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        <h1 id="reader-title">Petrodollars, Not Corruption Is the Reason
          for Brazilian Coup</h1>
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            <p itemprop="description alternativeHeadline"
              class="subtitle"><span class="itacaput"><a style="width:
                  auto" class="her" alt="Haneul Na’avi" title="Haneul
                  Na’avi">Haneul Na’avi - May 27, 2016<br>
                </a></span></p>
            <p itemprop="description alternativeHeadline"
              class="subtitle"><span class="itacaput"><a style="width:
                  auto" class="her" alt="Haneul Na’avi" title="Haneul
                  Na’avi"></a></span>Dilma Rousseff’s impeachment was
              motivated by her efforts to circumvent U.S. dollar
              dominance through trade with Iran.</p>
            <div itemprop="articleBody" class="txt_newworld">
              <p>In ancient times, communities would place their sins on
                the body of an al-Azazel, or scapegoat, and cast it into
                the desert to die. This was done every year in order to
                garner favoritism in the eyes of God and ensure a
                bountiful harvest. In the same ritualistic fashion,
                Brazil’s acting government has chosen to honor this
                tradition at the expense of the consent of the governed.
              </p>
              <p>Ousted President and Worker’s Party (PT) leader Dilma
                Rousseff awaits a fabricated impeachment trial despite
                the chagrin of the Chamber of Deputies Speaker Waldir
                Maranhao who ordered an annulment. A defiant Congress
                has hurled its entire weight at the gates of Brasilia’s
                Superior Courts with burnt offerings of her political
                career; with the hope her sacrifice will birth a
                neocolonial Dark Age. Hands clasped, they await the
                blessings of Chevron, Royal Dutch Shell, and the U.S.
                State Department to affirm their convictions. </p>
              <p>Brazilian Democratic Movement Party (PMDB) leader, coup
                initiator and interim president Michel Temer has longed
                to sell out Rousseff for his 30 pieces of silver, <a
                  target="_blank"
                  href="https://wikileaks.org/plusd/cables/06SAOPAULO30_a.html">according
                  to WikiLeaks</a>, and despite the endless sins
                permeating Brazil’s legislative branch, the mainstream
                media has equated her financial mistakes to treason,
                completely obscuring the bigger picture.“Dilma Rousseff
                has not been accused of any financial impropriety.
                However, 318 members of the Brazilian Congress,
                including many who backed her impeachment, are under
                investigation or face charges,” Democracy Now <a
                  target="_blank"
href="http://www.democracynow.org/2016/4/20/is_the_us_backing_rousseff_s">highlights</a>.
              </p>
              <p>The undercurrents of the coup flow directly from
                Petrobras, Brazil’s state-owned oil enterprise,
                currently under fire after <a target="_blank"
                  href="http://pandeia.eu/staff/greg-bianchi/what-is-operation-car-wash/">Operation</a><a
                  target="_blank"
                  href="http://pandeia.eu/staff/greg-bianchi/what-is-operation-car-wash/">
                  Car Wash</a> unearthed several massive corruption
                scandals in 2014, and multi-partisan thievery saw
                Rousseff inherit the company’s US$130 billion debt.
                Fortunately, to protect the country’s national currency,
                the Brazilian real, Petrobras cleverly retained its debt
                in U.S. dollars for easy convertibility into bonds,
                while maintaining revenue in reals. “[…] 80 percent of
                the company’s debts are dollar-denominated, but much of
                its revenue comes from domestic fuel sales in reals”, an
                Energy Fuse article <a target="_blank"
href="http://energyfuse.org/beyond-political-crisis-future-brazils-energy-sector/">stated</a>.
              </p>
              <p>Unfortunately, last year the dollar strengthened and
                fluctuated, which inflamed the nation’s debt burden.
                “Inflated by a stronger dollar, Petrobras' gross debt
                swelled to 799.25 billion reals [$223 billion] at the
                end of 2015 […] even as the company slashed investment
                spending and spent the last six months of the year
                trying - with limited success - to sell off
                assets,”MarketWatch <a target="_blank"
href="http://www.marketwatch.com/story/brazils-petrobras-posts-worst-ever-quarterly-loss-2016-03-21">states</a>.
