Ecuador Defaults!
Friday, December 12, 2008 21:16
Ecuadorean President Rafael Correa officially announced that he will not be making the interest payments on his foreign bonds. The country has officially defaulted on its debt obligations. This is the second Ecuadorian default in ten years.
“I have given the order that interest payments not be made,” Correa said. “The country is in default.”
Correa went on to say “I couldn’t allow the continued payment of a debt that by all measures is immoral and illegitimate,” Correa said. “It is now time to bring in justice and dignity.”
The move will undoubtedly send shock waves throughout the financial markets. Venezuela and Brazil will be the first to feel the pain. Both countries are heavily invested in Ecuador. A wave of global panic selling may begin as a result.
Raphael Correa is himself an economist with a PhD in economics from the University of Chicago. He’s expressed discontent with the extremely high cost of borrowing Ecuador faced even though the country has made timely payments on all of its obligations for the last 10 years.
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redpill8 says:
December 13th, 2008 at 10:09 am
Viva Ecuador! The people of the United States should be paying close attention to this. Debt incurred through deception and corruption is immoral, criminal and should not be honored. Through the manipulation of our financial system we in the United States are slatted to be debt slaves for multiple generations unless we default. Time to kick the Fed and their criminal debt-based, fiat money system out aqui.
Thanks Rafael for having a spine.
KingofthePaupers says:
December 14th, 2008 at 11:00 am
Jct: Chavez announced a Regional currency a few days ago so I think they do have a way of handling their accounts in the new currency if not the old.
See my articles on how Argentina went from the banking system closed down in 2001 and defaulting on foreign debt to having foreign debt all paid off 2 years early in 2006. Only I have reported on how they did that at my Argentina reports at http://youtube.com/kingofthepaupers
mike montagne's mathematically perfected economy says:
December 19th, 2008 at 3:12 pm
[...] Source: http://www.chartingstocks.net/2008/12/ecuador-defaults/ [...]