Forwarded from Nestor (reply to Michael Yates)

Louis Proyect lnp3 at panix.com
Wed Feb 20 07:17:03 MST 2002


>Perhaps someone on the list can answer this for
>me.  I understand that the Argentine gov't. in
>the early 1980s actually assumed the foreign
>debt of both multinational and domestic
>companies.  Were these debts denominated in
>dollars?  

Of course they were nominated in dollars. What do you think? We are serious 
people, aren't we. The debt was passed on to the State in a two or three
moves 
gambit, where Cavallo started the game under the military and Machinea
(already 
under Alfonsín) finished the task.

> I also understand that the government
>paid a subsidy to the firms whose debts were
>assumed because the peso was losing value.

I am not very sure what is Mike thinking about here. But, for example, there 
was a system under Martínez de Hoz by which the Banks were "restored" the
value 
of the amounts of cash they had to keep in their vaults under the 
"redescuentos" system, while there was a programmed revaluation of the peso 
under what was known as the "tablita" (pre-announced exchange rate table, a 
forerunner of the currency board scheme) system. This swindle was known as
the 
"cuenta de regulación monetaria" and it cost billions of dollars to the 
country.

Anyway, it would not be unconceivable at all that the government had at the 
same time subsidized the companies and taken their debts at the same time.
What 
do you kill thousands of people for, if not for that? 

I will pass the question on to the Reconquista-popular mailing list, and
see if 
someone can give a better answer.

Louis Proyect
Marxism mailing list: http://www.marxmail.org



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