                A combination of weakening exchange rates, high global
                oil supply, and falling domestic demand, did little to
                stop Petrobras’s hemorrhaging revenues amidst the
                corruption scandal. </p>
              <p>The swell in global supply was attributed to failed
                OPEC negotiations with Saudi Arabia, the cartel’s
                undisputed leader, after it <a target="_blank"
href="http://oilprice.com/Energy/Energy-General/Why-Saudi-Arabia-Has-No-Intention-To-End-The-Oil-Glut.html">childishly
                  responded to</a> North America’s “shale oil
                revolution” with a textbook oil glut that needlessly
                shrank global revenues to historic lows and <a
                  target="_blank"
href="http://www.bloomberg.com/news/articles/2016-01-12/petrobras-reduces-production-estimates-on-deeper-spending-cuts">threatened</a>
                Petrobras’s limited 2.7 bpd upstream rates. With
                dwindling funds, the company was forced to <a
                  target="_blank"
href="http://www.straitstimes.com/business/petrobras-selling-oil-gas-fields-worth-up-to-27b">sell
                  assets</a> to avert the onset of reverse Dutch
                disease. "If oil prices stay low, I'm not very hopeful,”
                Fabio Fuzette of Antares Capital <a target="_blank"
href="http://www.reuters.com/article/us-petrobras-outlook-idUSKCN0UQ1C020160112">mentioned</a>.
              </p>
              <p>With rising debt in U.S. dollars and tanking profits in
                reals, Petrobras found itself at the mercy of the
                petrodollar. The company’s Q4 report reflected
                staggering losses, where market prices had “decreased
                49.6 percent from the year earlier to $33.50 per
                barrel,” Zack’s Research <a target="_blank"
href="http://www.zacks.com/stock/news/211257/petrobras-q4-loss-wider-than-expected-on-low-oil-prices">highlighted</a>.
                This had been aggravated by a previous Moody’s downgrade
                to “junk” status, which “rocked the country’s equities
                and currency, with […] the real tumbling 1.3 percent,”
                the group also <a target="_blank"
href="http://www.zacks.com/stock/news/165918/brazil-stocks-down-real-tumbles-petrobras-cut-to-junk">discovered</a>.
              </p>
              <p>Another Energy Fuse article also revealed increasing
                bouts of in-fighting between the government and private
                investors after the 2007 discovery of pre-salt
                extraction reserves. “A 2010 reform under former
                President Luiz Inacio Lula da Silva requires Petrobras
                to be the sole operator in all pre-salt fields with a
                minimum 30 percent stake, severely limiting private
                investment in those areas.” To protect them from
                corporate exploitation, the Worker’s Party leadership
                mandated this to safeguard current and future welfare
                programs, but still required borrowing from the Central
                Bank of Brazil. Borrowing also heavily <a
                  target="_blank"
                  href="https://www.imf.org/external/pubs/ft/wp/2015/wp1530.pdf">subsidized</a>
                petrol costs to domestic consumers using the state bank.
