November 19, 2008   Ecuadorean president Rafael Correa was outed by Barclay's in some odd No Honor Among Thieves pre emptively strike the other day as Barclays claimed to have interviewed "unknown sources" in Caracas about Chavez's overt play backing Ecuadorean bond scams and also boosting massive profiteering with Correa through gambles on derivatives swaps on the fake ploy that Ecuadorean bonds value would be impacted would be delayed debt repayments pending tomorrow's fake Report on Ecuadorean debt and a possible default based on no facts whatsoever, just a made up manipulative fairy tale about Ecuadorean finances. But Correa outed Hugo and if Barclays, never very credible but very serious about its money making, is to be believed, stiffed Hugo for almost a billion dollars on their cute little bond scam. Hugo is not happy about being out of the closet either. Ecuador comes now for one billion from the IDB to cover this or....failing an end run based on no facts at the IDB, from OPEC. We must insist that neither OPEC nor the IDB enable one more penny for this extortion racket cum derivatives and bond market crime spree and instead call upon a full and independent forensic audit before one iota of support is gifted in error to this crime scene called the Andes.
 
Ecuador's bonds rose yesterday after Barclays claimed that Chavez will force Ecuador to make GOE's debt coupon payment to avoid paying about one billion on derivatives deals. Barclays is no white knight in all this but they did expose the Chavez-Correa bond and derivatives scam, punctuated by the fake so called Coupon debt Repayment Ploy. For his part, Chavez's partner in this global financial crime, has dispatched his dishonest whiners and propagandists to extort the Inter American Development Bank (IDB or IAD for more money- about a billion dollars- to cover the derivatives swaps payment through, we can assume Barclays and two other off the books derivatives book makers, while pretending that Ecuadorean bans of imports from Colombia by presidential decree will save Ecuador's economy. Notably absent in all this is Correa's request for a bridge loan from the World Bank, which of course Correa is preparing to sue at the Hague for "crimes against humanity" for making the very kinds of multi lateral loans that Correa demands from the IDB and has no intention of repaying, calling Ecuador's multilateral debt as "truly horrifying" and basing all this on a fake Report accusing former leaders of crimes against Ecuador, all with no facts whatsoever in thousands of pages of fake documentation. What is horrifying is the depth of depravity and deceit that Correa and Chavez will go to make off the books money in their name, abusing their nations finances. For the IDB to even consider, even under pressure from Tom Shannon's crack team of Ecuadorean fraud accomplices at the US Department of State, this derivatives exposure using mostly USA taxpayer backed IDB monies should land them all in jail. All of this needs to stop now.

Ecuador must return to a law abiding place and none need prop up this cartel.
 
Niether the IDB nor OPEC should lift one finger on this matter with out the facts, still missing in action. In fact this entire financial crime scam belongs under a full forensic audit for the extortion, racketeering and malfeasance of global financial norms, as is the case today under the non rule of law players named Chavez and Correa and their governments. Then again, all the Correa scams against US companies require full forensic audits as well, crudely still MIA while false propaganda remains Correa's only claim to the facts. Even Ministra Viteri now offers to buy back their corrupt bonds from the bond holders, at current depressed prices of course...
 
But Correa is not to be deterred. He is issuing notice that he alone will commandeer Ecuador's fate through Presidential Decrees, allowing only certain preferred Correa-bribed products in to the country while breaking all bonds of diplomacy, comity, and treaties to prevent Colombian products in general [all that is except electricity, narcotics, FARC terrorists, money launderers, and oil] from entering Ecuador. This of course removes Correa from the last support for his fools errand to tell the world that he deserves an ATPDEA extension when of course he does not. Tragically, US democrat Elliott Engle [himself a Soros man], operating on unknown legal directions and authority, is still soothing Bolivia's Evo Morales this week and the Andean cartels in private meetings, pretending that US law simply does not matter.
 
