The Government-Run Corporation That Destroyed Brazil - Will This Happen to the U.S.?

In this video Luke Rudkowski talks to Edson Chinchilla, one of the leaders behind the libertarian movement in Brazil about a public government run corporation Petrobras. Petrobras is government run oil company that a monopoly in the market and because of that is ripe with corruption and scandals that is leading to the impeachment of the Brazilian president Dilma.

To find out more about Edson Chinchilla go to https://www.facebook.com/EdSchultzsky…

Brazil’s economy is expected to contract this year. But the biggest downer in the country is the enormous Petrobras scandal that is pulling the rug out from under thousands of low skilled workers.

Civil construction is an important economic sector in any economy. That is particularly true in an emerging one, where governments and the private sector are busying building up roads and refineries.

But political scandal and wide spread white collar crime at Petrobras is damaging that sector something fierce. In the first two months of the year, 35,500 jobs were lost in civil construction, many of them low skilled labor.

“This is a problem that has no end in sight. You wonder where many of these workers are going to go,” asks Fernanda Lima, CEO of Gradual Investments, a $6.5 billion money manager in Sao Paulo. “Construction company layoffs are going to weigh on the economy.”

Petrobras is currently being investigated for a number of scandals. The biggest ones involve the oil giant’s gouging billions out of public coffers by allowing construction firms to over-charge for refineries. There were kickbacks paid. Offshore accounts were opened. A few guys got rich. A few guys went to jail. And now two of the companies involved in the scheme, OAS and Galvao Engenharia, have filed for bankruptcy protection.

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