Vulture capital versus the people of Argentina
by David Atkins
The vultures are circling over Argentina, and a major court case may determine the balance of power between nations of the world and the global parasitic tax-dodging financial sector that leeches off the world’s productivity.
Argentina did the right thing in 2002 by defaulting on exorbitant debts accrued through predatory disaster capitalism. Most of that debt has been restructured, but a few vulture capital firms decided to buy up part of the debt and demand full repayment. The question is now before the courts:
That question now faces the U.S. 2nd Circuit Court of Appeals in New York, which has become an unlikely referee in a high-stakes grudge match pitting Wall Street investors against Argentina.
At its heart, the case tests the power of U.S. courts to force other countries to honor their debts. The outcome could hinder the ability of other struggling nations — including Greece and Cyprus — to renegotiate their commitments, potentially saddling them with crushing obligations they can’t escape.
In the button-down world of international finance, the proceedings have been nothing short of a barnburner. Each side has hired celebrity lawyers, traded insults and engaged in some bare-knuckle tactics, including the attempted seizure of an Argentine naval frigate by bondholders.
Now years of squabbling may be reaching a boiling point: A crucial ruling is expected as early as this week.
“The implications are huge,” economist and Nobel laureate Joseph E. Stiglitz said. “This court is balancing the interests of very small groups of creditors against those of entire countries.”
If the court rules against Argentina as it appears set to do, it will mean the total power of vulture capital over countries attempting to grow their economies in spite of exorbitant IMF demands and economic sabotage. It will constitute nothing less than a middle finger in the air of the world community by the pluocratic class, and a dare for the world to do something about it.
Perhaps the world should take them up on the dare.
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