ellen brown argentina

8/11/2019 Ellen Brown Argentina

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http://ellenbrown.com/2014/08/25/colonization-by-bankruptcy-the-high-

stakes-chess-match-for-argentina/

llen "rown:Fighting of the G7 banking vultures and

conronting the austerity scam. Argentina is doing what

Ecuador and Iceland have already done successully, but what

Greece did not.

#rgentina is playing har$ball with the %ulture fun$s& which ha%e been

trying to force it into an in%oluntary bankruptcy.

he vultures are demanding what amounts to a !""# return on

bonds bought or $ennies on the dollar,$efeating a 2005

settlement in which '2( of cre$itors agree$ to accept a )0( haircut

on their bon$s.

A %& court has backed the vulture unds' but in the middle o

August (")*, Argentina sideste$$ed its +urisdiction bytranserring the trustee or $ayment rom ank o -ew ork

/ellon to its own central bank. hat $lay, i a$$roved by the

Argentine 0ongress, will allow the country to continue making

$ayments under its (""1 settlement, avoiding deault on the

ma+ority o its bonds.

Argentina is already oreclosed rom international ca$ital

markets, so it doesn2t have much to lose by thwarting the %&

court system. &imilar bold moves by Ecuador and Iceland have

let those countries in substantially better sha$e than Greece,

which went along with the agendas o the international

3nanciers.
http://ellenbrown.com/2014/08/25/colonization-by-bankruptcy-the-high-stakes-chess-match-for-argentina/http://ellenbrown.com/2014/08/25/colonization-by-bankruptcy-the-high-stakes-chess-match-for-argentina/http://ellenbrown.com/2014/08/25/colonization-by-bankruptcy-the-high-stakes-chess-match-for-argentina/http://ellenbrown.com/2014/08/25/colonization-by-bankruptcy-the-high-stakes-chess-match-for-argentina/


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*he upsi$e for #rgentina was capture$ by +resi$ent ,ernan$ez in a

nationwi$e speech on 1'th #ugust 2014: hen it comes to the

so%ereignty of our country an$ the con%iction that we can no longer be

etorte$& an$ that we cant become bur$ene$ with $ebt again& we are

emerging as #rgentines. f signe$ what theyre trying to make me

sign .... we woul$ enter into the infernal cycle of $ebt which we%e

been subect to for so long.

*he $eeper implications of that infernal cycle of $ebt cycle ha%e been

eplore$ by #$rian 3albuchi: here territories were once capture$ by

military might& to$ay they are being annee$ by $ebt.

he still4evolving $lan is to drive destitute nations into an

international bankru$tcy court whose decisions would have the

orce o law throughout the world. he court could then do

with whole countries what %& bankru$tcy courts do with

businesses5 sell of their assets, including their real estate.

&overeign territories could be ac6uired as the s$oils obankru$tcy without a shot being 3red.

Global 3nanciers and interlocking $rivate megacor$orations

are increasingly su$$lanting governments on the international

stage. An international bankru$tcy court would be one more

institution making that takeover legally binding and

enorceable.

At $resent, sovereign governments can say no to the strong4

arm tactics o the global bankers2 collection agency, the I/F.

owever, an international bankru$tcy court would allow

creditors to orce a nation into bankru$tcy, where territories


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could be involuntarily sold of in the same way that assets o

bankru$t cor$orations are.

For Argentina, says &albuchi, the likely $ri8e is its very rich

9atagonia region, long a avorite settlement target or e:4$ats.

;hen Argentina sufered a massive deault in (""), the G7

mainstream media machine $ro$osed that 9atagonia be ceded

rom the country as a deaulted debt $ayment mechanism.

!

by heodor er8l, ounder o the ?ionist movement, as a

second settlement location or what became ?ionist 9alestine.

n 2002& an , $eputy manager calle$ #nne 6rueger aske$: 73houl$

countries like #rgentina be able to $eclare themsel%es bankrupt9

6ruegers article was poste$ on the , website an$ agge$ up as

proposing some new an$ creati%e i$eas on what to $o about #rgentina.

ith the %&


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Argentina.

