The US imperialists have launched a savage attack on the sovereignty of Argentina. The US Supreme Court has ordered that Argentina pay $1.5 billion to two US financial companies by July 31, 2014. It has also ordered all international financial institutions having assets of Argentineans and their government to disclose these assets, so that they could be seized to pay out these companies in case the government of Argentina defaults on the payment it has been ordered to do.
The people of Argentina have come out on to the streets strongly opposing the US attack. Argentine President Cristina Fernández has condemned the US decision as “a form of world domination based on speculation to put countries and populations on their knees.”
The Argentine government has received the support of many countries of the world, particularly the countries of Latin America. At a meeting of Foreign Ministers of the Organisation of American States (OAS) on July 3, 2014, all member countries excluding the US and Canada issued a declaration expressing support to the Argentine government. The sovereignty of many of these countries has been repeatedly violated by US imperialism, including through brutal regime changes to establish puppet regimes. Earlier, a meeting of the Group of 77 plus China also came out in support of Argentina.
Where do the courts of the US get the “right” to dictate to the government and people of Argentina, and to other countries, on what is a sovereign matter to be decided only by the people of Argentina. Why should the present savings and future earnings of the Argentinean people go to feed the vultures of finance capital, while the people are pushed into the depths of poverty?
Every country, big or small, has the right to have its own economic and political system and establish relations with other countries on the basis of mutual benefit and non interference in each others internal affairs. US imperialism does not accept this internationally recognized principle. It follows the medieval principle that “might is right” to brutally interfere in the internal affairs of other countries, carry out regime changes to bring governments to power that toe its dictate. It wants all countries to open up their economies to unbridled exploitation and plunder by US finance capital.
History of Argentina's debt-crisis
The genesis of the debt crisis of Argentina goes back to the period when Argentina was ruled by military dictators installed by US imperialism to facilitate the unbridled loot and plunder of the labour and natural resources of the Argentine people. Those rulers amassed huge wealth for themselves and the capitalists of Argentina as well as the foreign imperialists while indebting the Argentinean nation. They used the loans amongst other things to buy arms to crush the working class and people of Argentina. This was the pattern that was followed in many countries of Latin America by the US imperialists and their puppet regimes.
In 2001-2002, Argentina defaulted on its debt. By that time, the creditors had made huge profits from the interest on these debts. The entire economy was wrecked, and there were widespread food riots. The IMF organized a debt restructuring package. It was made out that this was to bail out the Argentinean economy. In fact it was aimed at saving the international financial institutions and retaining their control and domination over the economy of Argentina.
The debt of Argentina has been a weapon in the hands of the imperialists to plunder that country as well as dictate the course of economy and politics. What has the US Supreme Court ruled? It has ruled that Argentina must pay two companies that bought Argentine government debt bonds at throwaway prices of 20 cents to a dollar at a rate that would amount to a profit of 1600%. These companies deliberately bought the old debt bonds from other companies after the IMF organized debt restructuring because they knew they had the backing of the US state and could make a killing.Furthermore, the US Supreme Court has declared that Argentina cannot pay other debtors at the old rate agreed upon in the debt restructuring package. This means that Argentina’s debt could be calculated as high as $ 120 billion, which would mean bankruptcy of that country and its working class and people.
The people of Argentina and other countries of Latin America have had bitter first hand experience of the crimes committed by US imperialism against them for over a century. They have fought many bitter and heroic struggles against fascist dictatorships installed and backed by US imperialism, which have been instruments to exploit and plunder their labour, land and natural resources, and crush their resistance. Today, in many countries of Latin America, there is an awakening amongst the working class and people that together they must stand and challenge the violation of their sovereignty by US imperialism. This is also being reflected in the stands of various governments in Latin America.
The power of the US to dictate to other countries, and violate their sovereignty, stems from its control over international financial institutions, the fact that US Dollar is the principle currency of exchange and reserve, and the military might to back this dictate. However this power can and is being challenged. The move by several countries of Latin America to come together in a trading bloc and have a common currency of reserve and exchange is one such effort. Cuba and Venezueala amongst other countries have shown the determination to resist blockade and expose and oppose US backed attempts at regime change.
The Argentine government is answerable to the working class and people of Argentina, and not to the US imperialists. The government of Argentina has the sovereign right to declare a moratorium on debt payments, if the situation so demands. The Communist Ghadar Party of India fully supports the just struggle of the people of Argentina in defence of their sovereignty.