November 27, 2008  Ecuador completely agrees with the Soros expenditure of billions in propaganda monies on hate campaigns and anti Semitism activities. Correa himself does this and actively hires some of the very same Soros hate selling actors. But hate is, as neither Correa nor Soros nor any single living housewife in Quito ever learned, not a good way to grow economies of scale nor actually help a people or a family rise to the better levels. It is however very good for manipulating one's own incompetence and is very very good for non tax paying, off the books derivatives traders abusing so called sovereign wealth funds to enrich their preferred political allies and the FARC. Where o where is Joe Stiglitz and his Soros team of Banco del Sur and/or ALBA supporters when you need them? Here is their progeny- promising to bury capitalism and with it functional democracy, freedom and rule of law because, as they explain it, they cannot manipulate capitalism enough so it must...die.
 
Here are the hyperactive and undereducated easily manipulated and manipulative Soros spawn, advised by numerous Soros paid employees [also concurrently supported by droves of the FARC, Russo-Iranian actors of varying credentials sometimes called agents of Chavez or spot oil traders in London, DISIP and Cuban agents] as advocates of alternative banking, alternative democracy and alternative law and order, which is of course also called fraud:
 
Leaders of the Bolivarian Alternative for the Americas pose at Miraflores Palace in Caracas (Photo: Jorge Silva / Reuters)

And while in Caracas once again, they are doing what they do best: complaining, listening at key holes, making up theories on life and getting angry about anyone or anything they cannot manipulate: Chávez harshly criticizes the Inter-American Development Bank
Chávez accused the IADB of using "political pressure" and being a "mechanism" of the United States.
 
The 11-26-08 EL UNIVERSAL reports, "Venezuelan President Hugo Chávez  accused the Inter-American Development Bank of using "political pressure" and being a "mechanism" of the United States and urged his Latin American counterparts to abandon the hemispheric facility. His remarks came during the opening session of the meeting of the heads of State of the Bolivarian Alternative for the Americas (ALBA), which was also attended by Ecuadorian President Rafael Correa as a guest.

In reference to the United States, Chávez said that the IADB "has become also a mechanism of the empire," and regretted that it had been used as a `tool of political pressure to put conditions.'

`Let us leave this bank and let us make a bank of our own, managed by ourselves, our peoples. Outrage is enough,' said the president in the context of the ALBA Third Summit, an initiative of President Chávez. Earlier during the session, the Venezuelan ruler reiterated his proposal to resort to socialism as an alternative to address the global financial crisis. Chávez described the current situation as the "crisis of the century" and "the sum of all crises." `Some European leaders have called upon to reform capitalism. I consider that we have to bury capitalism. It is a perverse model that must rest in peace. We say here, and I speak for Venezuela, that this crisis will only be solved through socialism. `The Venezuelan president criticized the results of the G20 and G8 meetings to address the global crisis. "Can someone believe that Washington has any chance to provide solutions to the problem?' he wondered."
 
Like every single good Ecuadorean, Correa tried to manipulate the IDB for a cool billion to bail out Chavez's bond market derivatives losses, according to BARCLAYS, who we believe leaked this tawdry tale to get paid itself. The IDB, with no due diligence in hand from Correa's team and certainly no integrity from Correa's team on the table, apparently denied Correa's line of money to bail out Chavez's speculative whims, also called illicit abuse of PdVSA-Petroecuador and sometimes called Sovereign Wealth Funds. We call it naked market betting to help Rafael Correa in his own little bond market scam. But the IDB apparently informed Correa that he is a liar and a master manipulator- values highly prized in every  single Ecuadorean home- and that while Correa has been busy telling the world that he will not pay back any debt or loans, why then should Correa use and abuse U.S. diplomatic pressure to extort the IDB to gift Correa with a cool billion when Correa himself says he will never repay multinational loans. Why indeed. Why indeed did anyone even let Correa's chumps in to the USA is another question. The IDB's remarkable return to sanity and legal banking practices  is all the more extraordinary since its local office in Quito is commandeered by a known Chavista female, herself dishonest and a very very close coordinator with Correa's pet liar Susanna Cabeza de Vaca and the previously aligned family man with statist money grabbing politicians in Ecuador, pressuring though they had been for this "helpful" money for Chavez through Correa. The entire IDB team has shown itself in Quito as....needing to go for their dishonest manipulation of sound banking practices.
 
But apparently, like every good Ecuadorean as trained by their mothers from birth to do, Correa got mad and decided to get even. How dare the IDB question him, the all wise Correa when Correa has stolen from and scammed just about anything he comes across? How dare they? Correa flies off to Caracas and gets Chavez to declare that like all good and manipulative Ecuadoreans, they are not gonna take any eyebrows raised or even a look in to the fact that Ecuadoreans manipulate every thing they touch [including all fiscal accounts, their own laziness and derivatives trades], claiming they have had enough of normative law and order....these ALBA stooges now declare that they hate! hate! the IDB and will make their own socialist bank, their own narcobloc, and their own rules of the road. This is now standard Ecuadorean passive-aggressive noxious manipulative behavior and it is readily obvious with anyone who has eyes to see and ears to hear, unless already controlled by the over-controlling manipulative non-ethics of Quito..

