Corrupt Angola has $80 billion of debt, some ‘hidden’

LUANDA, Angola. As Mozambique cracks the whip on officials and cronies allegedly involved in the multibillion-dollar debt scandal, string indications of deals between Angola and global companies involved in the scandal is increasingly bringing to question the credibility of President Joao Lourenco’s already-debatable drive against corruption and presents Angola as risky for foreign investors.

The direct involvement of the Lourenco, who was the Minister of Defense when the transactions at the centre of the emerging controversy were carried out, makes the revelations even more damning to his government and his quest to rid the oil-rich nation of rampant graft and address economic decline.

It has emerged some engagements were during his tenure as president. He has been in power since September 2017.

EXX Africa, the business risk intelligence firm, has unearthed indications that the Ministry around the same time as the US$2 billion debt scandal emerged in fellow ex-Portugal colony Mozambique.

Between 2013 and 2014, Mozambique state-owned security companies borrowed from some international financiers but the government only disclosed most of the debt in 2016.

According to findings by EXX Africa, Angolan Ministry Defense reached a €495 million contract to buy ships and maritime construction capacity from Privinvest, in a contract strikingly similar with ProIndicus and MAM, the companies at the center of the ‘hidden debt’ scandal in Mozambique.

Among other prominent transactions, it has emerged that in 2015, Simportex – a company of the Angolan Defense Ministry, which entered into a partnership with Privinvest, signed contracts, totaling €122 with Finmeccanica, now called Leonardo SpA, for acquisitions that Privinvest is said could have made itself.

In December that year Simportex apparently signed contracts equivalent to for the purchase and sale of equipment, substitutes, and to provide installation and training to equip a national center and three regional maritime coordination centers, as well as to install several control stations, replicators of signal and means of communication in the Angolan coast, according to EX Africa.

It also included the reported purchase and sale of two ultra-fast patrol vehicles, spare parts, tools and training services between the Ministry of National Defense and the company Whitehead Sistemi Subacquei SPA, with local currency equivalent to €7,3 million.

In the same year, Angola entered another agreement with the French subsidiary of Privinvest, CMN, to provide a hydroelectric project but the scheme never materialized to date.

In addition to the agreements, there are indications of a relationship between Lourenço and ProIndicus. Sources reported that during his tenure as minister from 2014-17, he visited the Mozambique project to secure a similar package for his country.

Investigations ascertained a broader network of individuals and entities were likely to have been involved in the relationship. The name of former Vice-President Manuel Vicente has again cropped up.

In June 2017, a Portuguese court ruled that Vincente should face trial over bribery allegations he bribed a magistrate with $810 000 in order to shelve investigations into his deals at the named Sonangol Group, the oil firm he headed between 2009 and 2012.

Local analysts concurred with EXX Africa that indications of deals secured by Angola raised serious doubts about the credibility of Lourenco’s anti-corruption drive, embarrasses the president and risk and undermines the country’s prospects as an investment destination.

Lourenco’s campaign has largely culminated in a purge of family members of his predecessor, Jose Eduardo dos Santos, and government officials linked to the former president.

“The revelations of links with companies synonymous with Mozambique’s debt crisis indicate Angola might have a similar problem brewing, equivalent if not deeper than Mozambique’s,” said analyst Miguel Sanz.

A2 Global Risk, the think-tank, stated that questions had been asked why the government has excluded certain figures from the clampdown, which seemed at odds with Lourenco’s public rhetoric.

“With politically exposed persons who have moved to the new administration still likely to dominate Angolan businesses until Lourenço’s efforts bring returns, where does this leave foreign companies seeking investment opportunities in Angola?” the firm asked rhetorically.

EXX Africa stated that besides possibly embarrassing Lourenço and undermining government’s anticorruption platform, mounting evidence risked straining relations with relations with the International Monetary Fund (IMF).

Last December, IMF approved a three-year $3,7 billion loan seen as a boost to revive an economy facing a decline owing to the global upheavals in the oil sector. Angola’s economy is overly-reliant on oil.

Angola’s is struggling to control its foreign and domestic debt, which is estimated at nearly $80 billion.

IMF and foreign donors cut off support to Mozambique. It sparked a currency collapse and the Southern African country defaulting on sovereign debt.

In recent days, a son former President Armando Guebuza, the ex-head of Mozambique’s intelligence services and the chairmen of three firms linked to the debt scandal were among several individuals arrested for their alleged roles. These beleaguered chairmen were ex-members of the State Security and Information Service (SISE)

President Felipe Nyusi last week dismissed Deputy Minister of Economy and Finance, Maria Isaltina Lucas, for her alleged involvement.

Former Finance Minister, Manuel Chang, has been held in South Africa since he was arrested in December.

Mozambique and the United States have both want him extradited to the respective countries.

– Pedro Agosto, CAJ News

US owes Cuba millions says Castro

Fidel Castro, the leader of the Cuban Revolution, marked his 89th birthday with an essay in which he states the USA owes Cuba a huge debt for decades of embargo, and claims he “would not stop struggling for peace… and well-being” of every person on Earth.

In his brief essay, published in Granma, Cuba’s official government newspaper on Thursday, Castro repeats his claims that the United States owes his country “millions of dollars” for damages inflicted on the Cuban economy by the US embargo.

“Cuba is owed compensation equivalent to damages, which have reached many millions of dollars, as our country has denounced throughout our interventions in the United Nations, with irrefutable arguments and facts,” Castro wrote.

In his composition, entitled Reality and Dreams, Fidel Castro recalls the history of the twentieth century, pointing out that the United States profited more than any other nation from the cruelties of World War II. He also condemns the nuclear bombings of Hiroshima and Nagasaki.

“The United States, whose territory and industries remained removed from the war, became the country with the greatest wealth and the best weaponry on Earth, in a world torn apart, full of death, the wounded and hungry,” wrote the former Cuban leader.

Source: RT

Germany backs down on Greece

Germany is at last bowing to pressure as a chorus of countries and key institutions demand debt relief for Greece, a shift that could break the five-month stalemate and avert a potentially disastrous rupture of monetary union at this Sunday’s last-ditch summit.

In a highly significant move, the European Council has called on both sides to make major concessions, insisting that the creditor powers must do their part as the radical Syriza government puts forward a new raft of proposals on economic reforms before a deadline expires tonight.

