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Issue #1650      August 6, 2014

Argentina and dictated path to bankruptcy

Why would Argentina default on debt that was settled more than 10 years ago? Not to everybody’s content, for sure, but settlement all the same. Settlement agreements were reached with 93 percent of all creditors.

Why would a New York Court have jurisdiction over a sovereign country? Basically declaring it bankrupt if it doesn’t pay up – pay up 100% of outstanding debt, when all other creditors agreed to an average 20% repayment – which Argentina is honouring and is planning to continue honouring.

And why would Judge Griesa make his case in favour of NML Capital and similar Vulture funds? – Vulture is exactly what the term expresses – a merciless predator.

Because Argentina does not align with US foreign policy? Does not subscribe to Washington’s exceptionalism? Does not submit to Obama’s illusions of supremacy? So, Argentina must be punished. The White House’s ever so blinding short-sightedness of sanctions and punishment.

There is no bankruptcy law for sovereign nations. In fact the sovereignty of a country is untouchable, according to one of the key declarations of the League of Nations which later became the United Nations.

Washington’s arrogance is beyond bounds. It threatens not only Argentina, but the impact of this ruling might boomerang to the US’ own banks, Wall Street, and send ripples through globalised banks around the world. And this only, because the current corrupt western monetary system is still bound to the long defunct and over-indebted fiat dollar, under which all international transactions whether involving the US economy or not, whether dollar denominated or not – have to transit through a New York bank.

That’s where the jurisdiction comes from. That’s why criminally behaving Vulture funds can buy a judge in New York to rule the unrulable for them – to the detriment of all the other creditors, who agreed with Argentina’s goodwill settlement, but are now not allowed to be paid, unless the vulture is paid in full, i.e. at 100 percent. Unbelievable, if it wouldn’t be coming from Washington, the capital of the only real rogue state in the world, the exceptional nation with the exceptional people, for whom no rule of international law and behaviour applies.

If this happens, if judge Griesa’s decision prevails – it may set a nasty precedent, one that not only may backfire on the US, but on the rest of the western economy. It would create chaos. Every debtor nation could reason, why should we honour a debt amortisation agreement, if there is a US judge and US jurisdiction that can undo at will earlier agreements among sovereign nations?

But there is hope. Russia and China are not playing along. They are not puppets. In fact, they are the last fortifications that the dying beast, headed by Obama is vying to defeat with all means possible to achieve world hegemony – the One World Order; with propaganda, lies and falsehoods, slandering of true world leaders, and – of course – with “sanctions”, ridiculous self-defeating sanctions.

Rather sooner than later the world will seek an alternative monetary system, one completely delinked from the dollar; from Wall Street, from the US all-usurping dictate. It’s already happening. When another outrageous US court punished the French bank BNP Paribas with a salty US$ 9 billion-plus fine for dealing with Iran, the French Central Bank started negotiating with the Chinese Central Bank for Euro-Yuan swaps which would allow them in the future to transit directly through Beijing for international payments, sidelining the dollar and the New York banks.

Argentina must not obey judge Griesa, or any US ruling interfering in its sovereignty – in its handling of sovereign debt. Argentina may seek dollar-ruble and yuan swap arrangements with the central banks of Russia and China, and honour its debt amortisation by moving debt payment transactions from New York to Beijing and Moscow. Delinked from New York. Delinked from the dollar. End of story.

Information Clearing House

Next article – “No doubt” on British torture and rendition

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