February 18, 2009  While the media from Ecuador is doing what it generally does best- misses the big story and fails its audience to provide essential facts, what we do know is that Ecuadoreans have been deeply involved with offshore hedge and derivatives fund bets- off the books, high risk, untaxed and unregulated arbitrage which concurrently shorts and can leverage its own bets up to 40 xxx the original bet. This is a disastrous turn of events for many so called investors who knowingly put their money in to the hands of hidden, dark money managers whose capacity to deliver excessively leveraged real life bets for or against any thing moves markets and at times makes huge profits while other times is exposed for the ruinous betting pool that it is. Why is it do you think that Soros is busy marketing his special hedge and derivatives skills to stupid nations such as Ecuador by concurrently seducing all idiots with his special brand of non reporting, non ethical programs such as paying for abortions, suicides and immorality? It is a marketing tool, now illegally co funded by US AID through many US embassies on the fake scam that selling anti democracy and anti law and order is better than standing firmly for law and order. This is not healthy. Make no mistake- most all offshore so called market bets co mingle with each other. And we also know that almost all offshore hedge and derivatives efforts concurrently co fund wild eyed uber Hate the USA political efforts along with Hate the Jews and pay for abortion, pay for socialism and pay for labor union advantages to jigger life's morals and life's menus. We seriously question the bifurcated activities of these money to the social re-engineering efforts while profiting from the stupidity of the ridiculously incompetent hedge and derivatives money betters who, as with the government of Ecuador, hold no verifiable due diligence on what happens to their money and knowingly add to the gluttony enhancing stupidity of ruining markets, currencies and companies by these ruinous speculative devices practiced by Rafael Correa himself and Hugo Chavez.....and what is left of anyone with a semblance of real cash. If we call these movements as disgusting it is because today these idiots who play globally with disgusting and immoral persons to try to game all systems now complain when whole nations and funds are bankrupted because they sell risk and never verifiable real life, identifiable items. Here is a story of another offshore, unregulated, untaxed hedge and derivatives fund which mirrors the Madoff Fund and like the Madoff fund- and so many others, was shorted by another derivatives fund, leaving Ecuadoreans to wonder what happened... Read it here.
 
We at ECrisis grasp the concept that the U.S. Securities Exchange Commission, a transparent and legitimate US federal regulatory entity has no corresponding entity in the Andes because no one in the Andes wants to take the time or the trouble to seriously withhold normative law and order and prefer instead to lazily and irresponsibly defer law and order to the USA which they ridiculously believe has magical powers to keep paying, by the US taxpayer, for its laws and regulations so that all Ecuadoreans can pretend that they do not have to have laws and regulations. But the US SEC does not oversee offshore, unregulated and untaxed hedge and derivatives operations since the 1997-98 Clinton White House Working Group on Hedge Funds and Derivatives: you can study this escape artists' hat trick openly. And know that anyone who puts his or her money in to some hedge fund out of Caracas to bet against global petroleum and US stocks is committing himself to a fools' paradise. But the US SEC does have jurisdiction over certificates of deposit and reporting thereto. But when illicit hedging and derivatives bets co mingle with CDs, there is a cross over effect just as there is with bond market manipulators, also illegal.
 
Note the essential point of this story about Stanford's scam- their phony claim to have legal limits on deposit to meet their margin calls. Did you ask them for their full due diligence? Or are you, as BLOOMBERGS notes, simply milling around their fancy offices in Quito hoping to gather some crumb of hope that these illegal money managers in fact did something to return your money when they do not have to and you have been scammed with no way out? The government of Ecuador and Venezuela are scamming you also and you have no way out and no knowledge of what they do and where your money is or where it goes: welcome to the wonderful world of socialists to control your quality of life while hedge and derivative funds for the government manipulates what money remains. Ecuador is run exactly like a hedge fund and every time you vote for Correa, you put your values in to an unknown, offshore hedge fund cartel government. You do lose in this.
 
Have you noticed any in depth news coverage of where your money goes under Correa's criminal cartel and what your Central Bank has done? Of course not. You do not even ask. But the IMF and the IADB are asking and Correa refuses to permit even a base line due diligence. It is your nation and you should be asking the real questions about Correa's crime capitol and not lazily relying on the hyperactive media to do this for you because they are too busy running around and missing the real story just like a hypochondriac selling you and us a misleading story which, like all good manipulative Ecuadorean addicts, takes over as the story of the day when the tale is about as vapid and useless as all good hypochondriacs and distracts from the real story in order to manipulate and keep all good little Ecuadoreans retained as foolish, controlled idiots.
 
This tale from The Telegraph here is an example of what most of Ecuador's news reporting is like: vapid chickens running around selling prurient stories as poseurs at some vapid buffet substituting for a verifiable menu of facts.           
 
 Writing news stories of the world's longest ear hair is....not news. Neither is all state run media in Ecuador. It is dishonest garbage.
 
Also from India's HINDUSTAN TIMES comes this revealing statement that Correa hates the U.S. and bars normative law and order today, "

Four senior officers of Ecuador's national police are under investigation for unauthorised sharing of confidential security information with US diplomats, Interior Minister Gustavo Jalkh has said. In a press conference Monday, Jalkh identified the officers involved in the illegal practice as Major Eduardo Silva, Captain Guido Nuñez, Capt Jorge Antonio Adati and Capt. Francisco Saavedra, EFE reported on Tuesday.

The allegations against the cops came two weeks after President Rafael Correa expelled  Armando Astorga, the attaché of the US Homeland Security Department at the embassy in Quito, who had sent a letter to the national police terminating Washington's logistical support for the law enforcement agency."
 
