Hashtag #ImpeachmentDeBolsonaro gains momentum on Twitter after countless nonsense statements from Brazilian President Jair Bolsonaro

In recent days, Brazilian President Jair Bolsonaro has shocked Brazilian and world public opinion with countless absurd statements.

Among the many absurdities of recent weeks, the Brazilian president said that Inpe, a world-renowned Brazilian scientific research institute, was at the service of international NGOs and lying about deforestation in the Amazon. Inpe director Ricardo Magnus Osorio Galvao said that the president's statements represented "behavior that does not respect the dignity and liturgy of the presidency".  Galvão also said that the president behaved "as if in a pub", making jokes like a "14-year-old boy that is not for a president to make". 

Then, at an official meeting, the president was recorded referring biased to the Northeastern people when he called the governors of the region "de Paraíba", a pejorative way to refer to that population. 

On the same day, the president said he "loved the Northeast" of Brazil, but what remained was a great unease of the governors of the region with the absurd statement. The population also responded with numerous demonstrations on the internet criticizing the president's speech.

He then threatened journalist Glenn Greenwald by implying that Greenwald had committed a crime for spreading messages captured by a hacker. Bolsonaro said the journalist was a "trickster" for marrying a Brazilian and threatened to arrest him. Bolsonaro's statement has been rebutted by countless organizations and political leaders, including House Speaker Rodrigo Maia, who recorded a video supporting Greenwald.

Following this, President Jair Bolsonaro has inhumanly cast doubt on the torture suffered by journalist Miriam Leitão, who was imprisoned during the military dictatorship in Brazil. Bolsonaro also said that Leitão had been a member of the guerrilla who fought against the dictatorship. Miriam was not a guerrilla member, and her torture occurred when she was only 19 years old. She was arrested pregnant by the military regime, taken to the headquarters of the 38th Army Infantry Battalion in Vitória, Espírito Santo, locked naked in a room, where a live snake was also placed to threaten her.

Then, last Monday, Bolsonaro cruelly made fun of the pain of Brazilian Bar Association (OAB) President Felipe Santa Cruz, whose father, Fernando Santa Cruz, was arrested in 1974 by the military dictatorship. Felipe then was just 2 years old and never saw his father again. The Brazilian president said that if Felipe wanted to know what had really happened to his father, he Bolsonaro would tell.

According to President Bolsonaro, Felipe's father was killed by the guerrillas themselves, a fact that does not correspond with the historical records. There is even a death certificate issued by the Brazilian government, indicating that Felipe's father was killed by the Brazilian state.

This sequence of absurd claims eventually led to the creation of the hashtag #ImpeachmentDeBolsonaro (Bolsonaro impeachment) and has also been the target of much criticism.

For jurist Miguel Reale Jr., one of the authors of the impeachment request of former President Dilma Rousseff (PT), President Jair Bolsonaro lives a "hallucinatory process" that puts Brazilian democracy at risk.

The murder of Indigenous leader Emyra Wajãpi by prospectors exposes the danger of President Bolsonaro's support for mining legalization in the Amazon region

Chief Emyra Wajãpi, 68, was killed in 25 of July, in Amapá by prospectors, who later invaded the village, the Indigenous said.

Asked about what happened, President Jair Bolsonaro once again stated that he intends to legalize mining in the country, which includes the liberation of the activity in Indigenous lands. He also said there was no strong evidence that Chief Emyra Wajãpi had been murdered.

However, according to Funai, the Regional Coordination of the National Indian Foundation in Amapá forwarded to the presidency of the body on Saturday in a memorandum reporting on a possible attack on the Waiãpi Indigenous Land, and media reports said it was an invasion of prospectors.

The United Nations High Commissioner for Human Rights, Michelle Bachelet, charged yesterday (July 29) an investigation into the death of Chief Emyra Wajãpi, leader of the Wajãpi ethnic group, whose body was found inside a river in a demarcated area in Amapá.

Experts warn that legalizing mining in Indigenous reserves advocated by the president is risky, as it could put Indigenous populations and the environment at risk. In Brazil, mercury mining contaminates river waters, creating a huge prejudice for the environment. And the contact between prospectors and Indigenous people is marked by a lot of violence.

