Transphobia? Government renews demand to punish student for voicing truth on male and female genders

Government officials in Brazil, infuriated that an appeals court ruling there dismissed their claims of “transphobia” against a student, now are demanding that the case be reinstated.

The case involves Isadora Borges, a veterinary student who had been facing up to 10 years in prison for expressing biological facts on social media.

The case was dismissed when the facts went viral online, and commenters included Elon Musk, among others.

The appeals court then ruled that her comments simply stated biology and did not contain any “attack, threat, or hostility.”

“Nor did they incite violence, lacking the intentional element required in criminal law to sustain a conviction for so-called “transphobia,” the court said.

“It is terrifying to know that my case could reopen and that I may once again face time in prison, but it is important to me that I always speak the truth. Too many Brazilians have been criminalized or bullied into silence out of fear they will be punished for ‘transphobia’. When we say men cannot become women, we are not spreading hate or targeting anyone; we are stating a biological fact. I hope the court will uphold its previous decision and that my case will go on to stand for our right to speak freely,” Borges said in a statement released by ADF International.

Her legal counsel, Julio Pohl, said, “Earlier this year, the court rightfully found that Isadora did nothing unlawful by expressing her beliefs on X. By attempting to reopen this case, the state is showing once again that it will go to great lengths to silence speech it doesn’t like. Accusations of ‘transphobia’ are being rampantly used to censor and scare Brazilians into silence. Isadora’s case is one of many living proofs of this. Brazil’s ongoing crackdown on free speech must stop.”

Borges made two posts on X in 2020, “peacefully expressing her views on gender ideology. One comment stated that ‘transgender’ women ‘were obviously born male.’ Another stated: ‘A person who identifies as transgender retains their birth DNA. No surgery, synthetic hormone, or clothing change will change this fact … .'”

Soon, Erika Hilton, a self-described “transgender” claimed those statements constituted a crime.

The result was that prosecutors charged Borges with two counts of “transphobia.”

A Brazilian appeals court earlier had said there was no crime.

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OUTRAGEOUS! Socialist Lula Threatens Flávio Bolsonaro with Investigations During LIVE Presidential Debate — Warns Conservative Rival He Will Lose His Immunity After October 25 Election

Brazilian socialist President Luiz Inácio Lula da Silva sparked fresh controversy Sunday night after delivering what appeared to be an extraordinary warning to his conservative challenger, Senator Flávio Bolsonaro, during a nationally televised presidential debate.

With Brazil’s crucial October 25 presidential runoff just days away, Lula warned Bolsonaro that he would lose his parliamentary immunity and face a wave of investigations if he loses the election.

The explosive exchange occurred Sunday, October 18, during a debate hosted by Brazilian television network Band, where the two candidates traded accusations over corruption, government accountability, and their families’ political controversies.

Lula told Bolsonaro, according to a translation of his remarks:

“Get ready, because on the 25th you’re going to lose your immunity, and you’re going to have problems, because there are a lot of investigations in your life that will now move forward.”

The socialist president went even further, suggesting that investigations had been prevented from advancing by Bolsonaro’s political allies.

“If your friends aren’t allowing them to move forward, now they will.”

The remarks were reported by Brazilian news outlet Portal VV8, which published Lula’s original Portuguese statements from the debate.

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“Full-On Truman Show”: Former State Dept. Official Exposes USAID’s Censorship Machine In Brazil

Former State Department official Mike Benz laid out USAID’s sweeping involvement in Brazil’s political and institutional landscape, detailing a network of American funding that reached media organizations, universities, activist groups and organizations involved with the country’s election system.

Benz, who serves as executive director of the Foundation for Freedom Online, broke down the extent of USAID’s footprint during an appearance on “The Benny Show” with host Benny Johnson.

“What’s happening in Brazil was a full-on Truman show. You had the media funded by USAID. You had the universities funded by USAID. You had the staffers of the Supreme Court and the TSE (Superior Electoral Court), the election court, USAID. You had all the constitutional law advocates funded by USAID. You had the LGBT activists funded by USAID,” Benz explained.

