March 22, 2009  Democracies are not democracies when they are opaque, off the books, stumble around unregulated while cynically  bending all the rules at the edges, unknown-unreported and untaxed. Hedging and derivatives bets are off the books, opaque, untaxed, unreported, unregulated and have destroyed what remains of what is called Wall Street, replacing true banking with off shore speculative cartels, almost entirely protected by the U.S. Democrats. We at ECrisis have often said that we care nothing for the stupidity of lazy, arrogant fools who like to spend their money in such wide-eyed betting pools for they are fools, easily duped. But when public monies are involved and incestuously bring down whole economies of scale, we cry foul. We also cry for prosecution of these cartel racket mavens. We have urged a full review of the Bill Clinton-Soros-Bob Rubin authored White House Working Group on Hedge Funds and Derivatives of 1997-98 which heralded full protections for these cartels of greed and malfeasance rackets. These are not banking practices- these are cartel speculating rackets. The banks who have played by the rules and which have not acted as hedge funds are doing just fine, thank you very much. The nations which have not acted like irresponsible stewards with tax dollars, such as Ecuador and Venezuela who have massive hedge and derivatives- along with bond market malfeasance- are in big trouble and look like failed banks, for they are.  While Hugo Chavez and Rafael Correa are still spending like drunks to amass more personal political powers, stealing from the Central Bank and combining with FARC and Iranian dirty pay offs for more campaign slush funds, and are planning to run more funny money, the Inter American Development Bank [IDB]  is being pressured by more idiotic cartel planners to gift-out even more unsecured loans to failed nations to make the IDB appear as if it has a clue how to regain payments on loans it makes. In other words, because the IDB invested its own money- money mostly gifted by the U.S. taxpayer to the bank on high risk speculative gambles with the U.S. Democratic Party's pet cartel crime bosses called CountryWide Mortgage- now called bankrupt and costing tens of billions to the USA and now owned by Wachovia, which bankrupted Wachovia which is now the Bank of America, the IDB has plenty to answer for. Primary among many questions is exactly WHO from the U.S. Democrats pressured the IDB to buy in to CountryWide's scam and why did the IDB think that they looked like mature, responsible stewards of fiscal responsibility by playing with these betting tools? And why do they deserve to be bailed out?

Here is how Goldman Sachs explains what happened....to bring about the collapse of global capitol. Recall too that just as in Venezuela and Ecuador- repeated so many times by the ridiculously incompetent Greek chorus of U.S. Embassy staffers in Quito that we cannot even recall their foolishness under then amb. Linda Jewell without wincing at their primal stupidity, that Correa and Chavez needs-must exist - like their off the books illegal mismanagement of all state funds- because, as they told us over and over: this "helps the poor." Crime without punishment never helps the poor. Communism never helps the poor. We are happy that for the most part Jewell's minions of communism are gone but their replacement team is every bit as stupid and currently corrupted by the lullaby of cartel communism which they still sing. To be sure, in the USA president Obama is still popular while his entire Democratic Party team of US governmental employees- over 95% all Soros men and women pledged to Soros and not to the US laws and its constitution, have enjoined this cartel cover up and will potentially be removed from office for their malfeasance which has cost the USA trillions on lost money- money paid to untaxed, unregulated, off the books and  off shore derivatives or risk traders. We know. We know. You read this and say- huh? Who cares? Those stupid North Americans deserve to be brought low for their greed and malfeasance while protected by the Barack Hussein Obama administration which neither plans to prosecute nor investigate these Soros-style hedging cartels by previous promises to Obama's campaign managers, called the Soros style hedging cartels who actually do own the U.S. Democratic Party and the thousands of paid foot soldiers called their propagandists, also called NGOs of and by Soros, whose own work does not amount to a hill of beans, just as Goldman Sachs's explanations of their cartel acts do not amount to a hill of beans.

Ecuador is already a lot worse off under Correa than ever before. Correa knows that the one thing that gifts Ecuador with a baseline of stability is nothing he has done but something that others have done: the gift of the use of the U.S. dollar. This is astonishingly popular. But Correa hates dollarization and wants to be able to run up inflation again. This is a secondary tax on the citizens. While this helps Correa and his inner group of currency speculators make untaxed, unregulated offshore money from currency bets and bond market bets, you in fact are the fools for loving Correa while he bets against your stability and your future.

Impossible, you say. Correa loves me and loves Ecuador. To this we say: no he does not. Ecuadoreans are nothing but fools to Correa, so easily seduced and so easily manipulated because all Ecuadoreans consider themselves estimable because they are so easily misled. This is not a virtue.. Ecuadorians are nothing but pawns to be used and abused for Correa's money making bets. Correa knows that Ecuadoreans will not re elect him if he destroys the very popular stabilizing use of the U.S. dollar, their last link to a civilized world. Correa is anxious and willing to bet against Ecuador's future with a new currency.

