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What Europe’s Hopeful Left Can Learn from Latin America


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I have little direct experience with other South American countries, but I have lived in Ecuador for 6 months. Talking with Ecuadorians about social and economic issues, most feel the country is headed in the right direction. I have yet to see a person pushing a shopping cart while talking to the Universe and I have seen few panhandlers. I wish I could say the same of the US. There is infrastructure building going on everywhere I look. The government is spending dollars into the economy. Dollars that it is creating without interest and so not creating much public debt. The petro dollars and yuan are used for international trade to import things not available in Ecuador. The import tariffs are high to encourage domestic production just like the US did before the neo cons took over. Correa and the government are able to do this without antagonizing the moneyed elite because he is giving them investments like 7.95% bonds where they can make lots of money. It doesn't matter what the interest rate is because the central bank can create the dollars to pay the interest without taxing anybody. The system they have created is brilliant and so far has flown under the radar of the parasites on Wall Street and the City of London. Taking the dollar for its currency was an effective way to avoid attack on their currency. The parasites can't attack the dollar. That is where they hold most of their assets. Attack on the Sucre was what caused the 1999 collapse. The author it must be noted is based in the heart of the beast in the UK and seems to parrot much of the talking points and even refers to articles from the Economist, that independent and unbiased source of info.
Greece and other EU countries should look closely at what Ecuador has done. Taking the dollar or the Euro or the yuan and having a government owned central bank to issue sovereign money may be the model of the future. If you are being beaten into the ground with a financial weapon adopting that weapon may be wise. Stopping countries from issuing their own dollars or Euros will be difficult since private banks are doing just that only with interest attached. The specter of inflation will be raised if a country is able to issue its own dollars, but remember that over inflating the money supply through sub prime loans and derivatives is what led to the 2008 collapse and that money was created by private entities (banksters). Ecuador was not affected much by the financial collapse even though it was using the dollar.