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Is the Brazilian real collapsing?
#56

Is the Brazilian real collapsing?

Well. I would say the situation is quite hot politically, population is extremely pissed off at Dilma. There is tiny support for her, last time they checked the president had a 10% approval rating, but I would say that currently it's more like 5% approval rate (after all the crises on the past few days).

Yesterday the protests were small, but if the situation gets worst it will just get bigger, population is not happy at all. I don't feel it's a great situation for the government. Her decision on allowing the ex-president to be a minister was a shot on the foot. They didn't think people would be this pissed.

Millions of peoples took the streets this sunday to call for a Impeachment (the process to depose the current president through the Congress and Senate) and also for Lula to be sent to prison.

The big thing is that Lula is considered by many to be the leader of he BIGGEST corruption scandal of history of the world so far. Lula, mostly his party, big construction companies, and politics have stole around R$46 billion (it's around USD 12 billion) from brazillian government owned oil company Petrobras. They have recieved money from companies for specific contracts and distributed to many politicians. This is the SECOND time his party has been accused of corruption, the other time was during his government.

It's all a political game now, Dilma is hanging on by a thin thread, her party still have support of a big political party called PMDB (the current vice-president is from that party, and also many ministers of the current government) but they are already talking about retracting their whole support. After PDMB convention and party elections last saturday, they were discussing getting off the government (that was before all this current increased crisis). If this party leaves the government, it's over, impeachment will have a 95% chance of happening.

Yesterday at night a judge released audios conversation from Dilma and Lula (allowed by justice), and one of the audios has caused a crazy stir in the politics crisis (that was after people were already pissed about Dilma making a corrupt ex-president a minister so he could run away from justice):
Quote:Quote:

Phone recordings
In a dramatic twist Wednesday night, the judge leading the "Car Wash" trial released phone recordings of Lula da Silva, including a conversation he had with Rousseff about the chief of staff post.

In the recording, she says she would send a document confirming the appointment for him to use "if he needed" -- prompting some critics to say it is evidence of a political maneuver aimed at protecting Lula da Silva.

Rousseff's office didn't immediately comment, while a lawyer for Lula said on Globo television that it was an attempt to stir things up politically.

Meanwhile, there has been speculation that Lula da Silva could shake up economic policy and push for more of the social spending that made him such a popular leader. Markets sank in response to the announcement, with the real weakening against the dollar and stocks declining.

But on Wednesday, Rousseff rejected speculation that Lula da Silva's appointment would lead to the ouster of the Central Bank president or would prompt her government to dip into its reserves.
source CNN: http://edition.cnn.com/2016/03/16/americ...index.html

So people are pissed and the Congress is now working on an impeachment. It just the start, it still has to be voted by Congress and Senate. So it will all depend on the level of support from Dilma and her party PT (and the political support).

Good thing is that protests have been mostly peaceful. Not many crazy things happening. But again it seems that most people and population is pissed, the government is treating the population as if they are extremely dumb.

Corruption is everywhere and all the dirt is now coming out. Justice has offered deals to a lot of the politics that are in jail, and they are confessing about crimes and incriminating Top line politics (presidents, senators, congressman, rich billionaire corporations).

Inflation is killing too. Most things are at least 2x more expensive than they were before. So going to a supermarket is becoming extremely expensive. You can't buy that much with R$100 (as you could like 2 years ago). So people that make minimun wage are screwed. And also understand, unemployment is the highest it has ever been... so with unemployment, violence and crimes have increased like crazy.
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