                “Petrobras was not allowed by the government to pass on
                higher input costs to its end consumers and the company
                had to sell gasoline, diesel, and other refined
                petroleum products in Brazil at a sharp discount to
                international prices,” a Seeking Alpha <a
                  target="_blank"
href="http://seekingalpha.com/article/3976275-latin-america-handling-low-oil-prices">article</a>
                illustrated. </p>
              <p>This explains the rampant embezzlement and the central
                bank’s egregious <a target="_blank"
href="http://www.wsj.com/articles/brazilian-real-weakens-after-central-bank-holds-rates-1453384957">freeze</a>
                of Selic benchmark rates at 14.25 percent. Recently,
                Temer <a target="_blank"
                  href="http://www.ynetnews.com/articles/0,7340,L-4803273,00.html">replaced</a>
                the bank’s leadership with IMF/ World Bank crony Ilan
                Goldfein to limit borrowing to all state-funded programs
                and impose austerity regulations. </p>
              <p>Heads also began to roll at Pemex, Mexico’s Petrobras
                equivalent to which Brazil joined forces via Latin
                America’s <a target="_blank"
href="http://oilpro.com/post/13703/brazil-proposes-petrobras-pemex-tentative-alliance">largest
                  trade agreement</a>, dealing a heavy blow to the
                continent’s energy reform plans. “Emilio Lozoya (Pemex's
                CEO) lost his job back in February, after failing to
                stop a production decline despite heavy leverage.” As a
                result, Rousseff was forced to continue selling off
                Petrobras assets, but continued to subsidize oil costs
                with borrowed money. This was a mistake, but not a
                crime. </p>
              <p>To prepare a motive, the overthrow was preplanned in a
                businesslike manner. A Folha de Sao Paolo <a
                  target="_blank"
                  href="https://www.rt.com/news/344117-phone-recordings-rousseff-brazil/">report</a>
                containing leaked <a target="_blank"
href="http://www1.folha.uol.com.br/poder/2016/05/1774018-em-dialogos-gravados-juca-fala-em-pacto-para-deter-avanco-da-lava-jato.shtml">recordings</a>
                confirmed the pivotal moment in which Temer’s allies
                moved into position weeks before the coup. In it,
                Planning Minister Romero Juca and former Transperto
                President Sergio Machado commented that they wanted to
                “stop the bleeding” in Petrobras’s finances; a casus
                belli to form a national pact with Temer as the acting
                president. “I think we need to articulate a political
                action,” mentioned Juca to Machado. Juca has since <a
                  target="_blank"
href="http://sputniknews.com/news/20160523/1040125441/romero-juca-brazil-coup-dilma.html">stepped
                  down</a> in response to the leak. </p>
              <p>However, it was her new methodology to reduce company
                debt that was the final straw. Reuters saliently <a
                  target="_blank"
                  href="http://www.reuters.com/article/us-brazil-iran-trade-idUSKCN0VP249">reported</a>
                that, following her January lifting of sanctions against
                Iran, the two countries <a target="_blank"
href="http://www.itamaraty.gov.br/en/press-releases/13784-brazil-iran-political-consultations-mechanism-meeting">met
                  on the sidelines</a> prior to the April 17 OPEC summit
                in Doha to discuss lucrative trading opportunities and
                bilateral agreements. “[Trade Minister Armando] Monteiro
                said Brazil aims to triple trade with Iran to $5 billion
                by 2019” and that “Rousseff lifted UN-imposed sanctions
                against the OPEC nation last week after meeting with the
                Iranian ambassador, […] despite tensions with the West,”
                Reuters continued. This trade was to occur in “euros and
                other currencies”, not dollars, and fit seamlessly with
                Petrobras’s <a target="_blank"
href="http://www.investidorpetrobras.com.br/en/presentations/business-management-plan">2015-2019
                  Business and Management Plan</a>. Additionally,
                Brazil’s recent <a target="_blank"
href="http://www.reuters.com/article/us-venezuela-election-brazil-idUSKCN0SE2SC20151020">row</a>
                with UNASUR and OPEC member Venezuela further encouraged
                Rousseff to seek new partnerships. With increasing <a
                  target="_blank"
href="http://www.independent.co.uk/news/world/middle-east/saudi-arabia-threatens-to-sell-off-us-assets-if-congress-passes-911-bill-a6987281.html">fallout</a>
                between Saudi Arabia and the U.S. over the 9/11 bill,
                coupled with embarrassing results from the Doha summit,
                Rousseff’s plan became an extra headache for the
                administration. Amidst all the hostile finger-pointing,
                she was in fact taking genuine steps to correct the
                company’s mismanagement using the P5+1 talks as a
                springboard for cooperation. “Relations between Brazil
                and Iran […] experienced new momentum in the context of
                implementation of the <a target="_blank"
href="http://eeas.europa.eu/statements-eeas/docs/iran_agreement/iran_joint-comprehensive-plan-of-action_en.pdf">Joint</a><a
                  target="_blank"
href="http://eeas.europa.eu/statements-eeas/docs/iran_agreement/iran_joint-comprehensive-plan-of-action_en.pdf">
                  Comprehensive Plan of Action</a> (JCPoA) last January
                and of the lifting of international sanctions against
                Iran,” Brazil’s Ministry of Foreign Affairs <a
                  target="_blank"
                  href="http://www.itamaraty.gov.br/en/component/tags/tag/977">quoted</a>.