“The realistic proposal from Greece will have to be matched by an equally realistic proposal on debt sustainability from the creditors,” said Donald Tusk, the European Council president.

This is the first time Europe’s institutions have acknowledged clearly that Greece’s public debt – 180pc of GDP – can never be repaid and that no lasting solution can be found until the boil is lanced.

Any such deal would give Greek premier Alexis Tspiras a prize to take back to the Greek people after they voted by 61pc to 39pc to reject austerity demands in a landslide referendum last weekend.

While he would still have to deliver on tough reforms and breach key red lines, a debt restructuring of sufficient scale would probably be enough to clinch a deal, and allow him to return to Athens as a conquering hero.

The Greek parliament is due to vote to ratify the measures on Friday.

Source: The Telegraph

Greece also has an immigration problem

Unbelievable scenes on the island of Lesvos as refugees try to raid a food truck. The incident took place when nearly 2,500 migrants hosted in the camp of Lesvos (Mytilene) municipality in Kara Tepe saw the catering truck approaching. They started to run for a plate of food.

Reason for the panic was a rumor claiming that catering services for refugees had stopped on the island of Samos due to debts.

On Tuesday, another boat carrying people to Greece sank, more than 10 people missing.

Next to the Greek humanitarian and economic crisis and the country on the brink of collapse, there is also the Refugees Crisis.

Europe is keeping eyes and ears closed, while Eurocrats like European Commission President Jean-Claude Juncker are making ‘nice promises’ for aid and relocation to other EU countries.

Watch here.

Greece rejects austerity

Nearly 150 protesters rallied in the streets of Athens Monday just hours after the Greeks voted resoundingly to reject more austerity measures in exchange for another bailout from the country’s international lenders.

The triumph of the No camp in the Greek referendum means Athens will possibly default on its debt and run out of money because the European Central Bank will not lend the country any more cash. It will leave the EU, re-adopt its old currency, the drachma, according to a Barclays analysis.

Police said between 100 and 150 anarchist protesters had started throwing firebombs at riot police and setting trash cans on fire in the central Athens neighborhood of Exarcheia.

This is far from the place where celebrations are taking place by supporters of the “no” vote in Sunday’s referendum.

There was no indication that the violence was connected to the political campaigns involved in the vote.

The results of Sunday’s referendum — 61 percent voted “no,” compared with 39 percent for “yes” — left the country’s future in the European Union and its euro currency in tatters.

A total of 6.16 million Greeks voted in Sunday’s referendum, or 62.5 percent of eligible voters. The poll needed a minimum 40 percent turnout to be valid.

According to analysts, if Greece adopted national currency, it would automatically abandon the euro area.

The ECB is scheduled to meet tomorrow morning to decide on emergency liquidity assistance (ELA) policy. An outright suspension would effectively put the banking system into immediate resolution and would be a step closer to Eurozone exit.

All outstanding Greek bank ELA liquidity (and hence deposits) would become immediately due and payable to the Bank of Greece.

The maintenance of ELA at the existing level is the most likely outcome, at least until the European political reaction has materialized. This will in any case materially increase the pressure on the economy in coming days.

Sowetans attack Eskom for blackouts

Eskom is under attack – by the City of Joburg and the regional ANC over the almost week-long spate of power outages in Soweto.

The council has slammed the power utility for inefficiency and for failing to deliver on its mandate.

The City of Joburg claimed areas supplied by its own utility, City Power, still had power, but those Eskom supplied did not.

“This is why new housing and business developments such as RDP houses, flats and hotels have power in the township, while the large part of Soweto supplied by Eskom has been cut off,” said Matshidiso Mfikoe, the city’s mayoral committee member for Environment and Infrastructure Services.

She accused Eskom of being “insensitive” and showing “complete and utter disregard” for the people of Soweto.

But Eskom spokesman Khulu Phasiwe said there was “nothing sinister” about the power outages.

He attributed the blackouts to load shedding and then, when the power was due to be switched on again, overloading that caused the transformer to trip.

“When you have in some houses four or five backrooms using stoves at the same time, there is absolutely no way that the power will hold.

“We can’t control unplanned outages resulting from overloading,” Phasiwe said.

Eskom has been involved in a long-running battle with Soweto consumers over unpaid bills. Phasiwe said Soweto owed Eskom about R8 billion, of which R4bn was overdue.

“Some 84 percent of residents have not been paying their debt. Ideally, you should be having 16 percent not paying and 84 percent paying,” Phasiwe pointed out.

A key dispute – related to the outstanding billing problem – is the installation of prepaid electricity meters in Soweto. Both Eskom and City Power are installing meters for their customers. There have been ongoing protests across Soweto against their installation. Last week, Orlando West residents blockaded streets in protest against Eskom’s prepaid meters.

Mfikoe accused Eskom of changing the payment system unilaterally. She suggested it was inconceivable that the prolonged outages could occur without notice “in the township internationally renowned as home to two Nobel peace laureates, Dr Nelson Mandela and Archbishop Emeritus Desmond Tutu”.

Source: IOL

Greece misses deficit target as bailout deadline looms

Cash-strapped Greece fell well short of its budget deficit reduction targets last year, official figures showed Wednesday in a development that’s likely to add pressure on the radical left-led government during tortuous talks with bailout creditors.

The country’s statistical authority said the 2014 deficit was 3.5 percent of Greece’s annual GDP, considerably higher than the 0.8 percent forecast. And after stripping out the cost of servicing Greece’s crippling public debt, a modest primary surplus of 0.4 percent was recorded — short of the 2 percent target.

The new government elected Jan. 25 had already said the shortfall would be bigger than expected. But the official confirmation comes at a time Greece is negotiating a long-delayed rescue loan installment, without which it will run out of cash.

Greece is unable to tap the international bond market for funds due to sky-high borrowing rates, which reflect a lack of confidence in the country being able to repay its debts. Greek stocks closed 1.9 percent down Wednesday, another sign that investors in the country are jittery.

Greece has been surviving on rescue loans from its European partners and the International Monetary Fund since mid-2010, and the new government won a four-month extension to the main, European part of its bailout in February.

Under the extension agreement, Athens must present a series of economic reform measures that meet the approval of its creditors. Authorities are hoping for a final agreement next week, when all 19 finance ministers from the eurozone countries, including Greece’s Yanis Varoufakis, meet on April 24 in the Latvian capital of Riga.

