Billions Wasted: Structures Built For 2016 Olympics In Brazil Are Now In Ruins

Tyler Durden's picture

Submitted by Alice Salles via,

The 2016 Summer Olympics in Brazil cost Brazilian taxpayers $4.6 billion, conservative estimates show. But once related expenses covered by the Brazilian government are factored in, the overall costs hit the $12 billion mark, which equates to about 0.72 percent of Brazil’s national budget.

Prior to the Olympics, however, the Brazilian government had already spent BR$39.5 billion on infrastructure, or about $12 billion. Stadiums and urban projects designed to ensure the country was ready for the sports event were built, but aside from the events scheduled for 2014 and 2016, there seemed to be little to no demand for such public investments, which prompted the country to wonder whether the expenses were worth the trouble.

Now, as these same structures are left to rot, the documented decay becomes a symbol of government waste, not only because the investments weren’t meant to stand the test of time, but also because the Brazilian government’s lack of concern for the taxpayer is not the main story. It is, in fact, just a footnote.

Like many others, the government ignored the economic realities of the country, betting on inflation and cronyism in order to throw an unforgettable party.

A Party Worth Going Broke For: How Brazil ‘Paid’ The Olympic Bills

Due to backlash over former President Dilma Rousseff’s economic policies, a nationwide movement supporting impeachment targeted her for, among many other things, raising government spending without accounting for the increases.

Due to the government’s lavish spending prior to the World Cup and Summer Olympics, Rousseff was afraid of suffering the consequences for increasing spending without hurting other government projects as a result, which would have forced the president to be upfront about her expenses. This led to a move that provoked chaos among consumers simply because banks were forced to put money into circulation that wasn’t backed by anything.

Instead of giving the money to banks so they could then cover social projects, pensions, and welfare programs, Brazil’s Treasury Department simply promised banks they would pay them back down the road. Thus, money meant for other projects remained in the treasury, allowing the federal government to spend it with other matters. This move guaranteed that financial institutions keeping an eye on the government’s budget wouldn’t know that banks hadn’t been using the money coming from the Treasury. This allowed banks to distribute sums associated with welfare and other social programs without depleting the government’s funds. As more cash was put into circulation by the banks and the federal government due to the World Cup and Olympics-related expenses, the value of Brazilian money tanked. To the consumer, that translated into lower purchasing power, making it more difficult for the poor to stock their pantries.

With the government’s out of hand expenses prior to the World Cup and Olympics, the Brazilian people suffered the ultimate blow because the government robbed them of their money’s purchasing power, all because the president didn’t want to admit she had gotten out of hand.

Now that the structures built for the world to see are rotting away, the low-income Brazilian continues to suffer. The only solution to this matter is to unleash currency control from the Brazilian central bank, removing its responsibility for financial policies from the hands of the federal government. Only then will the federal government be powerless in creating more debt and inflation, keeping it from playing with the Brazilian taxpayer’s hard-earned money.

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ninja247's picture

MBGA - Make Brazil Great Again

The central planners's picture

MBDSGA. Make Brazil deficit spending great again.

Logan 5's picture

Face it Brazil. You spent $39 billion to have Ryan Lochte come piss on your buildings.

Shemp 4 Victory's picture

It's not that bad. Slap a fresh coat of paint on everything and those facilities will be as solid as the Oroville Dam.

Manthong's picture

Athens and their 2004 Olympics Goldman fraud money ruins are way ahead of Rio.


Nexus789's picture

They never did finish that Parthenon building in time. 

Dr. Spin's picture

I was living in Greece then. I watched the Greeks borrowing from everybody to build all that crap. In a large part, the '04 Olympics were the straw that broke Greece's back. I scatted from Greece in '06 just in time to watch the carnage from a safe distance.

Soon I will be scatting from the U.S. for the same reason.

Take heed,,,


Secret Weapon's picture

Where are you re-locating to?

Dr. Spin's picture

Can't say exactly, somewhere S. of 30 deg. S.


Jeffersonian Liberal's picture


Part of Roman politics in the 2nd century was that the Hortensian laws broke apart the old patrician order and allowed plebeians to hold office.

It was the custom that the aedile (something of an entry-level office holder) relieve the State of the cost for hosting the national games.

The massive cost of this expense effectively weeded out most plebeians from seeking office. However, the die-hard plebeians that wanted to hold office but who had no money would go into massive debt to pay for the games.

After their time in office as praetors and consuls expired, they were often sent as governing agents to those provinces acquired by conquest in war.

To pay off the debt they accrued to become politicians, they often plundered these provinces, taking bribes, accepting payoffs for judicial rulings, and generally oppressing the people through excessive taxation.

Evidently, we haven't evolved much since then.