“It’s full spectrum. If you were to walk down a city block in Sao Paulo or, I don’t know, Brasilia, you would have a 360 vision of institutions funded and puppeteered by USAID without ever knowing it,” the former State Department official added. “In fact, USAID, knowing what they were doing, and I need to be careful about what I can and can’t say here, let’s just say, would anyone be surprised, for example, if USAID was going around and telling its grantees in Brazil to remove the USAID logo so that it doesn’t get out that grantee’s connection to USAID?”

Benz said USAID’s influence could continue even after its funding disappeared because institutional and legal changes remained in place.

“They knew what they were doing. They knew how sensitive it was. Would you be surprised, for example, if USAID, which basically set up the censorship state in Brazil, and this is actually something, let me quickly pivot to say, it is true that this is the first Brazilian election since the 2020 municipal elections in Brazil that does not have USAID money slushing around Lula and his allies, but is still an election that is in many ways under the thumb of the ghost of USAID,” he said. “There is something I call kind of the clockmaker’s dilemma, which is USAID, even when you remove it, the institutional and legal changes that a country goes through can live on even if you cut USAID funding down to zero.”

Benz then zeroed in on two of Brazil’s most powerful institutions, the Supreme Federal Court (STF) and Superior Electoral Court (TSE): “For example, in Brazil, you have this apparatus through the STF and TSE, the Supreme Court and the basically election court that determines all things around elections, and basically after Bolsonaro won in 2018, the TSE court with Alexandre de Moraes, the famous Voldemort judge, they declared disinformation a threat to free and fair elections, not just disinformation during an election season, but disinformation any time, misinformation, disinformation any time about anything because it could pollute people’s, I don’t know, sense of what’s true or false in the information ecosystem, and so it could have an impact on an election three years away if this false information is allowed to circulate online.”

Benz also went into detail about USAID’s connections to Brazil’s election and judicial establishment.

“That was set up by USAID, USAID flooded the zone, USAID had contact at every level with the TSE court, with the Alexandre de Moraes court,” he said. “I testified to the Brazilian Senate Relations Committee and put pictures from USAID’s website of Alexandre de Moraes being trained by CEPS (Competitive Economy Program), the USAID grantee, by NED (National Endowment for Democracy), the USAID grantee has gotten $3 billion from USAID and was created by the Central Intelligence Agency.”

Benz’s remarks come just days after Brazil’s conservatives delivered a powerful showing at the ballot box. Flávio Bolsonaro finished first in the opening round of the presidential election, taking 47.03% of the vote to left-wing President Luiz Inácio Lula da Silva’s 45.16%, setting up an October 25 runoff.

Bolsonaro’s Liberal Party emerged as the largest party in both houses of Congress, winning 121 seats in the Chamber of Deputies and expanding its Senate delegation from 15 to 28 seats.

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The Left Doesn’t Count Votes. It Finds Them.

f you saw a recent NYT report on Brazil’s election between incumbent socialist president Luiz Inácio Lula da Silva and conservative Flávio Bolsonaro, you may have noticed that the Left’s “paper of record” made an astounding, if unintended, admission in the headline: it reveals its conception of elections. In its words, “Flávio Bolsonaro’s first round lead leaves President Luiz Inácio Lula da Silva three weeks to find the votes to stop Brazil’s rightward shift” (italics mine). It doesn’t say “prevail in the election by voter turnout,” but it casts the election as an implied political obligation to manufacture ballots to block voter will and engineer an imposed social order against it. This is clearly the Left’s intention in November.

While this may read as routine journalism, or perhaps just wishful thinking on the writers’ part, it may strike some readers as more of a Freudian slip about how the Left’s mental worldview works: leftist parties operate under a duty to manufacture enough ballots to overcome an election deficit. If your candidate falls behind, you intervene on the sidelines to close the gap. This is now their “normalized” concept of an election.