              </p>
              <p>This is precisely what prompted the desperate political
                coup, which <a target="_blank"
                  href="http://www.bbc.com/news/world-latin-america-36021230">occurred</a>
                the day after (April 12) Brazil’s meeting with Iran -
                Congress voted during the OPEC summit after Iran’s
                absence confirmed this. Washington panicked at the
                thought of endangering petrodollar dominance and losing
                control of Iran’s post-sanction partnerships. Even
                Reuters perceived this threat by voicing “…although it
                is not clear whether any attempt to circumvent the U.S.
                financial system could raise tensions with Washington,
                Brazil's leftist government in the past has annoyed the
                United States by drawing closer to Tehran.” </p>
              <p>Apparently, it did, and Brazil’s plans for reform
                eventually ran diametrically opposed to Washington’s
                future Iran ambitions, activating the CIA assets in the
                Brazilian Congress to overthrow Rousseff. With her
                impeachment underway, speculators were practically <a
                  target="_blank"
href="http://www.generali-invest.com/content/getdoc/aeec1673-bbab-40d1-8bc4-a447de91908d/160703_GI_Research_Market_Commentary-%281%29.aspx">speaking
                  in tongues</a> at the possibility of raking in profits
                to the private sector. “Brazil's currency climbed by 1.7
                percent to 3.6262 per dollar earlier today on heightened
                speculation that President Dilma Rousseff is nearing
                impeachment,” The Street <a target="_blank"
href="https://www.thestreet.com/story/13524366/1/petrobras-pbr-stock-surges-as-brazilian-real-oil-prices-advance.html">rejoiced</a>.
              </p>
              <p>Unrelentingly, Temer has opted for massive budget and
                department cuts, rather than continuing with Rousseff’s
                socialist trajectory, threatening Brazil’s long-term
                autonomy with nearsighted profits and further dollar
                dependency. Additionally, appointing new FM Jose Serra
                also poses a serious threat to the BRICS alliance by
                moving away from a clear and holistic strategy.
                “Relations with new partners in Asia, especially China
                […] and India, will be a priority,” expressed Serra,
                insinuating that, armed with new pre-salt field
                reserves, it may not honor ties to Russia. </p>
              <p>Furthermore, Temer has also replaced Petrobras CEO
                Aldemir Bendine with Pedro Parente, another favorite of
                the U.S. financial elite, who was “formerly the top
                executive at the Brazilian unit of U.S. agribusiness
                giant Bunge Ltd. and currently chairman of stock-market
                operator BM&FBovespa SA,” MarketWatch <a
                  target="_blank"
href="http://www.marketwatch.com/story/brazil-state-oil-giant-petrobras-names-pedro-parente-new-ceo-2016-05-19">explained</a>.
              </p>
              <p>It is important to recognize that Brazil’s current
                ‘leadership’ benefits both the American empire and
                Brazilian capitalists. On the U.S. side, Brazilian debt
                continues under the U.S. dollar, and U.S. President
                Barack Obama can maintain the CIA tradition of
                supporting the “moderate opposition” around the world in
                order to stifle democracy and plunder foreign markets.
                While Brazil’s terrorists aren’t chopping heads, they
                are slashing budgets; bleeding Brazil’s fragile
                democracy dry, and over the next 180 days, this will
                reflect in the will of the people as they take to the
                streets to fight their puppet government. Temer couldn’t
                have picked a better time, as the Olympics will see him
                and his enablers persistently humiliated through by a
                rapturous organization of the masses; from the
                grassroots to the Most High, until President Dilma
                Rousseff’s miraculous resurrection. </p>
              <p><em>Haneul Na’avi, independent analyst for RT. The
                  article was originally published on <a
                    target="_blank"
                    href="https://www.rt.com/op-edge/344231-rousseff-coup-brazil-oil/">RT.</a></em>
              </p>
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