Writing in The Observer (14.08.2011) John Vidal described the outcome after oil was discovered in Ecuador's rainforest:

When large reserves of oil were discovered under Yasuní national park, Ecuador offered the world a choice: give us money and we will not allow drilling. Now $60m must be found by December...

Professor Edwin Dolan, a longtime researcher of economic and environmental issues, and author of the forthcoming book: There Ain't No Such Thing As A Free Lunch - A Liberterian Perspective On Environmental Policy, comments:

"Ecuador's dilemma over oil development perfectly illustrates the TANSTAAFL principle.

Oil revenue isn't a free lunch for Ecuador, which will pay through destruction of part of its environmental heritage, and very likely pay again through corruption spawned by oil wealth.

Meanwhile, the U.S. policy of keeping oil prices low in the name of "affordable energy" makes the problem worse by encouraging consumption.

Trying to make something look free by pricing it below opportunity cost just means paying more in the long run. If Ecuador could be depended on to keep its promise to leave the oil in the ground (a big "if"), raising the U.S. gas tax and using part of the proceeds to give Ecuador the support it wants to preserve the rain forest would be a win-win situation.''

States must be courageous enough to bring the world of feral finance under control and back into the real economy, he argues. Click here for the full article

As one looks at the way in which the Heads of Government keep falling short of expectations, there is a growing feeling that they have not grasped the magnitude of the natural consequence of their actions in recent months. The statement that only Greece will ever default seems laughable when set against the preparations for Collective Action Clauses in all eurozone government bonds to make clear private holders are subordinated. In aggregate, Eurozone public debts are teetering at the brink of sustainability.

Read Graham Bishop's latest vews here.