 The eyes and the curious of the world have turned to Brazil in the face of the political episodes of the last three years that culminated in the election of Jair Bolsonaro, that many call the Trump of the tropics. I know you want me to talk about him, but to better understand of Brazil, I will first talk about the Brazilian Roosevelt, or Mussolini, or whatever populist politician from the thirties that you want to pick, they all did the same at all. Far beyond the revolutionary mindset, there once was a deeper Brazil, the genuine and truthful Brazil, the conservative, traditionalist, Roman Catholic, Apostolic Brazil, neither right or left wing. The Brazil of the baronial manners, the long lines of imperial palm trees, of the Baroque Church on the top of the hills, of multiple sugarcane installments and cough plantations. The Brazil of the Caboclo of Minas Gerais in São Paulo, the cowboy from the Pampas, the backwoods, herdsmen of northeastern coasts, Jangadero, of Amazon pioneers descendants. I love this poem because it marks the cultural roots of Brazil, which you can see. So this is the Brazilian colonial map. These regions are basically the different occupations fronts of colonial Brazil, which was nothing more than a heron inheritance of the Catholic social order of medieval Europe that Hans pointed out in his lecture here last year as the closest example of a libertarian social order in the history of mankind. How do we lose it? Three years ago, I gave a lecture about the Vargas Era, or the Progressive Era, and I called it the funeral of Brazil. On that occasion, I was preceded by the thinker Paulo Cogos lecture on minimal wage policies and took the opportunity to present to the audience some insights regarding the disastrous effect of these policies in Brazil and how they have destroyed and until that point establishment and in some way, harmonic order existing in dimension in Brazil. To be clear, I want to state how these policies extinguished what was left of the existing Brazil and were responsible to turn this vast country into a plunder and privilege machine where those in control ruthlessly suck the sweat, life, and so from its subjects. And I choose an insight format because this is one of the best advantages I took from Austrian economics. Hence, as taught by the Fort Mises Magnum Opus, theory and history, I bring here non-imperical historical facts analyzed with a a priori theory light. And why do I call this particular Brazil's funeral? Before answering such a question, I want to say that this funeral was filmed and broadcasted and I began my presentation with images from this gloomy moment. It was the moment of the cremation. In excellence, President Getúlio Vargas arrived at the Russian camp to watch the solenity. Mr. Kampal, reigned in a large altar, armed in conjunction with the altar of the Patriarch, was celebrated by his Eminence, Cardinal Dão Sebastão Leme, accoled by high dignitaries of the Church. In the end, Mr. Kampal took place at the ceremony of the national flag celebration by the President of the Republic, being celebrated at the same time, on the 22th of March. The national family symbolizes the 22th of March. In one turn, the cremation of the state flags is made. We have many more to learn in the future, with optimism and confidence. We have gone through the difficult times in the past, with the forces of certain evil, the regional realities and the inadequate institutions that commented on the political and administrative organization. We abolished the flag of the state and municipal shields, the regional lines and political parties. All of this was done in order to consolidate the political and social unity of Brazil, at a time when such measures seemed to be tolerable. As you can see, it's an elevation of the national flag against all the regional identities that we previous had in Brazil. 30. This ceremony was 32 or 33, the end of 32 or beginning of 33, because I didn't mention in my previous speech, but there is a separatist war in Brazil, where the richest state, São Paulo, tried to be independent of the union. And Vargas won this war, the national unity won this war against São Paulo, and did this to smash all regional identities in Brazil. So, the Vargas era is generally known as the period from the 30th to 45th, but it actually lasted until today, and beginning could be placed even further before, with the beginning of the republic in 1989. In the article, The Ghost that Hounds Brazil, Professor Anton Miller, refers to how positivism permeates the whole Brazilian republican history, with its social engineer plans since 1989. So, the ideas of positivism permeates all the republican history in Brazil, and it's funny, because in Brazil we have the positivist church, it's still alive and working on. And as a separatist, look at the map of South America before and after the republican revolutions, may think that we were on the right track to find that what was once only Portugal and Spain has split into several republics in Spanish America and a federation of states in Brazil. But the truth is that the republican movements were a path towards the centralization of hundreds of small towns, cities and regions that enjoyed great autonomy from the Spanish and Portuguese crowns. It was in the context of the revolutions of enlightenment, inspirations, that the republican