IBOV 177,866 ▲ 2.97% IPSA 11,057 ▲ 0.28% IPC MEX 66,496 ▲ 0.59% MERVAL 3,280,224 ▲ 2.43% COLCAP 2,307.67 ▲ 0.65% BVL PERÚ 56,194.27 ▲ 1.29% USD/BRL 5.11 — 0.00% USD/MXN17.48▲ 0.04% USD/CLP923.90▼ 0.41% USD/COP3,237▼ 0.27% USD/PEN3.41▲ 0.44% USD/ARS1,487▼ 0.03% USD/UYU40.22▲ 1.37% USD/PYG6,055▲ 1.45% USD/BOB10.14▲ 4.01% USD/DOP58.61▲ 0.22% USD/CRC448.82▲ 1.41% USD/GTQ7.63▲ 2.31% USD/HNL26.72▲ 0.09% USD/NIO 36.62 — 0.00% USD/VES719.54▼ 0.13% USD/PAB1.00— 0.00% USD/BZD2.00— 0.00% USD/JMD158.09▲ 0.40% USD/TTD6.75▲ 1.44% EUR/BRL5.84▲ 0.34% BRENT 77.99 ▲ 2.60% WTI 73.36 ▲ 2.73% IRON ORE 161.91 — — COPPER 6.26 ▲ 0.43% GOLD 4,077 ▼ 0.66% SILVER 58.86 ▼ 1.59% SOY 1,197 ▲ 0.02% CORN 466.25 ▲ 6.45% WHEAT 638.25 ▲ 0.99% COFFEE 328.10 ▼ 4.34% SUGAR 14.69 ▼ 1.28% ORANGE JUICE 143.25 ▼ 4.44% COTTON 81.35 ▲ 1.79% COCOA 5,652 ▼ 4.51% BEEF 230.55 ▼ 2.00% CATTLE 354.60 ▼ 0.44% LITHIUM 72.32 ▼ 0.69% PETR4 39.65 ▲ 1.12% VALE3 74.18 ▲ 1.41% ITUB4 44.30 ▲ 4.02% BBDC4 18.86 ▲ 4.78% ABEV3 15.82 ▲ 0.64% BBAS3 20.58 ▲ 2.90% B3SA3 15.42 ▲ 4.26% WEGE3 46.51 ▲ 1.68% PRIO3 55.45 ▼ 0.29% SUZB3 41.55 ▲ 1.27% RENT3 41.10 ▲ 4.31% AZZA3 19.10 ▲ 3.47% CSAN3 4.07 ▲ 5.44% RAIZ4 0.35 ▼ 5.41% PCAR3 2.73 ▼ 1.09% GMAT3 3.97 ▲ 1.02% PSSA3 54.97 ▲ 3.04% CVCB3 1.25 — 0.00% POSI3 3.97 ▲ 3.12% SLCE3 14.02 ▲ 1.67% NATU3 8.68 ▲ 2.60% BRKM5 6.63 ▲ 4.25% RANI3 8.01 ▲ 1.91% CSNA3 5.18 ▲ 7.92% CMIN3 5.23 ▲ 8.28% USIM5 8.45 ▲ 1.20% GGBR4 23.01 ▲ 2.36% ENEV3 27.55 ▲ 5.15% CPFE3 47.87 ▲ 3.41% CMIG4 11.38 ▲ 2.71% EQTL3 40.91 ▲ 3.54% LREN3 14.62 ▲ 3.32% VIVT3 35.75 ▲ 3.62% RAIL3 14.36 ▲ 4.44% KLABIN 17.54 ▲ 0.80% RAIA DROGASIL 18.77 ▲ 3.53% RDOR3 36.02 ▲ 2.48% HAPV3 10.60 ▲ 5.26% FLRY3 16.42 ▲ 4.25% SMTO3 16.37 ▲ 1.99% UGPA3 30.71 ▲ 2.03% VBBR3 33.00 ▲ 2.80% BBSE3 40.35 ▲ 2.72% BPAC11 