[Marxism] Argentina’s Default: Expropriate the Imperialist Robbers!

RKOB aktiv at rkob.net
Wed Aug 6 22:35:32 MDT 2014

*Threat of Argentina’s Default: Expropriate the Imperialist Robbers! Cancel all Debts!*

/Statement by the Revolutionary Communist International Tendency (RCIT), 5.8.2014, www.thecommunists.net/

1. After the failure of talks between representatives of Argentina’s
Kirchner government and the US hedge funds NML Capital and Aurelius,
South America’s second largest country is in danger of defaulting.
These two “vulture funds,” as they are rightly dubbed in Latin
America, have rejected the restructuring of debts which was accepted by
93% of the bondholders, and are demanding full payment of US$ 1.3
billion on bonds they hold. These vultures’ demands are the equivalent
of 17-times (!) the sum which these hedge funds invested to buy the
Argentine bonds in 2002. If the Argentine government were to agree to
these demands, this precedent could trigger additional claims from other
creditors – those bondholders who participated in the restructuring of
most of the Argentinean debt in 2005 and 2010. Their cumulative demands
would total anywhere between US$ 4 and US$ 15 billion. Argentina’s
finance minister, Axel Kicillof, argues that this in turn would threaten
to unravel the entire restructuring of the country’s debt, potentially
unleashing claims for more than US$ 120 billion. Given the fact that
Argentina’s foreign reserves currently total less than US$ 30 billion,
this would mean a total default of the country’s economy. If this
happens, Argentina would face yet another deep crisis with a tremendous
increase of poverty and unemployment as happened when the country faced
its last slump and default in 2001/02. In other words: The greedy
imperialist monopolies threaten Argentina with another national


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