People ought to read history threads
How many times have we gone over this? Only about two weeks ago I posted a thread about my experience with Banco Central in the open forum. I had one of those 180 day certificates with 36% interest. When I opened the certificate I took a considerable risk, equivalent to buying international stocks in Wall Street.
Upon maturity, Banco Central people told me they could offer me up to 54% interest if I renewed. I refused, took my money and bought myself an apartment, where great deals are found with cash in hand. The day I cashed the check at BC the stack of $1000 and $2000 pesos bills they paid me with were still hot from the press. Many even stuck together due to the static. Banco Central prints money as they pay these certificates with "inorganic" money, the same kind Germany used to print after WWI when they could not pay the war reparation debts ordered by the Treaty of Versailles.
This new scheme by Banco Central and supported by Hipolito Mejia is nothing more than a pyramid scheme. Those who got in at the beginning will get and many, like me got their money with big gains. Those who get in now are taking an incredible risk, because it is hard to find out at what stage the Banco Central pyramid has risen before its critical mass reaches its own Chandrasekhar Limit(the scientific formula whereas the mass of a star has increased beyond a limit that forces it to collapse within itself and becomes a black hole).
I believe that just like an overblown white dwarf star, Banco Central certificates are close to the default limit and those who get in now are risking at least having their capital payments deferred for 10 years upon maturity of the certificates. There are many economists pushing for this, among them Eduardo Tejera. Once these economic gurus start making suggestions like this, they soon become reality. Economists are used by government as devil's advocates to throw trial balloons. Regardless, Banco Central has no reserves in gold or dollars to back up over $100,000,000,000 in debt.
While I was in it my monthly payments were religiously made thru electronic transfers to my bank account. Several times payments arrived earlier than the due date. Banco Central had no trouble either coming up with my capital at the time of maturity. But that was then. What will it be in 90 days after the elections with a bankrupt government and a bald head maniac at the helm?
TW