 Here is Correa on his illegitimate import control plan:
 
"Ecuador to impose raft of import controls Nov 18 2008 3:17PM QUITO, Ecuador (AP) Ecuador's President Rafael Correa says his government will impose a raft of import restrictions soon to safeguard the country's economy during the global financial crisis.

Correa says he will not allow Ecuador's dollars to be spent on imports such as "Colombian caramels" and "Chinese dolls" amid darkening financial forecasts. Correa also says Ecuador's overall economic standing is healthy and he does not believe there is a "high probability" of fiscal crisis. Government officials say Ecuador holds US$8.8 billion in reserves.

He says new tariffs and other measures will be adopted through presidential decrees. Correa spoke Tuesday at a gathering of industrialists in the port city of Guayaquil."

Meanwhile, our favorite candidate for the World Wrestling Federation tells us that she is sleepless in Quito, covering this economic crisis, which Correa tells us is no crisis at all. Viteri, who covers the visual-physical landscape like Jabba the Hut tells us that Ecuador is working hard to complete its absolutely fake/ginned up/preposterous Report on Debt for tomorrow's propaganda staging, also called the release of Ecuador's dishonest findings on debt. We know this essentially because not one- not one person of credibility or functional due diligence was applied. But Ecuadoreans, so easily seduced by the promise of statist give aways, care nothing- not one iota- about honesty, integrity or fact finding in their own homes or in their government. The silence about this fraud is deafening as Ecuadoreans run and hide pretending that all of life will be bettered if each simply does nothing while manipulating even the common truth that crime is never resolved by living la vida manipulativa nor will quality of life be bettered while hiding or shopping or running away.
 
But the discredited, dishonest Viteri, herself a functional idiot and a true acolyte of cartel communism- already combining with the Chavez regional banking scam called ALBA and Banco del Sur, tells us that the remarkably asleep at the wheels IDB will bail out the Correa-Chavez derivatives scam:
 
Ecuador's Viteri, Sleepless Before Debt Report, Urges Patience

By Daniel Cancel

Nov. 19 (Bloomberg) -- Ecuador's Finance Minister Maria Elsa Viteri urged ``anxious'' bondholders to be patient as a debt auditing commission finishes a report that will help determine whether the country honors its foreign obligations.

Viteri, complaining of sleepless nights as she works round the clock before tomorrow's scheduled release of the report, called President Rafael Correa's push to examine the legitimacy of the country's debt ``a model for other countries.''

``We're at the doorstep of something unheard of -- let's have a little patience,'' Viteri told foreign journalists in Quito late yesterday. ``Anxiety is a bad thing.''

Ecuador's bonds have tumbled over the past week as Correa, 45, opted to use a month-long grace period to decide whether to make good on a $30 million bond interest payment that came due Nov. 15. Viteri, the fourth finance minister during Correa's 22- month-old administration, said the commission's preliminary report pointed to ``signs of illegality and illegitimacy,'' echoing statements she and Correa have made in recent days.

Correa, who has threatened since the 2006 campaign to default, called the findings in the preliminary report ``truly horrifying'' on Nov. 15. He said he'll suspend debt payments if the final report provides a legal basis for such a move.

The price on the South American country's $510 million bond maturing in 2012 tumbled 28 cents on the dollar over two days last week to 14 cents, pushing the yield above 100 percent, according to JPMorgan Chase & Co.

Import Restrictions

The price on the bonds rebounded to 26 cents yesterday as some investors bet Correa will make the interest payment because a default would hurt his biggest ally, Venezuelan President Hugo Chavez. Venezuela owns structured notes tied to Ecuador's bonds that would force Chavez's government to pay $400 million if Correa defaults, according to estimates by Barclays Capital Inc.

Viteri said she hasn't discussed the debt payment with Venezuelan government officials. She says she last spoke with Venezuelan officials during a trip to Caracas several weeks ago in which the two sides discussed the creation of a bi-national development fund. A spokesman at the Venezuelan Finance Ministry declined to comment on the government's holdings of the notes.

