ChattahBox- Brazil’s President, Luiz Inácio Lula da Silva is coming under heavy criticism this morning for statements he made yesterday, in Brasília at a joint press conference with Gordon Brown, the UK prime minister, attributing the global economic crisis to white bankers with blue eyes. Affectionately known as “Lula,” Brazil’s leader, a former shoe-shine boy and founder of the Worker’s Party, said: “This crisis was caused by the irrational behavior of white people with blue eyes, who before the crisis appeared to know everything and now demonstrate that they know nothing.”

I can buy into the last part about those running the show acted like they knew everything and now demonstrate that they know nothing, but the whole white devil thing is surprising from a world leader. Lula went on to say: “I do not know any black or indigenous bankers so I can only say [it is wrong] that this part of mankind which is victimized more than any other should pay for the crisis.”

Lula is also calling for increased regulation of banks and is against protectionism saying, “I compare protectionism to a drug, why do people use drugs? Because they are in crisis and they think the drug will help them. But its effects pass quickly.”

Gordon Brown, while looking for the nearest exit perhaps, said, “I’m not going to attribute blame to any individuals.” Brown was in Brazil as part of his effort to gin up support before next week’s G20 summit, for the world’s biggest economies to provide $100bn to boost global trade. Brown is seeking support for a global expansion of trade finance and fiscal stimulus to prop up world trade.

Brazil is seeking concessions from Brown for increased participation in decisions made by the International Monetary Fund and the Financial Stability Forum. Brazil has long been seeking a permanent seat at the table of the United Nations Security Council. It may now be Brazil’s time for such a move.

Amid the global recession, Brazil, long seen as a struggling poor country, has been a model of success in Latin America of late. According to a recent article in Time, Brazil may well be one of 34 major economies that may safely ride out the recession. Brazil’s state-run energy company, Petrobras, is set to expand operations, although at the moment its workers are striking over changes in their profit-sharing plan.

In a time of unregulated capitalism run wild, Brazil imposed financial regulations, while assisting corporations to promote job growth, and distributing some of the wealth to help Brazil’s legions of poor, rise from poverty to take their place amongst the middle class.

Although economic growth has slowed in Brazil, its stock market recently soared in response to the US Treasury Department’s toxic assets plan. In light of Brazil’s relatively healthy economy, Lula is ready to step up at the upcoming G20 Summit to flex some muscle and demand greater participation. Lula however, might want to back down from his “white people with blue eyes” hyperbole if he wants to be taken seriously on the world stage.

Economic superpowers, such as the US, UK and others, are just waking up to a new reality, a brand new world order in the making, and it isn’t pretty.

Quotes attributed to President, Luiz Inácio Lula da Silva came from Financial Times