Walter Spurrier writes about the hard rumor we have heard that Correa has flown in, possibly through the military base at Latacunga, a warehouse full of newly printed currency bills from Chavez's machines, to be called the Alfaros. Spurrier claims that Correa will run a dual currency- his Alfaros and the US dollar. What did the Ecuadorean military know about these clandestine shipments from Caracas....and when? Of course the USA will have to cancel dollarization because Correa cannot make his seniorage while applying his fake funny monopoly money in a dual track. which Spurrier seems to stupidly support and gloss over as if benign. But Correa knows this  even as he looks and looks for ways to blame the USA for canceling dollarization, which it will have to do because the U.S. dollar is not to be speculated in this way by Andean currency speculators who also launder Iranian money and sustain FARC banks as Rafael Correa, a drug king pin, does.

What we know is that the U.S. Democrats love Rafael Correa due to his high level of propaganda and sworn lies before the U.S. Congress, also called illegal. Congressman Engel [D-New Jersey]  has ordered Hands Off! Ecuador. Engel is now responsible for criminal malfeasance in denying the facts about Ecuadorean financial crimes. This is not negligence but willful, craven culpability which the U.S. Democrats- in bed with George Soros- do not need. Soros may enjoy embracing ambassador Gallegos along with Chavez's minions in the USA but there is nothing- not one thing- honest or redeemable in that embrace.  Congressman Delahunt [ D-Massachusetts] may enjoy embracing Chavez in Caracas but essential transparency and legitimacy is still missing in action for these cartel actors.

If Western Civilization is to be brought down by cheap men in cheap business suits running cartels, it is time to know what it is you are up against. It is also time to stand united against these cartels. Is this how you want your days to end? We do not think so. But you need to think about this. Correa's crowded field of idiots want to tell us that Capitalism does not work in Ecuador. This is a lie. What never worked over the last 40 years in Ecuador is notably seen in its failure to self police and self regulate. Regulations failed because they were not effective nor the right kind. But that is not the fault of capitalism or democracy. No indeed it is the failure of the self enriching governmental functionaries- elected or unionized- to cease their self enrichment schemes, called statism. Capitalism has always had its twin pillars roped, with its hands tied behind its back by special interests in Quito with the attendant malaise of an utterly uncaring and lazy rejection of daily charity and compassion, essential to human dignity and Christian values but never ever in play from Quito. Truly the system did not work because no one wanted it to work. Today, the worst has come to pass and all around are the vestiges of Correa's communist cartel. This is what lazy irresponsibility gets one: Correa.

One British writer recently said of the "global economic panic" that it is "A jamboree for a megalomaniac - who thrives on a self-made crisis he will exacerbate not resolve. "

The rumor that Correa has bought new printed money from Chavez's currency printing machines and has these illegal bills stacked and stashed in a military warehouse, just waiting for his triumphal and already fraud filled election this April, reveals a story much bigger than the vapid Ecuadorean economists fathom. What you have here is a failure to be legitimate. Correa is making money from illegal currency bets and he has the wherewithal to scam one and all. This is illegal and demands for his removal should be on the table publicly.

While it may not be illegal to end dollarization, it is illegal to bet the hidden prepared currency and moreover, it is illegal to claim that all contracts will be paid. Correa plans to pay with his new funny money and leave the US dollar for money laundering- for his cartel fees.

Like all Ecuadoreans who seriously believe that life can be manipulated, Correa believes he can manipulate Ecuador's finances. Like all Ecuadorean marriages, Correa believes that by inserting and living with the false face of a happy legitimacy where none honestly exists, he can trick the world even as he steals and steals, repaying randomly with his new fake gifts. Happy legitimacy could exist in Ecuador but  apparently no one- no one at all- wants legitimacy, integrity or honor. What Ecuadoreans want is to press ever onward- scamming the world and lying to themselves. Like Ecuadorean marriages that are in name only- with nothing real or functional about them, Correa's new fake ALFAROS money will be absurdly dishonest. It is fitting that Correa's latest scam will honor this dishonest communist-Marxist scam artist named Alfaro. For his part, Spurrier is so vapid that he wafts away in his discourse of Correa's new fake money with reference to Argentina's convertibility, as if. As if all this manipulation of financial accountability can be....manipulated away. Convertibility in Ecuador's finances is a chimera- a ploy. There is nothing to convert, unless one converts evil to even more evil. That is not the convertibility needed to clean up Ecuador.

The false face of legitimacy from dollarization will not mask the utterly devolved and debased internal malaise of the manipulative.

-Pedro Camargo for ECrisis