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posted on 13 February 2017

Brazil And The Bloodied BRICS

by Reverse Engineer, Doomstead Diner

Discuss this article at the Geopolitics Table inside the Diner

Just going back a few years, the "BRICS" were all the rage as the next great Superpower conglomeration. BRICS stood for Brazil, Russia, India, China & South Africa.

Three of them Brazil, India and South Africa also fit in the category of "Emerging Markets", and EMs were where all the Hot Money was flowing for investment during the period, seeking high yields and return on investment.

What could be more perfect, right? Great resource availability and populations willing to work at low wages to supply industrial products to the world! Not to mention Russia & China as large military powers with the capability of making a good fight with the FSoA if challenged! Even if they don't have the aircraft carriers the FSoA has, they have Nuke ICBMs, and they have cruise missiles capable of sending any FSoA Carrier Group to the bottom of Davey Jones Locker. The Chinese field a 1 Million Man Standing Army. Lotta potential Boots on the Ground there!

So a lot of betting went down that this group of Nation-States was going to make a serious challenge to the European and Anglo-Amerikan hegemony over the industrial economy, not to mention the Bankstering system which runs it. Even to this day, you have some pundits like Pepe Escobar claiming the Chinese are going to build a "New Silk Road" that will bring the BRICS to ascendancy as the inheritors of the failed policies of the Western Europeans and Anglo-Amerikans.

Unfortunately, something went wrong along the way here, and precisely the opposite has occured or is occuring as I write this article. What fucked up in the BRICS master plan?

To begin with, it was a typical financialized bubble. Beyond that, you have countries here with Goobermints that are corrupt beyond belief, it's possible they are all more corrupt than the FSoA Goobermint, although of course that is hard to imagine. To top it all off, you have the issue that even if said countries have energy resources left like Brazil and Russia do, you have populations that cannot afford to buy those energy resources and retire the debts incurred by the extractors of the energy.

http://www.usfunds.com/media/images/frank-talk-images/2016_ft/Jul-Dec/overnight-indian-prime-minister-narendra-modi-killed-90-nations-currency-12-2016.jpg

India already jumped off the cliff with the demonetization of the biggest Rupee notes by His Modiness, which sent the entire economy into a tailspin. Not to mention the fact it further impoverished already impoverished people, and as bad as their farmer suicide problem was before this, one has to figure it has been worse since. A VAST number of Indians have no bank account, or even Goobermint ID. For them, it's entirely a Cash Economy, and no Cash, no Economy.

This of course does not even touch on the Climate and Environment problems the Indians have, or their Energy problems or population overshoot problems. Then they have the constant battle with the Pakistanis, so overall the place is a complete fucking mess. They may even start exchanging Nukes with the Pakis, since they both got 'em

Moving down to South Africa, they probably have the worst problems with drought of any of the BRICS, although Brazil is not doing too well with this problem either. Besides that is the perpetual racial divide problem of South Africa and the fact that its entire economy is a mineral resource extraction economy, and globally nobody is paying much for resources, because the Konsumers of the resources are running out of money to buy them with. Well, except for the filthy rich who are still buying some Diamonds at Tiffany's, but unfortunately there aren't enough filthy rich to fund an entire economy this way. Tiffany's isn't doing too good either, they just fired their CEO.

Doing slightly better than these two locations are the Middle Kingdom of China and Mother Russia, but not by all that much plus Newz doesn't really escape well from either Nation-State, so you can't be entirely sure of WTF is going on there. In Mother Russia, one of Vlad the Impaler's political opponents recently went to the Great Beyond, apparently resultant from Poisoning. Another one, Alexander Navalny, who was a Blogger so I like him, 🙂 was convicted of some kind of felony so is no longer eligible to run against Vlad to run Mother Russia. He was probably the only opponent of Vlad who stood some chance of beating him, at least in popular voting. The Ruskies do have some cheap Oil left though, and their population is not too large given the land mass available there. On the other hand they have NATO troops massing on their borders, not a good sign.

Of all the BRICS, the Chinese have weathered the storm the best so far, but by no means does this presage a rosy future for them. In fact the Chinese are TOAST, and are in worse shape than everyone in the BRICS except perhaps the Indians. Reason of course is Population Overshoot, but by no means is that their only problem. They've blown a Credit Bubble that makes the one Da Fed blew up look like Child's Balloon next to the Hindenburg. Forget about not drinking the water, half of it is not even fit for human contact! You can't walk outside in Beijing without at least a surgical mask on, but really you need a full blown activated charcoal gas mask or better yet a SCUBA tank. This is not a recipe for a bright future for the Chinese.

However, of all the BRICS, the one in the WORST shape right now and is clearly exeriencing a FAST COLLAPSE is Brazil. Their economy is in complete collapse, corruption is systemic and now they are losing control of the social structure as well.