But several European officials have raised doubts about the possibility of a deal then. Greece has some big repayments coming up over the next few months and without the rest of its bailout cash, the country could be staring at a possible default and an exit from the euro.

Source: eNCA

The neoconservative threat to international relations

This week I was invited to address an important conference of the Russian Academy of Sciences in Moscow. Scholars from Russia and from around the world, Russian government officials, and the Russian people seek an answer as to why Washington destroyed during the past year the friendly relations between America and Russia that President Reagan and President Gorbachev succeeded in establishing. All of Russia is distressed that Washington alone has destroyed the trust between the two major nuclear powers that had been created during the Reagan-Gorbachev era, trust that had removed the threat of nuclear armageddon. Russians at every level are astonished at the virulent propaganda and lies constantly issuing from Washington and the Western media. Washington’s gratuitous demonization of the Russian president, Vladimir Putin, has rallied the Russian people behind him. Putin has the highest approval rating ever achieved by any leader in my lifetime.

Washington’s reckless and irresponsible destruction of the trust achieved by Reagan and Gorbachev has resurrected the possibility of nuclear war from the grave in which Reagan and Gorbachev buried it. Again, as during the Cold War the specter of nuclear armageddon stalks the earth.

Why did Washington revive the threat of world annihilation? Why is this threat to all of humanity supported by the majority of the US Congress, by the entirety of the presstitute media, and by academics and think-tank inhabitants in the US, such as Motyl and Weiss, about whom I wrote recently?

It was my task to answer this question for the conference. You can read my February 25 and February 26 addresses below. But first you should understand what nuclear war means. You can gain that understanding here:

The Threat Posed to International Relations By The Neoconservative Ideology of American Hegemony,
Address to the 70th Anniversary of the Yalta Conference, Hosted by Institutes of the Russian Academy of Sciences and Moscow State Institute of International Relations, Moscow, February 25, 2015, Hon. Paul Craig Roberts

Colleagues,

What I propose to you is that the current difficulties in the international order are unrelated to Yalta and its consequences, but have their origin in the rise of the neoconservative ideology in the post-Soviet era and its influence on Washington’s foreign policy.

The collapse of the Soviet Union removed the only constraint on Washington’s power to act unilaterally abroad. At that time China’s rise was estimated to require a half century. Suddenly the United States found itself to be the Uni-power, the “world’s only superpower.” Neoconservatives proclaimed “the end of history.”

By the “end of history” neoconservatives mean that the competition between socio-economic-political systems is at an end. History has chosen “American Democratic-Capitalism.” It is Washington’s responsibility to exercise the hegemony over the world given to Washington by History and to bring the world in line with History’s choice of American democratic-capitalism.

In other words, Marx has been proven wrong. The future does not belong to the proletariat but to Washington.

The neoconservative ideology raises the United States to the unique status of being “the exceptional country,” and the American people acquire exalted status as “the indispensable people.”

If a country is “the exceptional country,” it means that all other countries are unexceptional. If a people are “indispensable,” it means other peoples are dispensable. We have seen this attitude at work in Washington’s 14 years of wars of aggression in the Middle East. These wars have left countries destroyed and millions of people dead, maimed, and displaced. Yet Washington continues to speak of its commitment to protect smaller countries from the aggression of larger countries. The explanation for this hypocrisy is that Washington does not regard Washington’s aggression as aggression, but as History’s purpose.

We have also seen this attitude at work in Washington’s disdain for Russia’s national interests and in Washington’s propagandistic response to Russian diplomacy.

The neoconservative ideology requires that Washington maintain its Uni-power status, because this status is necessary for Washington’s hegemony and History’s purpose.

The neoconservative doctrine of US world supremacy is most clearly and concisely stated by Paul Wolfowitz, a leading neoconservative who has held many high positions: Deputy Assistant Secretary of Defense, Director of Policy Planning US Department of State, Assistant Secretary of State, Ambassador to Indonesia, Undersecretary of Defense for Policy, Deputy Secretary of Defense, President of the World Bank.

In 1992 Paul Wolfowitz stated the neoconservative doctrine of American world supremacy:

“Our first objective is to prevent the re-emergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on the order of that posed formerly by the Soviet Union. This is a dominant consideration underlying the new regional defense strategy and requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power.”

For clarification, a “hostile power” is a country with an independent policy (Russia, China, Iran, and formerly Saddam Hussein, Gaddafi, Assad).

This bold statement struck the traditional American foreign policy establishment as a declaration of American Imperialism. The document was rewritten in order to soften and disguise the blatant assertion of supremacy without changing the intent. These documents are available online, and you can examine them at your convenience.

Softening the language allowed the neoconservatives to rise to foreign policy dominance. The neoconservatives are responsible for the Clinton regime’s attacks on Yugoslavia and Serbia. Neoconservatives, especially Paul Wolfowitz, are responsible for the George W. Bush regime’s invasion of Iraq. The neoconservatives are responsible for the overthrow and murder of Gaddafi in Libya, the assault on Syria, the propaganda against Iran, the drone attacks on Pakistan and Yemen, the color revolutions in former Soviet Republics, the attempted “Green Revolution” in Iran, the coup in Ukraine, and the demonization of Vladimir Putin.

A number of thoughtful Americans suspect that the neoconservatives are responsible for 9/11, as that event gave the neoconservatives the “New Pearl Harbor” that their position papers said was necessary in order to launch their wars for hegemony in the Middle East. 9/11 led directly and instantly to the invasion of Afghanistan, where Washington has been fighting since 2001. Neoconservatives controlled all the important government positions necessary for a “false flag” attack.

Neoconservative Assistant Secretary of State Victoria Nuland, who is married to another neoconservative, Robert Kagan, implemented and oversaw Washington’s coup in Ukraine and chose the new government.

The neoconservatives are highly organized and networked, well-financed, supported by the print and TV media, and backed by the US military/security complex and the Israel Lobby. There is no countervailing power to their influence on US foreign power.

The neoconservative doctrine goes beyond the Brzezinski doctrine, which dissented from Detente and provocatively supported dissidents inside the Soviet empire. Despite its provocative character, the Brzezinski doctrine remained a doctrine of Great Power politics and containment. It is not a doctrine of US world hegemony.

