By Felipe Rezende
This is the first of a series of posts on the Brazilian crises.
There are two major crises Brazil’s president Dilma Rousseff is facing: one is a political crisis and the other is Brazil’s sharpest recession in 25 years.
Brazil’s Political Crisis
The political crisis has two main pillars: a) a vast corruption scandal (with evidence of a kickback scheme funneling billions of dollars from state-run firms and, more recently, in a massive data leak over possible tax evasion, Brazil politicians linked to offshore companies in Panama leaks); and b) impeachment proceedings to move forward against President Dilma Rousseff.
The Federal Court of Accounts (TCU) announced in 2015 that it had rejected the accounts of Rousseff’s administration for the year 2014. In a unanimous vote, the federal accounts court, known as the TCU, ruled Dilma Rousseff’s government manipulated its accounts in 2014 to “disguise fiscal deficits” as she campaigned for re-election. The allegation is that Ms. Rousseff manipulated Brazil’s account books to hide a growing fiscal deficit.
By William K. Black
April 4, 2016 Bloomington, MN
Paul Krugman April Fools’ Day column launched another attack on Bernie Sanders. In it he announces that he, a strong Hilary Clinton supporter, is “Dad” and gets to set the rules for candidates – “it’s time to lay out some guidelines for good and bad behavior.” This is a lot like John McEnroe giving lectures on tennis etiquette. Two sentences later, Krugman mocks voters for Sanders in “very white states,” which is a pretty clear example of “bad behavior.” Tellingly, Krugman is oblivious to his bad behavior. Krugman ends with this patronizing and insulting sentence: “Sanders doesn’t need to drop out, but he needs to start acting responsibly.” Krugman is obviously itching to instruct Bernie to “drop out” and hand the contest to his candidate.