A central bank independent of whom?

One of the biggest misconceptions of monetary orthodoxy has been the methods used to combat inflation.

Roberto Campos, nicknamed Bob Fields by the left, grandfather of the current president of the Central Bank, used the indexation method and was one of the factors, if not the main one, that plunged the country into hyperinflation.

The economic system develops through consumption and investment, both of which require credit. And credit depends on interest rates. With high interest rates, who can access credit? 

Small and medium-sized enterprises are unable to do so, and when they take the risk, bankruptcy later on is almost certain.

The middle classes reduce consumption and installment purchases, and when they don't, they end up indebted beyond their means and default, going to negotiate their debts and there again finding extremely high interest rates. 

Economic policy and monetary policy cannot be separated. This invention had only one purpose: to protect and guarantee the profits of financial capital and hinder economic development with social outcomes beneficial to the people.

Financial capital has no commitment to economic development, much less to social well-being; its driving force is profitability at any cost.

With this division between monetary policy and economic policy, the government was left with the starter motor and the central bank with the gears. And since it doesn't get past first gear, the car will overheat and stop, meaning: the future is recession if this separation persists.

Managing an irrational system like capitalism is not a simple task; it's complex and depends on many factors, particularly when the country is not yet developed sustainably.

The convergence of institutional and economic actors is the challenge for planning that avoids both recession and runaway inflation.  

And everything is undermined, subverted, and gets worse when "that citizen" The person currently presiding over the Central Bank is a supporter of Bolsonaro, an ideological crony of the genocidal coup leader who economically, socially, and politically devastated the country.

The trio of Bolsonaro, Guedes, and "that guy" is responsible for 33 million Brazilians living in poverty, for the unemployment of over 12 million, for half the population experiencing food insecurity, for the culpable deaths of 400 from COVID-19, and for the deliberate genocide of the Yanomami people.

Central bank independence means dependence on the financial market!

This fight isn't just Lula's, it's ours, because the damage affects the whole of society.

Social, labor, and political movements must embrace this cause. And they should do as the Occupy Wall Street movement did in the US, which was a protest against socio-economic inequality, greed, corruption in the market, and its deregulation, the result of which was not what was desired, but it did produce some rules in the jungle dominated by financial capital.

In Brazil, neoliberalism fostered three fallacies: the minimal state, the independent Central Bank, and the spending cap. 

A minimal state means maximum market control; the smaller the state, the greater the control over the market. 

The state, as a mediator of class interests, must be as effective as necessary to generate the well-being of society, a fundamental principle established by the Constitution. 

A central bank independent of the government, democratic powers and institutions, organized society, and ultimately, universal suffrage, whether direct or indirect, is like a foreign cell in the democratic-social organism, and can generate diseases of stunted growth that hinder economic growth with social justice. 

The spending cap cannot function without the interest rate cap, otherwise it would prevent compliance with article three of the constitutional order. 

If the Central Bank does not reach an agreement with the Lula government, the campaign promises will be very difficult to fulfill.

That's what the scammers want!