RECEIVED HUNDREDS OF COMMUNICATIONS ON MY OPEN LETTER TO FERNANDO HENRIQUE CARDOSO. MANY (MOST) favorable. FULL OF OTHER OFFENSES RIDICULOUS. OTHER ISSUES THAT WERE TRYING TO CLARIFY SOME EXPLAINED. CORRESPONDENCE BETWEEN THESE HIGHLIGHTS JUST SENT BY ORLANDO LIMA. Seeking OBJECTIONS TO RESPOND BECAUSE ME SEEMED HONEST. It REGRETTABLE BUT SEE THE AMOUNT OF TEACHERS OF ECONOMICS TO KNOW MY WORK AND TO ONE WHO SENT ME ON HOW COULD COSELHOS MONITOR THE WORLD ECONOMIC SITUATION citing magazine INTERESTING LARGE DIFFUSION AS THE ECONOMIST. Would be comical if I WERE NOT THE EXPRESSION LEVEL OF COLLEGES OF OUR ECONOMY IN GENERAL AND THE BOYCOTT OUR THOUGHT YOU SUFFER IN ACADEMIA BRASILEIRA.
You always put important issues honestly and deserves my attention because it is a rarity.
But let us establish the issue of so-called corruption. Corruption is the use or misuse of public resources for the benefit of private equity, however this difference is defined by law and not by the importance of resources. However, laws and mechanisms for their interpretation are controlled by exactly the greatest beneficiaries of public resources. For example: last fiscal responsibility law, presented as a case exemplr to fight corruption, if a governor intended 1 million dollars to build a school without having the necessary resources, creating a debt not covered, el can go to jail, according to law. However, seven leaders of the Central Bank may decide to increase the interest rate paid by the government not defined in percentages with no existing source of income, thereby increasing public spending drastically at about 10 billion reais and simply force the government to decrease spending dedicated to our poor public education, health, health, research, et. etc. to find funding for this decision. It is an immediate question: the state's role is to ensure education, health and other basic needs of the population is either to pay interest. I think the interest payment is not a function of the state and no theoretical or political philosopher would dare to defend this view. But you could say: The increase in interest rates is needed to ensure the economic Chamdo equilíbio ... The answer contestaondo cad item in this statement:
There is no economic theory and no empirical evidence to prove his assertion that high interest rates are one way to fight inflation. Also, how high? According to neoliberal economics Nobel Allain, the largest specialist them in interest rates, interest rates paid by the State can not be close to the rate of growth of the country, because in this case would be a simple transfer of appeal to the financial sector hindering development. These are beautiful words to describe the most violent and brazen theft of public resources. You know how much the sum spent on interest payments of the State braileiro? They simply represent about 30% of public spending. Yes, the Brazilian people pay 1 / 3 of the taxes they charge le unequally to sustain around 30,000 Brazilian citizens who live by the payment of interest on public debt absurd. Most of them refer to these foreign profits abroad forcing Brazilian brutally working to export more than they import to have a trade surplus to finance these economic adventures.
I repeat: The arguments they use to protect these high interest rates are at odds with sound economic theory (including the theory of low level neo liberal they say cultivar). It is therefore a colossal theft and they can not be declared corrupt governments while leaving almost all converted into bankers. You'll never find ma press campaign exposing this situation. You can even find a little note here or there, but never anything to stay in your memory because there is an unshakable alliance between the system communication and financial system. I will not deepen as it has proved many times that instead of fighting inflation, the high interest charged by the Brazilian government are the main source of inflation in our country. But I have only been heard by the international media or small media outlets in Brazil. At times I was on television always cut me when I walk in these matters, which is why I am not prepared to go further to say what they want. Moreover, a simple interview can not counteract short hours of lies.
You say: But Lula has maintained the autonomy of the Central Bank. Yes, it was a very high price for that limited their attacks on his government. Were close to overthrow the government during the crisis of the "monthly allowance." But Fernando Henrique was, as usual, arrogant and underestimated the enemy, "We will not overturn it. Let's just bleed him. " And the initiator of the monthly allowance that was simply the PSDB president? Not only as president but remained on top made a senate meeting in tribute to the distinguished Senator miner illustrious family .. And do you really believe that the family background or social class does not count? Lula's son is accused, and everybody knows it, having been protected by a private company, Scandal. The son of Ferdinand Henry was married with common goods, so also the owner of the National Bank who confessed to have created 2000 fake accounts (known in some greater crime than this bank? I mean, crime recognized) to benefit the Bank's shareholders who did not know (imagine it in the press ruthless with seeking to overthrow) where they came from this surplus benefits. Are billions of dollars were at stake. The government has invested several billion dollars (some say up to 14 billion in aid to the Bank chaired by the president's daughter) and ended up trading it with Unibanco and selling it for 4 billion dollars ... You know that. Everything is public and "cool." Well, what about privatization: is there any scandal in the Lula government that approaches the commissions earned in one of them? Please my dear friend: Your perception of events is too controlled by the press. The PT could be a center of corruption at the level of our system are but a mere apprentice. There is not a scandal that Lula is far closer to the minor scandal of the government of Fernando Henrique. You do not buy a technology so sophisticated in eight years.
