An add on to my prior post....
O/49er,
As for....
BTW, regarding US S&L $500 Bil. bailout debacle 2 which you refer:
It was a manufactured situation to re-assign if you will, this nations choicest real estate assets/portfolios to a wealthier class in this nation, and niftily accomplished by Fed Reserve sleight of hand...
But even then, there was something done about it and not forgotten, whereas in other countries is either "swept under the rug" in hopes people forget about it or simply left there to waste and rot.
Endless examples can be given of the absolute excesses in corruption.
I remember, for example, an uncle of mine relating an experience in the 50's where the government announced the completion of a great port facility in Guaymas in Sonora, (Mexico) Only to find out that the port itself did not have the capacity to handle large ships.....
Or during the Oil boom of the mid 70's, where for example, if you were the transport secretary and had the ability to grant highway contracts, many projects were executed in this fashion, you the secretary, had a nephew, (or a compadre), who had a construction company, your compadre would get the contract provided that the project would cost say, $15 Million (US), the distribution would go along the lines of $5 million to cover the cost of the highway, (or whatever project), then $ 5 million for the nephew, and then $ 5 Million for you the secretary.
These funds, would be conveniently directed through US and/or Swiss accounts (or whatever) and under either fictitious names or under various corporate and/or trusts, that would make it impossible to find out.
Back in the early 80's a Coffee Secretary was caught with a personal Swiss account with $500 million (US).... and like that, there are many examples... eventually the country is saddled with billions in debt, unproductive projects and assets, and it never ends.....
Meanwhile, thanks to a glorious Catholic tradition, the population keeps on growing.... (hardly any birth control and/or family planning), and usually the main portion of the growth is in the lower classes....
1950 total population in Mexico was 30 million, current population (1998) is estimated at around 98 million, And the rate of growth is about 2.5 % per year.... mostly poor and uneducated/unskilled...that is about 2.5 million new babies EVERY YEAR......
What does that mean ?
It means increased social needs that many feel they need to be covered... by the government. (I do not agree with this philosophy, but that does not mean it does not exist, indeed in the eyes of many DEMANDED)
Then along comes a superior moron such as Presidente Carlos Salinas de Gortari.... Including Harvard degree and all, (and many other cohorts with degrees from Yale, LSE, and the like .....
They enter the Power theatre and enshrine the benefits of the "free market".
People being tired of prior corruption buy in the program in good faith, including many gringos, who come in and invest heavily....
Only to have these Harvard morons steal and squander like Colonial Viceroys that leave Al Capone and Co. look like kinder-garten bullies, in fact many of the officials are the worst criminals.
Exhibit 2.
General¡simo Arturo "El Negro" Durazo Chief and absolute Supremo of the Mexican Police (his reign was from 1976 to 1982), was the mastermind of a huge car thieves ring.
They used to steal Mercedes, BMW, Porches, etc. etc. primarily in the LA area, and then import them into Mexico.
Back then to "import" a car you needed a "permit" which meant only if you were well connected in the government would you get one.
Eventually he was caught and spent some time in "el reclusorio norte" (in jail)...
Meanwhile, as it has happened, the level of theft and squandering resources is so great that leaves the country in bad shape, and while many do progress, the social needs are unresolved and left with little infrastructure to solve the problems, to boot, "Free Markets" (Latin American Style), suffers a bad name.....
Once again... Trust is the key word.
The move to a GOLD standard will do little to help this situation, because GOLD standard or not, these bastards will continue to do what they do.
They will continue to go to the IMF and ask for help, the bureaucrats will figure out a way to convince their respective flocks to continue "trusting them". And so long there are enough of them it will be hard to convince them otherwise.
What has happened, (or it is in the process of happening), is that the US is becoming the lender of last resort to the WORLD. (via the IMF).
In the Mexican bail out, most of the money was guaranteed by OIL RECEIPTS from PEMEX (the nationalized Oil Company). It appears that those monies have been returned or at least out of danger for now.
If we were to base currencies on GOLD, while the concept in principle, (i.e. gold is valuable scarce etc. etc. yielding respectability to what backs, i.e. the specific currency), the practicality of it does not sound so hot, particularly when these bureaucrats will continue to do their tricks, in some instances they have no choice, since as explained, the social needs are mounting rapidly.
Remember that this rampant growth is taking place not only in Lat Am, but throughout the third world.
How many people will have the education to enforce the discipline that it is needed to effectively carry out what the Gold Standard is supposed to achieve. Please understand that I am NOT totally opposed
to the GOLD STANDARD, I am simply doubtful that countries will be able to implement it.
Particularly when they have MOUNTAINS of the stuff, and social demands continually growing.
The so-called "Hot Money" seems to have instilled some fear, hence discipline in some head supremos around the world, and in this sense, I believe that Latin America is beginning to learn the lessons.
This imposed discipline is possible because the people that control the funds have NO FLAG to follow, other than Profit and self interest, (I view this as positives). Under this environment the best possible solution for the politician is to be honest and effective in their policies, so far not understood and/or practiced by many.
So what I am saying is that unless the world participants are willing to say, the Gold Standard is sound and we are willing to follow it, I see little chance of this happening.
Particularly under the practicalities demanded of today's fast paced world, where investors can and do shift billions of assets from country to country (the proverbial "Hot Money"), at the stroke of a computer key.
Today, the US Dollar (or assets denominated so), seem to have taken such a role, perhaps the world, mistakenly so, has decided that for now it is convenient to do so. Provided the trust of the majority deciding that (in spite of all known troubles of the US), this currency does offer some safety and convenience, at least compared to their own currency.
The above, to me it seems that it is the way things are working.
For a while it was perceived that $270 to $280 was the "floor" price of gold...... now such notion does not seem so, in fact I have read here that now $150 is a possible price ?. At the same time, I hear from some technicians that gold could rebound to a price of $350.
In my own opinion I tend to view gold as an industrial commodity under pressure as all commodities have been for a while, its rebound will depend more on the demand for the metal, (long term), and to a lesser strength, based on a possible technical rebound, (short term).
I confess I am not an expert on the subject, merely expressing my views, offering my side and eager to learn from better-trained individuals on the subject.
Finally as for Japan, and given the article I made reference to of the punitive taxation on capital assets, I view such, as the main reason for the impossibility of the Japanese assets to rebound.
I do not discount the comments made in reference to the need to reform and clean out the banking and insurance industries either.
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***** OT ******
Re: Translations:
gozarlo = enjoy it from verb "Gozar" to enjoy
trasquilan = shear them verb "Trasquilar" to shear
pelones = bald heads (plural) singular pel¢n (slang)
sal£ = cheers (slang), proper word "sal£d". It can also mean health.
centro = center (as "in the middle")
p dentro = contraction of the words para & adentro, so it is
pa'dentro, meaning: for (or toward) the inside (slang), this as you drink whatever beverage you have in your glass.
The mere fact that you tried to translate is appreciated, it shows your appreciation for knowledge and such, I will always respect.
You did a fine job, you got most of it, and the type of language I used, unless you are a native or a long time resident familiar with the slang and indeed the idiosyncrasies of the place it would be impossible to know.
btw.... in the interest of full disclosure, all the references to drinking etc. they are all learned from others, as I do not drink (other than fine wine and a little Lagavulin), I say this as I do not want to give the wrong impression that I have lots of drinking Compadres and Comadres.... he, he, he....
Besides, it has been more enjoyable to watch with gleeful eyes the travails of others in these experiences. The thought of the "day after" experience, instill enough fear in me so as to stay away from the stuff, as I do not handle the experience very well.
Thanks again. |