Argentina2s $resent debt crisis can be traced back to )>11,

when 9resident uan *! he re+ected +oining the I/F.

In )>1 he ully $aid of all o Argentina2s sovereign debt. nce

the mega4bankers got rid o him in )>1!, they shoved

Argentina into the I/F and created the 9aris 0lub to engineer

decades4worth o sovereign debt or van6uished Argentina,

something they2ve been doing until today.

/any sovereign countries have been sub+ected to similar

treatment. ;hen the country cannot $ay, the I/F swee$s in

with re3nancing agreements with strings attached, including

selling of $ublic assets and slashing $ublic services in order to

divert government revenues into oreign debt service.

t is worth asking a undamental common4sense 6uestion5

;hy should national governments indebt themselves

in hard currencies, decades into the uture with

global mega4bankers, when they could +ust as well

3nance these $ro+ects and needs ar more saely by

issuing the $ro$er amounts o their own local

sovereign currency instead

he big bankstersH 3nancial claims on wealth 4 bonds,

mortgages and bank loans 4 are lent out to become somebody


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else2s debts in an e:$onentially e:$anding $rocess. -ational

economies have been obliged to $ay their debts by

cutting back new research, develo$ment and new

$hysical reinvestment. his is the essence o I/F

austerity $lans, in which the currency is stabilisedJ

by urther international borrowing on terms that

destabilise the economy at large. &$iraling debt

results in $rice inKation, since businesses have to

raise their $rices to cover the interest and ees on the

debt.

,or go%ernments to escape this austerity trap& they nee$ to spen$ not

less& but more money on the tangible capital formation that increases

physical pro$ucti%ity.

"ut where to get the in%estment money without getting sucke$ into

the $ebt %orte ;here can Argentina get unding i the country

is shut out o international ca$ital markets he common4

sense res$onse, &albuchi observes, is or governments to issue

the money they need directly.

#n alternati%e which can ha%e %irtually the same e;ect is for nations to

borrow money issue$ by their own publicly-owne$ banks. 9ublic

banks generate credit +ust as $rivate banks do' but unlike

$rivate lenders, they return interest and $ro3ts to the local

economy. heir mandate is to serve the $ublic, and that is

where their $ro3ts go.

Funding through their own government4issued


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currencies and $ublicly4owned banks has been

successully $ursued by many countries historically,

including Australia, -ew ?ealand, 0anada, Germany,

0hina, Lussia, Dorea and a$an.

&overeign nations do need to be able to buy oreign

$roducts that they cannot ac6uire or $roduce

domestically, and or that they need a orm o

currency or an international credit line that other

nations will acce$t. ut today, a global change isbecoming maniest5 sovereign nations are breaking

away rom the dying oil and wea$ons driven %& dollar

as the global reserve currency.

?3 seem to be

suggesting& is that eactly what we $o not nee$

llen "rowns full tet is on her eb of


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tiny @D00 000A& roughly the same population as 3t Houis& half that of


8/14

*he upsi$e for #rgentina was capture$ by +resi$ent ,ernan$ez in a

nationwi$e speech on #ugust 1'th. 3truggling to hol$ back tears&

accor$ing to "loomberg& she sai$:

hen it comes to the so%ereignty of our country an$ the con%iction

that we can no longer be etorte$ an$ that we cant become bur$ene$

with $ebt again& we are emerging as #rgentines.

. . . f signe$ what theyre trying to make me sign& the bomb woul$nt

eplo$e now but rather there woul$ surely be applause& mar%elous

hea$lines in the papers. "ut we woul$ enter into the infernal cycle of

$ebt which we%e been subect to for so long.

*he n$game: +atagonia in the ?rosshairs

*he $eeper implications of that infernal $ebt cycle were eplore$ by

#rgentine political analyst Adrian &albuchi in an August )(th

article titled &overeign


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bankruptcy court woul$ be one more institution making that takeo%er

legally bin$ing an$ enforceable. Fo%ernments can say no to the

strong-arm tactics of the global bankers collection agency& the ,. #n

international bankruptcy court woul$ allow cre$itors to force a nation

into bankruptcy& where territories coul$ be in%oluntarily sol$ o; in the

same way that assets of bankrupt corporations are.

