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Peru Sued By Illinois Firm For Unpaid Birdshit Bonds
If you’ve followed the recent evolution of fixed income products, you’re well aware that when it comes to pooling assets and securitizing cash flows, pretty much anything goes. From subprime auto loans, to credit card receivables, to P2P debt, to PE home flipper loans, you name it and there’s a fixed income security for it.
Given the above, we were fairly certain that when it comes to bonds, nothing would surprise us in terms of debtors, creditors, and the underlying assets.
We were wrong.
As Bloomberg reports, Illinois-based MMA Consultants 1 Inc has filed suit in U.S. District Court in connection with money the firm says it is owed by The Republic of Peru for bonds issued in 1875. Here’s more:
Fourteen bonds the country issued in 1875 .. are now held by an Illinois firm that says it’s having a hard time redeeming them.
MMA said it sent three letters to Peru’s Minister of Economics and Finance requesting payment to no avail. The company is suing for breach of contract. It didn’t reveal in the lawsuit how it came by the bonds.
If that were the whole story, it wouldn’t be all that interesting. Fortunately, there’s more:
[The] bonds were issued to pay off debt to a U.S. guano consignment company.
Each bond promised a payoff of $1,000 "United States Gold coin" plus 7 percent interest a year, according to the complaint filed Thursday by MMA Consultants 1 Inc. in federal court in New York.
The bonds bear the signature of Don Manuel Freyre, who is described as the "Envoy Extraordinaire and Minister Plenipotentiary of Peru," according to the complaint.
Because we cannot imagine what we could possibly add that would make this any more amusing than it already is, we’ll simply leave you with the following summary:
MMA Consultants 1 is attempting to collect what, with interest, amounts to $182 million in gold coins from "Envoy Extraordinaire" Don Manuel Freyre, in connection with bonds Peru issued 140 years ago to pay off a debt to a seabird dung consignment company.

(Don Manuel Freyre, Envoy Extraordinaire)
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Truly batshit crazy.
That's ok cause ill owes the feds a hugh amount from the 1840's which they defaulted on, so i'm certain some sort of a trianguar deal can be made here.
somethin' smells here
Well, if any state is full of shit, it's Illinois. Look how much shit they've shipped to D.C.
FDR nullified all contracts payable in gold in 1933. Here's a thought, settle up in guano.
Another type of de facto gold seizure occurred as a result of the various Executive Orders and it involved bonds, gold certificates and private contracts. Private contracts or bonds which were written in terms of gold were to be paid in paper currency instead of gold. This was in spite of the fact that these contracts and bonds all proclaimed that they were payable in gold, and at least one, the fourth Liberty Bond, was a federal instrument. The plaintiffs in all cases received paper money instead of (the contract terms') gold. The contracts and bonds were written precisely to avoid currency debasement by requiring payment in gold coin. The paper money which was redeemable in gold was instead irredeemable based on Nortz v. United States, 294 U.S. 317
https://en.wikipedia.org/wiki/Executive_Order_6102
Funny thing about that deal, the $100 gold treasury notes (like but not federal reserve note) were not confiscated and bought $100 worth of goods of the day. Interesting gambling days of the past, present, and future.
Maybe Peru should pay Illinois-based MMA Consultants 1 Inc. off in 100 year Mexican bonds. I'm sure Mexico will come through in 2115 on those.
they could also add in another 1000 U.S. gold coins with those 100 year Mexican bonds.
That'd be a big win for Peru and Mexico cuz we all know those barberous relic gold coins will be worth negative 10,000 dollars each in 100 years from now. ;-)
I guess that depends on who "we all" are, now doesn't it?
"[The] bonds were issued to pay off debt to a U.S. guano consignment company."
Is this a U.S. company that CONSIGNED birdshit for Peru? I mean, they actually loaded up 12,000 'dollars' worth of birdshit and sent it ON CONSIGNMENT? In sailing ships? Yo ho, yo ho, a pirate's life (and all that entails)? Precious fucking (essence of life) BIRDSHIT sent from the CONUS to PERU, a voyage of several thousand sea miles, by 'Clipper Ships'? The guy that actually SIGNED for the order and gave out $1,000 gold dollar promisory notes on behalf of Peru at the point of disembarkation of this stinky, but highly prized cargo wasn't declared to be a BIRDSHIT as well?
YEAH. Fucking Illinois lawyers still have a few 'cards' up their sleeve to play... (careful that you don't step on your dicks on the way, you Kike mother-fucking child-raping Moloch-worshipping faggots. I've been collecting birdshit [and all kinds of other animal shit], and am prepared to ship you a payment)
"ill owes the feds a hugh amount from the 1840's which they defaulted on"
Tell me more, I'm buyin. Anything I can do to hasten the state of illinoiance to bankruptcy I consider a service to mankind.
