‘White People With Blue Eyes Caused The Credit Crunch’

Brazil’s President, while meeting Gordon Brown, has said the globalfinancial crisis was caused by “white people with blue eyes”.

Luiz Inacio Lula da Silva made the comments after talks with the Prime Minister to try to forge a global consensus on how to save the worldwide economy.

Sky News’ Joey Jones said it was an “uncomfortable” moment for Mr Brown.

“The President does not mind using fairly flamboyant language. He likes to give extensive answers to journalists.

“But some of it was rather awkward for the Prime Minister, who was standing there listening to the President.

“A few eyebrows will have gone up at what he said.”

Downing Street says the remarks were meant for “domestic consumption”.

Jones said: “People in Brazil are very frustrated and angry at whatthey feel is the injustice of the situation: a crisis that hasessentially come from the banking sectors in places like the UnitedStates and the UK, but is affecting their country.”

Following the meeting, Mr Brown told reporters he will urge G20leaders to back a multi-billion pound fund to reverse a slide in worldtrade.

“I’m going to ask the G20summit next week to support a global expansion of trade finance of atleast $100bn (£69bn) to help revive trade in all parts of the world,”he said.

A shortage of trade credit, which allows exporters and importers tosettle accounts, has been a factor in a sharp drop in global tradewhich is exacerbating the economic downturn.

Along with the trade stimulus plan, the Prime Minister said he wanted to see global standards on salaries in the finance sector.

He went on to say he believes South America is key to achieving an agreement at next week’s G20 summit in London.

Source(with video)

2009-03-27