this sense it is impressive to see how this media willing to throw everything against Dilma, honesty of what I put my right arm in September because I know very well) that the press could not lift anything against it. And the case of his secretary general, frankly, is child's play compared to what we know occur in the upper echelons of public service. The maximum charge that could be her possible cooperation with the commission or compensation of 150,000 dollars! For a brokerage that collapsed ... Frankly, Folha de Sao Paulo won the award for journalism of the year by reporting that he discovered this "tremendous" leak of the State ... And she fell to the government for failing to register their ... Frankly I do not know how anyone could have created in people's minds that it was facing the biggest scandal in the history of the country.
Do not want to defend these people who happen to be involved in shady dealings. But I never lead you by the press and public opinion is hypocritical to determine the real problems of Brazil. Luckily most of our voters do not believe in these things. They are much wiser than the so-called "opinion makers".
'll stop here because they are getting off on other issues that although not on the agenda of public opinion are much more important for the country. Thanks for your reviews and your interest. My books published in Portuguese are almost all sold out. In fact the only one who still has copies is the last on the Terror Of Hope: Height and Decline of Neoliberalism., Ideas and Literature, Aparecida, SP You'll find references to them and many articles and books that you can download on the website of the UNESCO Chair / UNU I drive: www. reggen.org.br., and of course my blog which is however very poor.
Hugs
Theotonio Dos Santos
23/02/2011.
From: Orlando Lima [mailto: guaxinindourado@hotmail.com]
Sent: Tuesday, February 22, 2011 19:09
To: thdossantos@terra.com.br
Subject: RE: Open letter to Fernando Henrique Cardoso
Theotonio Dear Professor,
Thank you for your kindness in answering my message. I visited your blog and other times he'll come back because it contains interesting articles. I searched via the Internet to find some of his books to purchase them and unfortunately did not get success. Even in bookstores could not locate them. I would be grateful if you repeatedly can direct me somewhere where I can purchase them. Your answer
contemplated my concerns about events in the field of Economics. As regards the public debt of the FHC and Lula, while agreeing that FHC has increased the debt by 15 times the price he inherited from the previous government, while Lula's government just doubled the amount received from FHC, we must not forget that value of its debt created by the two governments was very close: about 800 billion reais. Thus, in terms of increased public debt, were equivalent.
In spite of expressing my total disagreement as to its compliance to the level of corruption in the Lula government, let me make a small weighting. Availing myself of what has been published in the press during the period of the two governments on the item corruption although it has not done a statistical survey, I believe is no doubt that under Lula print newspapers and television have brought the largest number of cases public opportunity to possible acts of corruption than under Cardoso. It is noteworthy also Nutty conduct of our former president in at your government have programs with several deficiencies identified by the TCU placed under suspicion and the discontinuation of its progress recomenndada, scolding us resolve to give ministers the TCU and the need to propose of legal regulation limiting the scope of the shares of that Organ watchdog. In the opinion of the illustrious former president, and clearly said in network television, the government can not be paralyzed by a decision of TCU or the decision of a judge. If it is true, first, that the Lula government did not have corruption close to one billion dollars, it is equally true, however, that in his government had numerically more cases reported as corruption. Just remember the counter favors and release of funds when it became our Parliament before the Executive, along legislatures.
I do not think in recent 30 years of our Republic the corruption theme has become an instrument of class struggle against the dominant popular sectors who ascend to positions of power and who can not handle the mechanisms of corruption and making it easily source of scandal for small amounts often trying to imitate their antagonists of the dominant classes who manage those resources without a single colossal corruption charges. There was just the opposite. Nicknamed The capitalist elite ruled the country until 2002. Mainstream parties, at least the past 20 years, campaigned exhaustively stating that the capitalist government was corrupt and that corruption was ingrained in many government sectors. It suffices to check the number of IPCs and public complaints made by populist parties or small parties. I really believe that the entire political history Brazil is, unfortunately, fraught various acts of corruption. In 2003, for the first time in the history of Brazil, mainstream parties have elected a president. You'd think that, considering the several years that the political party of the now president and campaigned against corruption allegations, would be more than knowing all the paths and deceptions that lead to such a procedure in Brazilian politics. Even if this were not true, the new chairman of fiduciary duty and the campaign promises was to surround yourself with the best technical and administrative authorities in order to avoid the perpetuation of corruption in Brazil. Unlike that esperva, corruption spread out in all directions and affected all parties, especially the newly elected president. A pity!