Had Correa made an honest request from the IDB, they would have helped him out.  Correa sent his World Wrestling Federation Ministra to try to manipulate normative financial practices and got caught with their lies and machinations. And now Correa storms off and wants all who even blink at him to....be derided, made fun of, denounced and debilitated. Problem with Correa's manipulative vindictiveness is that while it may work for a while, especially to co-addicts and partners, such deceptive behavior is usually well known to everyone but those already too far gone as enabling co-addicts, having abandoned their commons sense long ago for the addictive lure of enabling. But  for once we are proud of the IDB for not committing bank fraud and for upholding rule of law. This has exposed the true Correa plan- also called Plan Ecuador- for the regional bloc of narcostates now formed.
 
More laughable, because we have routinely been  derided as fools and fear mongers to report that Correa seriously hates dollarization and wants it finished, is this the other day from EL UNIVERSAL: "Chávez proposes new currency area to face financial crisis
Chávez said that it is useless to wait for others to solve the problems caused by the financial crisis in Latin America
 
The Venezuelan ruler took the idea from his Ecuadorian counterpart Rafael Correa (Photo: Harold Escalona / EFE)

Politics
In the context of the arrival of the presidents and guests to the summit of the Bolivarian Alternative for the Americas (ALBA), Venezuela's President Hugo Chávez announced that he will submit the proposal of his Ecuadorian counterpart Rafael Correa to create a new currency area. Chávez said that it is useless to wait for others to solve the problems caused by the financial crisis in Latin America.

"We are going to create a monetary area in the ALBA. We are not going to wait, just sitting around, that the so-called International Monetary Fund and the World Bank come to solve our problems, especially the great threat to the world that has been unleashed, that is the great crisis of the century, the economic, financial and food crisis," said Chávez."

This is of course laughable because we read almost daily that Correa is not a member of ALBA so one must ask how his proposal will not be voted upon to craft a new currency. And for his part, Correa soothes that he loves the USA and loves dollarization when we all know that the converse is a fact. So here is the great manipulator proposing a new currency. Never mind that Ecuador cannot afford to even buy new printing machines to start up their own money- Chavez will do it for the region and will print his way out of his Derivatives bets on Correa's jiggered bonds to hide the fact that these ALBA communists, sometimes called socialists, have no clue what or where their money has gone. We are seriously hoping that the U.S. Department of State does what Lula of Brazil just did: recall its ambassador for once from Ecuador for consultations and inform Ms. Hodges to stop pretending that all is legitimate and nice in the dishonest Ecuador, sucking in more lies like a tar pit.

Chavez says that he cannot wait for the IMF to solve LatAm's economic crises....crises which he and Correa cooked up in their hyperactive frenzy of hatred, dishonesty and foolish undereducated  mismanagement of their nations. What we do know is that neither Correa nor Chavez will suffer one single drop of transparency, accountability, honesty and functional law and order. And they have called in the Russian fleet for a show of force.

Caracas, Moscow sign agreement to develop nuclear energy
10:21 AM. Politics. Venezuela and Russia initialed on Wednesday seven cooperation agreements in several areas, including one for "cooperation in nuclear energy for peaceful purposes," which seeks to promote "bilateral projects" in that area, "especially those projects that meet domestic energy needs and contribute to the diversification of energy sources."

Once again, here is Molano stating the facts that Correa seeks the death of dollarization, also called the end of any financial stability and accounting, plus Correa seriously wants you to know that he is incompetent and in need of medications. Ecuador is hopeless.

Wednesday, November 26, 2008
Ecuador: Hopeless - by Walter Molano

Ecuador is heading towards debt default, an end to dollarization, soaring inflation and economic decline.

Despite seven years of economic stability, Ecuador is on a crash course with disaster. President Rafael Correa is on a reckless mission to consolidate all political power in his hands, even if it means bringing the country to its knees.

Once known for its political instability, Ecuador went through six presidents in a period of 10 years. The deep division between the sierra and the coast, constant indigenous unrest and highly independent political institutions ensured that no president would last more than two years. This is why many Ecuadorians brushed aside the election of Rafael Correa in 2007, an outsider with no major political clout. They thought that he would soon join the list of former chief executives.

POWERFUL CAUDILLO

However, with the resources of Hugo Chavez and a bent to consolidate all political power within his hands, the PhD in economics became the most powerful caudillo to govern the Andean nation since León Febres Cordero. Like his Bolivarian brothers, Correa is only interested in one thing—remaining in office for ever. He also has messianic visions of social revolution. However, Correa’s revolt is more of a Maoist type of transformation that seeks to isolate the country, purge external influences and undo five hundred years of European colonization and influence. Like Mao, Correa is willing to burn the Ecuadorian economy to the ground and transform it into a backwater of self-sufficient poverty. An estimated 80 percent of Ecuadorians live at or below the poverty line. Therefore, the change would affect a small minority.