While the neoconservatives were preoccupied for a decade with their wars in the Middle East, creating a US Africa Command, organizing color revolutions, exiting disarmament treaties, surrounding Russia with military bases, and “pivoting to Asia” to surround China with new air and naval bases, Vladimir Putin led Russia back to economic and military competence and successfully asserted an independent Russian foreign policy.

When Russian diplomacy blocked Washington’s planned invasion of Syria and Washington’s planned bombing of Iran, the neoconservatives realized that they had failed the “first objective” of the Wolfowitz Doctrine and had allowed “the re-emergence of a new rival . . . on the territory of the former Soviet Union” with the power to block unilateral action by Washington.

The attack on Russia began. Washington had spent $5 billion over a decade creating non-governmental organizations (NGOs) in Ukraine and cultivating Ukrainian politicians. The NGOs were called into the streets. The extreme nationalists or nazi elements were used to introduce violence, and the elected democratic government was overthrown. The intercepted conversation between Victoria Nuland and the US ambassador in Kiev, in which the two Washington operatives choose the members of the new Ukrainian government, is well known.

If the information that has recently come to me from Armenia and Kyrgyzstan is correct, Washington has financed NGOs and is cultivating politicians in Armenia and the former Soviet Central Asian Republics. If the information is correct, Russia can expect more “color revolutions” or coups in other former territories of the Soviet Union. Perhaps China faces a similar threat in Uyghurstan.

The conflict in Ukraine is often called a “civil war.” This is incorrect. A civil war is when two sides fight for the control of the government. The break-away republics in eastern and southern Ukraine are fighting a war of secession.

Washington would have been happy to use its coup in Ukraine to evict Russia from its Black Sea naval base as this would have been a strategic military achievement. However, Washington is pleased that the “Ukraine crisis” that Washington orchestrated has resulted in the demonization of Vladimir Putin, thus permitting economic sanctions that have disrupted Russia’s economic and political relations with Europe. The sanctions have kept Europe in Washington’s orbit.

Washington has no interest in resolving the Ukrainian situation. The situation can be resolved diplomatically only if Europe can achieve sufficient sovereignty over its foreign policy to act in Europe’s interest instead of Washington’s interest.

The neoconservative doctrine of US world hegemony is a threat to the sovereignty of every country. The doctrine requires subservience to Washington’s leadership and to Washington’s purposes. Independent governments are targeted for destabilization. The Obama regime overthrew the reformist government in Honduras and currently is at work destabilizing Venezuela, Bolivia, Ecuador, and Argentina, and most likely also Armenia and the former Central Asian Soviet Republics.

Yalta and its consequences have to do with Great Power rivalries. But in the neoconservative doctrine, there is only one Great Power–the Uni-power. There are no others, and no others are to be permitted

Therefore, unless a modern foreign policy arises in Washington and displaces the neoconservatives, the future is one of conflict.

It would be a strategic error to dismiss the neoconservative ideology as unrealistic. The doctrine is unrealistic, but it is also the guiding force of US foreign policy and is capable of producing a world war.

In their conflict with Washington’s hegemony, Russia and China are disadvantaged. The success of American propaganda during the Cold War, the large differences between living standards in the US and those in communist lands, overt communist political oppression, at times brutal, and the Soviet collapse created in the minds of many people nonexistent virtues for the United States. As English is the world language and the Western media is cooperative, Washington is able to control explanations regardless of the facts. The ability of Washington to be the aggressor and to blame the victim encourages Washington’s march to more aggression.

This concludes my remarks. Tomorrow I will address whether there are domestic political restraints or economic restraints on the neoconservative ideology.

Paul Craig Roberts, Address to the 70th Anniversary of the Yalta Conference, Moscow, February 26, 2015

Colleagues,

At the plenary session yesterday I addressed the threat that the neoconservative ideology poses to international relations. In this closing session I address whether there are any internal restraints on this policy from the US population and whether there are economic restraints.

Just as 9/11 served to launch Washington’s wars for hegemony in the Middle East, 9/11 served to create the American police state. The Constitution and the civil liberties it protects quickly fell to the accumulation of power in the executive branch that a state of war permitted.

New laws, some clearly pre-prepared such as the PATRIOT Act, executive orders, presidential directives, and Department of Justice memos created an executive authority unaccountable to the US Constitution and to domestic and international law.

Suddenly Americans could be detained indefinitely without cause presented to a court. Habeas corpus, a constitutional protection which prohibits any such detention, has been set aside.

Suddenly people could be tortured into confessions in violation of the right against self-incrimination and in violation of domestic and international laws against torture.

Suddenly Americans and Washington’s closest allies could be spied on indiscriminately without the need of warrants demonstrating cause.

The Obama regime added to the Bush regime’s transgressions the assertion of the right of the executive branch to assassinate US citizens without due process of law.

The police state was organized under a massive new Department of Homeland Security. Almost immediately whistleblower protections, freedom of the press and speech, and protest rights were attacked and reduced.

It was not long before the director of Homeland Security declared that the department’s focus has shifted from Muslim terrorists to “domestic extremists,” an undefined category. Anyone can be swept into this category. Homes of war protesters were raided and grand juries were convened to investigate the protesters. Americans of Arab descent who donated to charities–even charities on the State Department’s approved list–that aided Palestinian children were arrested and sentenced to prison for “providing material support to terrorism.”

All of this and more, including police brutality, has had a chilling effect on protests against the wars and the loss of civil liberty. The rising protests from the American population and from soldiers themselves that eventually forced Washington to end the Vietnam War have been prevented in the 21st century by the erosion of rights, intimidation, loss of mobility (no-fly list), job dismissal, and other heavy-handed actions inconsistent with a government accountable to law and to the people.

In an important sense, the US has emerged from the “war on terror” as an executive branch dictatorship unconstrained by the media and barely, if at all, constrained by Congress and the federal courts. The lawlessness of the executive branch has spread into governments of Washington’s vassal states and into the Federal Reserve, the International Monetary Fund, and the European Central Bank, all of which violate their charters and operate outside their legal powers.

Jobs offshoring destroyed the American industrial and manufacturing unions. Their demise and the current attack on the public employee unions has left the Democratic Party financially dependent on the same organized private interest groups as the Republicans. Both parties now report to the same interest groups. Wall Street, the military/security complex, the Israel Lobby, agribusiness, and the extractive industries (oil, mining, timber) control the government regardless of the party in power. These powerful interests all have a stake in American hegemony.