Finally, do not believe that criticize or denounce acts of reprehensible people means pursuing them. We all live or should live, subject to appropriate legal sanctions applicable to each of the illegal acts that practice. This seems to be, unless error or mistake, the proper way in which should govern any society, any government wishing to live in a democratic state. Sadly, I admit, the Brazilians are still far from achieving this socio-political.
Sincerely,
Orlando Lima
Subject: Re: Open letter to Fernando Henrique Cardoso
Date: Tue, 15 Feb 2011 21:58:32 -0200
WARNING: THIS IS MATTERS TO MY BLOG. UNDER THE HEADING
CLARIFICATIONS UP A LETTER TO FERNANDO HENRIQUE CARDOSO
Dear Orlando Lima
Very interesting and well founded their email and I'll answer your questions in a succinct way, recommending that you have interest in pursuing the same calling upon the my books or articles on the subject which references can be found on my blog (theotoniodossantos.blogspot.com) and the website of UNESCO-Chair of the United Nations University (UNU) that drive (www.reggen.org.br). You can also open my name in wikipedia or google for more information. Let the questions:
Between 1990 and 1994 came to a head a world inflation combined with low growth (known as stagflação) whose main source was the dollar crisis in 1971 when the U.S. abandoned the convertibility of the dollar, guaranteed by resolutions of the meeting in Bretton Woods in 1944 that established an economic order world supported the fixed value of the dollar and the pound (which came out in the 50s), the creation of an International Monetary Fund, a body set of trade (GATT) and a World Bank aimed at supporting the reconstruction of post war and for development. The abandonment of convertibility of the dollar was the beginning of an increase in world prices on oil that had its turning point in 1973 with an elevation of + / - 8 times the price of a barrel and create a fantastic financial surplus known as petrodollars. These petrodollars were "recycled" by a leading private banks in international debt colossal led by a colossal financial system that came to develop from there to here so arrazadora. If you want to know my views on these facts, I recommend it, among other works of mine, the book From Hope to Terror-Auge and Decline of Neoliberalism. Arts & Ideas, Aparecida, Brazil. Brazil, like other Third World countries and an important part of the Soviet bloc have become a large international debt, a fact that has become extremely serious in 1980 when the interest rate on these loans was increased abruptly and unilaterally (as the abandonment the convertibility of U.S. dollars) by the U.S. government. At the end of the decade showed unpayable debts if with the simple generalization of a moratorium or suspension of payments. At this time it created the Brady Plan which began trading these debts by the United States assumed that turning them into bonds issued by the United States and sold on the world market, and forgave their part to facilitate the functioning of the global economy. At present all or almost all (except I do not remember right now) reorganized its debt and eliminated the inflation factor that weighed on global economies, leading to hyperinflation. If you want to see it take a picture graph organized by ECLAC on the fall of inflation in the early 1990:
fall in inflation in Latin America - La hora de la Igualdad, ECLAC 2010, p. 54 - OK
"The fall in inflation in Latin America was widespread. Indeed, all 44 countries of the world that had hyperinflation in the 1990s wiped out the next few years. The real plan was just one of the mechanisms. "
tell by the way, I had already shown that since 1994 without any repercussion in Brazil, dominated by one party of the press that exerts an incredible monopoly on information and analysis in the country. I have been presented along with several colleagues data on inflation and deflation, especially since that time without getting the Brazilian economic science is held one minute on the subject. So it's not absurd that you have not informed about this.
