Media Reaction Sao Paulo- Attention on China, The Death of

UNCLAS SAO PAULO 000212 SIPDIS STATE INR/R/MR; IIP/R/MR; WHA/PD DEPT PASS USTR USDOC 4322/MAC/OLAC/JAFEE E.O. 12958: N/A TAGS: KMDR OPRC OIIP XM XR XF BR SUBJECT: Media Reaction Sao Paulo- Attention on China, The Death of the Consensus 04-06-2009 Media Reaction: Global Economy: G-20 summit readout; financial market crisis; China and global economy; Sao Paulo April 6, 2009 Title- Attention on China Editorial in liberal Folha de S. Paulo (4-6) states: "....On Friday President Luiz Inacio Lula da Silva took a dangerous step. He proposed to his Chinese colleague, Hu Jintao, the utilization of their currencies - Real and Yuan - for bilateral trade, replacing the [US] dollar....Brazil, to the contrary of what President Lula proposes, should lead the resistance to the excessive penetration - and many times based on unfair trade practices - of Chinese interests in South America." Title- The Death of the Consensus Op-ed in liberal business oriented Valor Econtmico (4-6) by Sergio Leo states: "...The death declared by British Prime Minister Gordon Brown was not of the Washington Consensus, but rather the fundamentalist belief in just one of its 10 items: deregulation as the best tool for promoting the allocation of resources and development. The new global consensus establishes that the post-crisis world will have stronger and more active institutions to control market agents. As with every international economic consensus, the new consensus is not entirely followed by the most powerful countries when they make their policies....A good part of President Lula's success at the G-20 comes from the Brazilian government's respect for the principles enshrined in the Washington Consensus....He knows that his credibility would be dead if he believed that the era of fiscal discipline for the dark skinned countries is over [in a allusion to the contrary of blue-eyed people, which Lula said were to blame for the crisis] ." WHITE