FHC acknowledges that Brazil is bankrupt and says that without growth there is no adjustment.

247 - In an article published this Sunday, former president Fernando Henrique Cardoso acknowledges that Brazil is bankrupt.

"Not only are finances 'broken' at all levels (municipal, state, and federal), but the lack of public services (education, health, transportation) is also glaring. Among them, security. It would not be surprising if the power of organized crime were to more broadly challenge law enforcement," he says.

What he doesn't do – and never will – is acknowledge that this breakdown is a direct consequence of the alliance between his PSDB party and Eduardo Cunha and Michel Temer's PMDB party, aimed at destabilizing the country and creating the conditions for the coup.

Since this alliance was formed, initiating the 'the worse, the better' policy, Brazil's GDP has already shrunk by about 10% – that is, about R$ 600 billion.

FHC also admitted that, without economic growth, Henrique Meirelles' fiscal adjustment will fail.

Below is your article:

Imbalance

Brazil rediscovered its problems, reacted to them, and showed that its institutions are stronger than they seem, which is no small feat.

By Fernando Henrique Cardoso

It's hard to escape tradition: the end of the year, a time for reflection. First, on the world, then on Brazil, in the difficult task of compressing with some sense what unfolded over 365 days. It seems that the long global truce established after the fall of the Berlin Wall, the tacit acceptance by Americans that China exists and that Russia "can be contained," has ended. Terrorism and the sad end of the intervention in Iraq to "establish democracy," added to the battles that the United States and Russia, through intermediaries, are fighting in Syria (with the marginal participation of Europeans), are symptoms that other forms of balance/imbalance are beginning to emerge in the world.

If we add to this the fact that North Korea continues its experiments with atomic weapons, that Iran came so close to developing the bomb that it forced the United States and its allies to sit down at the negotiating table, that conflicts in the Middle East are increasingly intensifying, not only because of the dispute over oil or due to antagonistic alliances with the great powers, but also because of internal divisions between Sunnis and Shiites; that Turkey, a Sunni country, is joining Saudi Arabia against Iran, distancing itself from the West and Europe—it becomes clear that the “old order” of yesterday is shaken. Not to mention the annexation of Crimea by Russia, which, without having been invited to the table of the great powers, due to an error by the West, is now showing that it exists and has claws.

A few words about China. After integrating itself into the international market in its own way and becoming the main external financier of American public debt, today it plays the big game. The Sea of ​​Japan “is ours” and we are one China, they say, despite Taiwan, which is, incidentally, domesticated. Perhaps it is better for this “great China” to turn to Europe (and to the Russians, along the way) than to rely on friends across the Pacific. The rest… is the rest, but it also exists: the BRICS, because of their size and production, want “special recognition,” and Europe, battered by Brexit, still holds Germany and France close to its heart. And Latin America, turning more towards non-populist democratic forms and being forced to tighten its belts, should not be left out. The same could be said of the part of Africa that is shaking off the weight of its colonial history.

Therefore, the illusion of a hegemonic superpower has vanished. Isn't this what Trump's isolationism, dangerous in its consequences, reveals? Such sentiment perhaps underestimates the fact that America, as they say, is still the only power with global military strength and is a source of much technological innovation and entrepreneurial capacity. It cannot simply turn its back on the world nor disregard its responsibilities, not only in the military field, but also, for example, in relation to "global warming." For this very reason, the "Trumpian" attitude is dangerous. The world needs leaders who, while defending their national interests, do not forget their universal obligations (human rights, environment, immigration, etc.) and who preserve peace. Therefore, they need leaders who engage in dialogue and negotiation.

On our side, Brazil has awakened. After succumbing to populist excesses, it has rediscovered the key: that balancing budgets and avoiding fiscal crisis is not "neoliberalism" nor does it serve the interests of the market. It is common sense. And it has also discovered that a country cannot live on austerity alone. Currently, all efforts are directed towards resuming economic growth. Without it, fiscal adjustment is not viable. However, it is necessary to look further ahead and try to secure a place for Brazil in a new phase of globalization, because long-term growth prospects are what matter most.

With the corrupt practices and betrayal of those who, in the name of the poor, served not big capital as a whole, but their own capital and that of their friends, brought to light, we are confronted with unprecedented administrative negligence, with a party fragmentation that makes governing difficult and, what is most challenging, we are confronted with a "new society." In this society, people inform themselves, communicate, and sometimes act on their own, without leaders or parties guiding them.

Thus, in the year that is ending, Brazil rediscovered its ills, reacted to them, showed that its institutions are stronger than they seem, and also rediscovered itself in contemporary times. That's no small feat.

But there's no reason to celebrate. Since the financial crisis of 2007/08, especially after 2010, the missteps have been so numerous that the legacy of unemployment and hopelessness will take time to recover. Not only are finances "broken" at all levels (municipal, state, and federal), but the lack of public services (education, health, transportation) is also glaring. Among them, security. It would not be surprising if the power of organized crime were to more broadly challenge the forces of order. Corporations, on the other hand, dominate the public apparatus; the lack of resources creates easy space for demagoguery, and the population feels separated from the State, abandoned, and without seeing who will open a horizon, creating conditions for more investment and more jobs. There is a hunger for efficiency, justice, and greater equality.

Despite everything, we navigate the sea of ​​accusations with hope for some justice, and we have a government that is trying to put things in order. My wishes for 2017 are that we rediscover the path to development, that we firmly uphold freedom and democracy, that we adjust budgets, and, above all, that we are able to create jobs and care for the well-being of people in a more egalitarian and decent society. Without setbacks, inventing a better future.