Most Brazilian public debt growth comes from accumulated interest

Evidence

In June 2023 the Brazilian Central Bank set interest rates at 13.75 percent, and the wealthy private holders of governmental debt, just 10 percent of society, reaped all the advantages. National and international creditors gained around 700 billion reals (over 1 billion US dollars, equivalent to 7 percent of Brazil’s GDP) in one year. The Brazilian state did not incur debt to build schools or fund its social programs. Nevertheless, public debt increased: 82 percent of it resulted from accumulated interest. — Clara E. Mattei, Escape from Capitalism, 342

Categorization

• SEED: Article angle: a decade of austerity justified by ‘debt crisis’ where 82% of debt growth was pure interest transfers to the top 10% — the manufactured-debt thesis.
• XREF: connects to: Brazilian public debt grows from interest accrual, not social spending — Clara E. Mattei, Escape from Capitalism: An Intervention, 342

Broader Connections

• Brazilian public debt grows from interest accrual, not social spending #corroborates (0.98) — Clara E. Mattei, Escape from Capitalism, 342