Mr 9x19's picture

anyone surprised with htis go seek for atheen 2004 and see the result.

it is always the same, money flows, stuff is built, TV show, then abandon like garbage and turn like walking dead open space.

it is always the same in underdevelopped countries ...

greeks not worth more than brazilians... animals living WAY BEYOND their revenues...

logicalman's picture

Governments bid for the Olympics to cover corrupt pay offs to all the large contractors they owe favours to through over-priced contracts.

The standard line always seems to be that 'the venues will benefit the place for years to come', but that hardly ever seems to happen.

Déjà view's picture

Build The Wall! Brazilians are headed NORTH...

NidStyles's picture

This is what multicultural countries look like.


I have never seen one that wasn't a cesspool worse than the third world countries they are trying to emulate.

Jeffersonian Liberal's picture

Thus the Kalergi plan. Thus Merkel. Thus opening the borders to 'refugees' and using those 'refugees' to denounce anyone who wishes to preserve their culture by controlling immigration.

Thus, because their ulterior motive is to destroy Western Civilization, which is to say, Gentile Culture.

This war is being waged by anti-Gentilites.

Wile-E-Coyote's picture

Oh, was that the Olympics the locals couldn't afford to buy a ticket?

Johnny Caine's picture

Governments are pieces of shit 99% of the time. Brazil is no exception.

Tallest Skil's picture

This has nothing to do with the government and everything to do with the fact that Brazil is majority black. Whites create civilization, darker-skinned caucasoids–and even (far) east Asians–can maintain civilization, but other nonwhites only watch it collapse.

Toxicosis's picture

Are Greeks also majority black too?  Are Russians also majority black too? Sochi Olympics.  Are you also majority black too, since your comment might suggest you've shot yourself in the foot with your gun living in Chicago?

Tallest Skil's picture

I fail to see your argument, as you obviously know the answer and don't comprehend what is being said.

Erwin643's picture

If I lived in Brazil, well, I'd know where to go for building materials.

Grumbleduke's picture

When was the last time (if ever!) the olympic games were profitable or came out with a big black zero? Does somebody know?

Why are taxpayers paying for this shit? If you have a club or a company and want to throw a party - do the taxpayers foot the bill? Didn't think so!

A Nanny Moose's picture

LA 1984.

The major venues already existed (Colosseum, Sport Arena, Rose Bowl, Pauley Pavillion, Swim Stadium, etc.) and were actually used by existing sports teams. There was some retrofitting, but the main infrastructure was already there.

No taxpayer funded, construction boondoggles were that time.

buttmint's picture

Peter Ueberroth LA Olympic chairman ran a tight ship....

AurorusBorealus's picture

Don't fret.  The Brazilian people eventually will tear every piece of tin, every shred of copper, every brick and block, every steel beam, and every plastic chair from those structures for their houses.  Plastic olympic chairs will furnish block shacks covered with tin around Brazil for years to come.

caesium's picture

The Olympics are a joke and I never watched the last one. They are all on drugs and black American quarter milers have worked it out. They no longer take it up the @ss for the flag. I used to enjoy them winning all the time but they've had enough of it which is ok in my view.

Boygoy's picture

I know, I know. A traveling Potemkin village of locusts, harvesting one gullible country after the next.

Shemp 4 Victory's picture


I know, I know. A traveling Potemkin village of locusts, harvesting one gullible country after the next.

And each locust adorned with the corporate logo of a "partner" that paid an astronomical sum in order to adorn everything they touch witn the symbol and slogan proclaimimg them The Official [product] Of The [current year] Plague Of Locusta®.

MaxThrust's picture

"A traveling Potemkin village of locusts, harvesting one gullible country after the next."

A very apt way of looking at it.

I didn't watch the last one either and agree with a previous post by another ZHer that Greece should hold the games every four years and each country pony's up some coin to keep all the venues in good order.

ebworthen's picture

Wait...what!?  In Latin America...and associated with the Olympics?

WTF!?!  This is like Greece...or Los Angeles!?!?

I'm shocked I tell you, SHOCKED!

Sandmann's picture

What is TCO in Portuguese ?

TheRideNeverEnds's picture

Wow almost three quarters of one percent their GDP; how will they ever recover!?

Seriously, you faggots and your fear porn need to calm down. I understand the entire premise of this site is click bait doom porn articles but it could have cost thirty times what it did to build that stuff and subsequently be burned to the ground for the hell of it, still wouldn't be a problem for anyone. If anything it's awesome, someone got the money to build it and someone got the money to burn it down. The only loss here is the fact that this land is occupied with garbage now. Pay someone to get rid of it and it's doubly good.

What don't you idiots not understand about the fact that we literally create money out of nothing?

Silver Savior's picture

I know we create money from nothing thats why I am so pissed off I have to work for it.

Refuse-Resist's picture

I never see an argument from the left that is not full of name calling, lies, and hysterics. LIke this one.

They cannot reason and make  measured arguments. Why? Becuase they operate off a base of feelings, not logic and facts.

So we're all faggots reading doom porn, and are all idiots.

Brilliant disseration sir.

