Monday, October 20, 2008
Thursday, October 9, 2008
Microwave Heat Packs Wheat
reserves (but BCRA) Letter to Martin Redrado
by Mario Cafiero, Ricardo Monner Sans and Francisco Llorens
N. of A. The National Budget 2009 for the government of Cristina Fernández to Congress reveals a firm decision to resort to the Central Bank's reserves to pay debt maturities over the next year, allocating 24.618 million - almost 11% of the total budget, to comply with international creditors (both Paris Club and the bondholders). To the extent that this budget provides in Article 72, amend the charter of the Central Bank to use more reserves in the "honor" of debt, eliminating the cap on loan advances.
Thus, it would allow the Government to pay any debt reserves is expressed in foreign currency. The letter reproduced below was sent to the owner of the Budget and Finance Committee of the Chamber of Deputies, warning its members, as the words of one author, Mario Cafiero, "" about the enormity that are about to commit, which under Article 29 of our Constitution, typify the crime of 'infamous traitors to the Motherland ", leaving the Fortunately for the Argentines at the mercy of the government or third parties. Especially in the context of the current international financial crisis sweeping the world. "
Cafiero also adds that" reach into Central Bank reserves, is the same as putting your hand into the pocket of all Argentines, since women under current legislation, are those that uphold the value of our currency. Therefore in the future probably will put hand in his pocket and not notice that we lack pesos, but if we notice as in 2002, that with those weights can only buy so much less. So we can say without exaggeration that defend the Central Bank's reserves, is to defend the dignity of our wages, our wages, our pensions, and the honest earnings of our businesses. "
Buenos Aires, October 7 , 2008
Chairman of the Budget and Finance Committee
Don Gustavo Angel Marconato
Subject: Warning very serious implications of Article 72 of the Budget Bill 2009, with the scope provided for in art. 29 of the CN.
ago
this: formal letter sent to Pte 10/03/1908 BCRA and presentation held on 23.9.2008 to the Bicameral Commission Act 26,122.
In our consideration:
We are writing to you and through you to the other Members of that Committee members to warn of the enormous, speaking plainly, evil thing that this commission is about to commit, especially in the current crisis International Finance with the approval of Article 72 of the draft 2009 budget submitted by the Executive. The
art. 72, it could be called as the anthem external debt as it seeks nothing less than change the Central Bank Charter, for the purpose of using its international reserves to "honor" the payment of external debt.
that Article 72 is approved it would far exceed the superpowers of Cavallo, which claimed in 2001 to pay the debt with the guarantee of taxes, a claim that rejected him in extremis Congress. Today again try to impose that debt will be paid with blood, sweat and tears of the Argentines, who now provision has been added to the common wealth of the Argentines, as they lay hold to support essential social good that is our currency.
Similarly
year 2001, which took hold international reserves of the banks and Central Bank now seeks to dip into the reserves of the BCRA. The story of 2001 as we all ended. Much of the foreign creditors in anticipation of the planned Argentine default, fell off his debts, and in return the Argentine financial system came packed with foreign debt securities. And consequently the emptying of the BCRA and our financial system, brought down catastrophically our economy and our society. Now again we could arrive at a similar situation, in which the emptying of the BCRA and its subsequent inability to regulate currency, would lead in turn to the emptying of the Argentine financial system, with all the economic and social consequences that would entail. We arrived at this
vulnerable BCRA inter alia as a result of the defection of the Congress complete its legislative work on substantive issues, to delegate this to the Decrees of Necessity and Urgency of the Executive Branch and to allow illegal patches legislation introduced in the background, through hidden items in the budget law.
Thus the laws have been transformed into a normative chaos, away from the systemic system should, thus facilitating any disaster and adventure. Logically, if the service or the powerful foreign interests and against the national interest.
In this particular case, the question began with the DNU 401/2002, which was issued in early 2002 during the crisis, by President Duhalde. With it enabled the Central Bank to issue debt, authority that had been expressly prohibited in 1992, having been the architect BCRA essential fraudulent debt burdens us today.
