March 24, 2009   ECrisis leads off again today with a superb analysis on Latin- USA: "Global deleveraging is the main problem.....the distressed asset mess is still undermining the lending capacity of financial institutions. There is no small irony in the fact that the socialist president of Brazil is now smarting from too much government intervention in the U.S. Had financial institutions been told months ago that rescue is not an option, things would be different. Instead of waiting for the Treasury, they might have begun deconstructing bundled assets to figure out their worth and how to raise new capital. Allowing illiquid assets to be priced using cash-flow analysis for regulatory purposes months ago would have helped too. The government could even have acted as lender of last resort, with stipulations on dividends until the loans were repurchased. None of that happened, and now the Federal Reserve is being instructed to paper over the problems. In the process it risks crashing the dollar. That may boost the prices of Brazil's commodity exports, at least in nominal terms, but it's not a recipe for restoring to health the economy that Mr. da Silva says is so necessary to global growth."
 
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ECrisis reminds that nations that live by hedging, suffer from hedging. If you do not know what your government is doing, you need to exercise your "human right" to know what they are doing. Indeed, the media today raised again the story that Correa is a liar and has already warehoused a brand new currency for after his April elections. This is not the first time this story has surfaced of late. As anyone who has a brain knows, Correa has bankrupted Ecuador and desperately wants more money to finalize his total power ploys.

On several occasions, we have heard a variant on Correa's currency fraud, ranging from Correa's claim that he will install a new e-currency to his support for a regional currency like a new BOLIVAR. Some say Correa will install a new Ecuadorean currency either called "the condor" or the "alfaro." Most opine that the new money is warehoused in military facilities at Latacunga. Now that this has been openly reviewed in the media, it is time for Correa to come clean and permit full transparent facts about his currency gambits. Some say the new funny money was printed in Caracas and some say it was printed in Iraq and flown by military transport to Latacunga through Chile. It is time for North and South Americans to know what Correa is doing. No amount of ridiculous comparisons to convertibility will make any new currency regime by these Andean communists legitimate. This may be good news for off the books currency speculators and paying off debts with fake money but it is not good for regional stability or domestic tranquility.

-Pedro Camargo for ECrisis