More than that, progressives have inverted the structure of an election from one that sets two opponents in passive receipt of votes to an actively managed, planned event that aids one side during the election. What was traditionally an arm’s-length contest becomes a pre-existing agreement.

Rather than preserving a quiet period after the close of campaigning to measure the public result of candidate marketing through voluntary voter turnout, the election becomes merely part of their total political campaign operation. It turns votes into indicators, and the indicators into corrective ballot measures.

This obviously goes by other names, such as rigging, stealing, cheating, and fraud, but the extraordinary aspect of this language in the NYT is how it reveals a shift in political psychology and a determination to make that abnormal psychology generally accepted behavior. It resembles the Left’s efforts to make people think that transgender athletes are legitimate contestants among biological females: it asks you to accept a fraud as a right, and, more than that, that you are wrong for questioning it. That is how election fraud works: objections violate a higher moral standing claimed by the victor, even though the victor obtained it through deception.

To use an analogy, it is like two horses in a race where the spectators rush the racetrack on the losing horse, inject him with amphetamines, block the other rider, and the racing judge looks the other way, while the crowd is asked to keep quiet out of fairness to the horse.

To use a good legal analogy, it would be like two legal opponents in a trial, along with their lawyers, actually accompanying the jury into the deliberation room and trying to measure which way they’re leaning and “tip” the scales. Jurors privately deliberate after closing arguments because they weigh what they heard and reach a protected verdict based only on the evidence presented in open court.

Elections are the same: voters effectively go into private deliberation after hearing both sides, cast their ballots in private, and the verdict is then announced in the open “public court.” We have certain appeal processes for election irregularity (e.g., Florida in 2000 and Bush v. Gore), or for an election “mistrial,” as in a deadlock (a runoff or recount), including the discretion to count state electors (e.g., Pence, 2021). In all cases, the counting or verdict is subject to a quiet period, and campaigning of any kind must stand down.

The other key factor in Brazil that is reframing the Left’s vision of elections is based on its paranoia that any conservative candidate is a Trump candidate and ally and part of a larger plan to aid and abet President Trump’s mandates (“Brazil Is a Sign of Things to Come,” NYT, 10.5.26). But South America (and Cuba as well) has been dragging behind the West economically for decades because of its leftist political corruption and because it swings in the extreme between Left populists and Right militarists. Rarely has an actual business conservative, or even a moderate leader, emerged.

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Brazil Court Goes on Censorship Spree Days Before Presidential Election

Brazil’s top electoral authority, the Superior Electoral Tribunal (TSE), issued new censorship rulings on Wednesday as the nation prepares to hold presidential elections this weekend.

The South American nation is hours away from holding its 2026 general elections, scheduled for Sunday, October 4, with all polls suggesting that a runoff election will be held on October 25 between current incumbent socialist President Luiz Inácio Lula da Silva and conservative Senator Flávio Bolsonaro.

In the past week, the 2026 Brazilian presidential campaign has seen two new controversies emerge surrounding Bolsonaro and Lula. The conservative senator denounced being the target of a fake news campaign accusing him of allegedly planning to remove the title of Brazil’s patron saint from Nossa Senhora do Aparecida (Our Lady of Aparecida), a title of the Blessed Virgin Mary that holds 300 years’ worth of faith and veneration for Brazilian Catholics.

Sen. Bolsonaro — who is running for office after his father, former President Jair Bolsonaro, was banned and imprisoned for “crimes against democracy” charges — is an Evangelical Christian. Globonews, which Bolsonaro accused of acting as a “central hub” to spread the fake news campaign against him, issued a public retraction and apology after the claim was confirmed to be false.

On Wednesday, a three-out-of-five majority of the TSE’s justices ordered the complete removal of any and all social media content involving the fake news campaign against Bolsonaro, upholding an initial ruling issued by Supreme Court Justice and TSE member André Mendoça in response to a request issued by the Bolsonaro presidential campaign team.

