Bolsonaro's economic guru urges quick Brazil pension reform

[Judi Lynn]

Source: Reuters

OCTOBER 30, 2018 / 6:08 AM / UPDATED 6 HOURS AGO

Rodrigo Viga Gaier
5 MIN READ

RIO DE JANEIRO (Reuters) - The future economy minister tapped by Brazilian President-elect Jair Bolsonaro insisted on Tuesday that he wanted to fast-track an unpopular pension reform to help balance government finances despite mounting resistance to getting it done this year.

Paulo Guedes, whom Bolsonaro selected as a “super minister” with a portfolio combining the current ministries of finance, planning and development, has urged Congress to pass an initial version of pension reform before the Jan. 1 inauguration.

“Our pension funds are an airplane with five bombs on board that will explode at any moment,” Guedes said on Tuesday. “We’re already late on pension reform, so the sooner the better.”

He called the reform essential to controlling surging public debt in Latin America’s largest economy and making space for public investments to jump-start a sluggish economy. Markets surged in the weeks ahead of Bolsonaro’s Sunday victory on the expectation that he could pull off the tough fiscal agenda.

Read more: https://www.reuters.com/article/us-brazil-politics/bolsonaros-economic-guru-urges-quick-brazil-pension-reform-idUSKCN1N41EB?feedType=RSS&feedName=worldNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Reuters%2FworldNews+%28Reuters+World+News%29&&rpc=401

[watoos]

1. Ah yes, Trump just said it,

Countries are either globalist or nationalist. Brazil is going to do what Pinocet did to Chile. Privatization will be coming soon.

[rampartc]

5. those protesting these "reforms" will disappear.

i have been expecting that here, probably after trump's reelection.

[sandensea]

6. Or, like in neighboring Argentina, they'll simply be framed and jailed.

The Argentine right learned their lesson from the '70s: dropping people into the South Atlantic makes for bad press.

Bolsonaro might just be murderous enough to do it though.

[moondust]

9. Do you think Lula and Dilma were framed?

Or railroaded on trumped up charges?

[sandensea]

10. That's what the evidence (or lack thereof) suggests

Dilma was impeached, on a largely party-line vote, for using a budgetary accounting gimmick that every Brazilian president and governor uses, in order to keep interest rates a little lower.

Certainly not illegal - which would be the most basic requirement for impeachment in Brazil.

Bolsonaro, who of course voted to impeach her, dedicated his vote to the colonel who tortured her in the early '70s.

In Lula's case, the charges against him based on his alleged ownership of a $700,000 beachfront apartment - except his ownership or even connection to it was never proven.

The "proof" was in the form of hearsay by a convicted contractor who testified to that effect after he was kept for weeks in a rat-infested dungeon.

Even Brazil's Supreme Court agreed that had been coercion in this case - though they stopped short of vacating it. Lula da Silva was meanwhile barred from running as a result - thus making Bolsonaro's victory almost inevitable.

Using duress to force witnesses to perjure themselves in a time-honored tradition in Latin America, and has made a real comeback both in Brazil and neighboring Argentina.

[moondust]

11. Thanks.

Ugh.

[sandensea]

12. You're very welcome.

Cheeto's no doubt jealous he doesn't have that kind of power - yet.

Happy Halloween, Moondust. Have a sweet and cozy one!

[7962]

2. "Super minister"? That sounds exactly like a Trump term.

[sandensea]

7. All too common in right-wing South American regimes though.

The current Finance Minister of Argentina - an unmitigated disaster - is himself a "super" minister.

He's super alright.

The "Argentine Trump", Macri, and crowds protesting evaporating savings in Buenos Aires.

Once Macri's debt bubble popped in April, the economy plunged into its deepest crisis since 2001. The peso has lost half its value despite a $21 billion bailout from the IMF (thus far).

Bolsonaro calls him his "optimal ally."

[Judi Lynn]

8. "Optimal ally." Horrible. Hope they can both go down in flames.

Two monsters, in neighboring countries, are also in the company of Sebastian Pinera, in Chile, who is also another president who publicly supports the previous military dictatorship in his country.

Looks so ugly right now, for South America. So many millions of people affected by these three fascists.

The people can kiss their human rights goodbye, again, along with some of their relatives, neighbors, friends, etc.

[sandensea]

13. Well said. That's why it's so important progressive leaders try to avoid mistakes or corruption.

Neither Dilma nor Cristina Kirchner (or Lula, for that matter) were even shown to have taken part in illicit enrichment - and their right-wing successors have certainly tried to show thay had, obessing over it in the worst way.

But there inevitably was some corruption among their officials (like in all Latin American administrations), and there were policy mistakes toward the end as well.

Dilma should have never caved to right-wing pressure to adopt austerity (around 2014-15). It pushed the economy into a severe recession, and made her unpopular enough to impeach - which of course was always the plan.

And Cristina erred in trying to wean Argentines off the dollar (2012). It can't be done, and only ended up slowing the economy to a crawl (though it was still much better than it is now).

Big business, as you know, is almost always in league with these far-right parties, and they're always waiting for their opponents to slip up.

[Hortensis]

3. More hard right "reform" destruction. The liberal speaker of their house

and the rest of the liberals apparently aren't exactly on board with this plot, even if some pension system adjustments are needed.

[AZ8theist]

4. yeah, pension reform.

That should go over big with the population.

I give the Nazi 18 months before he's ousted...

[DeminPennswoods]

14. Doubt he'll last even that long

nt