Cost of living in Brazil: IGP-M slows in July, a rising dollar and financial market betting massively on Selic interest rate cut

According to the Getulio Vargas Foundation (FGV), the General Price Index - Market (IGP-M) decelerated to 0.40% in July after showing a high of 0.80% in June. With the July result, the IGP-M accumulated high of 4.79% in the year and 6.39% in 12 months.

Meanwhile, the Brazilian financial market is betting heavily on the 0.50% cut in the economy's base interest rate, the Selic, which is currently at 6.50%.

Some more cautious analysts believe that the Brazilian Central Bank, at the next Copom meeting to be held tomorrow, July 31, should cut Selic by only 0.25%, leaving the annual interest rate at 6.25% per year in Brazil.

The dollar price in Brazil closed again high yesterday, July 29. The US currency ended the day at 0.29% appreciation, selling at R$ 3.7830.

Brazilian President Jair Bolsonaro is a "case of interdiction", says jurist Miguel Reale Jr.

Miguel Reale Jr., the lawyer who, in 2015, was responsible for Dilma Rousseff's impeachment request, today strongly criticized President Jair Bolsonaro in an interview with Guaíba radio station in Porto Alegre.

For him, Bolsonaro "is no longer a case of impeachment, it is a case of interdiction". Reale Jr. believes the current president has put the country in "a frame of insanity". That is why the country should ban the current president.

Brazilian president Jair Bolsonaro says he knows how the father of the President of the Brazilian Bar Association (OAB) was murdered during the Military Dictatorship and the Brazilian public responds by creating the hashtag #AgoraFalaBolsonaro

President Jair Bolsonaro has cowardly attacked Brazilian Bar Association president Felipe Santa Cruz, saying he could "tell the truth" about how his father disappeared during the military dictatorship (1964-1985).

"One day, if the president of the OAB wants to know how his father disappeared during the military period, I tell him. He won't want to hear the truth," said the Brazilian president.

Felipe was only two years old when his father, Fernando Augusto de Santa Cruz Oliveira, a member of the Popular Action Group (AP), an organization opposed to the military regime in Brazil, was arrested by the government in 1974 and was never seen again. Fernando's body was never found.

The president's speech provoked a wave of protests from the most varied members of Brazilian civil society and the country's politics. São Paulo governor João Dória, who supported Bolsonaro during the presidential campaign in 2018, said the statement was "unacceptable".

Amnesty International's executive director, Jurema Werneck, repudiated this afternoon about the statement by President Jair Bolsonaro regarding the death of Fernando Augusto Santa Cruz de Oliveira, one of the missing politicians during the military dictatorship in Brazil. Fernando was the father of the current president of the Brazilian Bar Association, Felipe Santa Cruz.

The OAB itself issued a note of repudiation of Bolsonaro's statement about the entity's president's father.

The hashtag #AgoraFalaBolsonaro (Speak now Bolsonaro) is filled with messages stating that if the president knows what happened during the military dictatorship he has a statesman obligation to explain what happened to Fernando. Then, after the immense repercussion of the president's terrible speech, Bolsonaro ended by claiming that Fernando was killed by leftist militants. 

However, an Air Force Report on the case of Fernando's death belies Bolsonaro. Thus, the president's phrase goes down in history as one of the most shameful moments of the Brazilian executive power.

There is even a death certificate for Fernando Augusto de Santa Cruz Oliveira. The document was issued by the Special Commission on Political Dead and Missing Persons, published to the Ministry of Women and Human Rights on a federal government website that Bolsonaro runs. Bolsonaro's speech, besides being abject, is also a liar.

Banco do Brasil (BBAS3) approves series of measures to reorganize the state-owned company

The Banco do Brasil announced today trials of measures aimed at reducing staffing. The institution's Board of Directors has approved a set of actions for institutional reorganization that should result in dismissals of employees.

The announced measures should completely resize the state's organizational structure at the strategic, tactical, support, and business levels. Meaning general management, superintendencies, regional bodies, and agencies.