A third-rate producer of oil and bananas, Ecuador surfed the commodity wave of the past few years. The external accounts improved, and the central bank accumulated more than $6.2 billion in international reserves. This was in sharp contrast to the $800 million in reserves that it had at the turn of the decade. Moreover, dollarization was a fortuitous monetary experiment because it occurred at a moment when the greenback went into decline, giving the country enormous competitive advantage against its traditional trading partners, Colombia, Peru and Brazil.

Unfortunately, the recent appreciation of the dollar coincided with the collapse in commodity prices, and Ecuador could soon be in dire straits. The relatively huge $2.2 billion current account surplus that was recorded this year will become a gapping $1.4 billion shortfall in 2009. The shortfall will be worse if remittances continue to decline. This is one of the reasons why the government is taking a second look at dollarization. A move to a new currency would allow the government to devalue and take more control of the external accounts. Moreover, the end of dollarization would give it more control over the fiscal accounts.

SPENDING SPREE

The recent constitutional reforms will allow President Correa to run for office in April. Hence, the government embarked on a wild spending spree. The decline in commodity prices and the limits of dollarization will reduce the government’s ability to control fiscal policy, which is another reason why the Ecuadorian leader is building a case for the end of dollarization.

Unfortunately, a default will facilitate the transformation. International banks and financial institutions will cut credit lines. There will be a run on the banks as households try to preserve their savings, and the government will eventually be forced to introduce a new currency. The consumer binge will come to a sudden end, inflation will soar and the economy will tank. Nevertheless, President Correa believes that this is the recipe for remaining indefinitely in power.

It is unclear whether Ecuador will default now or later, but a moratorium is on the horizon. Ecuador’s debt loads are not the problem. Total foreign debt is $10 billion, with $3.8 billion in bonds. Given that the debentures are trading at 25 cents on the dollar, the country could erase its market obligations without having much of an impact on its stock of international reserves. However, Correa is after something else. He is looking to isolate the country, just like Mao and Castro. This is the reason why he is also refuting Brazil’s bilateral debt and the $2 billion it owes to CAF.

As most caudillos know very well, the political power of an economically isolated leader is infinite. This is the reason why the decision to impose embargoes on countries such as Cuba, North Korea and Iran, were futile because they only increased the power of the leadership to arbitrarily decide the allocation of economic resources. Moreover, all Caudillos need a visible enemy. There is no opposition party in Ecuador. Therefore, Correa is transforming foreign creditors into the villains. Ecuador is on a crash course to disaster, and there is nothing much any one can do except, watch it implode.

* Walter Molano is head of research at BCP Securities.
Source/Fuente: http://www.latinbusinesschronicle.com

ECRISIS urges you to read this again, "However, with the resources of Hugo Chavez and a bent to consolidate all political power within his hands, the PhD in economics became the most powerful caudillo to govern the Andean nation since León Febres Cordero. Like his Bolivarian brothers, Correa is only interested in one thing—remaining in office for ever. He also has messianic visions of social revolution. However, Correa’s revolt is more of a Maoist type of transformation that seeks to isolate the country, purge external influences and undo five hundred years of European colonization and influence. Like Mao, Correa is willing to burn the Ecuadorian economy to the ground and transform it into a backwater of self-sufficient poverty. An estimated 80 percent of Ecuadorians live at or below the poverty line. Therefore, the change would affect a small minority."

Correa wants you to believe that he has lifted Ecuador out of poverty. By pretending that Ecuador could easily rid itself of Correa, the irresponsible limousine liberals aberrantly forgot to factor in what happens when one man has all hands on every lever of power. And they dishonestly forgot to name Correa accurately as a ruinous dictator. Instead, the US Department of State will reward Correa for ruining Ecuador and converting this nation in to a Soros-endowment center for its leadership in criminal narcoterror support activities.

Following his from-birth training to lie and manipulate, this narcissistic manipulator Correa insists that no one on earth has more value than he does and that no one but him should be allowed to control anything. This is the first mandate of manipulative addicts and he is one of the best of his Ecuadorean-trained addicts in sociopathy. Nonetheless, "Unfortunately, a default will facilitate the transformation. International banks and financial institutions will cut credit lines. There will be a run on the banks as households try to preserve their savings, and the government will eventually be forced to introduce a new currency. The consumer binge will come to a sudden end, inflation will soar and the economy will tank. Nevertheless, President Correa believes that this is the recipe for remaining indefinitely in power."

Molano tells the truth. Stop listening to your Mamas of Manipulation and get busy rebuilding Ecuador. Worse, stop pretending that you care about Ecuador's future and instead, like the ostrich, you succumb to the lures of  irresponsible inertia and stick your head vapidly in the sand. We are not applauding. While you are starting to wake up, you can send a letter to the IDB in Washington for following normative banking principles. They deserve credit for doing the right thing in a very very long time and over riding "pressure" from the U.S. Department of State and the Chavez- Correa's minions inside the IDB. Bravo.

-Pedro Camargo for ECrisis