From there, that allowed the BCRA DNU buy stocks look leverage through the issuance of bills and notes galore (Lebac and Nobac), they even concealed by repo transactions. It should be noted that the current international financial crisis is precisely a crisis of leverage, which is reached by the proliferation of "new instruments" as Lebac and Nobac and passes. Instruments and reserves seem to create anything, also can be destroyed quickly if the suspicion is rife as at present, in the same way that a house of cards collapses.
The next twist was the DNU 1599-1505, issued in late 2005 by President Kirchner, who allowed the cash payment to the IMF. Despite this body have been the main co-responsible for the debacle of Argentina `76 onwards, and the crisis terminal del año 2001. Con dicho DNU se subvirtió el sentido de la Carta Orgánica del BCRA, al establecer inusitadamente que las “reservas de libre disponibilidad” no son las que cubren la base monetaria, sino las que exceden esta. Se eliminó así absurdamente el concepto de reservas netas, que redundantemente, como lo dice cualquier manual de economía o contabilidad, son las verdaderas reservas. De esta manera se dispuso que esas seudo reservas de libre disponibilidad, pudieran aplicarse al pago de las obligaciones con los organismos financieros internacionales.
A continuación en el año en curso, con el decreto 1.394 y el DNU 1.472 se dispuso el pago cash al Club de París, partiendo de erradas digresiones respect the international status of the Club of Paris, and by implementing confusing exceptions to the Central Bank Charter in relation to the amount of advances that may give the Treasury. The payment to the Paris Club is an unlawful action and absurd. It is unlawful for the origin of the debt from the bloody military dictatorship, which promptly rejected by Congress (Law Nr 23854). It is absurd in light of the current international financial crisis that moves the world.
algid More details on this issue are outlined in the attachments that accompany the present, consisting of a copy of the formal letter sent on October 3 ultimo. Mr. President of the BCRA - (See previous note on this blog) -, and a copy of the presentation made on September 23 ultimo. before the Joint Standing Committee on Legislative Procedure Act 26,122.
This succession from falling today reached its culmination with Article 72 of the budget bill, with which it would, without any limitation as to the pseudo "free availability of reserves, the payment to international financial institutions and any other foreign currency denominated debt. Metaphorically in this way (as did Cavallo in 2001, allowing the Central Bank reserves and the banks could be integrated with government bonds) is is conducting a gap to the Treasury of the Central Bank through which external creditors may bear the reserves backing our currency and the soundness of the BCRA accounts, leaving it as empty as in 2001.
is hardly necessary to point out that the constitutional provision of Art. 29 around a subject like this, would place those who are the protagonists in the category of infamous traitors to the Fatherland. Beyond the absolute weak judiciary, we do not believe that the Argentine people in a position to support this with impunity a new fraud similar or equal to 2001.
In this regard we express to Mr. President and Mr. Legislators are much more positive alternatives to genuine interests of the country, in order that Argentina can meet the financial crossroads where it is today. This crossroads is a result of bad debt arrangement was made in 2005, in which Congress again delegated its powers the executive branch more direct. Errors and omissions of the past, are the causes of the financial difficulties of the present. And the current errors are the causes of the financial difficulties of the future. That may appear remarkably increased in the light of the financial crisis sweeping the world. It is personal and nondelegable responsibility of Mr. Legislators, which will not happen.
If your interest is we are able to personally present such alternatives.
greet you attn. 
by Mario Cafiero, Ricardo Monner Sans and Francisco Llorens
N. of A. The National Budget 2009 for the government of Cristina Fernández to Congress reveals a firm decision to resort to the Central Bank's reserves to pay debt maturities over the next year, allocating 24.618 million - almost 11% of the total budget, to comply with international creditors (both Paris Club and the bondholders). To the extent that this budget provides in Article 72, amend the charter of the Central Bank to use more reserves in the "honor" of debt, eliminating the cap on loan advances.
