Is Argentina going to do to capitalism what Poland did to Communism?

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In Argentina there is an opportunity to implement a change in the type of capitalism that the New World Order is placating onto the world. The world can only hope the International Monetary Fund moves toward a form of capitalism that has a conscience for the lives of the people and the environment over profits. If the IMF does not learn from this and makes changes in its policies then the people have no choice but to make the necessary changes themselves to procure their survival. The result would be a precedenting default on an IMF debt which will send a powerful message to all debt holders.

Argentina is significant because it shows that the industrialized world is now cannabalizing its own kind not just colonizing emerging third world countries. Argentina is an established industrialized country, deep within the boundaries of the empire and not a conquered third world nation like Afghanistan.

The Argentinians took down their government in 3 days. Hundreds of thousands of Argentinians took to the streets, banging on pots to tell the world that IMF policies are not working. Food riots in a modern country are scary and are a sign of the times. The New World Order capitalist system is going too far in pursuing its globalization agenda and now it is paying the price. Until now the IMF policies have meant poverty and slavery for the recipients of its loans. Perhaps the decision makers will heed the call for change and allow countries to go bankrupt and default on loans. Perhaps they will regulate the money changers that rule our lives to guarantee humanity and the environment are served not just profits.

Below is the strategy that the IMF uses to bleed a country of its human and financial resources. The strategy is called 'poverty reduction' and should be called 'poverty creation'. NOTE: all industrialized countries including the US are victims of this strategy not just third world nations.

The IMF and World Bank "poverty reduction strategy":

  • Step 1 - 'Mass Privatization' - the first step in capitalizing a country the IMF way. This is when foreign corporations swoop in like vultures to peck on the economic carcass of a country by buying banks, utilities, transit systems etc. Now even Argentina's banks are foreign owned; Citibank of New York and Fleet Bank of Boston are the 2 major owners.
  • Step 2 - 'Capital Market Liberalization' - this means that the rich in the burdened country are free to invest their money offshore. In July 2001 Argentinians withdrew 6% of all bank deposits and sent them offshore to stock markets and banks etc.
  • Step 3 - 'Market-Based Pricing' - a fancy term for raising prices on food, water and cooking gas. The French bought a majority of the water system in Argentina, the Italians and Americans in Bolivia and promptly raised rates by 400%.
  • Step Four - 'Free Trade' - This is free trade by the rules of the World Trade Organization and World Bank - it means deals are made to control imports and exports through pegging a currency to the dollar or not; thus making goods expensive in some countries while cheaper in others.
  • Step Five - 'Flexible workforce' - means that the workers are demanded to work for lower wages and lower pensions. In Nov. 2001 private pension funds in Argentina were transformed into government treasury bonds to service IMF debt.

    The IMF dictates to the countries how they will be bled by paying back interest on their loans. Money that was to go to schools, hospitals and roads now goes to the IMF debtors. Money that was to go to the citizens of that country now is going to loan sharks in other countries.

    IMF debt is bought and sold on the open market from the US to Canada to Europe and Asia. This means that the Argentinians retirement funds are going to pay interest to debt traders in Toronto, New York, London and Tokyo. But note, whomever is left holding these debts at default time are the ones left holding the bag. They do not want to see a default. If Argetnina were allowed to default, this would assuredly send a signal to all other debtor nations in the world (the US being the largest) to default on their debts and may prove to be the linchpin that sets off an economic implosion of the capitalist system as we know it today.

    To make it easier to understand, a comparison can be made of the World Bank and the International Monetary Fund to cutthroat, loan shark, credit card companies on the front end and giant debt trading pyramid schemes on the back end. Once a country or a person bites the poison apple of credit from these vultures it is often difficult if not impossible to get out of the quick sand of debt. This debt is then traded by investors until it is retired. This explains why the Republicans hate surplus spending; because they thrive off of trading debt. Debt and interest on debt have become natural resources and make deficit spending a positive for the debt traders. Investment in debt is seen in mutual funds and other investment schemes, check your broker to find out if you are investing in debt that is insuring poverty in the world.

    The IMF believes that the contagion from the economic collapse in Argentina can be contained and it will soon be business as usual for New World capitalism. This will prove to be a disaster for all capitalism in the world as more countries choose to rebel and default on their debt thus setting off a domino effect bankrupting debt investors (indivivduals to banks) around the world. But the IMF has an opportunity to learn a lesson and let Argentina be the catalyst for real change in the New World capitalism; a change that will give it a conscience and guarantee that there are no more food riots.

    Sunday December 23 3:34 PM ET
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