The state company also announced the creation of an area focused on artificial intelligence and analytics. The bank also stated that it intends to transform 333 branches into Advanced Attendance Points (PAA), that is, increasing the automated attendance.

Brazilian financial market bets on Selic interest rate cuts in Brazil

Interest rate cuts in Brazil are more than priced on curves. Now, after the approval of the first-round Social Security Reform in the Chamber of Deputies, the Brazilian financial market expects the next Copom meeting to decide to cut the basic courses of the Brazilian economy.

Currently, Selic is at 6.5% per year. The Brazilian financial market bets on a cut of at least 0.25%. There are also those who bet on a 0.50% cut.

The Focus Report released today by the Brazilian Central Bank presented a scenario of the Brazilian economy without major changes. According to Focus, there is an upward trend in the exchange rate in Brazil – the projected exchange rate for 2020 remains at R$ 3,90 – which indicates that foreign investors have not yet raised their capital in Brazil.

With a profit of r$ 2.6 billion, Ambev (ABEV3) rises almost 8% and leads Ibovespa highs

Ambev, the largest Brazilian producer of beverages, increased net income in the second quarter of 2019 by 8.5% over the same period in 2018. The excellent performance was due to the reduction in the company's financial expenses, according to the balance released today ( July 25, 1919).

In the first trades on Thursday morning at Bovespa (B3), Ambev (ABEV3) shares are trading with a strong 8.30% appreciation at R $ 19.45, leading the Ibovespa gains.

Economists believe that releasing just R$ 500 per person at FGTS will culminate in another chicken flight to the Brazilian economy

The release of about R $ 30 billion should be positive, but it should not change much the scenario of economic growth of Brazilian GDP in 2019. Overall, the forecast revisions for GDP in 2019 were very marginal. Nothing very expressive. Most analysts point to a growth of about 0.8% of GDP in 2019, ie very small.

For the former president of BNDES and former Minister of Communications, economist and engineer Luiz Carlos Mendonça de Barros, the measures presented by the government are timid to leverage the Brazilian GDP.

Economy Minister Paulo Guedes himself said in early June 2019 that releasing FGTS money before pension reform would be a “chicken flight”. Now, even though the pension reform is not fully approved, the government decides to adopt the measure.

Yesterday, during the measure's presentation ceremony, Guedes said the FGTS withdrawal will be a permanent income, not "chicken flight," as he himself had said.

For Maranhão Governor Flávio Dino, the "release of the FGTS is a good measure, but it is a trickle in the ocean of national recession."

Dino believes that “the expansion of public works is urgent. It is an emergency debt relief program to improve demand. There are ways. But we need to focus on Brazil. ”

Dino thus criticizes the policy of the current government, which is openly aimed at pleasing the international bond market.

Flavio Dino was verbally attacked by President Bolsonaro during a private conversation with the Chief Minister of the House, Onyx Lorenzoni, captured by TV microphones a few days ago.

Bovespa (B3) closed higher in Brazil after the privatization of BR Distribuidora (BRDT3) and the announcement of FGTS money release

The main index of the São Paulo Stock Exchange (B3), the Ibovespa, closed up today, at 104,119 points, after rising 0.4%. The main reason was the privatization of BR Distribuidora. 

The main index of the São Paulo Stock Exchange (B3), the Ibovespa, closed up today, at 104,119 points, after rising 0.4%. The main reason was the privatization of BR Distribuidora. 

BR Distribuidora was up 5% on the stock market after the sale of shares made by Petrobras.

The market also considered positive the policy for the Government Severance Indemnity Fund (FGTS) and PIS-Pasep Fund quotas announced by the government. Workers can now withdraw up to R$ 500 from each active or inactive FGTS account (from current or previous employment).

Petrobras (PETR4) announces sale of control of subsidiary BR Distribuidora (BRDT3)

Petrobras, Brazil's largest state-owned company, has sold more than 30% of the shares and announced that it will reduce its stake in the subsidiary to 37.5%.

