In a July 25 video address to an audience in the northern province of Chaco, to celebrate the opening of a new iron smelting plant, President Cristina Fernandez de Kirchner made an unmistakable reference to the Glass-Steagall law— without naming it—noting that “there was once a law in the United States which prohibited the type of speculation” which the predatory vulture funds have engaged in, in their war against Argentina.
President Fernandez alluded to Glass-Steagall in discussing the vulture fund rampage against her country, by which bought paper they knew was worthless, bought it for nothing.” She clearly implied that a law such as “once existed in the United States” is necessary now, because “whoever buys defaulted paper, obviously has no good intention in mind… they want to speculate and see how they can make more money…”
Coming as it does, after the historic BRICS summit in Fortaleza, Brazil, and the emergence of an entirely new global geometry based on economic, scientific, and human development, the Argentine President’s remarks will drive the Empire—and its toady Barack Obama—wild. “We have a very strong sense of our historic responsibility at this moment,” she said, “to defend our model, and especially to defend all Argentines. I’m not defending this government; I only have a short time before my term ends, and it would be easy for me to sign any old paper and leave it for the next government. But that’s not who I am. …We are paying and will continue to take charge of all the responsibilities of this country, because this isn’t for my government, but for all Argentines.”
The Argentine President made absolutely clear that her government’s fight against the satanic vultures, is really a fight against the whole rotten financial system. It is not just Argentines fighting against these speculative practices, she said, “but the whole world, and I believe that Argentina today is a global test case… If these [speculative] practices triumph in the world,” she said, who will want to engage in productive investment, such as that made to build Chaco’s iron-producing plant, “if in six years, someone can reap a return in dollars of 1,680% without having [invested] anything, or risked anything?”
If the vultures win out, she warned, “it’s going to be very difficult in the world for debts to be restructured, or to convince people to invest to reactivate the global economy which urgently requires jobs, research and development in science and technology, etc.”
Fernandez de Kirchner also exposed the murderous practice of “bankers’ arithmetic,” as Lyndon LaRouche has denounced it over decades. This is the looting mechanism by which nations pay and pay, yet end up with more debt than they began with, through usurious interest rates, forced devaluations, and bankers’ commissions combined with austerity conditionalities. In Argentina, Fernandez explained, this “financial bicycle” first began in 1976 after the military coup and continued for 25 years. How did it work? “Well, a loan came due, and [they] took out another loan, and added more interest and more capital to refinance it. Do you know what foreign debt is? A snowball, that grew as it moved forward, because as usual, we couldn’t pay, so we were always refinancing, and that was how, finally in 2001, the thing exploded,” and Argentina went through the largest debt default in history.