Wednesday’s ruling was preceded by a back-and-forth series of court orders on the matter. The state-owned news agency Agência Brasil detailed on Wednesday that Mendoça had originally ruled to censor the fake news campaign posts against Bolsonaro — but Supreme Court Flávio Dino overturned the censorship orders on the grounds that they infringed the free speech rights of a local comedian who lodged a complaint on the matter. Supreme Court Justice Luiz Fux later overturned Dino’s ruling. The impasse led to the head of the Supreme Court, Edson Fachin, bringing the matter to a vote.

Metrópoles detailed that Justice Mendoça had initially argued that removing social media posts pertaining to the fake news campaign did not constitute censorship, as the content had already been proven to be misinformation and therefore “does not constitute prior censorship, as it does not establish prior state control over future expressions, does not require judicial authorization for new publications, and does not suspend users’ profiles, accounts, or channels.”

Separate from the controversy surrounding the fake news campaign against Flávio Bolsonaro, President Lula has found himself at the center of a firestorm after he bizarrely claimed this week that Brazilian girls learn to “get touched” from a young age. According to Lula’s ruling Workers’ Party (PT), the Brazilian president was allegedly referring to cervical cancer screenings.

The TSE also issued censorship rulings on Wednesday against conservative lawmaker Nikolas Ferreira over his response to Lula’s controversial statements. Ferreira, a 30-year-old Congressman from Minas Gerais, published a video expressing his outrage about Lula’s remarks while questioning the “explanation” provided by his party. In the video, which remains publicly available at press time, Ferreira affirmed that there is the possibility that a pedophile “might be listening” to Lula’s remarks and stressed, “girls aren’t to be touched from an early age.”

TSE Justice Estela Aranha reportedly gave Ferreira a 24-hour deadline to remove a video, arguing that the lawmaker allegedly “took the president’s statement about medical exams out of context and attributed a sexual connotation to his words.” Arahna ordered Ferreira to abstain himself from both republishing the video and from producing any kind of content that is “substantially identical” to the original piece under penalty of a yet-to-be determined fine.

“The contested publication is not limited to political criticism or disagreement regarding the appropriateness of the language used,” Justice Aranha reportedly argued.

“In developing the line of reasoning set forth in the contested media report, the respondent introduces a connotation entirely different from that present in the original statement, shifting the discussion from the realm of public health to that of various criminal acts,” she continued.

Ferreira referred to the situation in a social media post, which reads, “Lula knows so much about what he lost that he only requested the removal of the video from my network, but not a right of reply, because he knows he would have to explain the inexplicable.” In a separate post, the lawmaker pointed out that it was Lula who appointed Justice Aranha to the TSE in 2025.

The contents of the conservative lawmaker’s video appear to have greatly infuriated Lula, who called Ferreira a “bastard” during a Tuesday night campaign rally. In the same event, Lula’s wife, First Lady Rosângela “Janja” Lula da Silva, referred to the lawmaker as a “little shit.”

Hours later, the Brazilian president once again insulted Ferreira in a Wednesday interview with Terra Brasil, referring to him as a “complete idiot” for allegedly spreading “misinformation” against him.

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Wicked Brazilian Justice Alexandre de Moraes Caught in Major Scandal – May End His Tyrannical Reign

The chickens come home to roost.

Wicked Brazilian Supreme Court Justice Alexandre de Moraes, the man behind the socialist takeover of Brazil and punisher of all good conservatives, is caught up in a scandal that may end his tyrannical career.

How wicked is Brazilian Justice Alexandre de Moraes?

Moraes returned former President Jair Bolsonaro back to prison based on trumped-up charges immediately after Jair’s eighth surgery due to the aftermath of a 2018 attempted assassination.  The popular former president remains in prison to this day. He pulled out the same playbook to destroy his political opposition that Democrats used against President Trump.

In September 2004, social media platform X, formerly known as Twitter, revealed the shocking rationale behind the recent ban imposed by communist Brazilian Supreme Court Justice Alexandre de Moraes.