According to a statement issued by the state company, Petrobras' board of directors approved the sale of 349,500,000 shares, at R $ 24.50 per share. This corresponds to R $ 8.5 billion. Upon completion of this transaction, Petrobras will hold only 41.25% of BR Distribuidora, thus, Petrobras will reduce its stake in BR Distribuidora from 71% to 41%. This means that in practice BR was privatized.

In 2017, during Michel Temer's government, Petrobras had already sold 28.75% of BR shares, raising about R$ 5 billion.

UN hunger fight projects resources halted due to lack of approval from the Brazilian Ministry of Economy; Fight against hunger in Brazil suffers from the government of a president who insists that this problem does not exist or is very small in the country

Brazil has over 45 million dollars in hunger-fighting projects that are stalled. These resources could finance projects through the International Fund for Agricultural Development (IFAD), the UN agency to fight rural poverty and hunger. Investments, however, have not been halted since 2018 due to lack of approval by the foreign finance commission of the Ministry of Economy led by Paulo Guedes.

The main difficulty in allowing the release is the Union's inability to repay, which cannot be a guarantor of loans.

On July 19, at a coffee shop with international correspondents in Brasilia, President Jair Bolsonaro said that Brazil did not suffer from the problem of hunger. On the same day, Brazil's president's statement on hunger in the country was rebutted by data and experts.

In this coffee, with the journalists, Bolsonaro said: "Talking about starving in Brazil is a big lie". Later that day, pressured by the flood of criticism he received inside and outside the country, Bolsonaro turned back and said only a "small part" of the population suffered from hunger. In fact, more than 5 million people suffer from the scourge of hunger in Brazil.

However, the UN Food and Nutrition Security Outlook Panorama Report 2018, released in November by the UN, showed the rise in hunger in Brazil. The study estimated that malnutrition reached up to 5.2 million Brazilians between 2015 and 2017, compared to the 5.1 million estimated for the three years 2014-2016 and 2013-2015. In the 2000-2002 triennium, 18.8 million Brazilians suffered from hunger. 

This meaningless debate started by the president is a catastrophe for the hunger control programs in Brazil. Meanwhile, other less urgent projects are being tabled by this government, for example the decree to facilitate gun possession or the project that eliminates fines for transporting children without car seats or starting studies to include the terms "father" and "mother" rather than "parents" in the fields intended for membership in the Brazilian passport documentation.

Meanwhile, major resources for fighting hunger in the countryside have been stalled since 2018 because the country has not paid back a loan to the Union.

This indicates that the current government does not know what the country's real priorities are and continues to spend time and resources on debates that are completely innocuous.

Guajajaras and Awá tribes unite in Brazil to protect the forest from fire and deforestation

With their lands under constant attacks by loggers, the tribes of Guajajaras and Awás united in Maranhão to protect the forest.

In total there are more than 14 thousand Guajajaras Indians from more than 150 villages. In recent months, they have come into contact with the Awás, a tribe that lived in isolation within the forest.

Filmmaker Flay Guajajara has produced a film, "Ka'a Zar Ukyze Wà - The Owners of the Forest in Danger", to be released today, in Sao Paulo, which shows the meeting of the two tribes.

Located in the Araribóia indigenous land in Maranhão, they are one of the last hunter and gatherer peoples in the world and, according to experts, may have their days numbered if the destruction of the forest does not stop.

Now with Jair Bolsonaro's government, deforestation is growing to frightening levels.

China reopens its market for Brazilian milk powder and cheese

The Minister of Agriculture of Brazil, Tereza Cristina, today celebrated the decision of China, the largest importer of dairy products in the world. According to her, Brazil produces about 600 million tons of milk powder.

The Brazilian dairy sector can benefit greatly from this decision. This will raise the price of the bed in Brazil and strengthen this sector of the Brazilian economy.

In August, the minister of agriculture of Brazil should visit China for new talks.

Cost of living in Brazil: fall in fuel prices causes the Extended National Consumer Price Index 15 (IPCA-15) to rise only 0.09% in July

Increases in airfare and electricity prices in Brazil were not sufficient to produce a big rise in inflation in July 2019. The Broad National Consumer Price Index 15 (IPCA-15) rose 0.09% in July after registering an even lower growth of 0.06% in June. The main factor for this very small growth was the fall in fuel prices.

