Finance capital’s ultimatum to Lula in Brazil: Impose austerity or your victory “will turn to ashes”
by Tomas Castanheira Part 3 - The orders of finance capital Alongside this brazen criminal interventionism, the main organs of international finance capital are dictating their demands to the elected Brazilian government, in a tone of command that dispenses with diplomatic niceties. The British magazine The Economist published after the election an editorial titled “Markets are dismayed by Lula’s surprise win—and for good reason.” The text argues bluntly: Either the government abandons its campaign promises and submits to the demands of capital, or it will be reduced to “ashes.” The magazine begins by noting that “if Lula’s supporters are elated, the markets are running scared,” and adds that “they are right to.” Lula is accused of having “talked down the need for fiscal discipline” during the campaign and of having promised “an extravagance of big new bungs.” What the spokesmen of the capitalist oligarchy call “extravagance” amounts in fact to crumbs—such as the promise of incre...