coup took place overthrowing the monarchy in Brazil. Enlightenment ideals penetrated this Catholic empire in two ways. The first was with the sons of the Brazilian elite going to study abroad and get in touch with the new fashion in European universities. The second way was by the military class of the army, formed by the, for the war of Paraguay in 1864 and 17, 270. The preposterous military force had always been the navy and the national guard attached to the monarchy. With the Paraguayan war, Brazil strengthens its army of civilian leaders. He got the fact that the republican military coup in 1889 was planned and executed by positivist Freemason. It's a copy and paste from the American republican model. The country was renamed the United States of Brazil. Parliamentarians were elected by the district and you can see the image of the new flag of the country. They were not creative at that time. It's important to note that until the official beginning of the Vargas era, the old republic preserved some balance and regional autonomy of the states as the oligarchs from Sao Paulo and Minas Gerais took turns in the national power with the so-called cough and milk policy. As these states were the major contributors to federal budget, they controlled it and don't interfere in other states' local matters. So the states' autonomy prevailed in the old republic, but not as it was in the colonial or imperial Brazil. When in various moments there were local coinage, hardly a state revenue were transferred to another state and arbitration were resolved by local judges. This coin printed in each state house of coins, that's how we call in Brazil. However, despite this relative balance, the centralization embryo was impregnated. Upheavals during this period already gave us signs of this. The Teneintiste was a movement of military of 1st and 2nd tier level that demanded greater centralization of states, uniformity of legislation and tax system and would take the direction of unification of Brazil until today. All of them educated in the positivist mindset. Breaking out in the 20s with various rebellions and revolutions and the most iconic being the 24 revolution. And why do I call it the most iconic? In this revolution which lasts about 30 days, São Paulo city is dominated by the revolutionaries and the province president, subdued with bombing the industrial workers' neighborhoods. That gives us a clue about the agglutinating forces to overcome the old republic. And there we can clearly note the growing syndicalism of São Paulo that had already become an industrial city. Vargas didn't support the Teneintiste attempts, but when he runs for president election, all this Teneintiste supports him and he loses the election and the Teneintiste movement was tired. So Vargas ran a coup d'etat and grants amnesty to all his Teneintiste revolutionaries. The devastating Vargas era show what is all about writing its beginning, creating in 30 the minister of labor industry and commerce, following the plan to syndicalize and formalize the business and labor elites. In 31 he decrees a syndication of the patronel and employees' classes, thereafter follows the creation of social security in 35, minimum wage law in 36, labor justice in 39, and culminating with the labor loss consolidation in 43. We can understand the Vargas Cup as a way to accelerate the centralization project which was very slow during the old republic and accomplished the power to take over by the already downing syndical workers and patronel forces in the nation. He takes over the presidency and become a tool of what we might call syndical oligarchies and these oligarchies will concentrate powers and privileges destroying the brazil society of the time. One of the great myths about the current brazilian demographic configuration is that the northeast migration that begins in the 30s intensifies during the 40s and has its peaks in the 60s is due to the great drought in the bushland. For one thing the most obvious observation is that the northeast bushland always struggled with droughts periods and in the past they were not able to expel the regional population. Here I show it's not you're supposed to read this but just a small list of the drought since the brazilian discovery. Without appealing to a advanced praxeological analogy anyone can suspect the coincidence of this migration taking place at the same time the labor loss were being imposed and strengthened and now let's be plain labor laws are labor costs imposed over the worker and when you impose an additional cost to work by their irrevocable law of marginal costs the less productive workers will be automatically eliminated from the labor market. The costs imposed to work by Vargas only aimed to protect the powerful southeast syndicates from competition with cheaper works from north northeast. We can notice that in marginal cost displacements everybody goes one step below so the more productive workers replaces the second more productive worker and so on hence the less productive ones were crushed by these costs. Another argument that is not valid is that Vargas was responsible for the brazilian industrialization. This is part of the state's propaganda clouding the truth to this very day as Bastiat teaches us there is what is seen at what is unseen Vargas creates several basic state companies supplying raw materials