The message is that the constellation of forces preclude internal political change.

Hegemony’s Archilles heel is the US economy. The fairy tale of American economic recovery supports America’s image as the safe haven, an image that keeps the dollar’s value up, the stock market up, and interest rates down. However, there is no economic information that supports this fairy tale.

Real median household income has not grown for years and is below the levels of the early 1970s. There has been no growth in real retail sales for six years. The labor force is shrinking. The labor force participation rate has declined since 2007 as has the civilian employment to population ratio. The 5.7 percent reported unemployment rate is achieved by not counting discouraged workers as part of the work force. (A discouraged worker is a person who is unable to find a job and has given up looking.)

A second official unemployment rate, which counts short-term (less than one year) discouraged workers and is seldom reported, stands at 11.2 percent. The US government stopped including long-term discouraged workers (discouraged for more than one year) in 1994. If the long-term discouraged are counted, the current unemployment rate in the US stands at 23.2 percent.

The offshoring of American manufacturing and professional service jobs such as software engineering and Information Technology has decimated the middle class. The middle class has not found jobs with incomes comparable to those moved abroad. The labor cost savings from offshoring the jobs to Asia has boosted corporate profits, the performance bonuses of executives and capital gains of shareholders. Thus all income and wealth gains are concentrated in a few hands at the top of the income distribution. The number of billionaires grows as destitution reaches from the lower economic class into the middle class. American university graduates unable to find jobs return to their childhood rooms in their parents’ homes and work as waitresses and bartenders in part-time jobs that will not support an independent existence.

With a large percentage of the young economically unable to form households, residential construction, home furnishings, and home appliances suffer economic weakness. Cars can still be sold only because the purchaser can obtain 100 percent financing in a six-year loan. The lenders sell the loans, which are securitized and sold to gullible investors, just as were the mortgage-backed financial instruments that precipitated the 2007 US financial crash.

None of the problems that created the 2008 recession, and that were created by the 2008 recession, have been addressed. Instead, policymakers have used an expansion of debt and money to paper over the problems. Money and debt have grown much more than US GDP, which raises questions about the value of the US dollar and the credit worthiness of the US government. On July 8, 2014, my colleagues and I pointed out that when correctly measured, US national debt stands at 185 percent of GDP.

This raises the question: Why was the credit rating of Russia, a country with an extremely low ratio of debt to GDP, downgraded and not that of the US? The answer is that the downgrading of Russian credit worthiness was a political act directed against Russia in behalf of US hegemony.

How long can fairy tales and political acts keep the US house of cards standing? A rigged stock market. A rigged interest rate. A rigged dollar exchange value, a rigged and suppressed gold price. The current Western financial system rests on world support for the US dollar and on nothing more.

The problem with neoliberal economics, which pervades all countries, even Russia and China, is that neoliberal economics is a tool of American economic imperialism, as is Globalism. As long as countries targeted by Washington for destabilization support and cling to the American doctrines that enable the destabilization, the targets are defenseless.

If Russia, China, and the BRICS Bank were willing to finance Greece, Italy, and Spain, perhaps those countries could be separated from the EU and NATO. The unraveling of Washington’s empire would

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

For the illustrated version go here:

Whatever became of economists and the American economy?

According to the official economic fairy tale, the US economy has been in recovery since June 2009.

This fairy tale supports America’s image as the safe haven, an image that keeps the dollar up, the stock market up, and interest rates down. It is an image that causes the massive numbers of unemployed Americans to blame themselves and not the mishandled economy.

This fairy tale survives despite the fact that there is no economic information whatsoever that supports it.

Real median household income has not grown for years and is below the levels of the early 1970s.

There has been no growth in real retail sales for six years.

How does an economy dependent on consumer demand grow when real consumer incomes and real retail sales do not grow?

Not from business investment. Why invest when there is no sales growth? Industrial production, properly deflated, remains well below the pre-recession level.

Not from construction. The real value of total construction put in place declined sharply from 2006 through 2011 and has bounced around the 2011 bottom for the past three years.

How does an economy grow when the labor force is shrinking? The labor force participation rate has declined since 2007 as has the civilian employment to population ratio.

How can there be a recovery when nothing has recovered?

Do economists believe that the entire corpus of macroeconomics taught since the 1940s is simply incorrect? If not, how can economists possibly support the recovery fairy tale?

We see the same absence of economics in the policy response to the sovereign debt crisis in Europe. First of all, the only reason that there is a crisis is because instead of writing off that part of the debt that cannot be paid, as in the past, so that the rest of the debt could be paid, creditors have demanded the impossible–that all the debt be paid.

In an attempt to achieve the impossible, heavily indebted countries, such as Greece, have been forced to reduce old age pensions, fire government employees, reduce social services such as health care and education, reduce wages, and sell-off public property such as ports, municipal water companies, and the state lottery. These austerity packages deprive the government of revenues and the population of spending power. Consequently, consumption, investment, and government spending all fall, and the economy sinks lower. As the economy sinks, the existing debt becomes a larger percentage of the GDP and becomes even more unserviceable.

Economists have known this ever since John Maynard Keynes taught it to them in the 1930s. Yet there is no sign of this foundational economics in the policy approach to the sovereign debt crisis.

Economists it appears have simply vanished from the earth. Or, if some are still present, they have lost their voices and do not speak.

Consider “globalism.” Every country has been convinced that globalism is imperative and that not to be part of the “global economy” means economic death. In fact, to be part of the global economy means death.

Understand the economic destruction that globalism has wreaked on the United States. Millions of middle class factory jobs and professional skill jobs such as software engineering and Information Technology have been taken away from the American middle class and given to people in Asia. In the short-run this drops labor costs and benefits the profits of the US corporations that offshore the jobs, but the consequence is to destroy the domestic consumer market as jobs that permit the formation of households are replaced with lowly paid part-time jobs that do not.

If households cannot form, the demand for housing, home appliances and furnishings declines. College graduates return home to live with their parents.

Part-time jobs hurt the ability to save. People are only able to purchase cars because they can get 100 percent financing, and more in order to pay off an existing car loan that exceeds the vehicle’s trade-in value, in a six-year loan. These loans are possible, because those who make the loans sell them. The loans are then securitized and sold as investments to those desperate for yield in a zero interest rate world. Derivatives are spun off these “investments,” and a new bubble is put in place.

