GLOBAL RESEARCH - Prof Michel Chossudovsky - OCT 8, 2022
Brazil: Neoliberalism with a “Human Face” Brazil's Macro-economic Policy under the Control of Wall Street creditors
Lula first came to power as Brazil’s president in January 2003 (see article below). What are the likely consequences of a renewed Lula PT government?
Leftist Etiquette
While the “progressive” and “Leftist” labels prevail, key political appointments have already been approved by the Washington Consensus. De facto, it is a centre-rightist government “with leftist characteristics”.
In this regard, it is important to reflect on how Brazil’s Workers Party (PT) leadership was coopted by Washington and Wall Street from the very outset prior to the 2002 elections.
In January 2003, “Leftists” meeting at the World Social Forum (WSF) in Porto Alegre applauded the inauguration of Luis Inacio da Silva as a victory against neoliberalism, without acknowledging that Lula’s PT had embraced the demands of Wall Street and the IMF.
In the words of IMF Managing Director (April 2003)
“the IMF listens to President Lula and the economic team”.
But that team was appointed to serve the interests of US corporate capital including Brazil’s external creditors. In August 2002, the composition of Lula’s cabinet had already been endorsed by the Washington consensus.
Lula had chosen a prominent Wall Street banker to head Brazil’s Central Bank, i.e. to act as a dollarized Trojan Horse on behalf of the U.S. banking cartel. Henrique de Campos Meirelles, former president and CEO of FleetBoston (Brazil’s Second largest external creditor after Citigroup) was duly chosen to head Brazil’s Central Bank. In turn, the State investment bank Banco do Brazil had been handed over to CitiGroup.
The conduct of the nation’s finances and monetary policy were in the hands of Wall Street, the IMF-World Bank and the US Federal Reserve. In August 2002 at the height of Brazil’s election campaign:
The International Monetary Fund agreed to provide a $30 billion rescue package aimed at restoring investor confidence in Brazil, … The unusually large loan is intended to forestall a possible default on Brazil’s $264 billion public debt. It is also intended to insulate Brazil’s vulnerable finances from the uncertainty of an October presidential election, in which left-wing candidates are both leading the polls and shaking the markets. …
U.S. bank claims on Brazilian borrowers were $26.75 billion at the end of March, with Citigroup Inc. and FleetBoston Financial Corp. having the greatest exposures, according to the Federal Financial Institutions Examination Council, a government agency. (WSJ, August 2002, emphasis added)
What does this mean?
The two key major banking institutions of the Brazilian State apparatus, namely the Banco Central do Brazil and the giant Banco do Brazil were respectively handed over to Brazil’s two largest external creditors (quoted above), namely FleetBoston Finance Corp and Citigroup Inc.
Flash Forward: The September-October 2022 Election Campaign
In recent developments, Henrique Meirelles has expressed his unbending support for Lula. Will Meirelles –who has a so-called “market-friendly track record”– (favorable to Wall Street investors and creditors) be offered the position of Minister of Finance or that of Governor of the Central Bank?
“Henrique Meirelles is the name most mentioned by market analysts as a likely choice for finance minister if Luiz Inácio Lula da Silva (PT) wins the election”
Lula’s running mate, former governor of Sao Paulo Geraldo José Rodrigues Alckmin Jr. is an avowed neoliberal committed to privatizing State property on behalf of Brazil’s external creditors. He also has links to Opus Dei.
The globalists’ endorsement of Lula’s candidacy was confirmed last April when neocon State Department envoy Victoria Nuland (who played a key role in the 2014 Maidan Ukraine coup d’état) on an “unofficial visit” to Brazil, categorically refused to meet president Bolsonaro:
“After promising the EU a participation in the “governance” of the Amazon and condemning the Russian Special Military Operation in Ukraine, Lula became the preferred candidate of globalist elites for this year’s electoral dispute, making the cover of Time Magazine…”
A pseudo-Leftist PT Brazilian government integrated by powerful right wing elements will be serving the interests of Wall Street and the US State Department.
The driving force is external debt, extensive privatization and the acquisition of real economic assets by the globalist financial establishment.
The geopolitics are crucial: Washington’s intent is also to ensure that a Lula government will not in any tangible way undermine America’s hegemonic agenda.
From Washington’s Standpoint, Lula’s Track Record is “Impeccable”
1. “He is the most popular politician on Earth. I love this guy” said Barack Obama (2007).
2. He is a friend of George W. Bush.
3. Lula not only failed to condemn the US sponsored February 28, 2004 Coup d’état in Haiti, against a duly elected and progressive president Jean Bertrand Aristide, his Workers Party (P.T.) government ordered the dispatch of Brazilian troops to Haiti under the auspices of the UN MINUSTAH “Peace Keeping” “Stabilization” operation (unofficially on behalf of Washington).
George W. Bush conveyed his thanks to Lula whose military participated in the MINUSTAH “Peace Mission” Initiative:
“I appreciate very much your [Lula] leadership on Haiti. I appreciate the fact that you’ve led the U.N. Stabilization Force.”
Brazil’s Military was present in Haiti for 13 years under MINUSTAH with a total deployment of 37,000 troops (p. 1). This was not a peace initiative. President Aristide was kidnapped and deported. The MINUSTAH (police-military operation) was involved in acts of repression directed against Aristide’s progressive political party Famni Lavalas.
4. Will Lula remain friends with the IMF? In the words of former IMF’s Managing Director Heinrich Koeller: “I am deeply impressed by President Lula, indeed, and in particular because I do think he has the credibility which often other leaders lack”. (2003)
5. And to top it off: Lula is a firm supporter of Joe Biden:
“Biden is a breath for democracy in the world.” said Lula. (CNN Interview with C. Amanpour, March 2021)
Neoliberalism with a Human Face is a convenient disguise.
The grassroots of the Workers Party (PT) have once again been misled.
The future of Brazil as a sovereign Nation State is “in a bind”.
Bolsonaro is a candidate of the extreme right. He is by no means an “alternative”.
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The article below on Neoliberalism with a Human Face was first published by Global Research 19 years ago on April 25, 2003, shortly following Lula’s inauguration in January 2003.
Michel Chossudovsky, October 8, 2022
ORIGINAL + O ARTIGO DE 2003 >