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Ecuador default on part of foreign debt payment
11.09 p.m. ET (314 GMT) September 26, 1999
QUITO, Ecuador (AP) - Ecuador will default on payment of millions of dollars of U.S.-backed debt, President Jamil Mahuad announced Sunday night.
Last month, Ecuador chose to delay its $98-million interest payment on its Brady bond debt for 30 days. It had until Tuesday to make the payment or officially become the first country ever to default on a Brady bond debt.
Brady bonds, named after former U.S. Treasury Secretary Nicholas Brady, were created to resolve the Latin American debt crisis of the 1980s. They are partly backed by U.S. Treasury securities.
In a nationally televised address, Mahuad said his nation would only pay interest on the bonds that are not guaranteed by the U.S. Treasury Department. He said Ecuador would pay "a little less than half,'' of the $98-million interest payment.
International lenders and creditors have been fixated on Ecuador's economy. Although the country does not rank among the region's largest economies, some fear a default on the once-sacrosanct Brady bonds could spark a tumble in emerging bond markets.
Mahuad asked international lenders and creditors for "flexibility.''
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"Brady bonds, named after former U.S. Treasury Secretary Nicholas Brady, were created to resolve the Latin American debt crisis of the 1980s. They are partly backed by U.S. Treasury securities.'
'In a nationally televised address, Mahuad said his nation would only pay interest on the bonds that are not guaranteed by the U.S. Treasury Department'
Ask yourself this...
Where in the Constitution does it provide for the taxpayers of the united States to guarantee loans to foreign countries? Where was Congress ever delegated the authority to do that in our names?
Hint: It was never given the authority to do that. Not under ANY stretch of the imagination.
This is one more reason why the present government of the united Staes is as illegimate as a three dollar bill.
Sedition? I think not. When the government is caught doing things they should not be doing, the one that points it out is not seditious at all.
The one who cries 'sedition' is the one who , having no understanding of the constitution, supports its every criminal activity. There is the real seditionist.
brock
http://www.foxnews.com/js_index.sml?content=/news/wires2/index.sml
--
Paul Milne
"If you live within 5 miles of a 7-11, you're toast"
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