This explosive Twitter expose’ revealed de Moraes’s involvement in serious crimes and human rights violations, all under the guise of upholding “democracy.”

In a decision issued on August 18, 20214, de Moraes justified his orders to ban social media accounts and suppress dissenting voices by claiming that anyone attempting to expose him or his allies must be silenced in the name of “democracy.”

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Brazil’s Dictator-Judge Removed from ‘Fake News’ Inquiry He Used to Persecute Conservatives

The head of Brazil’s Supreme Federal Tribunal (STF), Justice Edson Fachin, on Wednesday removed Justice Alexandre de Moraes from the widely controversial inquiry against “fake news” amid an ongoing crisis at the nation’s Supreme Court.

The decision strips Justice de Moraes from an inquiry he used over the past years to enact a fierce persecution and censorship campaign against Brazilian conservative voices — with former President Jair Bolsonaro being the most prominent target of de Moraes, the inquiry’s now-former rapporteur.

Over the past weeks the Brazilian top court has found itself amidst a “Civil War” between Justices de Moraes and André Mendonça that has plunged the judiciary and its members into an ongoing crisis.

The situation began in early September when Justice Mendonça unsealed a police report containing an analysis of alleged WhatsApp messages involving Justice de Moraes and Daniel Vorcaro, who is a Brazilian banker currently under police custody on corruption accusations stemming from the “Banco Master” financial fraud case involving the eponymous São Paulo-based bank. Justice Mendonça is one of the STF Justices overseeing the fraud case.

Days after the report was unsealed, Justice de Moraes accused fellow Justice Mendonça of having committed “abuse of authority” throughout his supervision of the Banco Master case.

Justice de Moraes formally requested before STF chief Justice Fachin that the inquiry against “fake news” was used to investigate the allegations he presented against Justice Mendonça. Fachin declined de Moraes’ request and instead directly forwarded the complaint against Mendonça to his desk.

On Wednesday, Fachin announced that de Moraes has been removed from the “fake news” inquiry but upheld all rulings and decisions made by de Moraes under its framework. Fachin also called upon an upcoming plenary session of the Brazilian Supreme Court to discuss the ongoing judiciary crisis.

The Brazilian state-owned news agency Agência Brasil recounted that the controversial inquiry was originally launched by the Brazilian Supreme Court in 2019 with the alleged goal of fighting what was described as the “dissemination of news that undermined the integrity and security” of the STF, its Justices, and relatives.

At the time, Justice de Moraes was appointed as the inquiry’s rapporteur by then-STF chief Justice José Antonio Dias Toffoli, a still-active member of the Brazilian top court who found himself at the center of an unrelated controversy earlier this month after he banned and rapidly unbanned the presidential campaign of outsider right-wing candidate Renan Santos.

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Brazil’s Lula da Silva Denies Knowing Woman Tied to Son’s Corruption Probe Despite Many Photos with Her

Socialist President of Brazil Luiz Inácio Lula da Silva on Thursday publicly denied knowing a businesswoman embroiled in his son’s ongoing corruption probes despite extensive photographic evidence suggesting otherwise.

Several of the candidates running against Lula in the October presidential election published old photos showing Lula alongside the businesswoman, debunking the president’s claims.

President Lula’s oldest son, Fábio Luís Lula da Silva, is currently being targeted by three different probes on allegations of corruption and influence peddling at Brazilian federal government institutions, including Brazil’s National Social Security Institute (INSS). The younger Lula is commonly referred to by the nickname Lulinha (“Lil’ Lula”).

Some of the broader INSS corruption allegations against the president’s son involve businesswoman and lobbyist Roberta Luchsinger. An investigation conducted by Brazil’s Federal Police (PF) reportedly found chat messages in Luchsinger’s phone suggesting that she and Lulinha maintained a “permanent acting and coordinated action nucleus” to secure deals with public institutions.

