The Brazilian Central Bank’s public robbery: “bail-outs” is the hatchway for the international banks bad assets
A new law is being prepared in Brazil that requires from the shareholders and the creditors to cover monetary losses and capitalize the financial insolvency of international banks, brings up the discussion for the use of public money to fund gambles in an international financial casinos proporcinadas by a shareholder of the international banks: the Brazilian’s Federal Government. A great excuse for this new law is the uncontrollable use of rotten roles of the shareholders of failed banks as a security for the credit for new investments in the global financial system and the Brazilian citizens will continue to have no guarantees that the loan from The Brazilian’s Central Bank returns to the Brazilian’s National Treasury in the form of currency. The massive entry of international banks in Brazil is a factor that pushing the Brazilian’s Central Bank to create conditions for the free movement of financial flows, eliminating political risks that will damage the entry of foreign capital. The idea that the Brazilian’s economy shield is resilient to the economical external shocks through the “real” devaluation is false and is powered by technocrats and financiers of the Brazilian’s Central Bank. In return, we will be enslaved again with the possible passage of this act that belittles our domestic economy by reducing investments in education, housing and health within the public budget for the next years. How to avoid that the primary surplus is primarily responsible for the deficit in the Brazilian’s currency public account?
Written By: Tiago Silveira