58.73 ▲ 5.48% CURY3 34.21 ▲ 4.62% AERI3 2.09 ▲ 1.46% VIVARA 23.53 ▲ 4.21% COMPASS 25.50 ▲ 3.32% VAMOS 3.06 ▲ 3.38% SANB11 27.62 ▲ 5.22% ASAI3 8.87 ▲ 4.85% SBSP3 31.11 ▲ 3.70% WALMEX 49.31 ▲ 0.59% GMEXICO 198.62 ▲ 1.68% FEMSA 223.20 ▲ 0.37% CEMEX 21.82 ▲ 0.51% GFNORTE 186.51 ▲ 0.63% BIMBO 56.06 ▲ 0.23% TELEVISA 9.74 ▲ 2.63% AMX 22.70 ▲ 0.27% GAP 412.01 ▼ 0.41% ASUR 285.12 ▲ 0.53% OMA 235.73 ▼ 0.95% KOF 182.08 ▲ 0.65% GRUMA 282.99 ▲ 0.14% KIMBER 38.13 ▼ 0.81% SQM-B 67,750 ▼ 1.95% COPEC 6,139 ▲ 1.98% BSANTANDER 79.00 ▲ 1.94% FALABELLA 5,905 ▲ 0.92% ENELAM 85.40 ▲ 1.47% CENCOSUD 2,045 ▼ 0.55% CMPC 1,109 ▲ 1.32% BANCO CHILE 188.88 ▲ 1.01% LATAM AIR 26.26 ▼ 0.53% YPF 74,450 ▼ 1.75% GGAL 8,350 ▲ 5.96% PAMPA 5,185 ▼ 0.38% TXAR 671.00 ▲ 0.98% ALUAR 978.00 ▲ 0.98% TGS 9,610 ▲ 3.22% CEPU 2,405 ▲ 3.89% MIRGOR 17,375 ▲ 1.02% COME 45.90 ▲ 1.06% LOMA NEGRA 3,583 ▲ 2.43% BYMA 314.00 ▲ 1.37% TELECOM ARG 4,248 ▲ 3.09% ECOPETROL 15.59 ▲ 1.27% BANCOLOMBIA 82.95 ▲ 2.50% GRUPO AVAL 5.08 ▲ 1.20% CREDICORP 400.81 ▲ 2.27% SOUTHERN COPPER 175.83 ▲ 0.80% BUENAVENTURA 30.00 ▲ 1.52% MERCADOLIBRE 1,852 ▲ 2.46% NUBANK 13.76 ▲ 0.66% XP 16.92 ▲ 3.11% PAGSEGURO 9.25 ▲ 2.78% STONE 11.21 ▲ 2.28% GLOBANT 29.96 ▼ 4.25% TECNOGLASS 43.90 ▲ 1.76% GAP AIRPORT 235.64 ▲ 0.50% ASUR 285.12 ▲ 0.53% OMA AIRPORT 108.09 ▼ 0.22% AMX ADR 26.04 ▲ 0.77% FEMSA ADR 127.70 ▲ 0.55% CEMEX ADR 12.48 ▲ 0.89% PETROBRAS ADR 17.32 ▲ 1.70% VALE ADR 14.46 ▲ 1.69% ITAU ADR 8.62 ▲ 4.11% SANTANDER BR 5.39 ▲ 4.86% AMBEV ADR 3.07 ▲ 0.99% CSN 1.01 ▲ 5.79% GERDAU 4.50 ▲ 2.04% LATAM ADR 56.45 ▼ 1.03% BTC 63,058 ▼ 1.10% ETH 1,783 ▼ 1.24% SOL 76.31 ▼ 0.73% XRP 1.08 ▼ 0.75% BNB 569.72 ▼ 0.74% ADA 0.16 ▼ 1.39% DOGE 0.07 ▼ 0.66% AVAX 6.65 ▲ 3.87% LINK 7.99 ▼ 0.09% DOT 0.83 ▼ 1.56% LTC 43.75 ▼ 0.50% BCH 