When manufacturing jobs are offshored, the US plants are closed, and the tax base of state and local governments declines. When the governments have trouble servicing their accumulated debt, the tendency is not to meet their pension obligations. This reduces retiree incomes, incomes already reduced by zero or negative interest rates.

This unraveling of consumer demand, the basis for our economy, was entirely obvious at the very beginning. Yet junk economists or hired corporate mouthpieces promised Americans a “New Economy” that would provide them with better, higher paying, cleaner jobs to take the place of the jobs moved abroad. As I have pointed out for more than a decade, there is no sign of these jobs anywhere in the economy.

Why did economists make no protest as the US economy was shipped abroad and deep-sixed at home?

Globalism also devastates “emerging economies.” Self-sufficient agricultural communities are destroyed by the introduction of large-scale monoculture agriculture. The uprooted peoples relocate to cities where they become a drain on social services and a source of political instability.

Globalism, like neoliberal economics, is an instrument of economic imperialism. Labor is exploited, while peoples, cultures, and environments are destroyed. Yet the propaganda is so powerful that people partake of their own destruction.

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

Will Russia remonetize in gold?

The “perfect-storm” of geopolitical instability, diplomatic isolation, severe currency depreciation, and economic decline now confronting Russia has profoundly damaged Moscow’s international standing, and possibly for the long-term.

Yet, it is precisely such conditions that may push the country’s leadership into taking the radical step that will secure its world-player status once and for all: the adoption of a gold-exchange standard.

Though a far-fetched idea at first glance, many factors suggest that remonetization in gold may be a logical next step for Moscow.

First, for years Moscow has been expressing its unwillingness to remain at the monetary mercy of the US and its NATO allies and this view has been most vehemently expressed by President Putin’s long-time economic advisor, Sergei Glazyev.

Russia is prepared to play strategic hardball with the West on the issue: the governor of Russia’s central bank took the unusual step last November of presenting to the international media details of the bank’s zealous gold-buying spree.

The announcement, in sharp contrast to that institution’s more taciturn traditions, underscores Moscow’s outspoken dismay with dollar hegemony; its timing suggests coordination with the top rungs of government to present gold as a possible currency-war weapon.

Second, despite international pressure, Russia has been very wary of the sell-off policies that led the UK, France, Spain, and Italy to unload gold over the past decade during unsuccessful attempts to prop up their respective ailing economies — in particular, of then-Prime Minister Gordon Brown’s sell-off of 400 metric tons of the country’s reserves at stunningly low prices.

Moscow’s surprise decision upon the onset of the ruble’s swift decline in early December 2014 to not tap into the country’s gold reserves, now the world’s sixth largest, highlights the ambitiousness of Russia’s stance on the gold issue. By the end of December, Russia added another 20.73 tons, according to the IMF in late January, capping a nine-month buying spree.

Third, while the Russian economy is structurally weak, enough of the country’s monetary fundamentals are sound, such that the timing of a move to gold, geopolitically and domestically, may be ideal. Russia is not a debtor nation. At this writing in January, Russia’s debt to GDP ratio is low and most of its external debt is private.

Physical gold accounts for 10 percent of Russia’s foreign currency reserves. The budget deficit, as of a November 2014 projection, is likely to be around $10 billion, much less than 1 percent of GDP. The poverty rate fell from 35 percent in 2001 to 10 percent in 2010, while the middle class was projected in 2013 to reach 86 percent of the population by 2020.

Collapsing oil prices serve only to intensify the monetary attractiveness of gold. Given that oil exports, along with the rest of the energy sector, account for 45 percent of GDP, the depreciation of the ruble will continue; newly unstable fiscal conditions have devastated banks, and higher inflation looms, expected to reach 10 percent by the end of 2015. As Russia remains (for the foreseeable future) mainly a resource-based economy, only a move to gold, arguably, can make the currency stronger, even if it does limit Russia’s available currency.

In buying as much gold as it has, the country is, in part, ensuring that it will have enough money in circulation in the event of such fundamental transformation. In terms of re-establishing post-oil shock international prestige, a move to gold will allow the country to be seen as a more reliable and trustworthy trading partner.

The repercussions of Russia on a gold-exchange standard would be immense. Above all, it would mean the first major schism in the world’s monetary order. China would quite likely follow suit. It could mean the threat of a severe inflation in the United States should rafts of unwanted dollars make their way back across the Atlantic — the Fed’s ultimate nightmare. Above all, the country will avoid the extreme debt leverages which would not have happened had Western capitals remained on gold.

“A gold standard would be politically appealing, transforming the ruble to a formidable currency and reducing outflows significantly,” writes Dr. Enrico Colombatto, economics professor at the University of Turin, Italy.

He notes that the only major drawback would be that the imposed discipline of a gold standard would deprive authorities of discretionary political power. The other threat would be that of a new generation of Russian central bankers becoming too heavily influenced by the monetary mindset of the European Central Bank (ECB) and the Fed.

As Alisdair MacLeod, a two-decade veteran of off-shore banking consulting based in the UK, recently wrote, Russia (and China) will “hold all the aces” by moving away from any possible currency wars of the future into the physical gold market. In his article, he adds that there is currently a low appetite for physical gold in Western capital markets and longer-term foreign holders of rubles would be unlikely to exchange them for gold, preferring to sell them for other fiat currencies.

Mr. Macleod cites John Butler, CIO at Atom Capital in London, who sees great potential in a gold-exchange standard for Russia. With the establishment of a sound gold-exchange rate, he argues, the Central Bank of Russia would no longer be confined to buying and selling gold to maintain the rate of exchange. The bank could freely manage the liquidity of the ruble and be able to issue coupon-bearing bonds to the Russian public, allowing it a yield linked to gold rates. As the ruble stabilizes, the rate of the cost of living would drop; savings would grow, spurred on by long term stability and lower taxes.

Foreign exchange also would be favorable, Mr. Butler maintains. Owing to the Ukraine crises and commodities crises, rubles have been dumped for dollar/euro currencies. Upon the announcement of a gold-exchange, demand for the ruble would increase. London and New York markets would in turn be countered by provisions restricting gold-to-ruble exchanges of imports and exports.

