Last week I blogged about Agentina's struggles with vulture hedge funds and about its lawsuit against a Dutch bank for its part in the LIBOR (London Inter-Bank Offered Rate) scandal. You'll recall that some of Argentina's sovereign securities were tied to the LIBOR rate, and hence, rate-fixing and collusion amounted to, in that nation's case, a manipulation of its sovereign securities, which raised the thorny question: how many issues of that nation's bonds were so tied? and the larger issue: how many other nations' securities are so affected?

In that context, there's a thought-provoking article by Ellen Brown over at Global Research that is worth considering, even though one might have issues with some of her own positions:

Colonization by Bankruptcy: The High-stakes Chess Match for Argentina

There's several things to notice in her analysis, but I want to draw your attention to these paragraphs:

"Global financiers and interlocking megacorporations are increasingly supplanting governments on the international stage. An international bankruptcy court would be one more institution making that takeover legally binding and enforceable. Governments can say no to the strong-arm tactics of the global bankers’ collection agency, the IMF. An international bankruptcy court would allow creditors to force a nation into bankruptcy, where territories could be involuntarily sold off in the same way that assets of bankrupt corporations are.

"For Argentina, says Salbuchi, the likely prize is its very rich Patagonia region, long a favorite settlement target for ex-pats. When Argentina suffered a massive default in 2001, the global press, including Time and The New York Times, went so far as to propose that Patagonia be ceded from the country as a defaulted debt payment mechanism.

"The New York Times article followed one published in the Buenos Aires financial newspaper El Cronista Comercial called “Debt for Territory,” which described a proposal by a US consultant to then-president Eduardo Duhalde for swapping public debt for government land. It said:

[T]he idea would be to transform our public debt default into direct equity investment in which creditors can become land owners where they can develop  industrial, agricultural and real estate projects. . . . There could be surprising candidates for this idea: during the Alfonsin Administration, the Japanese studied an investment master plan in Argentine land in order to promote emigration.  The proposal was also considered in Israel.

Salbuchi notes that ceding Patagonia from Argentina was first suggested in 1896 by Theodor Herzl, founder of the Zionist movement, as a second settlement for that movement."(Italicized emphasis added)

For those of you who have been following Catherine Austin Fitt's analysis, this squares perfectly with it: liabilities are being moved into the "legacy systems", i.e., national sovereignties, and equity is being moved into private and corporate hands, all via the mechanism of expanding credit to governments, hooking them on the debt heroin, and when they cannot repay, forcing that government into a kind of national bankruptcy in which hard assets of that government are sold off and "privatized." One can imagine a Patagonia under the rule of, say, Goldman Swag or JP Bilk. For sure, there would be massive development of infrastructure, manufacturing, and plenty of jobs. What there would not be is any recognition of hard won individual rights.

You'll note something else too: Argentina was targeted because of the policies of - here it comes - Juan Domingo Peron:

"Salbuchi traces Argentina’s debt crisis back to 1955, when President Juan Domingo Perón was ousted in a very bloody US/UK/mega-bank-sponsored military coup:

"Perón was hated for his insistence on not indebting Argentina with the mega-bankers: in 1946 he rejected joining the International Monetary Fund (IMF); in 1953 he fully paid off all of Argentina’s sovereign debt. So, once the mega-bankers got rid of him in 1956, they shoved Argentina into the IMF and created the “Paris Club” to engineer decades-worth of sovereign debt for vanquished Argentina, something they’ve been doing until today."

Thus, in this long historical context, President Fernandez's recent actions are entirely understandable, as is Argentina's move to make its own central bank and not a bank in New York responsible for service on its outstanding sovereign debt according to the 2005 agreement:

"Argentina is playing hardball with the vulture funds, which have been trying to force it into an involuntary bankruptcy. The vultures are demanding what amounts to a 600% return on bonds bought for pennies on the dollar, defeating a 2005 settlement in which 92% of creditors agreed to accept a 70% haircut on their bonds. A US court has backed the vulture funds; but last week, Argentina sidestepped its jurisdiction by transferring the trustee for payment from Bank of New York Mellon to its own central bank. That play, if approved by the Argentine Congress, will allow the country to continue making payments under its 2005 settlement, avoiding default on the majority of its bonds."

But this does not solve Argentina's long term monetary problem. The real question now for that country is how to maintain its national sovereignty against some very powerful corporate and banking players. After all, the West/USA can always send in the "payment enforcers" in the guise of some trumped up event. But there's the rub... the playbook is old, it's well-known, and it hasn't been working too well lately, and if current trends continue, if Iceland wasn't invaded, it's not likely most of South America will be either. But in the meantime, Argentina still faces some powerful opposition.

And for that, Argentina will need new friends and allies... And they can be found.

... Watch for Mr. Putin and Mr. Xi to be hosting President Fernandez in Beijing and Moscow, and for the Russian and Chinese leaders to be enjoying the the delights of Buenos Aires and a nice formal dinner at the Casa Rosada in the near future.

See you on the flip side.

Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".


  1. yankee phil on September 2, 2014 at 11:47 pm

    Also a point missed by many about MH17,Holland was just prosecuted by their own int court for basically cowardice in the face of the enemy. Only days later we have the slaughter of 200 of their civilians who are flown over a war zone of similar circumstance. Surprisingly the charges against the dutch were false and the int court knew it. There was testimony enough how the french commander of the UN forces refused to send help in the form of fighter aircraft to the enclave of the refugees the dutch army was defending with 50 soldiers and a big machine gun,thats against a 7000 man strong tank division from yugoslavia.Also the dutch army guards for the enclave knew the refugee’s were leaving the camp through paths over the mountains surrounding the enclave(without authorization) and making raids on villages killing hundreds of ethnic serbs in the area (ethnic cleansing),killing whole families in their own homes,for months and then returning to the enclave when the yugoslav army was hot on their trail. But to admit this even at this late date officially will never happen. I was told this years ago by a friend of mine who served with some of the guards that were at the enclave. Someone in the dutch royal family has got to be in a real trick to allow this kind of injustice to their own people/nation and in a court located in their own country. Maybe the good Doktor can figuare it out because I get dizzy just thinking about it.