Thus, it would allow the Government to pay any debt reserves is expressed in foreign currency. The letter reproduced below was sent to the owner of the Budget and Finance Committee of the Chamber of Deputies, warning its members, as the words of one author, Mario Cafiero, "" about the enormity that are about to commit, which under Article 29 of our Constitution, typify the crime of 'infamous traitors to the Motherland ", leaving the Fortunately for the Argentines at the mercy of the government or third parties. Especially in the context of the current international financial crisis sweeping the world. "
Cafiero also adds that" reach into Central Bank reserves, is the same as putting your hand into the pocket of all Argentines, since women under current legislation, are those that uphold the value of our currency. Therefore in the future probably will put hand in his pocket and not notice that we lack pesos, but if we notice as in 2002, that with those weights can only buy so much less. So we can say without exaggeration that defend the Central Bank's reserves, is to defend the dignity of our wages, our wages, our pensions, and the honest earnings of our businesses. "
Buenos Aires, October 7 , 2008
Chairman of the Budget and Finance Committee
Don Gustavo Angel Marconato
Subject: Warning very serious implications of Article 72 of the Budget Bill 2009, with the scope provided for in art. 29 of the CN.
ago
this: formal letter sent to Pte 10/03/1908 BCRA and presentation held on 23.9.2008 to the Bicameral Commission Act 26,122.
In our consideration:
We are writing to you and through you to the other Members of that Committee members to warn of the enormous, speaking plainly, evil thing that this commission is about to commit, especially in the current crisis International Finance with the approval of Article 72 of the draft 2009 budget submitted by the Executive. The
art. 72, it could be called as the anthem external debt as it seeks nothing less than change the Central Bank Charter, for the purpose of using its international reserves to "honor" the payment of external debt.
that Article 72 is approved it would far exceed the superpowers of Cavallo, which claimed in 2001 to pay the debt with the guarantee of taxes, a claim that rejected him in extremis Congress. Today again try to impose that debt will be paid with blood, sweat and tears of the Argentines, who now provision has been added to the common wealth of the Argentines, as they lay hold to support essential social good that is our currency.
Similarly
year 2001, which took hold international reserves of the banks and Central Bank now seeks to dip into the reserves of the BCRA. The story of 2001 as we all ended. Much of the foreign creditors in anticipation of the planned Argentine default, fell off his debts, and in return the Argentine financial system came packed with foreign debt securities. And consequently the emptying of the BCRA and our financial system, brought down catastrophically our economy and our society. Now again we could arrive at a similar situation, in which the emptying of the BCRA and its subsequent inability to regulate currency, would lead in turn to the emptying of the Argentine financial system, with all the economic and social consequences that would entail. We arrived at this
vulnerable BCRA inter alia as a result of the defection of the Congress complete its legislative work on substantive issues, to delegate this to the Decrees of Necessity and Urgency of the Executive Branch and to allow illegal patches legislation introduced in the background, through hidden items in the budget law.
Thus the laws have been transformed into a normative chaos, away from the systemic system should, thus facilitating any disaster and adventure. Logically, if the service or the powerful foreign interests and against the national interest.
In this particular case, the question began with the DNU 401/2002, which was issued in early 2002 during the crisis, by President Duhalde. With it enabled the Central Bank to issue debt, authority that had been expressly prohibited in 1992, having been the architect BCRA essential fraudulent debt burdens us today.
From there, that allowed the BCRA DNU buy stocks look leverage through the issuance of bills and notes galore (Lebac and Nobac), they even concealed by repo transactions. It should be noted that the current international financial crisis is precisely a crisis of leverage, which is reached by the proliferation of "new instruments" as Lebac and Nobac and passes. Instruments and reserves seem to create anything, also can be destroyed quickly if the suspicion is rife as at present, in the same way that a house of cards collapses.
The next twist was the DNU 1599-1505, issued in late 2005 by President Kirchner, who allowed the cash payment to the IMF. Despite this body have been the main co-responsible for the debacle of Argentina `76 onwards, and the crisis terminal del año 2001. Con dicho DNU se subvirtió el sentido de la Carta Orgánica del BCRA, al establecer inusitadamente que las “reservas de libre disponibilidad” no son las que cubren la base monetaria, sino las que exceden esta. Se eliminó así absurdamente el concepto de reservas netas, que redundantemente, como lo dice cualquier manual de economía o contabilidad, son las verdaderas reservas. De esta manera se dispuso que esas seudo reservas de libre disponibilidad, pudieran aplicarse al pago de las obligaciones con los organismos financieros internacionales.