In the state of Espirito Santo which borders on the state of Rio de Janeiro which is home to the city of Rio, Corcovado (the big Christ statue on the mountain) and numerous Favelas (slums), the Military Police recently went on strike because…they weren't getting PAID! Big fucking surprise, who is going to work at anything if you don't get your paycheck at the end of the week?

Problem for these cops of course is that just like under Amerikan Law, Strikes of "publicly essential personnel" are ILLEGAL! So even if you're not getting paid, you're supposed to KEEP WORKING! Does this sound like SLAVERY to you? It does to me.

Since these cops are MILITARY cops, one suspects they can't even quit either until whenever their enlistment in the military runs out. Not that they would quit anyhow, because in all likelihood there are no other jobs for them to take in the neighborhood. So they got a bit creative here on this one, and instead of the cops themselves not showing up for work, their families went out and blockaded the stations, so the cops could not go out on patrol. Of course, they had the option of possibly Arresting their own families for "obstruction of justice", but who is going to go out and arrest their own wives, kids, fathers and mothers, or shoot them? Not gonna happen.

https://i.guim.co.uk/img/media/cee9e57924da473fc287876b61e1fe4a7691ecd1/0_163_5000_3000/master/5000.jpg?w=300&q=55&auto=format&usm=12&fit=max&s=6dca5670e4f694a61b2948765d4f87b9

So in the wake of this absence of cops on the streets of Vitoria (the capital of Espirito Santo), the population at large took the opportunity to go an a rampage of looting, raping and killing. There is of course a large population of people living the criminal life in Brazil, because there are no opportunties for them in the "legitimate" world. They deal drugs, they steal, they kill people. It's like Chicago on Steroids and much larger. Its not like everyone is a criminal, but without a police presence, it's "Criminals Gone Wild".

So Da Goobernator of Espirito Santo asks for help from Da Federal Gobermint, and they promise to do "watever it takes" to restore order and send in the Military to replace the cops on the streets. Except how many do they send in? A Big 200 soldiers to police a city of 2M people! That is 1 for every 10,000. Even only 1% of those 10K are criminals, that is still a 100:1 ratio! However, in this situation it's probably more than 1%, since many normally law abiding type citizens will take the opportunity to go loot the local grocery or Iphone store.

Normally, they put out on the street 1800 cops, so to do the same job you would need around the same number of soldiers. So now you have to pay the soldiers instead of the cops, and Da Federal Goobermint of Brazil is in no better position to do that than the states are, they are BROKE also!

Even if they could field enough paid soldiers to go in there to restore order, Vitoria and Espirito Santo as a whole is a relatively small state in Brazil. What happens when the same thing occurs in Rio De Janeiro or Sao Paolo or Brasilia? Sao Paolo has something like 20M people now, that by itself is an order of magnitude larger than Vitoria. What is to stop this from spreading to Sao Paolo? They are broke too, and besides that running short on water and the money to run their sewage treatment plants, garbage collection etc. It's not just cops not getting their paychecks, just about all the public workers are seeing wages withheld because Da Goobermint doesn't have the money to pay them.

Unlike the FSoA (also broke), the Brazilleiros cannot just issue infinite debt and have it recognized as worth anything. They have gone through NUMEROUS periods of Hyperinflation, and they are trying to avoid that problem with "austerity", but austerity means people either are paid to little to live on or not paid at all. Jobs are cut, pensions are cut and you get a downhill spiral as people have no money to spend in the economy. They can't afford to buy enough food to feed their kids. At this point, they get desperate, and take desperate measures. That is what the cops in Espirito Santo are doing.

http://media.gettyimages.com/photos/man-walks-on-dry-cracked-earth-where-water-usually-stands-at-the-picture-id467643149

The problem here of course is that like many other resource based economies, the Brazilleiros are running short on resources people around the globe can afford to buy at the prices they cost to extract. There are some big oil fields in deep water off the coast of Brazil, but their own state company of Petrobras is broke, and oil majors like Exxon Mobil and Royal Dutch Shell are not going to put up debt money to drill these fields, because there is no profit in it. These companies are already bleeding red ink on properties they are drilling here in the FSoA, and beyond that there is an oil GLUT due to collapsing demand around the world. So the Brazilians will not be saved by the Oil underneath the ocean floor surrounding them.

It's only a matter of time before the chaos in Espirito Santo spreads to the rest of Brazil. How much time? Then from there it spreads to other SA countries dependent on resource exports, and the chaos grows. Then it makes it to Mexico, then it migrates across the border to the FSoA. How long will that take? Timeline, Timeline, Timeline. Like Location, Location, Location in the world of Real Estate, that's always the question, not what the final outcome is.

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