Brazil the first real obstacle for Lula is trying to

Brazil, the first real obstacle for Lula, is trying to torpedo the governor of the central bank, who was appointed by…

If because of Luiz Inacio Lula da Silva is “relatively” less complex – after the Bolsonarian coup revolt of January 8 a Brazil – Remove generals and colonels from the national security system, it will not be so easy for the newly elected Brazilian president to get rid of them Robert Campos netthe ultra-liberal President of the central bank (BC), elected in the previous government to lead the strategic financial institution which regulates credit as well as public and private financing Brazil. Maybe this is one of them antinomies harder to solve for Lula e Fernando Hadada, Economics and Finance Minister in the new government of a broad petist coalition. Lula and the business team draw the line to implement the projects socioeconomics announced during the election campaign. You should do it together Campos neta full-blooded Liberal who will remain in office until 2024, the year when Lula can elect a shop steward to head the BC.

Former President jair Bolsonaro 2021 quickly and violently sanctioned a law under which the President of the v. Chr will have a four-year mandate, but his appointment will no longer coincide with that of President of the Republic which usually denoted a man of his confidence for the Direction The bank. The new legislation would serve to ensure the autonomy and continuity of the monetary policy of the institution and would prevent an incumbent government from doing so manipulate Monetary policy with populist or electoral goals. Lula will be the first president to live with the new legislation and the certainly not pleasant presence of Roberto Campos, who will influence the new government’s monetary and economic policies, as the institution decides Selicthe basic reference tax that BC uses to control inflation and affect all interest rates in the country, such as B. Interest rates loanshort-term investment financing. Campos was the right hand of Paul GuedesEconomy Minister of former President Jair Bolsonaro, with whom he studied milton Friedmanthe creator of Chicago Boyswhose economic doctrine has been devastatingly adopted by authoritarian governments in particular, including that of the general August Pinochetduring the military dictatorship in Chile.

Lula’s irritation at Campos Neto was also centered on his silence following the January 8 events. A problem that the president the BC tried to overthrow and condemned the movement putschist. It is clear that there is bad blood between Lula and Campos. Their relationship is becoming more complex by the day, particularly after Haddad received a letter from the BC president explaining the reasons why the BC had failed to meet its inflation target for two consecutive years government Bolsonaro. The notice heralds draconian monetary policy action by Campos, who must act against Selic to curb inflation just as Lula and Haddad want lower interest rates to provide stimulus public investments and private and avoid the risk a catastrophic recession Economy to Brazil, according to the federal social program Each unique23 percent of the population have already declared that they do not have sufficient income Survive. Lula must restart the economy at all costs to bring it down misery and a crisis exacerbated by a worrying polarizationextreme right Brazilians ready to do anything to return to power with or without former captain Bolsonaro.

However, Campos’ letter to Haddad could become a trump card to remove him uncomfortable president of the BC. Should impropriety by the BC President surface in the years when inflation targets were not met, Campos could be, as required by law relieved. Should this hypothesis materialize and Lula accept Minister Haddad’s motion to sack Campos, the claimHowever, it must be discussed and voted on in the Senate, where the majority of senators are far-right and Bolsonarists. Senate and Chamber are one sword Damocles for the Lula government, which, despite being based on extremely broad governmental alliances, will strugglereally progressive agenda. But the skirmishes between Lula and Campos definitely began during the troubling Bolsonarist uprisings Brazil: in Lula’s first interview on July 18 a Globe NewsImmediately after the coup attack, the President criticized independence Bank Central, if you consider it a “bobagem”, an idiocy. Not many people paid attention to the statement of presidentsince they were all attentive to his statements aimed at the military, but the verdict was instead clearly perceived by the men of the Brazilian and international financial market, who immediately attacked Lula and Haddad, who were on that day global economy forums. The day after Lula’s testimony, the Brazilian stock market collapsed and the valuation of the real, the Brazilian currency, did not fare so well.

The dispute did not end Swisscontinues today. Especially with the story of single currency who want to build up Brazil and Argentina. The petist currency initiative does not envisage a single currency based on the European model, but a “currency” digital, which can only be used in business transactions between the two countries. The financial trick would be used to save dollars reserves money, notably Argentina, which had 94.8 percent inflation in 2022. But it seems so Campos Neto is more interested in disclosing that picture, the popular algorithmic instant digital loan and payment application used by millions of Brazilians. The Pix was inaugurated in 2020 by Campos during the presidency Bolsonaroeven if one of the fathers of the application – which boosted profits Brazilian banks by 50 percent in just one year – that was the Brazilian Ilan Golfajnthe former president of the BC and current president of the BID, the Inter-American Development Bank, another character not really liked by the Partido dos Trabalhadores by Lula. To create the application that created them 26 billion transactions In 2022, Golfajn’s team was inspired by the American fintech application cell. Meanwhile, Campos also became chairman of the Advisory Board of the Bank for International Settlements for America and will be successful John Williamsthe current President of federal Reservationsthe central bank of conditions Unitedwhere President Lula will travel on February 10 to meet his President yeah biden in Washington.