Sunday, 3 April 2016

BRAZIL-"Beware the Ides of March!"

You’d think they would have known better!

It looks like the PMDB may have jumped from the gate a bit early when it broke with the PT. 

With 7 ministerial appointments and some 600 second and third tier management appointments, the PMDB allowed time for Dilma Rousseff to auction off those to-be-vacated jobs to other parties in exchange for their support to block her impeachment in the Lower Chamber.

This week’s IstoÉmagazine reported that the going price for a supporting vote is R$1 million per vote, to be spent in the electoral base of the voting legislator. For those parties reluctant to vote, the government was reported to be offering R$400k to legislators simply to not show up and deny a quorum.

The administration needs 171 votes to stymie the motion to impeach and today’s press reported that it had 117. Dilma does not appear to be concerned for the qualifications of whatever appointees are recommended by her supporters so long as she can get the party’s vote(s). If she “walks” she will then have to face the challenge of trying to get something done.

The press also reported that her emotional stability has deteriorated (She always had a short fuse anyway) and has taken to breaking furniture and whatever else might be close at hand during her attacks of fury. She is reportedly taking two relatively powerful anti-psychotic drugs: rivotril and olanzapine (the latter also used to treat schizophrenia). IstoÉ provided some examples of her angry outbursts and promises to get even. (I mentioned in a previous blog post that the PT, if  victorious, would prepare an “enemies list”) You really don’t want to be on the receiving end of those outbursts!

It has finally dawned on many that if Dilma is impeached another party with a reputation for kleptocracy will assume office. (Took long enough!!

However, if Vice-President Michel Temer does assume the presidency following Dilma’s impeachment, he is reported to have put together a rather impressive team of economic heavyweights – Delfim Neto, Armínio Fraga and Henrique Meirelles. Also included in this “outer ring” of technocrats are Paulo Skaf, president of the São Paulo Federation of Industries (FIESP) and José Serra (PSDB), perennial candidate for the presidency.

Temer also indicated who will be in his “inner circle” of political advisors: Eliseu Padilha; Moreira Franco, Romero Jucá and Aécio Neves (PSDB).

It’s a pretty eclectic list. Presumably, ego and personal ambition will be put on the back burner in order to get some things “fixed” and the economy moving, albeit slowly. But, that depends on whether Dilma is impeached. If she “walks” she will have two years to put her New Economic Framework (Nova Matriz Economica) in place while relying on an entirely new public sector management structure. 

The most likely outcome if Dilma survives the impeachment process will be for her to try to sink the Brazilian Titanic once and for all. The PT has made it clear that it wants to remain in power even if it means ruling over the rubble. (And rubbleit will be!)

Meanwhile Lava-Jato continues to work its magic. Another phase of the investigation appears to have found links between the mensalãoand the Petrobrás fraud scheme. It was long believedthat the mensalão begat the Petrobrás scandal and that the former was also linked to the assassination of the mayor of Santo André – Celso Daniel. Some of the information obtained in plea bargain testimony suggests the possibility of proving the connections. That definitely bodes ill for the PT!!

Finally, we have to expect that if Dilma is impeached there will be violent reactions from within the PT and the social movements connected to it. If she is not impeached we can expect a “witch hunt” for the PT’s enemies and possible street violence as well.

If Dilma continues as president, she will also be able to try to impose an official State of Defense or State of Siege as mentioned in an earlier post.

And Brazil still plans to host the Olympics this year!!

Be prepared for “interesting times”!


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