A continuación en el año en curso, con el decreto 1.394 y el DNU 1.472 se dispuso el pago cash al Club de París, partiendo de erradas digresiones respect the international status of the Club of Paris, and by implementing confusing exceptions to the Central Bank Charter in relation to the amount of advances that may give the Treasury. The payment to the Paris Club is an unlawful action and absurd. It is unlawful for the origin of the debt from the bloody military dictatorship, which promptly rejected by Congress (Law Nr 23854). It is absurd in light of the current international financial crisis that moves the world.
algid More details on this issue are outlined in the attachments that accompany the present, consisting of a copy of the formal letter sent on October 3 ultimo. Mr. President of the BCRA - (See previous note on this blog) -, and a copy of the presentation made on September 23 ultimo. before the Joint Standing Committee on Legislative Procedure Act 26,122.
This succession from falling today reached its culmination with Article 72 of the budget bill, with which it would, without any limitation as to the pseudo "free availability of reserves, the payment to international financial institutions and any other foreign currency denominated debt. Metaphorically in this way (as did Cavallo in 2001, allowing the Central Bank reserves and the banks could be integrated with government bonds) is is conducting a gap to the Treasury of the Central Bank through which external creditors may bear the reserves backing our currency and the soundness of the BCRA accounts, leaving it as empty as in 2001.
is hardly necessary to point out that the constitutional provision of Art. 29 around a subject like this, would place those who are the protagonists in the category of infamous traitors to the Fatherland. Beyond the absolute weak judiciary, we do not believe that the Argentine people in a position to support this with impunity a new fraud similar or equal to 2001.
In this regard we express to Mr. President and Mr. Legislators are much more positive alternatives to genuine interests of the country, in order that Argentina can meet the financial crossroads where it is today. This crossroads is a result of bad debt arrangement was made in 2005, in which Congress again delegated its powers the executive branch more direct. Errors and omissions of the past, are the causes of the financial difficulties of the present. And the current errors are the causes of the financial difficulties of the future. That may appear remarkably increased in the light of the financial crisis sweeping the world. It is personal and nondelegable responsibility of Mr. Legislators, which will not happen.
If your interest is we are able to personally present such alternatives.
greet you attn.
Saturday, October 4, 2008
Molested In Japan Train
BCRA Mr President - Mr. Martin Redrado BCRA
Rte.: Mario Cafiero - Ricardo Monner Sans
Subject: issue mendacious and misleading information relating to the solvency and liquidity of the BCRA, and payment to the Paris Club.
In my consideration:
We went to you and through you to the other directors of BCRA in the belief that you are spreading misleading information relating to the safety and soundness of the institution. We also warn that this behavior "deceitful and disvaliosa-deserved for an urgent judicial inquiry, in the absence of a proper correction immediately.
We refer specifically to the statements made by you on 9/26/1908, which were amplified by the media, whose text is available on the website of the Central Bank. In them you said that "current levels of liquidity, about 40% of deposits, are historically high. This ratio is robust compared to, say, with the levels maintained during the period 1991-2001 (23.4% on average and up to 29.2%). In this way tries to show a strength and soundness by the Central Bank, which is unfortunately far from reality.
In fact, a simple observation of the information provided by this institution in the aforementioned website - "Monetary and Financial Outlook (monthly series)" - shows that these figures may be correct historically, but no compassion for anything with that are now occurring. The liquidity ratio of total deposits "around 40%" as you expressed, was reached last April, before the conflict with the field. But in July dropped to 35% and in August had fallen to 27% if the Central Bank had complied with the Paris Club payment ordered by the Executive. In this regard it should be noted that in October 2001, just before the collapse of convertibility and installation of the yard, this indicator was 33%.
But the criticism we make to you is, both on the amounts reported, as the quality of the information provided. You know very well that refer only to deposits, regardless of the money held by the public, is technically incorrect. It was obviously to use a cosmetic trick to exploit the phenomenon of society desbancarización Argentina that occurred as a result of the yard. It is your full knowledge that after that big scam, which had the architect indispensable to the institution that you are running, by the mistrust generated by the depositor significantly reduced the Argentine banking multiplier or proportion of deposits in relation to the currency in public hands. This happened nine times on the eve of the "yard", a little more than three times today.
