or cancelled.

As the conversation went on, he felt more at easy after knowing that I didn’t live there and start to speak the secrets from the guts of the new regime. Yeah, in reality a new “regime” was in the making and I knew from my student’s activist time the players, the new rulers very well: formed in the schools of Moscow, Beijing and lately in Tirana (yes, old communist Albania). Now they were the government of one of the biggest and richest countries on the planet with the most cynical, cruel and frivolous bourgeoisie I know in the world. How the country was supposed to function given the huge class gap between the poor, middle class and the rich? According to this brand new source I met the deal was done in the beginning of 2002 between the Worker’s Party (Lula’s party), the FEBRABAN (Brazilian Bank Federation) and FIESP (the powerful industrials union of Sao Paulo). Lula pledged allegiance to the establishment.

The deal was that that as long as the Worker’s Party did not move with the basics of the model: private property, banking system and the Justice (a mockery of justice itself) and Parliamentarian structure (a huge pocket of corrupted representatives) and refrain the worker’s labor unions (all them under his parties control) from more aggressive positions against the dominant class, and they would not prevent the very possible election of “the guy” as Obama referred to Lula in a recent meeting in Washington.

Real x Dollar

Real x Dollar


The “guy” was elected and inherited a brutal crisis from his predecessor but that crisis was mainly the overlap of 2001’s recession which spilled into 2002 and the banking system (national and international) did not lose the opportunity to profit from the uncertainty of the new government and speculated heavily against the real (local currency) and the stock markets. That brought them a gigantic profit as never before. The real had reached 4 to 1 US dollar. Today, ending 2010, it struggles to not go lower than 1.50 real/dollar.

Strikes were over, the “farmer’s without land” movement was appeased by some government innocuous and false promises, and mainly Lula started to elaborate a huge alliance with the opposition parties in order to have majority in the Congress and be able to govern. He didn’t touch the privatizations done by the former president neither the profit remittance of the multinationals. He bought with money thru a complicated embezzlement scheme managed by his old time companion José Dirceu, who managed the feared “Casa Civil” the necessary support in Congressmen votes. Vote by vote, billions of dollars changed hands and so the country started to “stabilize”. The Minister of the “Casa Civil” is a sort of unofficial prime minister who concentrates an enormous power in his/her hands. He gathered the majority of Congress deputies from a myriad of parties ranging from ideological peers to life time right-wingers enemies. Capitalism’s magic with a Marxist touch applied to it.

As a whistleblower brought down the scheme almost all the Ministries (all occupied by old time communists and right-wing “partners of the bribery scheme), Dilma Rousseff, elected 11/01/2010 President of the country, assumed the post of Minister of “Casa Civil” and commanded from there her way up. Plenty of corruption is administered directly inside that Ministry. All other Ministries are subordinated to the “Casa Civil”. Dilma Rousseff also comes from a terrible past of totalitarian ideology and guerrilla warfare. But who cares? Certainly not the bankers and industrials let alone the dispossessed.

Bolsa Familia

Bolsa Familia


“As never before in the history of this country…” became a popular joke because Lula used this phrase 8 out of 10 times when discoursing thru the country. He perfected a scheme of high carbs, high cholesterol and a minimum of vitamins and proteins called “Bolsa Familia”: basic ration diet distributed to 11 million families all over the country. In the miserable areas of the North and Northeast he became second to God, in some areas ranking above Jesus himself. Never before in the history of that country, had a government given out plain, disgusting rations to the poor. Never before in the history of that country had profits been so high that the 2008 crisis merely missed the country in the world map. Obama should have spent more time with that illiterate politician in order to learn how to do little and seem to do too much at the same time.
Communist Flag

Communist Flag


Corruption, disguised party control of all regulatory agencies, freedom of enterprise combined with generous subsidies to the rich and bread crumbs to the poor plus a shift in the defining standards of what is the middle class who was terribly crushed in the meantime made the dominance of the elite of the old communists the most popular government of Brazilian history and that makes me wonder. Brazil is a salvage capitalist country governed by Marxists in democratic outfits. China is a communist country governed by technocrats formed in the best schools in the Capitalist West and both countries share in common a terrific economic growth, corruption, social unfairness and divisions, crisis become a foreign concept in both lands. Meanwhile, in the USA an intellectual president (but a bad politician)and a highly self-confident educated class lost 11/02/2010 elections to the corrupted Republicans and Europe is held hostage of economical paralysis although it is governed by a highly illustrated capitalist elite. What is wrong with this big picture?
Lula Ahmadinejad

Lula Ahmadinejad


Anyway, Dilma Rousseff was elected the first female president of Brazil (macho land where macho men dress-up in women’s clothes during carnival and behave more gaily than gays); she has never held a single political elected office; she is educated but believes firmly that only the party can guide “the people”; she is Lula’s puppet and will have some problems: Lula is a friend of Ahmadinejad (Iran’s President) and Brazil has established cooperation agreements with that country that execute women.
Lula and Dilma

Lula and Dilma

Will she bow to her old boss (Lula) and dress a Niqab veil covering her proud liberated woman’s face to receive Ahmadinejad in his next visit to Brazilian soil? She went on her whole life defending the right of women’s choice and denied in order to get religious votes… Pragmatism and dogmas. Maybe that is the exit to the current crisis nevertheless the real dose of cynicism to be applied remains a mystery few have mastered.

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