Yeah but the kicker was the second of three states involved was ark, home to, well, you know. The third was ind, they must have thought they could tax river traffic but forgot about the states across the river, they went belly up twice, once with the fed , and a secondary issue state bonds which also wern't not paid. The fed now sits a top a piling heap o chit which they now want to add to in a big __ way, still a few interesting days ahead.
Not fair some of that shit came from Kenya.
Peru simply needs to mint one, 182 million dollar, gold coin.
Problem solved.
yeah...One 1 ounce coin...make it Five 9's though for big-time authenticity, lol...and stamp that big 'ol 182 Meeeeeeeelion dollars right on the obverse of it with a pile of bat guano stamped on the revers side.
The preparation H plan
Won't work, it says US gold coins.
The gull of that firm is truly amazing.
robin em' blind...
Those bonds went the way of the Do-Do
Guess we'd better 'Duck' if all this guano's gonna hit the fan.
Declare Force Maneure !
That's Force du fumier.
Paper Doo-cats (i.e ducats)
fumatious shitutious
The chicken shit has come home to roost!
It's called tax collector desperation, we are at our wits ends on how to create more ways of collecting money due the future.
Word has it that the DWI standard is being looked at. Solid info is thst .05 is currently being considered.
Skys the limit when insanities are involved.
The best fiction writers could not make up this stuff. LOL
and it's guano!!
local tex-mex place here is asking "would you like guano on that, sir?"
that explains it, i've often thought that mexican food smelled like dirty ass
That because the workers do not wash their hands after taking a dump.
A certain Act in 1913 states, "all your gold belong are us".
Oh yes, turning shit into gold! Why didn't Blythe Masters think of that?!
Crapper Default Swaps.
Blythe had a shit/gold spread product, I'm sure of it. I guess that's actually the Comex pricing mechanism . .
Shades of 'Mad Max: Beyond Thunderdome' here.
WHO run 'Barter Town'?
It's PIGSHIT.
They will be trying to redeem Argentina bonds 100 years from now to.
Well, the Conquistadors liberated a shitload of PM's from the locals. Kinda funny how things work out in the end.
Northern. Pacific 3% 2047 1st motgage payable in gold coin. Court said gold outlawed FDR. Too bad . then Burlington Northern somehow called in a non callable bond NYSE listed. We had GROUP called gold bond holders protective council. Case went all the way thru appeals court. We wanted gold. Not deflated dollars. Lost case.. Made some on the bods
http://www.reuters.com/video/2015/07/17/peruvian-government-makes-contac...
Barely seeing the humor given gold's run today.
AHH! PAPER!
Good to wipe your ass with, or blow your nose with.
BUY THE FUCKING DIP, YOU FUCKING IDIOT.
PHYZ...
Got Enron?
Speaking of 'guano'...it's how the word "shit" got its moniker
Lloyds of London did a study after losing numerous guano ships before the advent of chemical fertilizer. They discovered it was low in the ship holds, often mixing with seawater from the bilges after a storm, and forming a gas some hapless seaman set off with an open-flame lantern, blowing the ships to smithereens.
So they instructed the shipowners (their insurees) to place the guano up higher so this wouldn't happen, and the shipper labeled it "Store High in Transit"...and the acronym was born.
Highly unlikely. The German word for "shit" is "scheisse." They obviously share their etymology. The "For Unlawful Carnal Knowledge" story is a fabrication as well.
Fornication Under Consent of King?
scheisse: Schuabble es ein asse?
Fornication Under Consent of King?
No, once again from the German, "ficken" originally meaning to strike or beat.
I guess.
The entymological definition of Methane gas was made shortly after.
I'd really give a S.H.I.T., but right now things seem to be F.U.B.A.R. ... and I don't give a (Copper's) damn...
<S> on:
With the advent of the 'BIC' lighter, teenage boys across the world figured out that they could actually light their farts (based upon the theory that humans and all animals generate methane in their digestion processes). Al Gore (the Younger) later used this to his advantage, stating that methane was a threat to humanity (he still has no hair on his ass, due to his teen-age experiments).
guano happens
I have some first hand experience with some old GM bonds that turned to Guano. Should I save them for 100 years?
yes, then they can be sold as evidence that the Indiana State Pension System was royally screwed by that bat-guano Supreme.
Of course, that would be for the grandparents to give to the youngstaz' on a plaque: "Child, don't you do this shit, ya'heah?"
- Ned
OF COURSE NOT.
If you would consider a bond swap, I am currently holding several billion dollars of Lehman common.
Of course, I'll have to charge a small premium...
Cramer
(Cramer-at-FEDRES.commie)
Unfortunately, in the 1950s, Peru offered a series of different bonds for any and all outstanding bonds upon which the Peruvian government had defaulted. The offer was good until 1975, and, according to the World Court, settled any and all outstanding debt obligations for which the government was either directly responsible, or, as in the case of these bonds for the Guano Consignment Company, responsible as a guarantor. This is an intervening event.
Right. Anything else would also be covered under the debt restructuring by the Republic of Peru in 1989.
