Saturday, December 13, 2008

IF ONLY EVERYONE WOULD DO WHAT ECUADOR IS DOING...

...and "default" on their "debts," the bankers would be powerless. Correa has a good slogan: "Life before debt." Here's the story:

" GUAYAQUIL, Ecuador, Dec 12 (Reuters) - President Rafael Correa declared a default on Ecuador's foreign sovereign bonds on Friday, vowing to fight "monster" debt-holders in court in one of most aggressive moves against investors in the region for years.

Ecuador's dollar-denominated debt prices plunged on news of its second default in a decade and the first in Latin America since Argentina in 2002, although the decision was not expected to lead to similar moves around the region.

Correa, a U.S.-trained economist and ally of Venezuela's anti-U.S. President Hugo Chavez, refused to make a $31 million interest payment due on Monday on 2012 global bonds, saying the debt was contracted illegally by a previous administration.

"I gave the order not to pay the interest and to go into default," Correa said. "We know very well who we are up against -- real monsters.""


Correa is right--these "creditors" are monsters. Interest is nothing short of robbery, especially when it's supposed to be paid on fake money, which is what this "debt" is.

1 comment:

Mark O'Neil said...

Hey Clinton,

When our nation was founded the founding fathers of the United States because of their Christian beliefs frowned upon usury and put strict limits upon it.

Here is a website that gives a very brief history of usury. Some people don't believe in charging any interest at all, but I believe 10% should be the maximum amount allowed...and also I believe 10% should be the maximum amount for taxation too.