(en) Brazil: Anarkismo.net: The global power of finance capital - the effects in Brazil - the second half of May 2014 by BrunoL (pt)

Continuing the series, this time we see part of the visible effects of rentier logic in 
the country. Rentiers are living on fixed income, dividend, application and not the direct 
work, even exploring added value on the labor of others. In Brazil, the financial capital 
operates inside the state budget by taxing the value of wealth and consuming the amount of 
taxes collected by the Union ---- The Disconnection of Federal Revenues, this law who 
regularly takes resources from welfare, health, education and infrastructure for 
contingencies. ---- The federal government focuses around 66% of the revenues arising from 
the imposing cake. Bodies in Brasilia this money is shared across several lines and 
destinations. Kafkaniano this maze that is the federal budget part, states and 
municipalities receive little and often sending the funds must be accompanied by matches 
against justifications and project format. Like most municipal administrations even afford 
to operate a project office, this generates a parallel economy outsourced services, where 
operators "adopt and sell" projects for both municipalities as headings for parliamentary 
amendments. Still, the basic level of government (the municipalities 5564) lives starving 
and could receive more than double the money if there were two barriers.

The first barrier bleeds directly to the National Treasury. It would be revolutionary 
simply put against the wall model rentier capitalism, where the rollover of debt consumes 
more than 42.04% of federal funds. In the forecast for the year 2014, this would imply 
almost half of the 2,383 trillion to be spent (or invested) by the EU this year. This debt 
roasting per day ? 4 billion reais, whose main target is the cash buyers of government 
securities, mostly banks or investment funds, including pension funds. Only in budget 
execution in 2014, according to the Citizen Debt Audit, the country squandered more than R 
$ 203 billh?es, about 65% of federal spending until the second month of the year.

The second barrier is the notorious DRU (detachment of Union Revenues), this law who 
regularly takes resources from welfare, health, education and infrastructure for 
contingencies; in most cases, this occurs in favor of the financiers. The DRU was to be 
temporary and was created in 1994, allegedly in order to maintain macroeconomic stability. 
Has been extended - and generally by consensus - in Congress for the last 20 years. With 
the DRU, the executive can freely allocate 20% of the annual budget, emptying the 
investment capacity of the country, which is just ridiculous 18% per year, compared to an 
average of 25% of the other members of the BRICS (Brazil, Russia, India , China and South 
Africa).

Conclusion. If all that is solid melts into air, is because in the real economy, someone 
makes the wealth evaporate and become a digit, redeemable, in a tax haven. Through the 
financial casino, it regularizes - inside and heading - the spoils of the collective work.