Inflation rates dropped worldwide to near zero while Brazil remained near 10% annually (reaching 12.5% in 2002). I have a chart on this in my book cited. You will agree that 1% or 2% or 3% or 4% and 10% (we were one of the few countries that reached so high in the world) have a difference of 5 to 3 times more than the world average which was extremely low after 1994. The reason is simple: we took to extremes the idea that it is necessary to raise interest rates to slow inflation ... During the Cardoso government came to pay 48% interest per year. The biggest theoretical neo-liberal financial sector (the Nobel prize Alain) considers that the interest rate has to be well below the growth rate of a country because if the interest rate equals the rate of growth it overrides growth as it starts to be simply a transfer of the productive sector to the financial sector. Contrary to what "they" say, the high interest rate is a major inflationary factors in the country as well as reflect on the cost of products which includes interest paid, forcing necessarily increase the rate of profit and hence prices, pay such high interest rates by the state creates a huge public spending, inflation and useless. So much so that we pay in interest to a group of about 30,000 Brazilians a lot of interest which corresponds to 1 / 3 of all spending. You read it well: each of three real spending the Brazilian state, a real go to pay interest. And do not believe that this has nothing to do with the market as a parent who has primary surplus for several years (that is, spends less than it collects in order to have money to pay the interest ...) need not borrowed money. The justification for paying high interest rates is to reduce inflation and attract foreign capital to improve balance of payments with foreign countries ... This is pay the highest interest rates in the world to meet a bunch of useless based on economic theory contradicted by all serious theoretical economy and all economic data ...
You must agree to spend 60 to 850 is an increase of about 15 times! And an increase from 800 to 1600 is a 2-fold increase. I do not agree with the central bank's policy in the Lula government and criticized several times. But at least he managed to bring down the interest rate to less than 2 digits necessarily decrease the rate of inflation. The Central Bank of Brazil was able to commit to any challenge to economic theory, including the most reactionary raising interest rates amid a global crisis and creating a serious problem of public spending in a situation where public spending had to increase to allocate to the production. This is a reckless ... an irresponsible ....
do not agree with you that the Lula administration was the most corrupt in Brazil. Have had no cases of government corruption around one billion dollars. In previous governments these scandals abounded despite the interest of the press to hide them, how did you do it especially in the support program to break into banks, among which included the National Bank of the daughter of the President and therefore of their son since they were not married to the separation of property. I do not like to explore this theme of corruption called because he has been an instrument of class struggle against the dominant popular sectors who ascend to positions of power and who can not handle well the mechanisms of corruption easily become a source of scandal for very low amounts often trying to imitate their antagonists of the dominant classes that handle these massive resources without a single accusation of corruption. I do not get this too because I'm not chasing people like to be a basically corrupt economic system against which I struggle, as a system rather than as individual cases.
I hope I answered at least part of their concerns and many other readers. There was an economist who advised me to read non-specialized press as a contribution to my knowledge. He had no idea that I published over 40 books and hundreds of articles in 19 languages \u200b\u200band 40 countries that he, an economist, not known. Things of life and our academic environment ...
Sincerely
Theotonio Dos Santos
NOTE: I will publish this response on my blog.
From: Orlando Lima
Sent: Tuesday, February 15, 2011 18:32
To: thdossantos@terra.com.br
Subject: Open Letter to Fernando Henrique Cardoso
Dear Professor Theotônio,
this date read text with the title quoted above, as indicated by you, in response to open letter that former President Fernando Henrique Cardoso there had been addressed to President Lula.
If the text is actually of his own, much respect to the point of view there exposed, some issues have sharpened my curiosity as a citizen, which leads to the forwarding of this message and ask their help if possible, in clarifying the doubts raised.
believe that it is appropriate to clarify to him that my message contains no political interest of time, even not considering myself 'owner the truth ", quite the contrary, I believe, to the best opinion, the government of President Fernando Henrique Cardoso as the worst government in the history of Repúbllica. Unfortunately I believe that Brazil will not recover from damage caused by the Cardoso government even in the next 300 years. The the government of President Lula, for all that was published about him, and still publishes, I have been the most corrupt government since Brazil was discovered by the Portuguese.
That said, let the questions for which I would like clarification of your .
1 - You said that by 1993 the country went through a hyperinflation. Since 1994, in a rzão planetary motion all countries have lowered their inflation to below 10%. What are the economic and political reasons that led all countries in a short time, lower its inflation?
2 - You said that the Cardoso government has kept inflation the highest in the world, approximately 10%. But if all countries have also experienced an inflation rate close to 10% of Brazilian inflation was not jarring in comparison to world inflation. Is my reasoning correct?
3 - You felt bad that the Cardoso government to increase Brazil's public debt of 60 billion reais to 850 blhões reals. I am totally a novice on the economy but also consider very high value of the Brazilian public debt passed to President Lula. However, it was published, the public debt of Brazil at the end of Lula's government amounted to EUR 1 trillion and 600 billion dollars. In this aspect, the FHC and Lula were equivalent. Or not? One of the invaluable
attention that you dispense with this message, I say farewell
Sincerely,
Orlando Lima
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