Looking at the index called "M3" (the sum of the two) in relation to indicators of liquidity are even more unfavorable. The ratio in July was 28%. And in August have fallen to 21% if it had been paid to the Paris Club. While on the eve of the collapse of convertibility in October 2001, this indicator was 30%. So in all cases the current indicators are worse than the previous the collapse of convertibility.
The issue does not end there. If instead of statistical data are taken from accounting data contained in the liabilities on the balance of BCRA (Securities issued by Central Bank, Operations Term Liabilities and Other Liabilities) these indicators worsen dramatically. Liquidity in relation to deposits declined from 31% in April, to 20% in July. And in August it would have reached 11% if it had made payment to the Paris Club. In turn, the M3 liquidity ratio fell from 25% in April to 16% in July. And in August it would have fallen to 9% if it had finalized the payment to the IMF.
However, unfortunately, the question not end there, as these indicators are developed based on gross international reserves, not the net international reserves (defined by net international reserves to gross international reserves minus debt BCRA international). Taking into account these, the numbers worsen even more, approaching zero. Far from 40% of you falsely boasts to the public. So the numbers drawn by the BCRA, they have nothing to envy liars INDEC numbers.
Without analyzing the quality and consistency of investment to international reserves, which offer serious doubts and objections, nor to consider that half of them has been leveraged by a contraction dangerous to very short-term domestic debt, it is clear that the existence of "historically high levels of reserves" as you claim, is false. It is unfortunate that you repeat the chant that was told the Argentines in early 2001, to meet the end of that year without a weight or miserable dollar in his pocket.
Beyond the technical, critical and realistic analysis of the balances of the Central Bank indicates that minimum prudential reasons, especially in the current circumstances in the world is plagued by an unusual "financial tsunami" International unpredictable consequences BCRA is absolutely unable to make cash payments to the Paris Club ordered by the Executive.
is also verifiable cash payment to the IMF in early 2006, and seriously impair the liquidity and solvency indicators of that institution, had effects that impacted heavily on the rise in interest rates and hence on inflation. Like today, then there alternative ways to avoid both the cash payment, including the supervision of the IMF, based precisely on the responsibility of the IMF in Argentina absurd debacle of the last quarter century, an issue that has even opened a case in court Argentina . Very different would the present state of our economy and society, whether these resources or part of reparations had been overturned in our country, rather vain if any spilled outside.
Consequently, in our capacity as Argentine citizens deeply interested in public affairs, and forks, like millions of Argentines, the currency issued by the public bank:
-warning to you to cease his deception to public opinion about the true strength and ability to pay of the Central Bank. Behavior very similar to that deployed this institution during 2001, the couple is perpetrating a vicious dissection of the Argentine financial system in Argentine savers fraud.
"Summoned to you and through you to the directors of that bank, to fully comply with its core mission stated in the Charter" to preserve the value of the currency, "which despite being very poorly distributed, is a good essential social and public money in our economy. Preserve is a verb that goes far beyond saving. Is to shield our currency in advance of damage or probable or imminent danger, such as those currently hovering.
"Consequently we urge you to oppose the cash payment to the Paris Club of illegally ordained by decrees 1,394 and 1,472, to pay ruinously affect the sustainability of the BCRA, as it is not the Paris Club a" body international finance "and the project involves no" urgent need "to justify the issuance of these decrees bypassing Congress Olympian.
In light of moral demerit of that debt, because it is an illegitimate debt substantially from the bloody dictatorship, which was rejected by Congress, and in light of his lack of opportunity, in the context of financial events are shaking the world would become effective the payment of an act of desadministración ruinous inexplicable and unacceptable, worthy of inclusion in the "History of Human Stupidity" by Tabori, or the "Universal History of Infamy" by Borges.
Attached
by certified mail piece presentation made to the Joint Standing Committee on Legislative Procedure Law 26,122 on the DNU 1.472/08, which contains an analysis referred to the actual state of that institution.
For reasons of force majeure has not been able to accompany this CD with his signature Francisco Javier Llorens who has allowed this information.
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