238.19 ▼ 0.74% TRX 0.33 ▼ 0.47% XLM 0.18 ▼ 1.47% HBAR 0.07 ▼ 0.37% NEAR 1.92 ▲ 1.71% ATOM 1.55 ▼ 1.22% AAVE 95.93 ▼ 1.17% SELIC 14.25% EMBRAER 84.60 ▲ 0.88% EMBRAER ADR 66.01 ▲ 0.72% JBS 11.91 ▲ 1.53% JBS BDR 60.78 ▲ 1.22% MBRF3 15.55 ▲ 0.91% MBRFY 2.97 ▼ 1.00% INTER 5.82 ▲ 1.93% EGX 52,630 ▲ 0.71% USD/ZAR16.35▲ 0.14% USD/NGN 1,376 — 0.00% NIKKEI 67,243 ▼ 1.92% CSI300 4,695 ▼ 1.79% HSI 24,214 ▲ 0.16% NIFTY 24,212 ▲ 0.02% KOSPI 6,807 ▼ 8.95% JCI 6,038 ▲ 1.92% USD/JPY162.08▲ 0.22% USD/CNY6.78▼ 0.01% DAX 25,142 ▲ 0.30% CAC 8,347 ▲ 0.10% FTSE 10,498 ▲ 0.01% MIB 52,750 ▲ 0.26% IBEX 19,430 ▲ 0.23% STOXX 640.99 ▼ 0.02% EUR/USD1.14▲ 0.29% GBP/USD1.34▼ 0.03% SPX 7,575 ▲ 0.42% DJI 52,637 ▲ 0.29% NDX 29,825 ▲ 0.33% RUT 2,978 ▼ 0.49% TSX 35,305 ▲ 0.30% VIX 16.13 ▲ 7.32% USD/CAD1.41▼ 0.14% US10Y 4.5690 ▲ 0.66% IBOV 177,866 ▲ 2.97% IPSA 11,057 ▲ 0.28% IPC MEX 66,496 ▲ 0.59% MERVAL 3,280,224 ▲ 2.43% COLCAP 2,307.67 ▲ 0.65% BVL PERÚ 56,194.27 ▲ 1.29% USD/BRL 5.11 — 0.00% USD/MXN 17.48 ▲ 0.04% USD/CLP 923.90 ▼ 0.41% USD/COP 3,237 ▼ 0.27% USD/PEN 3.41 ▲ 0.44% USD/ARS 1,487 ▼ 0.03% USD/UYU 40.22 ▲ 1.37% USD/PYG 6,055 ▲ 1.45% USD/BOB 10.14 ▲ 4.01% USD/DOP 58.61 ▲ 0.22% USD/CRC 448.82 ▲ 1.41% USD/GTQ 7.63 ▲ 2.31% USD/HNL 26.72 ▲ 0.09% USD/NIO 36.62 — 0.00% USD/VES 719.54 ▼ 0.13% USD/PAB 1.00 — 0.00% USD/BZD 2.00 — 0.00% USD/JMD 158.09 ▲ 0.40% USD/TTD 6.75 ▲ 1.44% EUR/BRL 5.84 ▲ 0.34% BRENT 77.99 ▲ 2.60% WTI 73.36 ▲ 2.73% IRON ORE 161.91 — — COPPER 6.26 ▲ 0.43% GOLD 4,077 ▼ 0.66% SILVER 58.86 ▼ 1.59% SOY 1,197 ▲ 0.02% CORN 466.25 ▲ 6.45% WHEAT 638.25 ▲ 0.99% COFFEE 328.10 ▼ 4.34% SUGAR 14.69 ▼ 1.28% ORANGE JUICE 143.25 ▼ 4.44% COTTON 81.35 ▲ 1.79% COCOA 5,652 ▼ 4.51% BEEF 230.55 ▼ 2.00% CATTLE 354.60 ▼ 0.44% LITHIUM 72.32 ▼ 0.69% PETR4 39.65 ▲ 