May 6, 2009    It is impossible any longer to pretend that manipulating life is a great way to live. Ecuadorean government officials however are so addicted to their addictions and  co- enabling of addictions to manipulative living that they are actually afraid to abandon their thoughtless, immature and dishonest living credos, currently benefiting only liars and criminals. This has gotten one and all in to trouble.

Ecuadorean officials like this in their private lives- living with gay abandon bereft of any honor or integrity-free, gleefully. But no one with any legitimacy of purpose approves nor have any gifted Ecuadorean government officials with a Free Pass Card on veracity.
 
Here however is a seminal effort from an astute Ecuadorean on Correa's economic-financial-monetary scam with Chavez, Morales, the UN-IMF and the George Soros actors currently running roughshod across Hillary Clinton's State Department, the US Embassy in Quito and the U.S. Congress of Democrats, all funded by Soros:    Here This is a must read. the analysis warrants our praise. 
 
Besides, would you buy a used monetary policy from the thieving drug King Pin Chavez? Correa just did....and his entire cabinet of political hacks who are not, as they like to call themselves, technocrats but crass, hardened apparatchiks.
 
Correa's Ecuador is a cess pool of lies and half truths- far worse than any Petroecuador cess pool. Here are 2 book ends in analysis of Correa's One Way lies to the world at large and we call them One Way Lies because no one in Ecuador, whipped as one and all are, dares to dissent from Correa's one way monologue with all around him, as befitting every single tactic employed by manipulators every day, in the special drawing rights called extortion, here is the shameful Lazard Freres-Clifford Chance-Correa scam:
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Emerging Markets Economic Research
(CLEARED FOR EXTERNAL USE)
ECUADOR-Government Holds One-Way Conference Call With Bondholders and Invokes Economic Hardship to Restructure Debt

 Finance Ministry Viteri held today a one-way conference call with bondholders regarding the Modified Dutch Auction buyback offer for the defaulted 2012 and 2030 bonds launched on April 20, 2009. The offers'' minimum price is 30 cents per dollar of face value.

 The conference call provided little in terms of substance but brought to the fore the government's shifting position on the rationale for default. The initial justification for the default was anchored around the argument that-according to the evidence uncovered by the government appointed external debt audit commission-the bonds were "illegal and illegitimate". However, the government refused to submit the alleged evidence to the impartial review of a foreign court of law where the bondholders could also present their viewpoint. Subsequently, the government toned down the original "illegal" nature argument, highlighting just that the debt was "illegitimate" and as such rather than outright repudiation the debt needed to be restructured at a substantial haircut in order to cure the original source of illegitimacy. That is, in the original decision to default the government never appealed to economic capacity-to-pay reasons to justify the need for relief as the country was admittedly liquid and solvent. That is, the decision to default was imminently political, not economic.

 However, in today's conference call, while still highlighting the alleged "illegitimacy" traces found by the audit commission, the government based the rationale for defaulting more on the economic and financial hardship created by declining oil prices and the global economic and financial crisis. Furthermore, despite the outright default and lack of prior negotiation/consultation with bondholders before the offer was made, the government expressed the desire to maintain a constructive working relation with international capital markets.

 Finance Minister Viteri stated that the capacity to pay more than the 30 cents minimum offer for the defaulted bonds is quite limited, but the government has assets to buyback the debt and to meet debt service payment son the 2015s. The authorities clarified that they will not honor past due interest. Finally, Minister Viteri highlighted that the government has already taken steps to protect sovereign assets from eventual court rulings favoring holdouts.

 As the May 15 deadline to submit bids approaches there have been increasing reports of bondholders organizing to challenge the government decision to default and offer 30 cents on the Dollar (we understand that a group of bondholders has allegedly already officially requested the acceleration of the principal payments on the 2012s).

We highlight that when making the 30 cents cash-buyback offer the government did not present any macro/financial evidence/projections supporting the case that the country needs such a large 70% haircut on principal on the outstanding 2012 and 2030 bonds in order for the debt dynamics to be sustainable over the long run. This departs radically from the experience of previous sovereign debt restructuring cases. In fact, the record shows that government officials have on several instances actually defended the thesis of "preemptive debt default": i.e. default before it is needed as that maximizes the debtor's bargaining power vis-à-vis the creditors during the restructuring process. In reality, the government has just been stating in very loose terms that the aggressive haircut offer would remedy the source of "original illegitimacy/illegality" while adding today an economic-hardship capacity-to-pay angle. However, the economic hardship angle might be disputed as the public debt load is admittedly low in absolute terms and also when compared with other sovereigns, and the default was selective (only affecting two bond series: 2012 and 2030).