With a stable IPCA, several Brazilian economists are betting on a 0.25% reduction in the basic interest rates of the economy (Selic). IPCA closes June up just 0.01%, reflecting weak demand and the contraction in food and fuel prices. Without cost-of-living pressure, analysts are predicting a drop of at least 0.25 percentage points in the Selic rate at the next Copom meeting in the last two days of July. Currently, the Selic rate is at 6.5% per year.

With Selic at this level in Brazil, fixed-income investments such as savings, floating-rate CDBs, DI funds, and Selic Treasury bonds pay less, as their yields are pegged to the Selic rate.

Jair Bolsonaro criticizes Brazilian institute that collects data on deforestation of the Amazon rainforest

Following the release by the National Institute for Space Research (Inpe) of Deter (Real-Time Deforestation Detection) data, President Jair Bolsonaro said Inpe's research is "negative propaganda abroad" that put Brazil "in a complicated situation." Bolsonaro seems to defend bullying as a public policy. He called Inpe's director a liar, said he's in NGO service.

According to Inpe, deforestation in the Amazon in June 2019 was 88% higher than in the same period in 2018. During this period, deforestation in the Brazilian Legal Amazon reached 920.4 km².

President Bolsonaro's criticism led the scientific community to openly defend Inpe work. The president of the Institute, Ricardo Galvão, said that Bolsonaro took a "pusillanimous and cowardly attitude". For Galvão, the rudeness of the president, who said the Institute was lying, were statements that to him seem more like "talk at the bar".

Preliminary satellite data from Inpe show that more than 1,000 km² of Amazon rainforest was cleared in the first half of this month, equivalent to a 68% increase over July 2018.

Banco Santander (SAN) decides to replicate Brazilian fintech Superdigital in other countries

Bank Santander has announced that it will replicate in other countries the model of Superdigital - Brazilian fintech (financial technology) that offers services such as transfers, payments and prepaid card. Superdigital aims to reach 5 million customers in Latin America by 2023. The goal is to bring the business model that fintech adopts in Brazil to Mexico, Peru, Colombia, Argentina, Chile, and Uruguay. Created in 2012, Superdigital received investments from Santander in 2014. Then, in 2016, fintech was fully controlled by the bank. Not long ago, Superdigital arrived in Chile.

This growth shows that the Brazilian banking sector has decided to expand digital banking. There are already some European fintechs coming to the Brazilian financial market and some midsize banks are transforming with new technologies. Analysts, however, say there will be no room for all companies. Therefore, the sector in Brazil should soon face a phase of consolidation.

With Superdigital Santander wants to operate in the cloud and fully online. This decision indicates an important behavior change in the financial market. By the end of 2019, Santander wants to launch the Pi Platform that will allow it to buy and sell ETF shares and real estate funds via the internet.

Brazilian financial market raises GDP projection to 2019 for the first time in 20 weeks

The Focus report, published by the Brazilian Central Bank every Monday, indicates that projections by Brazilian financial market analysts estimate GDP growth to be 0.81% to 0.82% by 2019. The same analysts consulted by the Brazilian Central Bank continue betting on the growth of 2.10% of the Brazilian GDP in 2020.

The change is related to the approval of the first shift of the Pension Reform by the Chamber of Deputies of Brazil. Even so, the performance of the Brazilian economy is still very poor. Many analysts expect the government to present some kind of measure that could warm the Brazilian economy a bit more.

Economists lowered the estimate for the Brazilian official inflation index (IPCA), which was down to 3.78%. A week ago it was at 3.82%. This year's central target is 4.25%, with a tolerance of 1.5 percentage points to more or less.

Many analysts believe that the Central Bank should, at the next Monetary Policy Committee meeting (Copom), which takes place in the last two days of July 2019, should lower the Selic rate of the Brazilian economy that is now at 6, 5% per annum.

Hashtag #OrgulhoDoNordeste grows on Twitter after an unfortunate statement from Brazilian President Jair Bolsonaro

After a microphone capture a biased speech of President Jair Bolsonaro against the population of the Brazilian Northeast, Twitter was taken by innumerable criticisms to the figure of Jair Bolsonaro. Last Friday (19.Jul.2019), Bolsonaro used a pejorative term to refer to the governors of the region during an informal conversation with Minister Onyx Lorenzoni.

