Brazilian federal tax income sets a record in July 2021

So, good and bad news, let's look into it: Good news: an increase in tax income for the government usually signifies an increase in money circulation, which is probably good news for the GDP. It could be a one-off for a major government operation, which then would not mean its good news, it would be an outlier. Bad news: more money taxed away from the economy means the economy shrinks. If there is an increase in government spending above the amount taxed then we would see an increase. By itself its hard to understand the impact of higher tax income. It is also bad news if it is caused by inflation an no actual growth, which seems to be the case, at least partially. On a side note, if the…

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“Government debt hits x% of GDP…”. Ignore these “news” pieces, they mean nothing…

The government's debt as a % of GDP means absolutely nothing. There is no correlation between the two, no cap on government debt issued in its own currency. It does not create "debt for our children to pay". Ignore any news article or economist who says otherwise. Dívida pública brasileira sobe para 90% do PIB e bate novo recorde

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…and here comes stagflation! Thank you Guedes! Superjob there buddy!

The financial media is now asking for higher interest rates in Brasil. They claim it is needed to hold back inflation. Its like no one understands how money really works. Well, the big money will win, and interest rates will go up. When that happens, usually the stock market goes down. So stockholders beware! On the plus side, the Real should go up in value against the US dollar. Everyone will be too broke to take advantage of that though... This is messy. With high unemployment, low GDP, devalued currency, high inflation, to increase interest rates is almost suicidal. It will hurt whatever was left of the economy, creating your typical stagflation. With Guedes in power, there won't be any countercyclical measures, there will be procyclical ones, meaning digging ourselves…

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Why Brazilians are so poor today and cannot afford to go to Disney World

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It is very simple, really: Because the rich and powerful are back in power. The rich and powerful do not like Reais, they stash their money and profits away on tax havens. Let's say you are rich and powerful, your money is all hidden away in the Cayman Islands, and now you run Brazil again. What would you do? Well, it makes sense to devalue the Real as much as possible. This makes you much richer in Reals, and allows you to buy anything you want, including the dumb competitors who forgot to stash their money somewhere else. Also, if you are one of the smart rich folks, you don't dabble in the internal Brazilian economy, that is too small, its better to be an exporter. As an exporter, once…

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The Evil Plan is doing just fine…

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Guedes Plan status update: Install a gringo-loving president that is absolutely bonkers, controversial, and vocal. This will keep the media and the opposition busy trying to prove each one of his false assertions are incorrect. As they say: it takes ten times more energy to prove something is stupid than it takes to say it in the first place. Tricks to get this fool elected: make him pretend he is religious, that he caters to the working class, that he will get rid of corruption (Other people's corruption, not ours!), etc. We can use that fool Moro for a bit to get elected then we get rid of him or he will arrest us too... Use all weapons of mass disinformation available to spread fake news and attack any opposition.…

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