Disclosures applicable to research with respect to issuers, if any, mentioned herein, are available through your Goldman Sachs representative or at http://www.gs.com/research/hedge.html

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And more again here:
 
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  Goldman Sachs Global ECS Emerging Markets Research   
 
 
 Emerging Markets Daily Economic Comment: Brazil - Industrial Production Slows to 0.7% (mom, sa) in March – Dovish
May 6, 2009

 
ECUADOR

Government Holds One-Way Conference Call With Bondholders and Invokes Economic Hardship to Restructure Debt

Finance Ministry Viteri held today a one-way conference call with bondholders regarding the Modified Dutch Auction buyback offer for the defaulted 2012 and 2030 bonds launched on April 20, 2009. The offers’ minimum price is 30 cents per dollar of face value.

The conference call provided little in terms of substance but brought to the fore the government’s shifting position on the rationale for default. The initial justification for the default was anchored around the argument that—according to the evidence uncovered by the government appointed external debt audit commission—the bonds were “illegal and illegitimate”. However, the government refused to submit the alleged evidence to the impartial review of a foreign court of law where the bondholders could also present their viewpoint. Subsequently, the government toned down the original “illegal” nature argument, highlighting just that the debt was “illegitimate” and as such rather than outright repudiation the debt needed to be restructured at a substantial haircut in order to cure the original source of illegitimacy. That is, in the original decision to default the government never appealed to economic capacity-to-pay reasons to justify the need for relief as the country was admittedly liquid and solvent. That is, the decision to default was imminently political, not economic.

However, in today’s conference call, while still highlighting the alleged “illegitimacy” traces found by the audit commission, the government based the rationale for defaulting more on the economic and financial hardship created by declining oil prices, declining workers’ remittances, and the global economic and financial crisis. Furthermore, despite the outright default and lack of prior negotiation/consultation with bondholders before the offer was made, the government expressed the desire to maintain a constructive working relation with international capital markets.

Finance Minister Viteri stated that the capacity to pay more than the 30 cents minimum offer for the defaulted bonds is quite limited, but the government has assets to buyback the debt and to meet debt service payment son the 2015s. The authorities clarified that they will not honor past due interest arguing that bonds in the secondary market “are already trading flat of accrued interest.” Finally, Minister Viteri highlighted that the government has already taken steps to protect sovereign assets from eventual court rulings favoring holdouts.

As the May 15 deadline to submit bids approaches there have been increasing reports of bondholders organizing to challenge the government decision to default and offer 30 cents on the Dollar (we understand that a group of bondholders has allegedly already officially requested the acceleration of the principal payments on the 2012s).

We highlight that when making the 30 cents cash-buyback offer the government did not present any macro/financial evidence/projections supporting the case that the country needs such a large 70% haircut on principal on the outstanding 2012 and 2030 bonds in order for the debt dynamics to be sustainable over the long run. This departs radically from the experience of previous sovereign debt restructuring cases. In fact, the record shows that government officials have on several instances actually defended the thesis of “preemptive debt default”: i.e. default before it is needed as that maximizes the debtor’s bargaining power vis-à-vis the creditors during the restructuring process. In reality, the government has just been stating in very loose terms that the aggressive haircut offer would remedy the source of “original illegitimacy/illegality” while adding today an economic-hardship capacity-to-pay angle. However, the economic hardship angle might be disputed as the public debt load is admittedly low in absolute terms and also when compared with other sovereigns, and the default was selective (only affecting two bond series: 2012 and 2030).

CNE Delays Release of Official Results Until May 21

The National Electoral Council (CNE) is yet to release this week the final vote count of the April 26 general elections. Final official results are expected by May 21.

The official vote tally should confirm that President Correa won the election (52% of the vote) and will initiate a new 4-year term likely in August. Former President Gutiérrez is thought to have captured close to 30% of the vote; emerging as the key opposition figure to the Correa regime. President Correa’s victory, while clear, was far from the overwhelming endorsement sought by the President and is seen as short of a broad endorsement of the policy direction followed by the current administration.

There is still significant uncertainty on whether President Correa's political party—Alianza Pais—managed to capture an absolute majority of the seats in the 124-member new national Assembly.

