Argentina Must Not Follow NY Court’s Dictated Path to Bankruptcy
LATIN AMERICA & THE CARIBBEAN, 4 Aug 2014
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% 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 honoring and is planning to continue honoring.
And why would Judge Griesa make his case in favor 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 globalized 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%! – 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 behavior applies.
The nation that can go on killing sprees with its armies and its financial instruments and send proxies for them to kill and start wars, wars with deadly artillery, war planes and bombs; and wars with deadly financial weapons, manipulated by the tail that wags the dog, the owners of Wall Street, of the Fed and of the Bank for International settlement (BIS) — the exceptional nation and the exceptional ‘tail’ that nobody dares to stop — because all are puppets. Foremost, the Europeans. Europe has ‘leaders’ (sic) with the pants down and some of them as naked as the emperor himself.
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 honor a debt amortization 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 honor its debt amortization by moving debt payment transactions from New York to Beijing and Moscow. Delinked from New York. Delinked from the dollar. End of story.
Peter Koenig is an economist and former World Bank official. He worked extensively around the world in the fields of environment and water resources. He is the author of Implosion – an economic thriller about war, environmental destruction and corporate greed–fiction based on facts and on 30 years of World Bank experience around the globe.
This article originally appeared on Transcend Media Service (TMS) on 4 Aug 2014.
Anticopyright: Editorials and articles originated on TMS may be freely reprinted, disseminated, translated and used as background material, provided an acknowledgement and link to the source, TMS: Argentina Must Not Follow NY Court’s Dictated Path to Bankruptcy, is included. Thank you.
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