Michael Hudson spoke with Sharmini Peries of the Real News, about the IMF returning to the crime scene called Argentina.
The criminal organization of the global neoliberal regime continues its devastating work around the world. Its mission (as always) is to secure the interests of the global financial mafia and the local oligarchies, by destroying entire national economies and lives of the ordinary people.
As Hudson pointed out:
The neoliberal policy has its aim rolling back any of the wage increases in employment that Mrs. Kirschner, the former president, implied, as part of the class war. So, in order to shrink the economy, you have to basically cut back business, cut back employment. And so, the purpose of the IMF loan was to enable the wealthy Argentinians, the oligarchy that’s run the country for a century, to get all its money out and run.
Like almost all IMF loans, the purpose is to subsidize capital flight out of Argentina so that the wealthy Argentinians can take their money and run before the currency collapses.
The aim of the loan is to indebt Argentina so much that its currency will continue to go down and down and down, essentially wrecking the economy. That’s what the IMF does, that’s its business plan. It makes a loan to subsidize capital flight, emptying out the economy of cash, leading the currency to collapse, as it is recently collapsed. As soon as the $50 billion was expended, or wasted, in letting wealthy Argentinians take their pesos, convert them into dollars, move them offshore to the United States, to England, to the Dutch West Indies, and offshore banking centers.
What Macri has done, is they agree with the IMF to wage class war with a vengeance, devaluation, leaving Argentina so hopelessly indebted that it can’t possibly repay the IMF loan. So, what we’re seeing is a replay of what happened in 2001.
The IMF debt is an odious debt. It was given under fraudulent purposes, solely for purposes of capital flight. Once it doesn’t pay the foreign debt, its balance of payments will be there. The problem is that the creditors have always used violence in order to get their way. I don’t see how the Argentina situation can be solved without violence, because the creditors are using police force, covert assassination. They’re just as bad as the dirty war that had that mass assassination period in the late, into the early ’90s. There’s obviously going to be not only the demonstrations, but an outright war, because it’s broken out in Argentina more drastically than anywhere else right now in Latin America, except in Venezuela.
The good side of this is that Argentina now can join with other third world countries and say we are going to redenominate the debts in our own currency, or we just won’t pay, or we will do what the world did in 1931 and announce a moratorium on intergovernmental debts. Some international conference to declare a moratorium and say, what is the amount that actually can be paid? And to write down third world debts to the amount that should be paid.
Every country has a right to put its own citizens first and its own economy first before foreign creditors, especially when the loans are made under false pretenses, as the IMF has made pretending to stabilize the currency instead of subsidizing capital flight to destabilize the currency.
As we mentioned already, Argentinians didn't forget what happened 17 years ago and are getting ready for another war with the neoliberal forces of destruction.