Additionally, some of the messages obtained by the PF in the investigation reportedly state that Luchsinger told another Brazilian businessman that President Lula had “offered” her a government position. According to the alleged contents of the messages, she declined the offer to focus on her “partnership” with Lulinha. Per O Globo, some of the messages also suggest that Luchsinger received large sums of cash to cover flight ticket expenses for Lula’s son. Both Lulinha and Luchsinger have reportedly denied any wrongdoing.

According to CNN Brasil, the messages also suggest a link between Luchsinger and Marco Aurélio “Marcola” Santana Ribeiro, President Lula’s former chief of staff. Santana Ribeiro, who is also a target of the broader corruption probes, has been described as one of Lula’s closest advisers.

On Thursday, President Lula held an interview with TV Globo as part of the ongoing 2026 presidential campaign in which he is seeking reelection for a fourth term. Asked for comment on the allegations that he “offered” a government position to Luchsinger and asked if he ever met her in the Brazilian presidential palace, the incumbent president said that he “does not know” the businesswoman nor had he ever seen her in the past.

“The only thing missing was for her to say that I offered her the Ministry of Defense; the idea that the navy and air force operating here are under her command is utter nonsense,” Lula prefaced.

“I don’t know this woman. I’ve never seen her in my life. I’ve never spoken to her. She’s never been anywhere near me,” he asserted.

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The Biden-Era C.B.P. Fabricated a Document Used to Imprison a Top-Level Brazilian Official. A U.S. Federal Judge Just Ordered Full Disclosure.

In a case with serious repercussions for U.S. national security and for Brazil, a Clinton-appointed U.S. federal judge concluded that an immigration record entered in the Customs and Border Protection system during the Biden administration was fraudulent. The fraudulent record reflected a non-existent entry into the U.S. by the national security advisor to former President Jair Bolsonaro. The fabricated entry was then somehow obtained and used by a controversial Brazilian Supreme Court judge to imprison that national security official.

Beyond concluding that the C.B.P. document was fake, the federal judge, Gregory A. Presnell of the Middle District of Florida, berated U.S. government lawyers for their refusal to produce all documents in the government’s possession concerning who was responsible for this fraudulent record and how it ended up being used in Brazil to imprison one of Bolsonaro’s closest advisors. I obtained a copy of the transcript from that U.S. judicial hearing and first reported the developments in Folha de S.Paulo, Brazil’s largest newspaper, on Friday.

The judge’s orders were issued as part of a lawsuit brought in U.S. federal court late last year by Filipe Martins, the top Bolsonaro advisor on international relations who was preventively imprisoned for six months in 2024 based on this false C.B.P. immigration entry. At the time, Martins was awaiting trial on charges that he had participated with Bolsonaro in plotting a coup after Lula’s narrow victory over Bolsonaro in the 2022 presidential election.

The judge overseeing the cases involving the alleged coup is Brazilian Supreme Court Justice Alexandre de Moraes, who has become a political lightning rod not just in his own country but also around the world. He has overseen a censorship scheme so severe that even The New York Times cited internet freedom experts calling it “a potentially dangerous, authoritarian expansion of power.” On other occasions, the Times — obviously hostile to Bolsonaro — raised serious questions about whether Moraes has become a grave threat to Brazilian democracy in the name of saving it.

This is the same judge who ordered both Rumble and Twitter be blocked across Brazil for refusing to comply with all of his censorship orders. When he was unable to collect a massive fine he had imposed on Twitter due to its lack of bank accounts in the country, he simply ordered the funds removed from Starlink’s accounts, a completely different Musk-linked company. Last year, the Trump administration imposed personal financial sanctions on Moraes, alleging that Moraes carried out tyrannical attacks on the free speech rights of U.S. companies and has corrupted Brazilian justice for nakedly partisan ends. The Trump administration appears poised to impose sanctions on him once again.

