Surplus, the fragile hero

While I’m writing this article, Representative Zé Dirceu is being judged by the Supreme Court. There even exists a movement pro-Dirceu; his political career has been spoiled already. But nothing is important right now, because the consequences on us are very tough.

The specialists said that the Brazilian economy was “protected by a shield” from the political crisis. I never believed it.

Unfortunately, I didn’t write, keep it clean or register it. Like almost every human science, economics takes some time to react to the effects of the crisis. It was impossible to stay away from it. Like some Swedish business guru said: “the world is moved by shopping and sex”. And he seems correct. The woman of the moment is Jeane and this crisis finally hits the market.

Lula and his palls, speaking with the little whistle and with their lips sound, characteristically from the PT party, spoke about the “shield” based upon the surplus theory. But this crisis hits minister Palocci [inside the PT it sounds Paloffi] and the surplus theory was destroyed.

Off course everybody wants to spend less than they earn. Everybody! - me, you, them. Lula wants to justify everything with it. Those that ate that, now get gastritis. I didn’t eat it.

I have always said that a favorable balance of trade was a consequence of our commodities export - exporting that doesn’t heat our internal market, and more, helps to concentrate the Brazilian income - and high taxes.

You can understand that just looking at the Brazilian GDP. Little production. Poor production.
Justify everything with that favorable balance of trade just shows us one side of the ass! Brazil hasn’t had a significant growth in its industry. The country doesn’t grow.

To understand this trade balance, look how it is done: how much you earn minus how much you get. Very simple, like the school times: addition and subtraction. Now ask yourself, “where is the government’s money coming from?”- Taxes, correct? - Now, what’s happened to our taxes? Grew!

And the expenses? It is payments and investments. Increase the number of employees in the public sector and decrease the investments.

With that abundance it is possible to pay part of our external debt. The government stipulates a surplus max platform around 4.5. But truly, it is 6 and something. With the rest they pay the external debt, it is almost what they say.

But I ask myself:

In one pour country like our country, how is it possible the overflow of money to increase the public machine and pay some interest of the external debt? Could it be much money or no money?

It is understandable because we have a bad school and it is going to be worse, subhuman hospital conditions, unprepared police, horrible infrastructure, and much more, how is possible to have a favorable balance of trade?

I don’t believe that it is money’s absence, it is bad investment. Good investments are not with Jeane’s girls or put inside the sack, that from underpants.

By Fernando Katayama 30 Nov. 2005