to industry but this is a different way to do the same subsidize one existing industry sector that already demanded subsidies by the pressure of its political powers. Previously in its market driven industrialization the homogeneous growth occurred all over the country and there was a growing capital market with significant stock exchanges in many states of brazil that fostered this economic development therefore following the global trend of this time Vargas steered the economy to the business and trade syndicates friends of the state its fascism the 20th century winner ideology being implemented in brazil too. The social consequences of from this power and wealthy concentrator system couldn't be more harmful. I have begun mentioning migration and I will stick to it. The first visible sore of the of the total destruction of the urban scenario in brazilians in brazilian cities brazilian cities were colonial peers that underwent totally disfiguration from 30s and more accidentally from 50s. On one hand Sao Paulo and Rio de Janeiro Heterto cities are emotionally european with its tropical charm received a disproportional amount of immigrants or migrants coming in a fully disorderly way creating concentrations of misery. The northeast capital cities also received contingents for which they were not ready and could not ever be. The brazilian city's chaotic urbanization is the first visible strike of this complete derangement caused by labor marginal costs imposed by Vargas but people this is Sao Paulo in the 20s this is Sao Paulo nowadays but that is the best part that's Sao Paulo and Rio but people doesn't migrate without a course and information transmitted by the market the concentration wasn't only of people but also investments the south and southeast patron oligarchy also benefited from the syndicalism and the attained subvention whether in the form of raw material industries or nationalist protectionism so in the south southeast states we have an investment hypertrophy while in the north northeast states we have an anemia and this became the rule for the next decades to this day a city conurbation with 21 million inhabitants is a is an abomination for from whatever point of view we can see similar cities in china india which are examples of how not to do urbanism the public and the private investments concentrating the southeast because major investments cannot appeal to an official of an official labor thus they had to be wherever there was the workforce that compensated the costs and the brazilian industrial park that could be evenly spread all over the country ended concentrated in the great Sao Paulo and Rio de Janeiro i used to say that we could have chinese growth rates in the brazilian northeast from the 30s and the 50s taking advantage of the workforce low costs the investments could be spread by a natural market process searching for lower costs if you ever had a northeast drought it was of investments and jobs not rain and water however beyond the scope of this development instead of taking advantage of such conditions to grow the last productive came to came to south occupying and productive jobs like condo condo dormant and housemaid entire generations had and still have their productive lives wasted in ludicriously banal banal tasks such as remove dust making beds or open doors and receive the mail to a middle class that mimics the lifestyle reserved only for the richest brazil is one of the few countries where these professions are massive to the point of alter the residence's architecture with made bedrooms and sentry houses on one hand an extremely spoiled middle class incapable to fry an egg at by the age of 40 and on the other hand a workforce workforce contingent that could be producing goods and servery and service truly relevant on the margin of the market the brazilian tragedy goes through analyzing this phenomenon and up to now nobody thinks about blaming this scourge on vargas demigration is not a simple displacement in search of jobs that happens without changing the previous social structure as mentioned above northeast migrants settled in clusters surrounding the big cities in south southeast and abandoned several north north east cities impending ban does affecting a brazilian time lasting balance of priest per capita the brazilian cities originating over a colonial urbanism were born born and growth around the catholic church basically virtually like a brazilian soap opera scenario upon the perish foundation followed the bandstand the town square and the rest of the city surrounding it arriving to the metropolis these people were orphans of faith and it is exactly in these clusters were arrived the new pentecostal denominations that nowadays account for more than half of believers in many cities this faith vacuum experimented by migrants was fulfilled by new pentecostal denominations curiously influenced by the pentecostal pentecostal arrived in 1890 part of a movement that began began with the old republic advance which had frontal opposition to the catholic church once again we have an example of how vargas outread what was the brazil to something we now see very clearly this faith emptiness is a factory that will take centuries to be recovered the breached thinker hosier scrutin was recently in brazil and repeated a myth that's spread in schools and university that