1.12% VALE3 74.18 ▲ 1.41% ITUB4 44.30 ▲ 4.02% BBDC4 18.86 ▲ 4.78% ABEV3 15.82 ▲ 0.64% BBAS3 20.58 ▲ 2.90% B3SA3 15.42 ▲ 4.26% WEGE3 46.51 ▲ 1.68% PRIO3 55.45 ▼ 0.29% SUZB3 41.55 ▲ 1.27% RENT3 41.10 ▲ 4.31% AZZA3 19.10 ▲ 3.47% CSAN3 4.07 ▲ 5.44% RAIZ4 0.35 ▼ 5.41% PCAR3 2.73 ▼ 1.09% GMAT3 3.97 ▲ 1.02% PSSA3 54.97 ▲ 3.04% CVCB3 1.25 — 0.00% POSI3 3.97 ▲ 3.12% SLCE3 14.02 ▲ 1.67% NATU3 8.68 ▲ 2.60% BRKM5 6.63 ▲ 4.25% RANI3 8.01 ▲ 1.91% CSNA3 5.18 ▲ 7.92% CMIN3 5.23 ▲ 8.28% USIM5 8.45 ▲ 1.20% GGBR4 23.01 ▲ 2.36% ENEV3 27.55 ▲ 5.15% CPFE3 47.87 ▲ 3.41% CMIG4 11.38 ▲ 2.71% EQTL3 40.91 ▲ 3.54% LREN3 14.62 ▲ 3.32% VIVT3 35.75 ▲ 3.62% RAIL3 14.36 ▲ 4.44% KLABIN 17.54 ▲ 0.80% RAIA DROGASIL 18.77 ▲ 3.53% RDOR3 36.02 ▲ 2.48% HAPV3 10.60 ▲ 5.26% FLRY3 16.42 ▲ 4.25% SMTO3 16.37 ▲ 1.99% UGPA3 30.71 ▲ 2.03% VBBR3 33.00 ▲ 2.80% BBSE3 40.35 ▲ 2.72% BPAC11 58.73 ▲ 5.48% CURY3 34.21 ▲ 4.62% AERI3 2.09 ▲ 1.46% VIVARA 23.53 ▲ 4.21% COMPASS 25.50 ▲ 3.32% VAMOS 3.06 ▲ 3.38% SANB11 27.62 ▲ 5.22% ASAI3 8.87 ▲ 4.85% SBSP3 31.11 ▲ 3.70% WALMEX 49.31 ▲ 0.59% GMEXICO 198.62 ▲ 1.68% FEMSA 223.20 ▲ 0.37% CEMEX 21.82 ▲ 0.51% GFNORTE 186.51 ▲ 0.63% BIMBO 56.06 ▲ 0.23% TELEVISA 9.74 ▲ 2.63% AMX 22.70 ▲ 0.27% GAP 412.01 ▼ 0.41% ASUR 285.12 ▲ 0.53% OMA 235.73 ▼ 0.95% KOF 182.08 ▲ 0.65% GRUMA 282.99 ▲ 0.14% KIMBER 38.13 ▼ 0.81% SQM-B 67,750 ▼ 1.95% COPEC 6,139 ▲ 1.98% BSANTANDER 79.00 ▲ 1.94% FALABELLA 5,905 ▲ 0.92% ENELAM 85.40 ▲ 1.47% CENCOSUD 2,045 ▼ 0.55% CMPC 1,109 ▲ 1.32% BANCO CHILE 188.88 ▲ 1.01% LATAM AIR 26.26 ▼ 0.53% YPF 74,450 ▼ 1.75% GGAL 8,350 ▲ 5.96% PAMPA 5,185 ▼ 0.38% TXAR 671.00 ▲ 0.98% ALUAR 978.00 ▲ 0.98% TGS 9,610 ▲ 3.22% CEPU 2,405 ▲ 3.89% MIRGOR 17,375 ▲ 1.02% COME 45.90 ▲ 1.06% LOMA NEGRA 3,583 ▲ 2.43% BYMA 314.00 ▲ 1.37% TELECOM ARG 4,248 ▲ 3.09% ECOPETROL 15.59 ▲ 1.27% BANCOLOMBIA 82.95 ▲ 2.50% GRUPO AVAL 5.08 ▲ 1.20% CREDICORP 400.81 ▲ 2.27% SOUTHERN COPPER 175.83 ▲ 0.80% BUENAVENTURA 30.00 ▲ 1.52% MERCADOLIBRE 1,852 ▲ 2.46% NUBANK 13.76 ▲ 0.66% XP 16.92 ▲ 3.11% PAGSEGURO 9.25 ▲ 2.78% STONE 11.21 ▲ 2.28% GLOBANT 29.96 ▼ 4.25% TECNOGLASS 43.90 ▲ 1.76% GAP AIRPORT 235.64 ▲ 0.50% ASUR 285.12 ▲ 0.53% OMA AIRPORT 108.09 ▼ 0.22% AMX ADR 26.04 ▲ 0.77% FEMSA ADR 127.70 ▲ 0.55% CEMEX ADR 12.48 ▲ 0.89% PETROBRAS ADR 17.32 ▲ 1.70% VALE ADR 14.46 ▲ 1.69% ITAU ADR 8.62 ▲ 4.11% SANTANDER BR 5.39 ▲ 4.86% AMBEV ADR 3.07 ▲ 0.99% CSN 1.01 ▲ 5.79% GERDAU 4.50 ▲ 2.04% LATAM ADR 56.45 ▼ 1.03% BTC 63,058 ▼ 1.10% ETH 1,783 ▼ 1.24% SOL 76.31 ▼ 0.73% XRP 1.08 ▼ 0.75% BNB 569.72 ▼ 0.74% ADA 0.16 ▼ 1.39% DOGE 0.07 ▼ 0.66% AVAX 6.65 ▲ 3.87% LINK 7.99 ▼ 0.09% DOT 0.83 ▼ 1.56% LTC 43.75 ▼ 0.50% BCH 238.19 ▼ 0.74% TRX 0.33 ▼ 0.47% XLM 0.18 ▼ 1.47% HBAR 0.07 ▼ 0.37% NEAR 1.92 ▲ 1.71% ATOM 1.55 ▼ 1.22% AAVE 95.93 ▼ 1.17% SELIC 14.25% EMBRAER 84.60 ▲ 0.88% EMBRAER ADR 66.01 ▲ 0.72% JBS 11.91 ▲ 1.53% JBS BDR 60.78 ▲ 1.22% MBRF3 15.55 ▲ 0.91% MBRFY 2.97 ▼ 1.00% INTER 5.82 ▲ 1.93% EGX 52,630 ▲ 0.71% USD/ZAR 16.34 ▼ 0.04% USD/NGN 1,376 — 0.00% NIKKEI 67,243 ▼ 1.92% CSI300 4,695 ▼ 1.79% HSI 24,214 ▲ 0.16% NIFTY 24,212 ▲ 0.02% KOSPI 6,807 ▼ 8.95% JCI 6,038 ▲ 1.92% USD/JPY 161.99 ▲ 0.20% USD/CNY 6.7758 ▲ 0.13% DAX 25,142 ▲ 0.30% CAC 8,347 ▲ 0.10% FTSE 10,498 ▲ 0.01% MIB 52,750 ▲ 0.26% IBEX 19,430 ▲ 0.23% STOXX 640.99 ▼ 0.02% EUR/USD 1.1435 ▲ 0.14% GBP/USD 1.3391 ▼ 0.05% SPX 7,575 ▲ 0.42% DJI 52,637 ▲ 0.29% NDX 29,825 ▲ 0.33% RUT 2,978 ▼ 0.49% TSX 35,305 ▲ 0.30% VIX 16.13 ▲ 7.32% USD/CAD 1.4141 ▼ 0.08% US10Y 4.5690 ▲ 0.66%
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Op-Ed Guest Opinions

