If the market reacts badly, Lula is on the right track.

Since Lula won the elections in October 2022, the financial market has reacted negatively to his statements, which, for the most part, are political speeches defending the dignity of Brazilian women and men. The slightest gesture towards the people is enough to inflame the market and cause a stir in the media.

"Market reacts badly to Lula's speech," "Market gets nervous after Lula's speech," "Lula's speech affects the market"—these are some of the headlines in the media. The frenzy among journalists to address the topic is almost frightening.

But if you stop to analyze the speeches, you'll see that there are no attacks on any institution or organization. They are simply the positions of a statesmanlike politician who was elected with the main commitment to restoring the well-being of the Brazilian population, which has suffered greatly in recent years. And it's worth noting that, for the lives of the poorest to deteriorate so much, other people (or organizations) were making vast sums of money.

Back in November, during the transition between governments, Lula was moved when he recalled that hunger had once again plagued families across Brazil. "Why are people forced to suffer in order to guarantee this so-called fiscal stability in this country? Why do people constantly say that we need to cut spending, that we need to generate a surplus, that we need to implement a spending cap? Why don't the same people who seriously discuss the spending cap discuss the social issues of this country?" he said, amidst tears.

The market reacted swiftly. The dollar closed more than 4% higher, the largest single-day increase since March 2020. Not even when coup plotters, in a terrorist act, vandalized Congress and the Presidential Palace was there such an immediate reaction. Since then, nothing has changed, and any statement by Lula that signals help for the people is cause for a negative market reaction.

The latest episode involves the Central Bank, a financial institution that has been conducting a monetary policy with extremely high interest rates, quite detrimental to Brazil. Lula, statesman as he is, wants to end the Central Bank's independence in order to reduce rates and turn the economy around. Once again, the market reacts badly.

But who exactly is this market everyone's talking about?

The market is an environment composed of various financial institutions, such as banks, brokerage firms, finance companies, and others, where trading of securities, currencies, stocks, derivatives, and commodities or assets with financial value takes place—precisely those that profited the most while the country, under the Bolsonaro government, sank into chaos.

This only shows that Lula is on the right track. The market is not a sovereign God and cannot govern the politics of our country. We elected Lula as president, and the most important decisions are his to make. There is no doubt that the market has already chosen its side, and it is not the side of the worker, who carries this Brazil on their shoulders. It is time to confront this economic model that plagues us so much.

Lula, go for it! We authorize it.