brazil's problem is its iberian and catholic economization as opposed to the breach and protestant colonization i beg to differ and let the image and make my the images make my defense this is our poor catholic and monarch architecture and this is what came with the new pentecostal i can see oh sorry as you can see what's the most beautiful it's strange coming from scrutum that he has the build matters subject so what's about the brazilian baroque and what we got now oh my god what happens a virtually ignorant effect from this catholic church decay in brazil is the freak show that brazilian first names had become by losing the catholic benchmark and with the family ties dismantled reference turned out to be on the one hand the new influence from the show beast tv culture the foreign news the celebrities and the other hand the old testament the sense name have disappeared in the brazil scenario so it's the funniest thing that it's not right like it's spelled it's like you hear it so so the mother puts the name of diane like that because it's how we you say it not how you write it michael there's that football player i don't know if you could get is hollywood means hollywood so we have 130 000 different first names in brazil and and digging on this subject i found the maybe the only good law made by a modern state in portugal the government has a list of names that portuguese are allowed to give to their kids just to avoid the tragedy that happens in brazil i did my homework on democracy they got that failed where hope highlights a detail that should not remain unnoted to closer observers the names of the three infant parties from the democratic era or the progressive era here as in the rest of the world we can note this phenomenon which itself can say a lot everything i might say in the brochure i put on the table to you you can see after the 30s how the parties names have switched and you always will have a d or s in this party party's name because it's social democratic and previous only republican party and previous the republican is conservative liberal and there is a different name like agitated liberal it was actually a party name in the imperial time note that the vargas party's name it's like a vortex had swept it away the whole past the shift was so abrupt that known from the old republic a prominent figure managed to return to political scene with some significant significance after the 30s or after 45 with the vargas fall the entire national politics was renewed now with a new establishment in charge the remaining aristocracy and many members from the old republic were part of a genuine aristocracy elite was replaced by a syndical oligarchy founded on the military roots of positivism as i mentioned the vargas era goes far beyond his personal tenure it was no overstanding to say that it extends to this very day not only a state model but having the same syndical labor or paternal oligarchy even with government falls and the 64 military government we can note see notice that on the national politics is a continued since the 30s the entire brazilian political establishment is a product and a byproduct follower of the vargas era this is the motto that endures and prevails until today the motto from the victor's ideology of the 20th century our italian fellows can can say it better everything in the state nothing outside the state it's Mussolini's quote it's it's not good to our to our libertarian health mental health to repeat it because it stayed so many times in this simple code how of this all of this was achievable how to crush the poorest and the productive the productivity class to concentrate power in hands of an oligarchy to weep off the map the ancient regime and to keep the power of this establishment for decades decades up to now oh i don't know if it's readable i try to make a a french old style but but it's it's Murray's point on the etienne de la botille the discourse of voluntary servitude that reminds us that people consent with despotism and the establishment of a tyranny is more complicated in the beginning the vargas era started with a cup of star a cup of data but it's it's it's imposed itself by the propaganda not so subtle in the beginning because he created a department of press and propaganda but he's subtle in changing the cultural shift and forge a fake national identity one of the sector select to make it happen was the carnival the famous brazilian carnival it is curious to note that carnival hitherto an anarchical and disorganized celebration was turned to resemble the military parades beginning to take use of infantry musical instruments from the 30s you can't say what's the difference between a military parade and a new carnival parade that we have in brazil it's interesting to note that the first lyrics of the first 30s sambas was all about national identity glorification that we never had before in brazil the private press had always been the official press as well we had his vargas connected connection with the first radio and television and following the decade of this first friend assis chateaubriand the global organization already in the seven sixties took this place this is the principal newspaper in brazil as you can see the model of the newspaper is an newspaper at the service of brazil not for a service of the reader as we supposed to imagine the whole media