It's a colorful claim, but I don't think it's going anywhere.
I thought they meant Peru, Illinois ...
I was momentarialy in Peru once for an eternity. On my way down to Cairo (Illinios) goose hunting.
Check this out. Their best French resturant ....
http://www.americantowns.com/il/peru/yp/french-restaurants
At a state park. Mes amis, c'est le turdamont!
Now where did they put that lease.....
Robert Edwards was rewarded by Queen Anne with 77 acres of Manhattan for fighting the Spanish in the 18th century.
Legend has it that while sailing back to the UK, Edwards was killed in a storm and the titles to the prime New York land now known as Lower Manhattan sunk with him.
Ever since that time, successive generations of Edwardses in Wales and the US have tried to prove they should have inherited some of the most valuable land in America.
Are they worried about retaliation?
"What are you Guano do when they come for you?"
"I think you're some kind of deviated prevert"!
(Colonel Bat Guano from Dr.Strangelove)
Love to see it repaid in tonnages of shit on their doorstep.
MMA Consultants probably carrying the asset on balance sheet at par
The Fed carries toxic shit ,at par ,on their balance sheet,so why not ?
They're managing the South American Fixed Income mandate for CalPers. LOL
One afternoon i daydreamed about an accounting textbook including a chapter on "Marking to Fantasy". The chapter ought to explian the pros and cons. Pros being unlimited assets, cons being said assets not being liquid, like, at all. I thought that would be honest and technically right.
My dad told me before he died that Abe lincoln owed his grandpa $137.00 and change. He said I should try and collect
Give it a shot. They say Lincoln once walked ten miles to return a nickel so he might be willing to return from the grave over $137.
They'll have the same success the Chinese had on redeeming their 100 year old "FAKE" US bonds.
Vulture Capitalism? Paul Singer Style?
Paid pennies to the 1000s of Peruvian Pesos?
thats some funny shit
Such gold clauses were ruled unconstitutional by the case of Perry vs United States in 1935.
Someday, out of necessity we will demand they be legalized again, but this may take a hyperinflation to get us back to sanity.
Gold clauses became legal and enforceable again in the US if they are in contracts entered into after October of 1977. See 31 USC 5118 (d)(2). This has led to some surprises instances of contracts written before 1933 that had option for a renawal after 1977. See for example this 2008 opinion from the 6th Circuit Court of Appeals dealing with a lease written in 1912 with a gold clause that renewed in 1982 using the same language.
http://www.ca6.uscourts.gov/opinions.pdf/08a0322p-06.pdf
I would bet my hat that MMA Consultants 1, Inc. is really JustAnotherHenScheme1, Inc.
Liberty is a demand. Tyranny is submission.
It's the ongoing effort by Americans from all four corners of the nation to make themselves truly despised and hated throughout the world.
Pray to God that we are never conquered by a foreign power. Otherwise, I can see the populations of the world demanding extermination camps be set up to rid themselves of the Americans once and for all.
For those of us that are US citizens, that'd be us.
I've lived in 6 countries beside the kleptocracy posing as the U.S.; you nailed it: Americans, universally hated everywhere. If I knew where the big red button was...
Who da thought you could find something lower than whale shit (coincidental use of word) in Illinois. Just shoot these fuckers; Humanity doesn't have time for this shit (intended)!
I think it's obvious Lima won't pay up.
So all I want to know is where the bonds came from. An antique shop? Attic of fixer-upper vulture fund boss bought his trophy wife who needed a hobby?
Hey Peru - Are you bat shit crazy - You obviously owe the money - just pay the hell up. Enough with the bat shit already!
My grandmother had a shitload of Polish bonds from the 1920's. They worked great as kindling for my charcoal grill...
Exactly... and those bonds where underwritten by JP Morgan bank and supposedly were "gold backed". However somehow Poland went bankrupt , the gold backing the bonds disappeared and JP Morgan delivered a sincere "sorry" to the bondholders.
Investors got wiped out. Bonds = 0.
So they got some old bonds on ebay and are now trying to redeem them... ha, let me guess.... zionists
This is where a time machine would come in handy.
People in the future might be dumb enough to pay this bond.
They need to explain how they got the bonds. Obviously they have been inherited or passed along as gifts.
Did they pay income taxes associated with the gift?
Did they pay inheritance taxes?
Without the bond's story they wont collect.
If not a hoax most likely Peru defaulted due to "Force Majeure" after Chile (Britain) conquered the Atacama desert, home of the former guano and current copper mining chilean industry. There must be records of that transaction, of Peru defaulting and the bond owners accepting the loss.
Furthermore, the bond only states that $1000.GOLD are owed. What are $1000.GOLD?
Gifts are not "income" according to the supreme court.
The bond says a whole lot more than $100.GOLD. See all that writing? In addition, a "dollar" is silver not gold. Gold coins with "dollar" on them issued bu the mint are called "eagles".
Does this mean Confederate bonds are valuable?