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Here are more lies from the Correa-US Democratic Party against the incompetent Chevron Texaco which did nothing wrong except to pay a lot of money to incompetent lobbyists, external lawyers and ridiculous strategies to get their truths told. Chevron Texaco failed to assess the depravity of the opposition to truth telling and refused to factor how significant remains the Soros hate-selling juggernaut inside the USA, currently moving with gay abandon every time US House Speaker Pelosi gifts anti Chevron propagandists with US taxpayer CODELS. No- Chevron's problem is that they are stupid and have failed themselves. However, that does not exonerate the vast and dark crimes committed to bankrupt the inept and incompetent, winning- strategy-free Chevron.
 
There is now a so called  "blog by lawyers" to fight Chevron. We hope these lawyers have their licenses yanked for lying.... that is if they have licenses. Who is paying for all this? Where is the disclosure? And why does the propaganda machine spend so much time lying about the non interference in the Chevron case when everyone knows that Correa has interfered deeply and that not one judge stands long who is not one of Correa's extortionist malefactors of non-justice. This blogging report then is a fairy tale told by liars.-

Meanwhile, the team Obama is mad at Zapatero's Spain for not lying more....lying that Obama is not as much of a socialist as we all, including Zapatero, know him to be.

Seems Obama has some problems back home: he is out of the closet and is actually more to the Left of Zapatero, who is a functioning communist thug. It also seems that the largesse of Obama's infamy comes with strings attached: more and more demands for astroturffing and propaganda. Here is Zapatero's ad showing Obama as a socialist  and then here followed from Spain is the pathetic effort by team Obama to use Spain's socialists to sell the USA on the idea that Obama is not what he is.

Meanwhile, Obama's own AG Holder is co enabling Zapatero's pet Soros activist in Spain, judge Baltasar Garzon to ramp up his attacks again to bring false charges against actors from the Bush Administration. Correa's propagandists and Correa's lobbyists, many of whom are co mingled and co paid by George Soros in his hate campaign against Bush officials, are helping attack one of the six: chief counsel for Chevron whom they delight in lying about, calling him a war criminal when he never was nor will be. What does Chevron ridiculously do to defend themselves against Soros and Correa-Obama? They stupidly hire Clintonista Mickey Kantor to counter the Pelosi-Obama-Soros machine of dysfunctional  and dishonest activities. Pathetic.

Here again is a Soros man Weisbrot  wearing an "official" US AID cap [who gave that to him-? US Embassy tourists enabling these adventurers?] happily enjoying the beautiful Ecuadorean topography [ which they also call destroyed- does this look destroyed to you?] with Donziger and US Congressman McGovern, all gifted by Nancy Pelosi's illegal use of US taxpayer monies to aid and abet liars to perforce a deal with Chevron [also called US Congressional graft and extortion crimes] to benefit their wallets, Correa's wallet and certainly not the common weal:

            McGovern Ecuador Delegation

   
   
Visit to Cofán indigenous community in Dureno, Sucumbíos, Ecuador, of Rep. Jim McGovern, November 10, 2008
 
We know who pays for their PR events [Nancy Pelosi's abuse of the US taxpayer] to hurt Chevron Texaco but none know who pays Obama's pal and lobbyist Donziger. He does not appear to be suffering. Where has he gotten his millions over the last 15 years? We assure you that it is not from the paltry nickles from "environmentalists" or their eco-tourism.

At least John Bolton tells the truth, - read it here: “Obama’s Prosecutions by Proxy”- unlike Chevron Texaco's ridiculous non efforts to defend innocent men and women, acting as if Chevron wants to bankrupt itself while appearing more concerned about its steady stream of paid supplicants. Chevron Texaco has no game plan.

We hope they will soon because they look like they are readying for death from assisted suicide.Suicide is still not a good idea, no matter how much Soros spends to sell assisted suicide and help craft harm to truth tellers. We say: buy life and buy good living and never surrender the truths. It seems Bolton agrees, too. Chevron Texaco would do well always and everywhere to adopt functional truth telling. Trying to out manipulate manipulative liars from Ecuador and co enabling Ecuador's juggernaut of paid liars in Washington, DC will cost them not only their truths but their.....sacred honor as well as their corporation.

Like Bolton, Chevron Texaco fails itself when it fails to know how much Correa-Donziger's machine is fighting them....by proxy and not on the merits.Prosecutions by proxy are still...prosecutions.And lies by proxy are still....lies. We can only hope that Chevron Texaco finds its self evident truths which will never ever be found in acquiescing to manipulative gamesmanship.

-Pedro Camargo for ECrisis