,or #rgentina& says 3albuchi& the likely prize is its %ery rich +atagonia

region& long a fa%orite settlement target for e-pats. hen #rgentina

su;ere$ a massi%e $efault in 2001&the global $ress, including

ime and he -ew ork imes, went so ar as to $ro$ose that

9atagonia be ceded rom the country as a deaulted debt

$ayment mechanism.

*he Eew Oork *imes article followe$ one publishe$ in the "uenos #ires

Pnancial newspaper l ?ronista ?omercial calle$ 7


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#nother article publishe$ in 2002 was one by , $eputy manager

#nne 6rueger title$ 73houl$ ?ountries Hike #rgentina "e #ble to

elations9A.

3albuchi writes:

Jere&0oo$er very matter4o4actly recommends that only i

the debtor nation cannot restore its 3nancial health are its

assets li6uidated and the $roceeds distributed to its creditorsM again under the guidance o a NglobalO courtJ @GA.

n #rgentinas recent tangle with the %ulture fun$s& s. 6rueger an$

the mainstream me$ia ha%e come out in apparent $efense of

#rgentina& recommen$ing restraint by the M3 court.

"ut accor$ing to 3albuchi& this $oes not represent a change in policy.

Lather, the concern is that overly heavy4handed treatment may

kill the golden goose5

. . . QR n to$ays $elicate post-2008 banking system& a new an$ less

controllable so%ereign $ebt crisis coul$ thwart the global elites plans


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for an 7or$erly transition towar$s a new global legal architecture9 that

will allow or$erly liKui$ation of Pnancially-faile$ states like #rgentina.

Es$ecially i such debt were to be collaterali8ed by its national

territory Nwhat else is letPO

"reaking ,ree from the 3o%ereign


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ere, ;estern economists, bankers, traders, Ivy Qeague

academics and $roessors, -obel laureates and the

mainstream media have a 6uick and monolithic re$ly5 because

all nations needinvestment and investorsJ i they wish to

build highways, $ower $lants, schools, air$orts, hos$itals,

raise armies, service inrastructures and a long list o et

ceteras . . . .

ut more and more $eo$le are starting to ask a undamental

common4sense 6uestion5 why should governments indebt

themselves in hard currencies, decades into the uture with

global mega4bankers, when they could +ust as well 3nance

these $ro+ects and needs ar more saely by issuing the $ro$er

amounts o their own local sovereign currency instead

Eeoliberal eperts shout back thatgovernment4created money

devalues the currency, inKates the money su$$ly, and destroys

economies. ut does it r is it the debt service on moneycreated $rivately by banks, along with other orms o rentJ

on ca$ital, that create inKation and destroy economies

#s +rof. ichael Ju$son points out:

hese 3nancial claims on wealth M bonds, mortgages and bank

loans M are lent out to become somebody else2s debts in an

e:$onentially e:$anding $rocess. . . . RESconomies have been

obliged to $ay their debts by cutting back new research,

develo$ment and new $hysical reinvestment. his is the

essence o I/F austerity $lans, in which the currency is

stabili8edJ by urther international borrowing on terms that

destabili8e the economy at large. &uch cutbacks in long4term

investment also are the $roduct o cor$orate raids 3nanced by


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high4interest +unk bonds. he debts created by businesses,

consumers and national economies cutting back their long4

term direct investment leaves these entities even less able to

carry their mounting debt burden.

3piraling $ebt also results in price ination& since businesses have

to raise their $rices to cover the interest and ees on the debt.

,rom 3o%ereign


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?ountries $o nee$ to be able to buy foreign pro$ucts that they cannot

acKuire or pro$uce $omestically& an$ for that they nee$ a form of

currency or an international cre$it line that other nations will accept.

"ut countries are increasingly breaking away from the oil- an$

weapons-backe$ M3 $ollar as global reser%e currency. o resolve the

mutually4destructive currency wars will $robably take a new

retton ;oods Accord. "ut that is another subect for a later article.

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llen "rown is an attorney& foun$er of the +ublic "anking nstitute& an$

author of twel%e books& inclu$ing the best-selling eb of ate this:

ellen brown argentina

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