Augustin in Big State and The Value

Jesus, Arnold, you are becoming famous! Not for good reasons, of course...

Arnold, you're totally discredited, and this is now irreversible. Dilma should sack you.

You proved, in your interview, you know some accounting.

Like a good left-wing, you cant lose an opportunity of FHC-bashing, right?. It borders the comic, Arnold.

Interview:

X: Arnold, should the Treasury refrain from capitalizing BNDE issuing debt, would its credit operations be affected?

Arnold: Yes.

X: Then you are indeed creating money, son.

Arnold: we could have retained the dividends in this case

X: Yes, but then the fiscal primary surplus you are announcing wouldnt materialize. Correct?

Arnold: FHC also capitalized BNDE...

FHC appears suddenly, brought to the scene by Palas Atenas

FHC: Arnold, you are a neo-bobo. Look at the size of BNDE balance sheet during my administration and compare to Dilma's.

X: Arnold, the Treasury does create money capitalizing BNDE in exchange for spurious fiscal primary accounting benefits. If BNDE retained dividends to grant more credit from its own capital base, government's fiscal surplus would be lower

FHC: Arnold, go back to Econ 101. Begin with Varian, and then go on to MGW. The other Arnold knows more economics than you!

FHC suddenly disappears, carried away by Febo Apolo

Arnold: We have to reelect Dilma !

X: That's not feasible anymore, son.