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Spending cap - debt ceiling

Rafael Herzberg's picture
Consultant energy affairs, Self employed

Rafael Herzberg - is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil * Focus on C level, VPs and upper managers associated to energy related info,...

  • Member since 2003
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  • May 14, 2023
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Spending cap

There is a tendency, practically globalized, and especially Brazilian, to operate with public debt of the order of 1 GDP.

This is an astronomical number, especially considering the prevailing high interest rates.

What signaling should this situation stimulate?

If the powers that be were responsible, the measure would be to ensure that the State cleans up its expenses. But this is not the priority of the Judiciary, the Legislative and the Executive. On the contrary, they always want to keep the "caste" super well served.

And in this corrosive environment, there is a decay of the "others". Those who do not belong to the caste. The vast majority of the population.

In the Brazilian electricity sector, there are, ostensibly, indications of aberrations that, in a healthy environment, would be addressed with speed, diligence and commitment: at least considering 4 themes:

1. Reduction of power theft, which represents an important share of the energy delivered
2. Implementation of demand response programs
3. Mitigation of the "duck curve" by to non-firm energy entrepreneurs
4. Choice of new plants in order of cost merit and not by cronyism

Meanwhile, the country continues on a path with no realistic chance of turning around this situation.".

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