Several Brazilian artists, politicians, and journalists have spoken publicly against the president's speech. Many of them recorded videos or wrote on Twitter strongly criticizing the conduct of Jair Bolsonaro.

In commenting on the fact, Bolsonaro stated that he was not referring to the people of the Northeast in general. He said that the pejorative term was addressed to the governors of Maranhão, Flávio Dino, and Paraíba, João Azevêdo, two politicians of the Brazilian left.

Bolsonaro, therefore, did not apologize for the use of a pejorative word.

Tokio Marine, JP Morgan, Goldman Sachs, and Citibank believe that the Pension Reform will bring improvements to the Brazilian economic scenario

According to the newspaper O Estado de São Paulo, financial institutions believe that, after the approval of the Pension Reform, Brazil should start a cycle of economic growth, with new cuts in interest rates.

This, for example, is the thinking of the president of the Japanese insurer Tokio Marine in Brazil, José Adalberto Ferrara. He told the state that the reform, passed in the first round of the Chamber of Deputies, could mark a new cycle of economic growth in Brazil on a sustainable basis.

According to the newspaper O Estado de São Paulo, financial institutions believe that, after the approval of the Pension Reform, Brazil should start a cycle of economic growth, with new cuts in interest rates.

This, for example, is the thinking of the president of the Japanese insurer Tokio Marine in Brazil, José Adalberto Ferrara. He told the state that the reform, passed in the first round of the Chamber of Deputies, could mark a new cycle of economic growth in Brazil on a sustainable basis.

The newspaper also indicates that Goldman Sachs believes that the Reforma could generate a saving of R $ 900 billion in Brazilian public accounts. JP Morgan is betting that the Brazilian Central Bank should cut basic interest rates (Selic), currently at 6.5%, at 0.5% in the next two Copom meetings. This would bring the Brazilian economy's basic interest rate to 5.5% in September. Citibank believes that there will be a reduction of 0.25 percentage points in Selic this month.

However, in the real world, Brazil's investment rate is the lowest in more than 50 years. A survey conducted by economist Manoel Pires, coordinator of the Fiscal Policy Observatory of the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV), shows that the public investment rate fell from 4.06% in 2013 to 1.85% in 2017 (the lowest level ever recorded in the country), to 2.43% in 2018. The rate of private investment has fallen in the last 5 years, falling from 16.85% in 2013 to 13.39% in 2018.

Unemployment insurance in Brazil is one of the smallest in the developed world

According to a study of Applied Economic Research (Ipea), the Brazilian unemployment insurance program is one of the smallest in the world developed in aspects such as values, rules of operation and comprehensiveness. The research carried out by Ipea analyzed the systems of 97 countries where there is some kind of benefit. In addition to being among the lowest in the group, the effective coverage rate has been falling in recent years, due to the growth of unemployment. Between 2015 and 2018, the percentage of Brazilian unemployed who received the benefit fell from 7.8% to 4.8%.

The economist Newton Marques says unemployment is one of the worst problems in the Brazilian economy today. He believes that only if "the government makes an economic policy that can resume the economic activity of the country as a whole" this situation will tend to be minimized. However, so far, there is no government measure directly geared towards job creation.

Brazil breaks the historical record of small business defaults

According to a survey conducted by Serasa Experian, the number of micro and small enterprises (MPEs) defaulting in Brazil reached a new record in May 2019, surpassing 5.4 million. This record is a direct result of the current stagnation of the Brazilian economy.

This is the highest level of the historical series, which began in March 2016. Services (10.5%), industry (2.4%) and trade (2.2%) were the sectors with the highest increase in the annual comparison.

In this scenario of paralysis of the Brazilian economy, the country's main banks continue to charge one of the largest spreads on the planet and cut credit lines.

Although current Economy Minister Paulo Guedes said that economic growth should "begin to be positive in the second quarter" of 2019, many analysts indicate that the Social Security Reform is not intended to provide economic growth but to reduce the hole left by Pension plan in public accounts year after year. 