The geopolitics of gold also figure into Russia’s increasingly close relations with China, a country that also has made clear its preference for gold over the dollar. (Russia recently edged out China as the world’s top buyer of the metal.) In the aftermath of the $400 billion, 30-year deal signed between Russian gas giant Gazprom and the China National Petroleum Company in November 2014, China turned its focus to the internationalization of its own gold market. On January 15, 2015, the Shanghai Gold Exchange, the largest physical gold exchange worldwide, and the World Gold Council, concluded a strategic cooperation deal to expand the Chinese gold market through the new Shanghai Free Trade Zone.

This is not the first time the gold standard has been seen as the ultimate cure for Russia’s economic problems. In September 1998, the noted economist Jude Wanninski predicted in a far-sighted essay for The Wall Street Journal that only a gold ruble would get the the country out of its then-debt crises. It was upon taking office about two years later, in May 2000, that President Putin embarked upon the country’s massive gold-buying campaign. At the time, it took twenty-eight barrels of crude just to buy an ounce of gold. The gold-backed ruble policy of those years was adopted to successfully pay down the country’s external debt.

As a pro-gold stance is, essentially, anti-dollar, speculation about how the US would react raises the question of whether an all-out currency war would follow. The West would have to keep Russia regionally and militarily marginalized, not to mention kept within the confines of the Fed, the ECB, and the Bank of England (BOE).

Nor is that prospect too far-fetched. As Dutch author Willem Middelkoop has written in his 2014 book The Big Reset: War on Gold and the Financial Endgame,

A system reset is imminent. Even before 2020 the world’s financial system will need to find a different anchor. … In a desperate attempt to maintain this dollar system, the United States waged a secret war on gold since the 1960s. China and Russia have pierced through the American smokescreen around gold and the dollar and are no longer willing to continue lending to the United States. Both countries have been accumulating enormous amounts of gold, positioning themselves for the next phase of the global financial system.

Source: Von Mises Institute

Russia dumping dollars to protect currency and falling oil prices

As the United States expands its proxy war against Russia and the BRICS nations through a newly discovered secret deal with Saudi Arabia to force down global oil prices, Russia is firing back to this monetary attack against their currency and economy. On Oct. 10, a new report on Russian currency outflows shows that during the third quarter ending in September, the Eurasian state paid off a near record $53 billion in foreign debt, and sold off dollars to use as capital to stabilize their declining currency, and to protect their primary resource industry from the deflation America has caused through the dumping of excess oil into the market supply.

Some of this money was used earlier this week to support the declining Rouble as President Putin authorized the transfer of over $2 billion to be used directly to support the Russian currency. Additionally, the Russian central bank has already authorized funds to be set aside to supplement Russian corporations and oil industries should the need arise for liquidity and capital.

Despite the reassuring narrative from The West that Russia faces “costs” and is increasingly “isolated” due to sanctions for its actions in Ukraine, the most recent data suggests reality is quite different. First, capital outflows slowed dramatically in Q3 (from $23.7 billion in Q2 to $13 billion in Q3) with September seeing capital inflows for the first time since Sept 2013. Second, Russia’s current account surplus was significantly stronger than expected ($11.4 billion vs $8.8 billion expected) driven by increased trade. Third, and perhaps most crucially, Russia paid down a massive $52.8 billion in foreign debt as Putin “de-dollarizes” at near record pace, reducing external debt to the lowest since 2012. – Zerohedge

Russia is not the only Eurasian nation de-dollarizing at a fast pace. Earlier this week as well, long time U.S. economic ally South Korea disseminated that their foreign reserve holdings had grown in the Yuan over the past year, almost doubling its prior total of 13.7% which was the amount they held at the end of 2013. These reserves replace former dollar holdings, and rise a huge red flag that the Far Eastern manufacturing center is quickly moving into the Eurasian Trade camp, and away from Western hegemony.

America’s gambit to force down the price of oil is a ploy the U.S. used in the late 1980’s to destroy the Rouble, and tear down the old Soviet Union’s economy. However, the Russian leadership is not stupid, and have realized for a long time that this was an Achilles Heel in their economic system, and this time, the tables are quickly turning against the U.S. as Russia simply dumps more and more dollars to use as capital to supplement their currency and industry during these short term attacks by the West in their attempt to cripple them monetarily.

Source: Examiner

American student loan debt at $1,2 trillion, could dampen economy

Economists and debt watchers are worried that the burden of $1.2 trillion in student loan debt will stifle the broader economy while keeping the younger generation from buying homes and getting married.

The Federal Reserve said in its consumer credit data report on Tuesday that Americans’ overall borrowing rose by $13.5 billion in August, particularly in the categories of auto loans and student loans. Those gains have increased overall consumer debt to a record level of $3.25 trillion.

The August increase in total borrowing marked a 6.8 percent increase over a year ago, with auto and students loans up 8.2 percent, the Associated Press reported.

The large increase in student debt has some analysts and economists alarmed over the possibility that young Americans will have so much debt they will postpone home purchases, delay marriage, and be late to begin their American Dream.

“Everything from saving for a home to saving for retirement is completely off the table,” Natalia Abrams, the executive director of StudentDebtCrisis.org, told NBC News.

Roughly 414,000 home sales will not happen this year because of high levels of student loan debt, according to a report from California-based advising firm John Burns Consulting. They say that’s equivalent to eight percent of all home sales, or to cuts in the housing industry measuring $83 billion a year.

Meanwhile, marriage is already being delayed. A recent study from the Pew Research Center shows that a record number of Americans have never married – the median age for those getting hitched for the first time is now 27 for women and 29 for men. In 1960, the median age was 20 for women and 23 for men.

Student loans have soared since the recession ended, topping $1.2 trillion in the second quarter of 2014. That’s up from $700 billion in 2009, according to the Federal Reserve. Currently, 40 million Americans are responsible for holding $1.2 trillion in loans – the average loan amount is $24,301 – and 90 percent are subsidized by the government, the Huffington Post reported.

“It is the most collectible kind of debt there is,” said Barmak Nassirian, a director at the Association of State Colleges and Universities, to Frontline. “It’s not dischargeable with bankruptcy. They will garnish your wages. They will intercept your tax refund. They will sue you in court.”

States have slashed funding for public universities by 23 percent since 2007 and tuition has therefore risen by 28 percent, leading to ever larger loans.

