The Expat Files - 09/12/14

-Part 2 concerning near bankrupt and heavily debt ridden Ecuador. It has a new government run crypto-currency scheme for 2015. It looks to be one of the dumbest moves ever. Not only have they put NO limit at all on the amount of the stuff the govt itself can create (note that finite limits were fundamental to the widespread adoption of Bitcoin), the government has, at the same time, banned all other crypto-currencies like Bitcoin. Most cyber-currency insider/specialists predict the idea will crash and burn

 

-Did you know that Goldman Sachs gave the (technically broke) Ecuadorian government $400 million in exchange for a big chunk of their national gold reserves? Not to mention China owns more than half of Ecuador’s national debt… which is mortgaged against future oil reserves. Now what that means is that Ecuador is no longer a 100% sovereign nation. Meaning when push comes to shove, certain foreigners will be pulling the financial strings. (But then again, with China holding more than a trillion in T-Bonds, is the US really a sovereign country?)   

 

-More bad news from the Uruguay government. It’s sad enough that about 1 in 3 adults work for the government, but now Big Brother advocates in that little country have placed currency controls on all cash payments over $5000 (as of Jan 2015). That restriction will be on any transaction whatsoever; including giving your grandmother a 5 grand gift for a facelift or a trip to the Rock and Roll Hall of Fame in Cleveland. Even restrictive US cash regs are not that crazy, yet. Can you guess why Uruguay has such high taxes and a near first-world cost of living index?

 

-Do follow the link on the main page at www.ExpatWisdom.com to schedule a private phone, Skype or Mumble consult with me. If you want to discuss the details of living, working, playing, doing business and/or retiring in Latin America, now you and I can talk about your situation one on one.