Ecuador Coup

Could be the good guys are back in control and stability will soon return or maybe the crowd won and Ecuador will continue to slide. Ona Y2K scale this could be a ... "10" for the Ecuadorans.

-- Bill P (porterwn@one.net), January 22, 2000

Answers

?Csmo el coup en Ecuador se relaciona remotamente con y2k? Perdsneme por favor, pero no entiendo la conexisn.

-- Butt Nugget (catsbutt@umailme.com), January 22, 2000.

This is the third recent major default.

This does not bode well for the US dollar (the "debt" will never be repaid) - and sets a precedent for other LA countries on the brink. And there are a few.

-- Andy (2000EOD@prodigy.net), January 22, 2000.

PS

Those Ecuadoreans with GOLD are safe.

Those without have lost everything...

-- Andy (2000EOD@prodigy.net), January 22, 2000.

Seems now that the former VP esta El Presidente, the plan is to use the Yanqui dollar as the official currency. Hmmmm. (Except maybe for the former Canal Zone, is this unprecedented; a non-dependent non-US "possession" using our own gringo funnymoney as OFFICIAL currency?). Since our scrip is backed by nothing but desperate and overextended "confidence", one can only imagine that theirs was/is below the Weimar standard of excellence. The indigenous & rural population is said to be against the plan to use the dollar, as it would only worsen their economic situation. ABC "News" didn't say how, can anyone else elaborate on that? At any rate, Andy, you're right, a person couldn't ask for a better illustration of why to buy and go long with gold. If it ever happens here, the IMF can't bail us out. We support THEM; they can't aid US, without the Fed and IRS fleecing US, the IMF would be less than a fart in the wind: their influence if THIS mother of all bubbles bursts will be nada. Who will then make sense out of OUR chaos? May be no solutions for awhile but local and personal ones. And the precious metals would/will shine in that role, carefully played. Is such a scenario inevitable? I don't know, but I'll hold on to mine. Or alternatively, we can chase after fiat scrip like Ecuador's or America's. Are they that different? Been lurking longtime, thought I'd better join in before the board atrophies, which I hope it doesn't. Y2k rollover may be over, but lotsa important issues coming through threads now that make this site at least as important as ever, especially with the dearth of in-depth reporting most anywhere else.

-- Ben Corson (bcorson@dmi.net), January 23, 2000.

Howdy Ben,
Look forward to seeing your posts. Welcome to the community.



-- Possible Impact (posim@hotmail.com), January 23, 2000.

Ecuador is only one of several Latin/South American countries talking about converting to US dollars. Argentina is also looking into it, and apparently the dollar is the de facto currency of both Venzuela and Panama (even w/o the Canal Zone), according to several news articles I saw last autumn. The Philippines is in the same situation -- it has its own currency, but American dollars are the medium of choice. Didn't Andy or someone else recently comment on the amount of American currency that is outside the USA versus inside?

-- Cash (cash@andcarry.com), January 23, 2000.