The benchmark 2012 bonds traded at 95 cents on the dollar in mid-September, before a deepening of the global credit crisis accelerated a rout in oil, Ecuador's biggest export.

Ecuador will impose restrictions on imports, only allowing ``necessary'' goods into the country, to preserve dollars during the crisis, Viteri said. Oil, which accounts for 60 percent of Ecuador's exports, has plunged 63 percent from a July record to $54.80 a barrel.

`Strong and Healthy'

The government is negotiating a $1 billion loan with the Inter-American Development Bank and may also seek financing from the Organization of Petroleum Exporting Countries, Viteri said.

``We talk with everyone'' about financing, Viteri said at a news conference in the Finance Ministry. ``The world is our limit.''

While the decline in oil has pared dollar flows to the country and reduced government tax revenue, Viteri said yesterday the country's fiscal accounts remain ``strong and healthy.'' On Nov. 14, she said the government has the $30 million to make the interest payment.

``Questions about its willingness to pay'' are undercutting Ecuador's credit rating, said Lisa Schineller, an analyst at Standard & Poor's in New York. S&P cut Ecuador's rating to CCC-, three levels above default, on Nov. 14, hours after the government said it wouldn't make the interest payment on time. ``If you look at Ecuador's indicators, in terms of debt to gross domestic product, one could think the rating could be higher.''

Viteri said she has little interest in the credit ratings assigned to Ecuador.

``How can I believe in a risk evaluation when the country risk remained high even as I paid my debt punctually?'' she said. ``How can I believe in agencies that gave AAA-ratings to banks that collapsed? The agencies seem to have lost their prestige.''

Viteri is dead wrong: her offices/her government do NOT talk with everyone. They talk only with preferred cartel leaders, criminals and dirty money movers. There is not one single credible or legitimate financial expert involved in Ecuador's on going crime spree, about to be criminally abusing IDB monies. As to the decline of oil revenues to Ecuador, the only thing that has declined is Ecuador's dirty off the books spot oil trading- not OPEC's price band.

But Correa wants you to know that he has worked for years to gin up his personal narcissistic hatred of capitalism, itself detailed in his so called combine Masters and PhD thesis which was essentially a Marxist economy justifying screed with no facts [and lots of typos] to derail capitalism, also called his reprehensibly inane economics degree from the University of Illinois's sister school to Billy Ayers's school in Chicago, in  about 18 months: a shopping mall degree for a shallow and badly educated cretin, no doubt paid for by the US taxpayer in a sloppy scholarship adventure to "help the poor" from 3rd world nations with no care at all to the academic garbage delivered, poignant in Correa's case.

Correa despises the World Bank and has a rasher of lawyers from some of the worst USA legal teams already working on his law suits against the multilateral banks. Some question if Correa is extorting the IDB with claims that he will not sue the IDB as he will the World Bank and the IMF if- and only if- the IDB keeps pouring money illegally with no strings attacked and no due diligence- down Correa's rat hole where money is for nothing and the pay back is non existent. The IDB must finally realize that this is no way to run a bank- a bank to bail out dirty bank deals with dirty derivatives profits off the books to some of the dirtiest players in the universe. We hope that Correa, Chavez and Barclays and their off the books scam artists, bankers, racketeers and extortionists will all be arrested.

