Folha attacks Lula with misinformation about the Central Bank and defends high interest rates.
In an editorial, the newspaper labels the president a "demagogue" and omits the fact that he was primarily responsible for the greatest period of prosperity in Brazilian history.
247 - The Brazilian newspaper Folha de S. Paulo attacked President Luiz Inácio Lula da Silva this Sunday in an attempt to defend the Central Bank's current policy of extremely high interest rates – the highest in the world. "The young statute granting autonomy to the Brazilian Central Bank, established by law in 2021, has already proven its effectiveness. Decoupling the political cycle from the mandates of the president and directors of the monetary authority shielded the economy from a crisis of confidence like the one that caused the dollar to soar in 2002, during Luiz Inácio Lula da Silva's first election," the newspaper wrote. editorialist"This time the exchange rate barely moved despite the PT candidate's strong lead, even after the disastrous experiments of the party's sorcerer's apprentices, which produced the gigantic recession of 2014-2016," he continues.
The newspaper fails to mention that, during the first two terms of President Luiz Inácio Lula da Silva, Brazil experienced the longest period of economic prosperity in its history, with average growth of 4,5%, the inclusion of 40 million Brazilians in the middle class, inflation control, accumulation of international reserves, currency appreciation, and the achievement of investment grade status.
This entire cycle of prosperity was lost due to the damage caused by Lava Jato, which destroyed all Brazilian construction companies, the economic sabotage orchestrated to overthrow former President Dilma Rousseff, and the policy of handing over national wealth and super-exploiting labor implemented by Michel Temer in the underdevelopment project known as "bridge to the future," which is still supported by Folha de S. Paulo today.
"The president's demagoguery prevents him from admitting that the autonomous Central Bank is one of his government's main allies," writes Folha, without mentioning that the 13,75% rate will consume R$ 700 billion this year for rentiers in the Brazilian economy, while several countries operate with rates close to zero or even negative.
Since the "bridge to the future" represents a project of national underdevelopment, Brazil's economy has remained stagnant since the coup against Dilma, a move defended by Folha.