December 26, 2008  Ecuador's government is desperate for that one billion in cash which the Inter American Development Bank refused to hand over, sight unseen with no due diligence and nothing legitimate about Ecuador's intentions to repay any new loans. The CAF promised a cool billion supposedly so that Correa could help Hugo Chavez make his derivatives calls on the Correa-Chavez bond market swindle derivatives, if Barclays Bank is to be believed. But apparently Correa has seriously raided Ecuador's budgets and comes now to force yet another domestic bond deal on the Social Security system for a quick billion. With no accountability, no transparency and nothing remotely resembling honesty, Correa's newest bond deal reeks of yet one more money scam from this man who is no economist and was certainly never once trained in the USA or elsewhere in financial management. Rafael Correa has no clue how to run out Ecuador's budgets and certainly wants no forensic audit of his state theft but that is what is desperately needed before any institution gifts Correa with one penny more.
 
This ASSOCIATED PRESS story tells us that Correa will be demanding even more IDB loans again. This time he says he cannot make his 2009 budget. Oh really? Correa has recently been telling Ecuadoreans that the fault for all the loss of Ecuador's money is due to some mythical global "crisis" and also that local businessmen have not put their money in to Ecuadorean savings accounts. Correa has been lying about what he does with Ecuador's past, present and future accounts for over two years now. The AP tells us, "Ecuador's government is late on 40 percent of the pension payments it is required to make to the fund on behalf of public employees. While Congress has yet to approve Ecuador's 2009 budget..." But wait! There is no Congress and there are no checks on Correa who acts alone. There is no oversight on this adolescent incompetent. There are no structures in place, thanks to drug king pin Correa's self coup, that remains anything but his kangaroo tools of state theft and communist installing ploys. Correa’s government management plan is to buy more and more propaganda and hand out more and more bribes. Correa has no other plans for your future and has no integrity on the table whatsoever. And now there is no money. And still Ecuadoreans run and hide and pretend that their manipulative and dishonest way of life will miraculously save them from their own manipulative and dishonest life. This plan is not working.
 
Correa refuses to approach the World Bank and the IMF whose job is to make loans in emergencies to nations like Ecuador because he has stolen from them and lied a lot about them. Last we looked, Correa lied a lot about the IMF and the World Bank and has no friends whatsoever in the global financial markets whether at the multilateral banks or commercial banks because he is dishonest. Correa is a dictator with no portfolio and is one giant bubble of criminality about to burst. No sane investor would lend to this liar. We hope that the IDB denies its domestic loan advisors, some of whom are deeply linked with the Correa cartel now and insists on its own lending regulations. If not, Correa's antics will bring down the IDB and take its entire portfolio with him. The CAF, which made dirty loans, also called gifts of money to Correa, is nothing more than a slush fund for Latin scapegraces. But the pathetic CAF has not enough easy money for Correa's dirty plans. Thus Correa says he will get money from the IDB.  No sane private lender will participate in Correa's dirty money laundering schemes and have rejected his reputation as more than faulty- he is unworthy of any attentions or support. This is entirely due to Correa's own dishonest and manipulative approach and his dirty criminal acts with Iran and Venezuela and the FARC. Correa's entire scam is based on his dishonest ploy that if Ecuador simply became a communist economy, all would be a paradise.
 
Tragically, the United States of America's government is partially responsible for this lie because it never once insisted on the facts and went along with Correa's ruinous plans to lie about his communist installation programs and his money laundering with the FARC. And because the USA covered up Correa's criminality, billions of US dollars have been stolen or lost in Ecuador. But never mind this sayeth the US Embassy in Quito as its own employees have been busily telling any idiot who even speaks to these untrained fools that all of Correa's thefts are justified because he must ruin Ecuador's oligarchy and must enshrine the Cuban [and now Iranian] model of criminality to "help the poor." This irresponsible and professionally incompetent performance by the U.S. Department of State and the National Security Council of the White House has cost a lot of money for Americans who never got one iota of honest reporting or analysis out of the USA team. Instead they got lies and whole reams of dishonest reports paid for by the US taxpayers which has ended up co-enabling the defrauding of Americans through the specious and vapid paid reports by such political hacks at the International Crisis Group and from Senator Schumer cum Lugar's own baby boy such as the incompetent staffer named Carl Meacham who has been aiding and abetting Ecuador's conversion, with Congressman McGovern, into a FARC protectorate zone. If you still do not believe us, reread Meacham's own gushing and vapid support of Ecuador's FARC protectorate plans from last Spring. But these US AID contractors are beyond caveat emptor in a lawless place like Correa's Ecuador where rule of law is banished. These activists seriously believe that the truth about Ecuador must be hidden and jiggered while they refuse to tell the truth. This has cost that Embassy an entire shut down of what is left in its miniscule credibility. Although locals still pant and dream about being invited to the be all, end all US Embassy cocktail parties, no one seriously takes the Embassy team for any value because they have none. Well remembered are the years of Embassy reports that Ecuador is fabulous- still on line with no factual updates- and is structurally legitimate when in fact Ecuador is a non democratic dictatorship and was stealing from Americans and stealing from investors...and not one word in warning or in support of the victims. No indeed- that US Embassy helped Correa drive the get away car after looting the bank. Today that Embassy seriously believes that Hillary and Obama will pour more money in to their co enabling plans to build a Cuban cartel in Quito. Just ask the permanent offices of the Carter Center, run by a dishonest Allende acolyte and Chavez election of 2004 vote rigging expertise whose office is in Quito and you will get, as his official reports show, a whole string of lies about Ecuador. These people should be fired for profligacy and for lying to the United States while abetting Correa's crime spree.
 
