Perpetual Debt Slavery
Ecuador’s plan to create “bitcoin-like money” is misleading, insofar as bitcoin’s model as money, like gold’s model, is its supposed scarcity in supply, while any money created by government is far more likely to become infinite in both supply and debt to be retired in taxation.
Also consider that Ecuador is not alone in the monetary policy move into digital cashless society… ~Ron
Bitcoin-Like Money Is Ecuador’s Latest Dollar-Saving Plan
By Nathan Gill Bloomberg News Tuesday, August 5, 2014
QUITO, Ecuador — After mortgaging most of Ecuador’s oil and gold to finance spending, President Rafael Correa is planning to create virtual money to pay the nation’s bills.
Congress last month approved legislation to start a digital currency for use alongside the U.S. dollar, the official tender in Ecuador. Once signed into law, the country will begin using the as-yet-unnamed currency as soon as October. A monetary authority will be established to regulate the money, which will be backed by “liquid assets.”
Less than six years after repudiating $3.2 billion of its dollar-denominated debt, Ecuador has dwindling oil reserves, with current-account deficits that are draining dollars from the economy and financing needs at a record. While using virtual money to pay government workers and contractors would help conserve hard cash, the currency may prompt Correa to boost spending even more and undermine the nation’s ability to repay long-term bonds, according to Landesbank Berlin Investments.
“This is usually the start of debasement, inflation, and depreciation,” Lutz Roehmeyer, who helps manage about $1.1 billion of emerging-market assets at Landesbank Berlin, including Ecuadorean debt, said in a telephone interview. […]
Read More: bloomberg.com
RELATED:
https://ronmamita.wordpress.com/2014/06/20/another-devious-plan-by-bankers/
https://ronmamita.wordpress.com/2013/11/28/hidden-agendas-forced-to-use-digital-currency-but-wait-crypto-currencies-are-good-right/
https://ronmamita.wordpress.com/2014/07/24/banksters-another-round-of-social-engineering/
https://ronmamita.wordpress.com/2014/03/16/economic-reset-a-glimpse-of-part-of-the-plan/
https://ronmamita.wordpress.com/2013/12/11/more-about-bitcoins-and-manipulation/
https://ronmamita.wordpress.com/2013/12/05/more-bad-news-for-bitcoins/
https://ronmamita.wordpress.com/2013/11/19/do-the-feds-love-bitcoin/
https://ronmamita.wordpress.com/2013/05/16/the-multipurpose-biometric-national-identity-smart-card/
________________________________________________________
Want Worldwide PEACE and Prosperity. We are the solution we have been searching for... Free People on Earth will solve our crisis and create an era of Creativity. Be Aware; Be Creative; Be Active; Be Free; and then Share it. LOVE & Wholeness AMOR y Paz
Portugal Announces $6.6 Billion Banco Espirito Santo Rescue
Joao Lima and Anabela ReisAug 04, 2014 5:09 am ET
(Updates with investor comment in fourth paragraph.)
Aug. 4 (Bloomberg) — Portugal’s central bank took control of Banco Espirito Santo SA, once the country’s largest lender by market value, in a 4.9 billion-euro ($6.6 billion) bailout that will leave junior bondholders with losses.
The Bank of Portugal’s Resolution Fund will move Banco Espirito Santo’s deposit-taking operations and most of its assets to a new company, Novo Banco, which it will own outright. The fund will finance the rescue with a Treasury loan to be repaid by Novo Banco’s eventual sale. Subordinated debt plunged today as junior bondholders and shareholders will be left with the most “problematic” assets, including loans to other parts of the Espirito Santo Group and the lender’s stake in its Angolan operation, the central bank said yesterday.
Banco Espirito Santo, which tapped shareholders for funds less than two months ago, has been forced to take public money after regulators uncovered potential losses on loans to other companies tied to Portugal’s Espirito Santo family. Bank of Portugal Governor Carlos Costa had sought to find private investors to inject cash, and said government funds would only be a last resort. The Portuguese government has about 6.4 billion euros remaining from its European Union-led bailout in 2011 to fund the injection.
“I was very surprised that they went down the route of a state bailout so quickly,” said Lutz Roehmeyer, who helps manage 10 billion euros including senior bonds of Banco Espirito Santo at Landesbank Berlin Investment. “That suggests that the bank’s situation was much worse than described.”
Bailing in “is the route the EU will take from now on,” he said.
‘Full Contribution’
The bank’s 750 million euros of 7.125 percent subordinated bonds fell 15.3 cents on the euro to 20.5 cents to yield 40.7 percent at 10:07 a.m. in Lisbon, according to data compiled by Bloomberg. Its senior, unsecured 4 percent notes surged 10.8 cents to 99.8 cents on the euro, to yield 4.06 percent.
“Shareholders, subordinated debt holders, as well as board members or former board members directly involved in the more recent events, and not the taxpayers, will be called to shoulder the losses incurred by a banking business they failed to adequately oversee,” the Finance Ministry said in a statement. […]
Read More:
http://washpost.bloomberg.com/Story?docId=1376-N9QQ7P6KLVR801-5JHUQ9V1B4OBIF9E3DJT2FANO1
LikeLike
SILVER: the biggest trading anomaly of all
James C. McShirley August 23rd, 2014
Market analyst and GATA consultant James McShirley calls attention today to the almost constant knockdown of the silver futures price upon the 6 p.m. Eastern time opening of the access market.
McShirley writes: “Virtually every evening for the last three years at precisely 6 p.m. ET something very odd has happened: Comex silver offers swamped the bids to the tune of a 3-10 cent decline. For this to happen for three consecutive weeks would be strange. If it were to happen for three straight months it would be bizarre. Only MOAMOPE — Mother of All Management of Perspective Economics — can describe when it occurs for three straight years. …
“Silver has had a near-iron clamp imposed on it commencing with the access trade reopen. How severe is this iron clamp? From September 1, 2011, to the present, 621 out of the 744 6 p.m. access trade opens have been lower. All manipulation denialists take note: That’s an astounding 83.5 percent.”
“I was stunned to stumble on to the biggest trading anomaly of all: the MOAMOPE – the mother of all management of perspective economics.
MOAMOPE is quite simply the stunningly high percentage of lower opens on the 6:00 PM silver access trade open. Perhaps some have noticed the oddity in the form of a Kitco 3 day chart.”
Read more: http://news.goldseek.com/GoldSeek/1408983846.php
LikeLike