I smell (((semitic))) debate tactics.

Praise Kek.

Kidbuck's picture

I know the Fed creates money from my money, by devaluing/stealing my money a little bit every day.

MEFOBILLS's picture

Governments place is inelastic markets.  The commons especially are a government mandate.

Let's say you are king, and you allow your commons to be monopolized by privateers, that then drives prices high.  Rentiers then own the commons, and put up toll booths, to then extract from the population in what amounts to as an on-going tithe.  This will form Oligarchy.

Your population becomes unproductive, as it has to labor against high prices, thus driving the price of labor UP.

If you are a civilized king, you might realize that your population is starved from money and at the same time it needs infrastructure to be productive.

You have a ready workforce, and you have minerals in the "earth" that need transformation into goods.  You then direct your workforce to create the roads, dams, electrical plants that are needed.  Does anybody doubt that the Hoover dam is useful?  How about the interstate highway system?  Railroad network...etc.

The Sochi Olympics started a construction boom; that money then front loaded the population with money and infrastructure.  The Russian's wanted a "resort" built, that would be useful after the Olympics came and left.   Another goal of Sochi was to attract future international visitors in tourist trade.  In other words, the flux energy of Russian labor was put to work, building something useful, and then later it was left behind as a gift to the future.

War uses this method  of using labor, to convert the earth into weapons, but it destroys things rather than leaving something useful behind.  How about complaining about destroyed weapons, rather than disused buildings?

Another falacy the author makes, is using Brazil as an example of government idiocy.   Brazil's population demographics mean Brazil will never become first world.... too many low IQ people.

SeuMadruga's picture

Their low IQ is precisely what allowed them to engage this keynesian nirvana in the first place, which btw not only caused such economic meltdown but also "...smells like latin spirit..."

SeuMadruga's picture

Their low IQ is precisely what allowed them to engage this keynesian nirvana in the first place, which btw not only caused such economic meltdown but also "...smells like latin spirit..."

TAALR Swift's picture

Extreme financial indulgences lead to extreme levels of debt servicing and perpetual debt servitude. 

It is not complicated or difficult to understand or to avoid, if one has the brains or character.

Which is why bad and dirty politicians need to be screened better, and undergo Extreme Vetting beforehand, or extreme termination afterwards.  At which point they have to "Get to the head chopper! Get to the head chopper!" Chop, chop.

Bad AI humor. No doubt the Camp Commander will have me sent for re-education. 

TheRideNeverEnds's picture


Debt is not only necessary but the need to repay it is a social construct. In fact, if the debt ever was repaid our entire system would cease to exist as it is entirely built on debt.

aurum4040's picture

Explain your debt 'theories' to the Romans...oh wait, the Romans do not exist because their empire imploded over 1500 years ago because of idiots like you who think they understand economics while creating money out of nothing to finance an overreaching military and sheer hubris - its quite a shame that the likes of you and krugman et al perpetuate preventable financial calamities. 

MEFOBILLS's picture

Rome's collapse can be traced to the second punic war.  Hannibals elephants were rampaging, and Rome's women were freaking out and having nervous breakdowns.  Their son's were coming home dead.  The women were wailing and weeping.

Romes leaders then moved away from their copper fiat legal money system.  A group of people offered up their silver and gold hoards and jewlery, to then be melted down into coins.  These same people wanted back much more later than what they loaned to government, in what amounts to usury.  They needed gold and silver money to pay the troops in death struggle against Hannibal.

This same group of Romans represented the then military industrial complex, where they made war material for the troops.  They sold shoddy goods to the troops.

Debts in the form of promises to an oligarchy then undid Rome.  Certain debtors were to be paid in gold, and other debtors to be paid in bronze, which made the money system become unlawful.  As soon as Rome shifted away from lawful money, was the beginning of the end.

(The lesson - Rome should have saved Gold and Silver to then fund wars on external soil.  Internal and external money should not mix.)

After Punic wars, Rome started moving East, and became Byzantine empire.  It located itself on Bosporus, which was transit point for exchange of gold and silver between east and west.  Silver was more plentiful in the West, and Gold in the east.  Byzantium controlled exchange rate between gold and silver (or tried to control it) during this period.  Our Jewish friends controlled mechanism before then, and was their secret money method - stealing as usury in exchange rates.

In other words, Rome fell to the eastern (jewish) money methods and hence allowed usury and exponential debts to form.  They also enabled Oligarchy.

After fourth crusades, all of the gold consecrated to the vaults in now destroyed Constantinople, were released as money- which helped end dark ages (the greatest depression).  Note this great depression included latifundia, where the lands were held in the hands of a few.  

(The lesson - A free population needs access to land, and lawful money.)

The Greek orthodox and Russia are heirs of Rome... the third Rome.


dariomilano's picture

thanks to m5s and Virginia Raggi for stopping this waste of money in Rome

forgottenozonehole's picture

Still looks better than Detroit...