If the USA really supported its own citizens, it would cease funding the Correa fan club and FARC enabling club operating inside its Quito embassy. It could instead hand over its more than $ 50 million in US AID contracts for more Quito propaganda instead to Occidental because Correa will never pay OXY what he owes then. Correa has yet to hand Duke Energy his out of court settlement cheque either. So instead of wasting more money to lie about the fabulous Correa to Americans, the USA could actually help repay Americans for what it did to sell Correa's crime spree. A novel approach which we doubt that Hillary will approve but it could have an effect.
 
The almost one billion in new bonds from Correa's bond market machine has been foisted on to Ecuador's pension system so that Correa might have some cash for next year. Correa's cash needs are huge. Correa has been illegally spending like a drunken sailor on US law firms- some of whom he refuses now to pay, on his propaganda efforts to lie a lot to Wall Street and the government of the United States plus the people of Ecuador, and to pay his re election campaign bribes, also called luring local businessmen in to his traps as well as direct state hand outs, also called election bribery and extortion. Indeed, Correa domestically does nothing more than run extortion rackets. The Inter American Development Bank would do well to never give this criminal cartel one more penny without an independent forensic audit of Ecuador. We will be watching.

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By JEANNETH VALDIVIESO | Associated Press Writer
2:19 PM CST, December 25, 2008
QUITO, Ecuador (AP) — Fresh from a $30.6 million default, Ecuador's government has issued $700 million in new bonds to help finance next year's budget, local media reported Thursday.

The Ecuadorean Social Security Institute bought all the new bonds, in line with regulations that require it to invest half its funds in government debt, according to the Guayaquil newspapers El Universo and Expreso.

Telephone and e-mail messages left with the institute, the Finance Ministry and the Quito exchange where the bonds were reportedly sold were not returned Thursday, when offices were closed for the Christmas holiday.

The institute, known as the IESS, bought $350 million of six-year bonds with an annual interest rate of 6.5 percent, and $350 million more in seven-year bonds at a 6.75 percent interest rate, the newspapers said.

Ecuador faces a rising budget deficit, falling oil income and limited access to international credit markets following President Rafael Correa's decision Dec. 12 to forego a $30.6 million interest payment due on $510 million in debt. The move soured international investors, many of whom now see the IESS as the government's captive lender of last resort.

"This isn't the first time that the IESS is buying government bonds, and it won't be the last," institute chief Ramiro Gonzalez noted in a recent statement. Government bond issues "have never been bad for the institution," he said.

Ecuador's government is late on 40 percent of the pension payments it is required to make to the fund on behalf of public employees.

While Congress has yet to approve Ecuador's 2009 budget, a draft submitted in September sought $15 billion in spending and included a $2.5 billion deficit. It assumed $85 a barrel prices for Ecuadorean crude, the country's top export, but oil prices have since tanked, cutting off a main source of public income.

To finance the budget, Correa has said Ecuador is seeking new loans from the Washington D.C.-based Inter-American Development Bank and the Caracas-based Andean Development Fund.

On Tuesday, he said his government would issue new bonds to finance road works and other unspecified investment projects, but gave no other details.

A public audit last month recommended that Ecuador default on bonds due in 2012, 2015 and 2030, whose contracts auditors called "illegitimate, corrupt and illegal." Those bonds together represent about 40 percent of Ecuador's $10 billion in foreign debt.

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And while you are wondering why Ecuador's oil assets are in such impossibly corrupt shape under Correa- to the point of non production almost, consider this from RIG ZONE:

Inpex Nabs Interest in Ecuadorian Block 18     
  Inpex      Friday, December 26, 2008        RIG ZONE 

Inpex is pleased to announce that its wholly owned subsidiary Teikoku Oil Ecuador (TOE) has been granted approval by the Ecuadorian authority and reached a final agreement with Petrobras Energia S.A. to acquire a 40% participating interest of Block 18 from EcuadorTLC S.A., a wholly owned subsidiary of Petrobras Energia.

The block is located in Oriente Basin, the eastern part of Ecuador, which covers an area of 1,138km2. After this acquisition, TOE will hold a 40% participating interest, leaving EcuadorTLC (operator) with a 30% participating interest, Cayman International Exploration Company S.A. with a 18% participating interest and Petromanabi with a 12% participating interest.

In Block 18, 30 thousand barrels of oil per day is currently being produced. Additional production is expected through the future development activities.

Inpex has been focusing upon Latin American countries as one of its international business core areas. Inpex have been involved in exploration, development and production activities in Brazil, Venezuela and Mexico. The acquisition of Block 18 will further expand Inpex's upstream activities in Latin America countries.
 
You will recall that Correa blasted PetroBras and denied its functions only to force PetroBras in to a shared deal with Indonesia's now Japan faced INPEX in partnership with Peter Romero and Heather Hodges preferred Newmont Gold Corporation, also called CAYMAN INTERNATIONAL EXPLORATION COMPANY, among numerous name-hiding front groups. You can read some of their hundreds of names here courtesy of the U.S. taxpayer or routine due diligence. 

You will recall and can study the FINANCIAL TIMES archives on this scam, the direct bribes taken by Peru's Montesinos in the Bill Clinton years to hand over Peru's vast gold mines in a jiggered claim against the French to Peter Romero's Newmont Gold pals while Hodges then in Lima blessed that unholy mess while still handing out a cool one million to the very dirty and currently jailed for life Montesinos from the Clinton team per year. As they say....this unholy alliance is baaaaccckkk and still running the U.S. Embassy's marketing offices for Romero and Soros's commodities and derivatives interests which is not commerce and is not legal and is not benefiting anything but the few, the murky and the self enriching.

-Pedro Camargo for ECrisis