Essential to understanding WHY the Correa criminal regime considers the gifting by the USA of sensitive intelligence equipment to help Ecuador with its law enforcement as under a standard USA contract which mandates that US employees simply not turn over, as was done in Peru in the 1990s, all intelligence equipment to criminal escapades to be used to provide more crime and mayhem, one also has to understand that Rafael Correa never met a contract or an adult or a law enforcement official he respected nor promoted. Correa is impossibly adolescent and has been well trained by his Mother, like all Ecuadoreans to hate the responsible and love the criminal....just like his own narcocartel Papa. Unless and until Ecuadoreans grow up and act as responsible adults, there will be idiots like Ecuador's own drug king pin Rafael Correa running around stealing from everyone and calling this...blessed.

Media coverage of anything can be entertaining but frankly, all media does best when it covers the facts and covers what is relevant- not just someone's ear hair. Ecuadorean media today is consumed with running around nervously and hyperactively to try to avoid the real story about Rafael Correa's Ecuador which is that this is a criminal cartel government with no rules and even less fact based reporting. Ecuadoreans deserve- and must demand better news coverage than prurient tales such as photos of a man's ear hair, which is about the level of in depth analysis coming out of Ecuador these days.
Here is the always polite and non-political Goldman Sachs review from 2-18-09 on the current bond high underway:
 
            "ECUADOR
Government Seeking Dialogue with Bondholders

The Ministry of Finance issued a communiqué signed by Finance Minister Viteri saying the government “wishes to engage in discussions with its private creditors with a view to find appropriate solutions to its Global Bonds 2012 and 2030.” In the letter the government states a “better understanding of the creditors’ views and expectations can help both parties to reach a suitable solution in forthcoming discussions” and the Ministry of Finance assisted by its legal and financial team wishes to better identify the 12s and 30s bondholders. As such, bondholders are invited to identify themselves with Lazard Frères at ecuador.bondholders@lazard.fr.

There is some speculation that this more constructive statement is probably the result of pressure by the multilateral lending agencies for the government to approach its bondholders in good faith and abandon the previous dogmatic rhetoric. Economic Policy Minister Borja stated the government could unveil a debt restructuring proposal in about a month.

In the meantime, Minister Viteri stated the government will use the 30-day grace period on the February 15 US$135 million coupon payment on the 2030s, but as in previous occasions it refused to explicitly state whether the government intends to default on the 30s after the end of the grace period. The market expectation is that the government will default on the 30s, given that the government has repeatedly stated that the 12s and 30s are equally illegitimate and illegal."

What is essential in this story is the basic notion that the government of Ecuador is broke and has been stealing from bond holders just as they steal from companies and families and you have no idea where that money goes. Further, Ecuadoreans today are so addicted to feeling normal in their incredulous stupidity and hyperactivity of vapidity that they forget to notice that all this running around - up and down- in and out on bond markets is nothing but bond market manipulation which illegally makes a lot of money for some seriously depraved money makers because in the meantime you- the Ecuadorean citizen- is known for what your government is: a determinedly incompetent and illegal bond market betting machine which gas rendered this nation a laughingstock of the world and a place where no one will invest and everyone runs away. It does not have to be this way. In fact you can today stop being a stupid, lazy and irresponsible Ecuadorean and grow up and demand better of yourself, your government, your schools and your family.

You can also ask that all Soros operatives depart your capitol or else fully disclose what in Sam Hill they are doing in Quito to lie a lot about the fabulous cartel of Correa while conveniently hedging for LuLa's government. Read here how the Soros Management Fund Increases Stakes in Petrobras, Potash

Another choice for Ecuadoreans is to request a cease and desist by Correa's cartel to stop funding more lies about CHEVRON TEXACO and stop paying propagandists and fake so called environmental lobbyists to lie some more about what the government of Ecuador is doing to steal over $25 billion and more from Chevron on false grounds. The so called Amazon Defense Coalition -another communist organization- spreads the lie.

ECrisis, by way of disclaimer, does not work with or for any of these entities here reported. We just review what is publicly available. And what is publicly available leads us to conclude that this government of Ecuador enjoined so called environmental damage law suit against Chevron-Texaco is specious and totally dishonest. Indeed, PetroEcuador's crimes and the crimes of the Correa regime are responsible for precisely what CHEVRON is being charged with by Correa and his corps of liars. It is a standard Ecuadorian operating tactic of manipulative lies. And oh- buy the way- where is that check for millions gifted to Ecuador by Texaco from the 1990s? Any guesses?

As for the Correa team selling this string of lies from the so called AMAZON DEFENSE COALITION through one of the US Democratic Party and Soros's preferred propagandists called Hinton Communications, also responsible for selling massive anti Jews propaganda, anti USA propaganda and HATE BUSH propaganda to further illicit risk escalation to profit the few and mislead the many lemmings, we see here again HINTON COMMUNICATIONS, which like Correa's other team of propagandists recently seen lying to the US Congress for Ecuador about its failed  fight to stem narcotics transfers, Hinton tells us that CHEVRON is a gang of liars because their lawyers are Republicans. And this they find a seminal sin.

What we do know in all this is that Hinton and Correa's team of cartel profligates and liars cannot help themselves in their addiction to hating truth tellers and selling propaganda with no data. This should give CHEVRON TEXACO a strong advantage, knowing well that this defunct strategy of selling hate, even employing numerous sellers of hatred from numerous hate campaigns, advances their so called legal claims against CHEVRON before Correa's kangaroo judge who is barely literate but does practice, by his own words, SHARIA Law. We suggest he start practicing normative legal ethics and throw this case out.

Practicing alternative ethics is like practicing alternative off the books finance and alternative law and order which  is precisely indicated in this new alternative democracy. This is not new and it is not democracy and it is definitely not helpful. Why do you lay down for this scam?

-Pedro Camargo for ECrisis