Contrary to the government's assertion, the Pension Reform may have a recessive effect on the Brazilian economy if there is no significant increase in investments in the country in the second half of 2019.

Although he proclaims himself liberal, Paulo Guedes, the economy minister of the Brazilian government, studies liberating up to 35% of the FGTS to stimulate the economy

The idea is to give money to the population for it to warm the economy. This proposal of heterodox shock, in the best Keynesian model, is of the ultra-liberal Paulo Guedes.

In addition to the release of the FGTS funds (the FGTS is a savings intended for the Brazilian worker. The fund aims to ensure the worker in difficult situations, such as dismissal without just cause), there will also be another round of PIS / Pasep withdrawals. The objective of the plan is to try to revive the economy, via consumption, still in 2019 - the government projection is GDP growth of 0.81%. The Ministry of the Economy wants to allow workers to get up to 35% of the resources of their active accounts of the Working Time Guarantee Fund. The measure is expected to inject up to R$ 42 billion in the economy.

Guedes, faced with increasingly blatant evidence that the current stagnation of the Brazilian economy occurs due to a chronic lack of demand, decides to adopt an openly Keynesian policy.

But even the economists who are progressive and close to the Brazilian left-wing believe that the measure is insufficient to remove the country from the crisis. According to economist Laura Carvalho, "such effects will be temporary and insufficient to counteract the negative impact of cutting public investments and the global slowdown on our economy."

However, economist Laura Carvalho also points to the difference between Guedes' speeches during the political campaign and his actual role as minister.

Carvalho points out that the ultra-liberal Guedes, during the presidential campaign held in 2018 in Brazil, made a "discourse filled with cliché ultra-liberal solutions, among them the radical flexibilization of labor laws, tax cuts for entrepreneurs, privatization of all public assets and indiscriminate commercial opening as a way to guarantee economic growth and job creation. " Now, faced with the reality of the Brazilian economy, Guedes decides to adopt "a measure whose rationality is supported by the Keynesian multiplier of autonomous spending."

The same happened with the government of the also liberal Maurício Macri, in Argentina. In power, he adopted unorthodox measures in the economic area.

Brazilian GDP should decrease in the second quarter, says IFI (Independent Fiscal Institution)

The IFI (Independent Fiscal Institution), an organization linked to the Brazilian Federal Senate, published a report in which it suggests a new GDP decrease (Gross Domestic Product) in 2019. In the first 3 months of the year, there was a reduction of 0.2%.

If the report published on June 15, 2019, Brazil would be returning to live in a recession, when there have been two consecutive quarters of decline in GDP in relation to the previous quarter.

According to the report, Brazilian industrial production "remains constrained by uncertainties and weak external demand, while confidence indicators indicate consumer and business pessimism, especially with future economic conditions."

For Affonso Celso Pastore, president of the Public Policy Debate Center and the AC Pastore consultancy, Brazil today has "a per capita income that is 9% below the threshold it was at the beginning of the recessive cycle (2014), and that is, we can not expect family consumption to be a driving force in the economy. The country has a very large idle capacity in the industry, and the maturing of infrastructure investments is long (it takes time), so we do not we have the investment being a driving force. We also do not have an impulse from exports. And finally, it is not possible to use fiscal stimuli because the government is doing the opposite, it is making an adjustment, is cutting spending".

To make matters worse, according to economist Rosa Chieza, from the Federal University of Rio Grande do Sul, Brazil today has a "tax burden of 32%, a taxpayer that receives up to R $ 2,000 earmarking almost 50% of its income While we have a huge gap in taxation on income and equity, we need to put more slots in the income tax table, increase the exemption rate, but raise the tax rate, as it spends all its income on consumption of goods and services. a maximum rate of 27.5% to 40%, in order to reduce inequality, while also we charge more from profits and dividends."

Right-wing political struggle in Brazil: radio policy programming breeds Twitter clash with hashtag #BandLixo and criticism of political commentators Reinaldo Azevedo and Marco Antônio Villa

The right-wing in Brazil is in conflict. Groups linked to President Jair Bolsonaro began to criticize right-wing political commentators who, in turn, criticized the current government.