Moraes has repeatedly demonstrated a particular obsession with punishing Martins, who was appointed by Bolsonaro to be his national security advisor at the age of 31. Brazilian law is similar to American law when it comes to a defendant’s rights regarding pre-trial imprisonment: defendants are typically allowed to remain free prior to trial, absent very narrow circumstances (such as proof of witness tampering or a plan to flee the country). Moraes somehow obtained the false C.B.P. entry showing Martins left Brazil for the U.S. and never returned, and then used that false evidence to order his preemptive imprisonment before trial by claiming it proved Martins sought to flee justice. Moraes had Martins placed in a particularly harsh prison, clearly hoping to induce “confessions” that would implicate Bolsonaro and other political enemies of the judge.

One of the many questions that have never been answered — beyond the key question of who fabricated this document — is how this false C.B.P. entry fell into the hands of Brazilians attempting to imprison Martins. The first time this false C.B.P. record emerged publicly was when a Brazilian reporter known to be very close to Moraes, Guilherme Amado, published a news report full of falsehoods, clearly designed to implicate Martins, starting with the highly accusatory (and false) headline: “Under investigation, former Bolsonaro aide went to Orlando in 2022 and evaporated.”

Just two weeks later, the same reporter announced that Moraes himself had begun using this allegation, speaking off the record to various journalists and politicians to tell them that Martins had gone to the U.S. and “disappeared,” clearly laying the groundwork to order his arrest. Weeks later, Moraes did exactly that, issuing an order that relied upon a police report featuring the fraudulent C.B.P. record to claim that Martins had gone to the U.S. and never returned to Brazil (i.e., “evaporating”).

Not only is it now indisputable that the document on which this story was based was fraudulent, as even the C.B.P. admits, but it was so obviously fraudulent from the start. Indeed, within two days of investigating the case back in 2024, I had obtained so much definitive proof that Martins had never left Brazil that not even my meticulous editors at Folha de S.Paulo attempted in any way to dilute the strong language of my reporting — published shortly after Moraes’ original order of imprisonment — stating that Martins had been imprisoned based on clear fraud.

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Brazil’s Rare Earths and the Coming Resource War

The West suddenly discovered that Brazil is sitting on one of the most strategic mineral reserves in the world. The Associated Press reports that Brazil has the second-largest known rare-earth reserves behind China, and foreign interests are now rushing into the country as governments desperately attempt to break China’s grip on the supply chain. More than 86% of Brazil’s rare-earth exploration applications were filed within the last three years, and over 40% have foreign financial backing. This is what happens when governments wake up decades too late to the importance of commodities.

China understood long ago that control of natural resources and their processing is a form of geopolitical power. The West abandoned mining and manufacturing, imposed endless environmental regulations, and outsourced production to Asia because politicians assumed globalization would last forever. China was happy to take the business. Today it controls roughly 90% of global rare-earth processing, and Beijing has already demonstrated that it is prepared to use that position when geopolitical tensions rise.

Rare earths are essential for electronics, automobiles, aerospace, robotics, energy technology, and modern weapons systems. Washington suddenly realizes that depending on China for materials necessary to manufacture military equipment is a national security problem. American and Australian interests are therefore pouring into Brazil, while Brazil’s only commercial rare-earth producer, Serra Verde, has been acquired by a U.S.-backed company. The West is now scrambling to recreate supply chains it voluntarily surrendered.

Brazil would be foolish not to recognize the tremendous leverage it now possesses. President Lula has made clear that he does not intend to allow foreigners simply to extract Brazil’s resources and take the valuable processing elsewhere. Brazil wants the refining, technology, and industrial development to remain inside the country. That is precisely what China did successfully. China did not become powerful simply because it possessed minerals. It built the processing capacity and then moved up the industrial chain until everyone else became dependent upon it.

This is where Brazil has an opportunity that commodity-producing nations have repeatedly squandered. Digging something out of the ground and exporting it creates revenue, but processing it and converting it into finished products creates industry. The British Empire understood that distinction. So did the United States during its rise as an industrial power. The countries that merely supplied raw materials remained dependent upon those that controlled manufacturing and finance.

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