Third World Debt 101 (Was: Where is Bob hiding his dirt?)

From: bob@minton.org (Bob Minton)
Subject: Third World Debt 101 (Was: Where is Bob hiding his dirt?)
Date: Tue, 18 Aug 1998 18:21:26 GMT
Message-ID: <35ddc545.3392500@news.tiac.net>

Considering that in 1979 I pioneered a business that every major financial institution in the world began emulating from 1982 through 1993, I would think I'm a more credible source of information on Third World Debt than a 9th grade dropout and sexual pervert like Davy Miscavige and his staff of Sea Org execs who have never held a job in the real world or done an honest day's work in their life.

Scientology says I made my money "off the backs of the poorer citizens of Third World Countries" (see <6r5ilr$m0n@drn.newsguy.com>). Let me tell you how it actually worked. I'll use as my example a country which for some reason Scientology feels compelled to point out has citizens that "are not white." I always referred to them as Nigerians, myself.

Could it be that Hubbard's racial bias is reflected in this Scientology statement?

In this hypothetical example, let's say Nigeria owes Banks 1 through 100 (B1...B100) a total of $1 billion. Let's say that Nigeria's external debt payment problems are serious due to, for example, low oil prices (oil being their primary export). Banks in general, and B1-B100 in particular, are reluctant to lend more money to Nigeria. Not only that, but future expectations of payment are so uncertain that several of the B1-B100 banks agree to sell their Nigerian debts to me for 30 percent of their face value. Assuming the face value of the debts I bought was, for example, $10 million, I would have paid $3 million for the debt.

I might be able to turn around and sell these debts to another investor or bank for, say, 31 percent of their face value. Net result, I make $100,000. The transaction has no particular noble motives other than me making some money. In this example, I'm like Scientology: they produce an E-meter for $5 and turn around and sell it to a consumer for $2,000. The difference is, my consumer is fully informed. Scientology's consumer is not.

Where's the justice in this example? I take the big risk and make a small margin of profit. Scientology takes little risk, makes a huge margin of profit and sells to a captive market.

Some might say that free markets are a tough place to do business. I'd say that's the only market in which the value of your product or service can be properly evaluated. Parallels can be made to the free flow of information made possible by the internet. I mean, when was the last time you saw herds of people storming your local Scientology org to buy their products or services? Don't hold your breath!

I did some of the type of business referred to in my example above, but the vast majority of business I was involved in was like so:

I had a better idea! I went to Country A (who may have had financial problems similar to those described above) and said, "Why don't you use a portion of your oil revenues to let me buy your debt, which trades at approximately 30 percent of face value, back for you in the open market?" Annual interest on the debt was, say, 10%. Further, I say, "You will have paid off this debt in three years and fully recouped your investment."

They say, "Minton you are a genius. Why didn't we think of this?"

I say to myself, "They like the product, so what will I charge them for the service?"

That's it! Two fully informed parties doing business together.

Now, I understand why this concept is so complex for Scientology to comprehend. Scientology NEVER wants anyone to be fully informed about what their "product" cloaks.

I would also point out that the economic advantages to all citizens in a third world country that conducted such a debt buy-back program, rich and poor alike, are clearly advantageous.

If the per capita debt in Country A was $1,000 before a debt buy-back at 30 cents on the dollar, it may be $300 per capita after the debt buy-back (depending on the mix of debt and my over simplifications). This is hardly what Scientology calls making money "off the backs of the poorer citizens of third world countries." "Making money off the backs" of people sort of reminds me of the Sea Org.

The next issue raised by Scientology regarding my business is, "Yes, he consorted with dictators of third world countries to make his millions. This is factual data."

I have never even met a dictator of a third world country, much less consorted with one. So, yet another in a long line of lies by Scientology. If I had "consorted with dictators," so what?

I'm sure if I had met any dictators, they would have had velvet Elvis art on the walls of their office like the stuff Sylvia Stanard sells out of the DC org. Hey, some people like it!

I'm actually starting a new business "to clear the planet of vermin." Jesse Prince gave me the idea after he told me about rat patrols at Flag. I'm just in the early stages of formulating a business strategy right now and trying to focus on the right type of vermin. Maybe "Cult Busters" or something. I wonder if I might get some start-up tips from Digital Lightwave or Fortress Technologies, especially on the IPO?

BTW, Rinder wrote another letter to my wife and we'll have some things to say about that in due course.

Bob Minton