Today one billion does not seem like much money. But we remind that a billion in real life terms to Ecuadoreans feels like $10 billion. But functionally, what do you suppose one billion does when leveraged unaccountably to $50 or $70 billion as if often the case? Just ask Barclays what a little leveraging can do- they know very well. One could get more honesty out of this duo, featured today in HOY:



Mickey Mouse cumple 80 años de vida
Mickey Mouse is more real than Correa's governance efforts. But the Russians are coming! The Russians are coming! And they will gift the Andean narcoterror bloc with blessed cover- more distractions, more cases of nerves, more fears and more collapsing morality and Andean cowards to sell out their last vestige of respectability, claiming that everyone does it. NO, we say: everyone does NOT do it. This is however the end result of the willfully undereducated to perpetuate the lie that everyone does it and no one has morals so therefore we are all doomed to behave immorally. This is garbage from the mouths of garbage collectors, who generally have more morals than most Ecuadorean leaders.  Correa tells us he must have full import controls to deal with the crisis which is of course all of his own making:



Correa anuncia "paquete" de medidas económicas para enfrentar crisis

WHY are these people smiling?  EcuadorenVivo reports on this happy time:
"Exportadores y banqueros se reunieron hoy con el mandatario Rafael Correa. El Gobierno anunció que se ha preparado un paquete de incentivos que serán ejecutados a través de la expedición de Decretos o la aprobación de  reformas legales. Correa agrega que las medidas de cada uno de los campos involucrados serán adoptadas vía Decreto Ejecutivo, envío de reformas legales a la Asamblea y acciones paulatinas del Régimen según el caso.

Medidas Financieras

• Reducción de la retención del Impuesto a la Renta sobre el interés pagado al exterior. Pasará del 25 al 0 por ciento para la banca, y al 5 por ciento para los empresarios privados hasta diciembre de 2009. Se exceptúan capitales que provengan de paraísos fiscales. Esto se cristalizará mediante reforma a la Ley, que será enviada en forma urgente a la Asamblea.
• Capitalización de utilidades de la banca. Se lo hará vía resolución.
• Estímulos fiscales para capitales de banca.
• Impuesto al stock de activos externos del sistema financiero y fondos de inversión (actualmente llega a los 4 mil millones de dólares). Pasará del 0,5 al 1 por ciento, mediante reforma legal.
• Ley de Seguridad Financiera. El Jefe de Estado destacó como principal ventaja el hecho de juntar las reservas de la banca y administrarlas en conjunto con el Estado.
• Incremento al 1 por ciento de Impuesto a la Salida de Capitales y reducción de excepciones.
• Líneas para economía popular – fondo para crédito de segundo piso con entidades que concentren operaciones con remesas. En este sentido, el Banco Nacional de Fomento y la Corporación Financiera Nacional entregarán 30 millones de dólares.
• Suspensión de reducción de las tasas de interés hasta junio de 2009. Será viable mediante resolución.

Medidas de Balanza de Pagos

• Moratoria del anticipo del Impuesto a la Renta hasta diciembre de 2009 para los sectores exportadores.

• Financiamiento para Comercio Exterior: 100 millones de dólares  de la CFN y

500 millones de dólares del BID

• Restricción de importaciones de acuerdo a las normas de la Organización Mundial de Comercio.

Medidas del Sector Real.-

• Eliminación de aranceles para insumos productivos y bienes de capital que no se produzcan en el país.

• Suspensión hasta diciembre de 2009, del Decreto No. 1391 sobre regularización de camaroneras, excepto las que se encuentren en áreas protegidas.

• Préstamo al BID de 1.000 millones de dólares para la vialidad nacional de los próximos 4 años.

• Campaña de Comunicación “Consuma lo nuestro”.

Otras medidas.-

• Suspensión de norma NIF (Normas Internacionales de Información Financiera) hasta 2010. Se hará mediante resolución.

• Firma electrónica para agilitar transacciones electrónicas. "

ECrisis seriously hopes that the U.S. Treasury Department issues a fact based report on this cartel bloc bond and derivatives scam and purposefully advises the IDB and OPEC that with no due diligence and no forensic audits of this bond market insider trading- derivatives self enrichment racket, were any entity to aid and abet this cartel money maker as the U.S. Department of State does by gifting more and more blessings on this fraud, they will be denounced, legally prosecuted and unfunded according to all international laws. Whistle blowers needed and the name of same is not Barclays.

-Pedro Camargo for ECrisis