Opinion: The Triumphal Return of the “300 Picaretas”

By · August 20, 2020 · 3 min read

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RIBEIRÃO PRETO, BRAZIL – (Opinion) Back in 1993, running for President after serving in Congress for four years, Luis Inácio Lula da Silva famously said that “300 picaretas” formed a majority of the 513 seats in Brazil’s lower house of Congress.

“Picareta” has dozens of synonyms in Portuguese; in English: “Reprobate”, “Scoundrel”, “Rapscallion”, Miscreant”, “Scalawag”, and Shakespeare’s “Varlet” all come to mind, describing a dishonest, unprincipled person.

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Lula knew well whereof he spoke. Upon achieving the presidency in 2002, he focused on obtaining Congressional approval of his social programs. Recognizing the need for support from “picaretas”, he bought their votes with monthly allowance payments – the “Mensalão” scheme.

After the Brazilian Supreme Court unmasked the “Mensalão” and put some “picaretas” in jail for the first time in Brazilian history, a new approach to the 300 Picaretas was needed.

A two-pronged tactic was quickly found: (1) the plundering of Petrobras, Eletrobras and other state-owned businesses; coupled with (2) appointments to cushy positions in dozens of federal ministries and autarchies: political cronies found multiple opportunities to line their pockets with huge amounts of cash.

Eventually, the Lava-Jato task force of the Public Prosecutors Office unmasked that scheme as well, shining a searchlight onto the deep-rooted  corruption embedded in Brazilian politics.

Lava-Jato has had cascading effects upon the Brazilian presidency: the trial and conviction of ex-president Lula; the impeachment of his successor Dilma; the fecklessness of her lame duck successor Temer; and in 2018 the surprising election of Jair Bolsonaro.

Bolsonaro’s campaign platform had three principal planks: (1) root out the corruption of prior regimes; (2) restore “family values” to education and culture; and (3) replace “Marxist” economic policy with “liberal”.

Importantly, Bolsonaro pledged never to utilize, in securing these goals from Congress, the corrupt “old politics” of mutual backscratching, where it is always better to give AND to receive, both over and under the table.

Bolsonaro bet on support from cross-party blocs known as the “3-Bs”: Bullets, Bibles, and Beef, short for the law-and-order, evangelical, and agribusiness lobbies.

Bolsonaro lost his bet because not all the 3-Bs could fit on the same page with him. Not all evangelicals favor letting everyone own guns; farmers and ranchers love protection from competition; law-and-order adepts hate the militias often linked to the Bolsonaro clan.

Bolsonaro was blindsided by Covid-19, which left him clueless. Dithering, he abdicated all responsibility. While firing Health Ministers, criticizing masks, social distancing, and business lockdowns, he touted Trump’s pet medicine with no proven preventive or curative effects.

Bolsonaro’s economic agenda is now in tatters, as is his educational and cultural agenda; his lickspittle subservience to Trump offends nationalists in the military; worse yet, several past and present clan members are now suspects in corruption investigations.

Enter, stage center and stage right, the Centrão, a flexible bloc of over 200 members of Congress, who yearn for politics to return to the “good old days” when they ran the country.

The Centrão of 2020 is the reincarnation of the 300 Picaretas of the 1990s.

Centrão parties seek power and money- not necessarily in that order. They have no guiding philosophical principles; they do not care for ideologies, be they religious or secular; they mistrust the military, which thwarted their hegemony for almost three decades.

The Centrão’s modus operandi is to control the machinery of government, through legislation, regulation, and administration. The judiciary that, pre-Mensalão and Lava-Jato, had closed its eyes to their peccadilloes, now represents a threat to their hegemony.

Bolsonaro, having painted himself into a corner, needs the Centrão to rescue him and his government before the 2022 elections. In addition to reinstituting “old politics” patronage to forestall his impeachment, he is seeking additional protection for the 300 Picaretas, by trying to put the police, public prosecutors and the court system under his thumb.

That, however, is a subject for another column, possibly entitled, with an apology to the late poet e.e.cummings: “Lava Jato’s Defunct”.

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