"O sistema é foda" is a brazilian meme, it means something like "The system sucks". It´s a phrase used by the brazilian movie character Capitão Nascimento (Roberto Nascimento), played by the actor Wagner Moura in "Tropa de Elite" and "Tropa de Elite 2".

Capitão Nascimento became very popular in Brazil, this character is a incorrupt police officer that struggle against the Rio de Janeiro´s druglords and the corrupt policeman. He´s a Captain in the elite troop of the Rio de Janeiro´s Military Police known as B.O.P.E. – Batalhão de Operações Especiais (Special Operations Battalion), whose training is known as very rough, in fact one of the most hard in the world.

In "Tropa de Elite 2", Roberto Nascimento, now promoted to Colonel, begins to discover that the crime problems of Rio de Janeiro and of the entire nation is in fact a politic problem. Many deputys, senators, television presentators and commanders of the police are involved with the drug and illegal weapons traffic.

Then, at the end of the movie, while he´s flying over Brasilia (brazilian capital city), passing through the Palácio do Planalto, head office of the brazilian pcongress, he says: "O sistema é foda". Meaning that the entire system is corrupt and dependant of its corruption.

https://www.youtube.com/watch?v=49dA2_Lb1Lw

Now, the meme became to be used by the pun that the word "sistema" (system) has with others situations, like computer's operational systems, the solar system or biological systems such as the respiratory system for example.

Use "O sistema é foda" when a problem occurs in one of this "systems".