  2. yankee phil on September 2, 2014 at 11:22 pm

    Interestingly enough over here in europe when Greece was first put on the ropes with their financial scandals there were comments from german newspapers that greece should turn over the island of Santorini (a favorite german tourist destination) to germany for the debt. Only half serious of course but everyone felt there was some substance to the suggestion. Now you speak of the IMF and the int banking community on Argentina’s delema and it all begins to gel. The people with the most money in the bank actually run the banks policies and the presidents of the bank merely execute policy dictated by them,like they say”when money talks,everyone listens” . This leads me to believe the royal houses of europe run the banking industry for the most part,dictating policy to the publicly recognized leadership. Go figuare , any family that been robbing and stealing for hundreds of years ,paying no taxes,and having no financial records of actual wealth for the public or even their own government to scrutinize,has got to have pirate size chests of booty buried or locked away all over the world. I believe we really cannot understand the extent of their true wealth/power.

  3. henry on September 2, 2014 at 8:44 pm

    In light of your recent mentioning and the speculation on the remarks made by Putin’s economic adviser, regarding “Ukraine Crisis” and “Nazism”, as can be referenced here

    I can’t help but wonder if Argentina’s turning towards the BRICSA alliance is a direct manifestation of an ongoing struggle against this post-war “Nazi International”, given Argentina used to be one of its primary operating bases, and whether it’s Mr.Sergei Glazyev’s way of “resolving the problem”?

    There seems to be an effort to rid the world of these criminals.

    When i heard the story of MH17, my first reaction was:
    – it’s another Malaysian airliner
    – the majority of people on MH17 were citizens of the Netherlands

    As i have voiced my opinion on the “mystery of Malaysian flight MH370” on this blog, in light of the MH17 incident i can’t help but wonder “What if the Kuala Lumpur Tribunal’s Verdict serves as a blueprint for a similar measure by International Criminal Court in Hague in the future?”

    If thats the case, then it could mean that not only the perpetrators behind MH17 are probably the ones behind MH370, but it could also mean they are blackmailing the Netherlands as well as those who want to see them trialed at a world criminal court.

  4. Robert Barricklow on September 2, 2014 at 6:14 pm

    This has been their play book for some time. Now the Big Squeeze is being implemented as “they” simply occupy territories already carved up years ago. The alchemy of nothing into debt heroine into ownership of Patagonia. This is just one phase of gobbling up nation-states; already stripped of First-World Status and currently, thirdworldized.

    It’s “public, Enemy # 1.

    Private Power has become too strong.
    They are shooting to owning it all:
    space; inner-space; and yes, even you.

    There are positive signs: resistance, as exemplied here; new technologies like bitcoin, to decentralize currencies; movements within the Empire to replace “closed” systems with “open” systems; there are the BRIIISCA[saw at this site] and more signs as well.

    The law locks up the hapless felon
    who steals the goose from off the commons
    but lets the greater felon loose
    who steals the commons from the goose
    -Anonymous 1821

  5. DownunderET on September 2, 2014 at 2:26 pm

    The elites know no bounds when it comes to money. Last night I re-watched Bill Still’ fantastic documentary “Money Masters”, which shows how the Federal Reserve got started. The Rottenchilds and the Rockafailure guys get star billing in this exposure of how the elites get things done, and without doubt, they always succeed, well most of the time. Poor Argentina, maybe they caused all the problems, but certainly they don’t want to go down the elites road of bankruptcy, so maybe Joseph is right, and there ARE certainly some friends who will provide a shoulder to cry on.

  6. jedi on September 2, 2014 at 12:31 pm

    Who knows, certainly not the no knows. Those who pretend to be the authors of the works of god.

    when the light shineth in darkness, the darkness comprehended it not.

    It is funny, that Obama, when told of anything by the press, on cue, “first I heard of it”.

  7. Aridzonan_13 on September 2, 2014 at 10:57 am

    This is an opportunity for the BRIIICSAA Confederation (105 nations) to flex it’s muscles by giving Argentina an out / asylum from the fraudulently induced debts that the AngloSphere has foisted on the rest of the World. It would be a masterful public relations coup to pull the rug out from under the Banksters. We’ll see if they are up to it.

  8. marcos toledo on September 2, 2014 at 10:24 am

    Looks like the Corporate Mafia is dropping is mask a forcing in government front to enforce it’s loan shark protection racket on the World. USA included as well as Iberic America, Africa, Asia and Europe. The USA has been in debt slavery since before 1914 that’s why it’s the muscle for these banksters in Brooks Brothers suits. I keeping my fingers cross that Argentina along with the BRICAS can get us all out of these parasites clutches.

  9. loisg on September 2, 2014 at 10:04 am

    It would be nice to know that someone or some country was able to escape the grip of these corporation and banking strongholds, but I am really skeptical. I can’t help but get the uneasy feeling that Russia and China are being set up for a fall. If all these transactions are ultimately through space and about space, then the ones who control space are in command on earth. The space wars are coming, and it seems that these very same corporation/bankers are deeply committed to control of that arena.
    I wish I was more optimistic.

    • Vader_Etro on September 3, 2014 at 6:23 am

      “Who diggeth a pit for another one, the same shall fall into it himself.”

      – Russian proverb

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