. . . he hires Putin’s PR people.
Two items from Ecuador,
First:
I’ve been hesitating to review Paul M. Barrett’s new book, Law of the Jungle: The $19 Billion Legal Battle Over Oil in the Rain Forest and the Lawyer Who’d Stop at Nothing to Win about fraudster Steven Donziger.
While the book is interesting, I find statements like “While not a materialistic person driven by financial rewards, Donziger sometimes groused about the cost of his career choices” (page 134) exasperating. Paul Barrett may believe that Donziger was not “driven by financial rewards” while setting up a Gibraltar corporation to hold proceeds of the judgment, but readers of Law of the Jungle should read Judge Kaplan’s 497-page decision, which quotes Donziger’s personal notebook on April 4, 2007:
. . . I sit back and dream. I cannot believe what we have accomplished. Important people interested in us. A new paradigm of not only a case, but how to do a case. Chevron wanting to settle. Billions of dollars on the table. A movie, a possible book.I cannot keep up with it all.
That said, Barrett is now under attack by the Republic of Ecuador’s U.S. public relations advisers, New York-based Ketchum. His article, What It’s Like to Be Attacked by Putin’s American Flack explains the latest,
Ketchum’s memo about my book connects the dots regarding why Ecuador cares so passionately about the case. Among the “difficult questions” Law of the Jungle raises, according to Ketchum:
Barrett’s book does raise many questions, among them,
• “Ecuador took the biggest part of the income obtained from petroleum extracted from the Amazon, approximately $23.5 billion against $1.6 billion for Texaco-Chevron.” The precise figures are subject to dispute, but according to government records, the split was roughly 90-10 in favor of Ecuador. This contradicts a central theme of the plaintiffs’ (and Correa’s) narrative: that Texaco derived all the benefit from industrializing the rain forest and left the host country with only the nasty side effects. The Ketchum memo warns the embassy that my reporting raises additional questions: How did Ecuador spend its majority proceeds from oil exploitation? Why wasn’t this money spent on environmental controls? Why was the money not used to help those harmed by the drilling?
Make sure to read Barrett’s full article. You can find all of his very interesting Business Week/Bloomberg articles here.
Ecuador engages in “widespread repression of the media”; now they try to export the repression to our shores via a public relations firm.
The second item:
As you may recall, president Rafael Correa has come up with a fake currency to cover up a fiscal deficit, including debt service, of some $9.2 billion.
Correa claims there’s no plan to replace the dollar. Steve Hanke, who 14 years ago was the chief intellectual architect of the nation’s switch to the dollar, is skeptical,
Ecuador’s Dollarization Architect Doubts Correa’s Pledge
“What Correa’s trying to do is kind of loosen the straitjacket that dollarization has him in,” Hanke said. “If you go off, the fiscal deficit gets bigger, the level of debt gets bigger, inflation goes up and economic growth goes down. All the economic indicators just go south.”
Correa is expected to run for a fourth presidential term in 2017, having changed the law on presidential term limits.
Ketchum may be looking forward to it.
UPDATE,
Linked to by Bad Blue. Thanks!
