Wednesday, August 22, 2012

CHINESE BUSINESSMEN DISCUSS OUTLOOK FOR BELIZE ECONOMY.

WESTERN BELIZE CHINESE DEBATE THE SUPERBOND DEFAULT.

  I was outvoted on buying cheap SUPERBONDS at 5 cents or less on the dollar.  The consensus was; you might as well put the money in a pile in the backyard and burn it up.

  The reason given was:  no Belize Government has EVER been self sustainable.  Each incoming Belize government has operated a PONZI SCHEME SCAM, borrowing money, to pay off earlier loans, interest payments, with money from new lenders. They use creative bookkeeping, but it is all a paper swindle. At some point and it seems that point has now been reached, the PONZI SCHEME COLLAPSES. There has been no indication that Belize could ever pay off any interest and principal, of gross totalled loans.  Nor does the government of Belize seem capable of building an economy, that would grow the GDP. Thus an investment in cheap junk Belize Bonds would ultimately be like throwing your money away.

  The PARLIAMENTRY inherited pirate political system from the U.K. is blamed.  Each elected reprentative is out for what they can make, while in office.  It's all about GREED.  GREED takes precedence over self sustainability and building GDP.

  The only way to build GDP is through introducing LIGHT MANUFACTURING for exports.  The politicians do not know how? The city produced, civil service, bureaucrats do not know how? The politicians are not driven, patriotic enough, to establish the conditions to grow GDP.

  You cannot get land titles through the lands department without bribes.  Politicians are tying up the lands department functionaries with their own GET RICH SCHEMES off land deals, so the investor cannot get their titles done, in a reasonable 4 week period. Without FREE TITLE an investor cannot begin to invest.

  Thinking back, there is no way I can get 100 acres of 2000 ft elevation land in the Southern Maya mountains in a six week period to start building a cardomom plantation.  I tried 4 years ago.  The politicians and bureacratic system is DYSFUNCTIONAL.

  Therefore we are no longer interested in investing $25,000 USA in Belize Junk Bonds, no matter how cheap they get.

  China has a similar currency control system, and the Chinese here in Western Belize say they cannot easily get foreign exchange to operate the small factories their CLAN owns in China.  The trick they are pulling, is to accumulate foreign exchange in New York, in bank C.D.s, that pay next to nothing: but which they can use as security, to guarantee payment on a 30 payment schedule, to purchase incoming raw materials to run their factories. The gamble being; they can receive the raw materials for their CLAN FACTORIES and make products to export FASTER than the 30 day note coming due.

 

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