establishment media is about this centralization propaganda it's easy to say to know how he did it this is also a list that you are not supposed to read these are the politicians that owns radio and tv broadcasting in brazil it's big it's really big it's not just a coincidence that the brazil richest family would be the marinos global network owner in a recent Forbes list they are ranking with something around 30 billion dollars wealth is this machine that sustains and keeps with tons of propaganda a completely artificial national identity that binds an even more artificial array of national unity i show here a an actor that made a film in the seventies that he went all over brazil and look let's take a look about his opinion oh no and that we should have this on the television the brazilian television among other things is clear helped the integration of the country integrated brazil today and I ended up coming from Acre Acre so brazil as the southern Rio Grande but the television integrated brazil for the worst and the best that can be offered and the best that can be offered evidently the worst wins the worst wins what the apple thing is in the sixth worst wins so I think it's difficult at this moment that we can realize it's a very short time at the middle of the time a intelligence that corrupts the unintelligence instituted in general i think it's difficult but i think it's necessary i think so you can see that only we we here at least myself i had to study a lot to understand that and the actors they can feel it that's the ability that only an actor can we are all aware that we can take the political political opinions from actors but it's not a political opinion it's a perception that he had running the whole country that it's attached only because of the television propaganda the brazilian before was different in your very regions finally in one last insight i submit i submit an opposite view from the last presidential election in the beginning of my presentation i claim that the regime sucks even the subject souls i meant that the map red side and as the scotch side favoring the english domination maintenance wasn't the winner they might have kept their the allowance and we can understand that they vote they vote with their pockets but did they really want win the dependence first thing that it kills is the subject soul it's pride so is vanished by lacking their very tormentor that keep them in this dependency state these people lost even their selves pride the unification process is a domination imposed for the strongest against the weaker neighbor just like the powerful syndicates eliminating the competition all unification process can be seen as this i put an italian map that is the similar but inverted map of brazil where the powerful syndicates of the north wants to eliminate his very close competition which are the saltest cheapest workers the same thing happens in brazil but the milano torino the city is from italy and i suppose the german also the german unification also has the same process these cities in europe were lucky because when this process occurred in in europe the losers of this process had america to flow so the immigration was all about that the losers came to america the northeast people from brazil they had not the same lucky there is not other continent to go so that's why you have completely lunatic cities or urbanism in san paulo and rio these people came to cluster in the south cities and now we reach the recent the 30 years of election in brazil and you can see how it's going to separate in the country even more each election the red side and the blue side the northeast are the winner of the last election till the last one with bolsonaro there is no coincidence when i put the colonial map and the actual electoral map now the great san paulo in the colonial era was the productive part of brazil the rich richest one and the northeast stayed with the left because the left gives give them the pensions so the northeast are the victims of the process even winning 30 years of elections what to expect about bolsonaro we don't know the opposition as in the brochure only one three elections in brazil the first one with johnny quadros as you can see last seven months he was forced to renounce the second one with color fernando color de melo last two years he was impeached and now we had the third victory of an opposition candidate in brazil with bolsonaro that is an interrogation point at the end because we don't know if the establishment will let him do what he has to do so far he's doing what the previous oppositions did he's doing basic economics housewife would do in its house when it's going bad he's cutting the spending trying to make a surplus of the government and privatizing company to reduce the debt so far so good but it i would like to to think that it's because i start a mrs institute 10 years ago and we had an influence and brazil will become a libertarian paradise but actually i'm sure that 30 years of left-wing spend government creates much more libertarian than a hope book or anything that we can do so the brazilian right way of economics is just a matter of need it's it doesn't have any other option and it is a clue because will the congress or the establishment let bolsonaro do what he has to do we don't know i let it to the future and thank you very much