“If you owe $100,000 to 150,000 in student loans, you’re paying $1,000 to $1,500 a month. It’s cost-prohibitive,” said Abrams, who added that this is causing even those people with decent paying jobs to delay marriage and commit to more debt.

However, consumer spending in America accounts for 70 percent of economic activity, and the Federal Reserve thinks rising levels of consumer borrowing – coupled with strong employment growth – are viewed as a good sign that consumers are more confident about taking on debt to finance purchases. – RT.COM

China, Argentina agree on currency swap

Argentina, which defaulted on its debt in July, will receive the first tranche of a multi-billion dollar currency swap operation with China’s central bank before the end of this year, the South American country’s La Nacion newspaper reported on Sunday.

The swap will allow Argentina to bolster its foreign reserves or pay for Chinese imports with the yuan currency at a time weak export revenues and an ailing currency have put the Latin American nation’s foreign reserves under intense pressure.

La Nacion said Argentina would receive yuan worth $1 billion by the end of 2014, the first payment of a loan worth a total $11 billion signed by Argentina’s President Cristina Fernandez and her Chinese counterpart in July.

The daily newspaper said the presidents of the countries’ two central banks had met on the sidelines of a meeting in Switzerland, but did not say how it had obtained the information.

Fernandez’s government has imposed stringent import and capital controls to safeguard the dwindling reserves, now at around eight-year lows, which it needs to pay its debts.

Source: Reuters

What happened in Argentina

Vulture funds buy insolvent debts for a song and later try to cash in on them by force. Billionaire Paul Singer has made it his specialty. Today he is intent on consolidating his fortune at the expense of the Argentinian people, while already setting his sights on Spain

By Jérome Duval, Fatima Fafatale.

The vulture fund NML Capital that, together with others, has Argentina on the edge of suspending payments, is already devouring the rotting flesh of the Spanish market. Elliott Management, the opportunistic fund of the serial U.S. speculator Paul Singer, has already pocketed a billion euros of Bankia’s failed credit and 300 million euros of Santander. It is estimated that it has paid hardly 50 million for both these portfolios, according to Auraree.com.

In March 2013, the Spanish financial press informed that Elliott had acquired from the Santander Group a portfolio of 300 million euros of defaulting credit of Santander Consumer Finance with a discount approaching 96%. The price that was paid was laughable: about 12 million euros, according to Cinco Dias.

Elliott had acquired from the Santander Group a portfolio of 300 million euros as defaulting consumer credit of Santander Consumer Finance.

In August of the same year, 2013, Bankia, the nationalised entity that most benefited from the rescue of the Spanish banks, which had considerably raised the public debt, informed that three portfolios of bad credit had been sold for a total debt volume of 1,353.9 million euros. In the relevant communication to the CNMV (National Stock Market Commission), it was not mentioned to whom the loans had been sold to or at what price. Despite the evident lack of transparency, the financial press has put names and numbers to the operation, which it is estimated “may have a discount of 95%”. The buyers of the three portfolios were the vulture fund Cerberus, which is advised by José Maria Aznar Jr, the son of the former President, Elliott and the Norwegian recovery business, Lindorff. “The portfolio was valued at 1,354 million but only forked out 68,” according to Finanzas.com. We have been in contact with Bankia for confirmation from the other side and its response has been that “for confidentiality” they never give the number and “the buyers who do not want to be identified”.

A few months later, it emerged that Elliott bought the household debt recovery firm Gesif to convert it into his operational base for the Spanish market. Its director-general was Melania Sebastián, who was in charge of information management at the Banca Comercial de Caja Madrid, who will continue with the moneylenders of Gesif. It is worth noting how a former director of Caja Madrid acts as the intermediary between the nationalised Bankia and Elliott’s vulture fund.

What happened in Argentina

The vulture funds make money taking advantage of countries in difficulties, like Argentina during the crisis of 2001, to buy debts cheap. Later they wait for an opportune moment to oblige them to buy them back at a much higher price with court orders, including deferred interests and judicial costs.

This is how they speculate on public debts, endangering the social spending that benefits the great majority of the population. These vultures went for lawsuits after having refused to form a part of the 93% of creditors who accepted the exchange with the government. Now the New York district judge, Thomas Griesa, has prioritised the payment of the vulture funds, which opens the door to an avalanche of demands that could result in the suspension of payments in Argentina on July 30. As Julio C. Gambina puts it so well, “nobody precisely knows where the demands of the creditors could reach of the unpayable debt”, but we know that the cost for the Argentinean people could be catastrophic.

Who are behind these vulture funds? NML Capital is a subsidiary of the inversion fund, Elliott Management Corporation, registered in the fiscal paradise Cayman Islands. It is the empire of Paul Singer, the multimillionaire champion of the gay rights and neo-conservative aggression.

Elliott speculates, among other things, with public debts, violating the sovereignty of the states and its peoples. But he also speculates with private debts and in 2011 came to possess two million dollars of Lehman Brothers.

Singer was the major financier of the presidential campaign of George W. Bush in 2004; he also contributed to Mitt Romney’s campaign in 2012 and to that of the New York mayor, Rudolph Giuliani. Moreover, he is the major private financier of the New York police. As one of the principal financiers of the Republican Party, he plays an important part in the U.S. politics and, therefore, also in international politics.

The foundation that bears his name, The Paul E. Singer Foundation, praises him for his philanthropy, his leadership in the expansion of free trade, his contribution to U.S. national security and the “future of Israel”. Moreover, Singer is president of the Manhattan Institute for Policy Research.

The frigate is not for handing over or for sale

Regarding the Argentinean case, NML is the principal financier of the organisation, American Task Force Argentina (AFTA), a lobby that influences the Congress and the U.S. justice, harming Argentina. To give ourselves an idea of the power of these vultures, NML could even embargo the Argentinean frigate, Liberty, in Ghana in October 2012, demanding the Argentinean state for about $370 million for unpaid bonds.

Enough of vultures: Argentina united for a national cause

What is happening in Argentina is emblematic of what Greece is starting to feel where vultures like Dart Management operate, with its headquarters in Cayman Island and which also operates in Latin American countries. In 1999, NML achieved, through a ruling in the United States, the payment from Peru of $58 million for a debt that the fund had bought for $11 million. It also did business with the Democratic Republic of Congo.

Source: voltairenet.org