Political commentator Reinaldo Azevedo, who was a fervent critic of the center-left government of the Workers' Party (PT), criticized very strongly the disorganization of the government of Jair Bolsonaro, especially as regards the lack of ability of political negotiation of the current president.

Azevedo, who calls himself a liberal critic of the current administration, began acting along with the Intercept Brasil website in the publication of reports about the performance of the current Minister of Justice, Sergio Moro when he was the judge responsible for the trial of former president Luiz Inácio Lula da Silva.

According to Azevedo, "if there is a law, Lula's conviction is null," because, after the leaks made by The Intercept Brazil had shown, Moro would not have respected "due process of law."

These criticisms of Azevedo led Bolsonaro's most loyal voters to treat the commentator as an adversary.

The same happened with the political commentator Marco Antônio Villa, who worked on the Jovem Pan radio. Jovem Pan commentators criticized the Workers Party government very much. Villa was one of the most emphatic critics.

With the arrival of Bolsonaro to power, Villa, who is a historian and university professor, started to criticize the government a lot, especially in relation to the confusion that took care of the Ministry of Education.

The radio finally fired Villa. Many have seen the dismissal as a pursuit of the radio to the government critic since the radio editorially can be placed on the right-wing of Brazilian media.

Now, another important Brazilian radio, Bandeirantes, the same one in which Azevedo works, decides to hire Villa. This prompted Bolsonaro's supporters to launch the hashtag #BandLixo (something like "Band Garbage" in English).

Both Villa and Azevedo are part of the commentators of the Brazilian political right. 

Now, another important Brazilian radio, Bandeirantes, the same one in which Azevedo works, decides to hire Villa. This prompted Bolsonaro's supporters to launch the hashtag #BandLixo.

Both Villa and Azevedo are part of the commentators of the Brazilian political right. Government supporters have used the hashtag #BandLixo to disagree with Villa's comments made on his first day as a political commentator on the radio's morning news program. They also criticize Fabio Pannunzio, a journalist for the radio station, who called the pro-Bolsonaro Brazilian right-wing supporters "Nazis".

Ibovespa (B3) closed the day at 103,802 points and fell 0,1%

Following the falls on Thursday and Friday of last week, the Brazilian financial market closed again in decline. The prospect of approval of the Pension Reform in the second half of 2019 only helped to slow the São Paulo Stock Exchange.

According to the G1 website, Ibovespa, B3, "closed down this Monday (15.Jul.2019), with an eye on the local scenario after approval of the main text of the pension reform in the first round in the House and with the definition that the second round will take place only in August."

According to the Focus Bulletin, released today, the Brazilian economy is expected to grow by only 0.81% in 2019. Economists interviewed by the Brazilian Central Bank for the Focus Bulletin have reduced for the twentieth time the Brazilian GDP growth forecast in 2019.

The financial market in Brazil warms up after first approval of Social Security Reform

For many analysts, medium and long-term capital must begin to reach the Brazilian economy should the approval of the Pension Reform continue and be approved by the National Congress.

If approval occurs, for analysts, Brazil should grow again in 2020. According to the head of the Economic Policy Secretariat (SPE) of the Ministry of Economy, Adolfo Sachsida, if the reforms are approved, the government will propose a productivity agenda. Sachsida believes that this could make the economy grow again at a faster pace, from 3% to 4% a year, in the long run.

Despite the government's goodwill, very weak data from industry, commerce, and services in Brazil, the main engines of economic growth in the country, point to a fall in Gross Domestic Product in the second quarter of 2019. This means that Brazil can return to a recessionary scenario later this year.

According to Valor Econômico newspaper, real economic data indicate that Brazil "has not been able to recover from the recession, it has 13.3 million unemployed, of whom one in four has been seeking jobs for more than two years. % of installed capacity is idle, 210 thousand commercial companies closed their doors in four years and 6 thousand companies demanded judicial reorganization. The negative effects of the 2014-2016 depression on the Brazilian economy were stronger and went on much longer than expected".