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Read this page as a warning to America what may happen here.

1-10-02 Floating exchange rate is about 1:55 pesos to the dollar. Your dollar denomimated debts have just doubled, your pension is worthless, your probably out of a job and lots of luck if you need insulin.

As of 1/31/02 "peace" has returned to the capital and people are in lines up to 3 city blocks long hoping

to exchange rapidly depreciating pesos for dollars.( 1;80 to the dollar or 2 to the dollar in money exchanges.)

The "magic of the free market "has come to Argentina.

Power shortages cripple Argentine economy 4-4-04

The tragedy continues to evolve.

Barter: the only way to survive-coming to a neighborhood near you in America?

 Confiscatory Deflation: The Case of Argentina

Nice technical explanation of the country's money woes

Starving people butcher live cattle in wrecked truck

Grandmothers forced into prostitution etc.

Argentina and the IMF - the art of falling apart 6-22-02

well written history of the mess by The Ecologist

Richard Douthwaite discussing Argentina's use of auxiliary currencies including LETS systems and provincial currencies during their most recent currency crisis.(Audio)

August '06 Workers' cooperatives take over factories and recesitate industries

Please be patient-lots of pictures on this page. They may load slowly.

 Argentina:A country that has been mortgaged to where even the educated middle class are starving.


Let's put what happened into perspective: Billions are lent to a government and private individuals in the name of the "people".* Capital flight is tremendous. Money pours into Swiss bank accounts and overseas real estate. A war here, a brutal dictatorship there, several new currencies along with all the tricks leave people in a very bad way financially. More money is lent to the government in the name of the "people". Weimar-Republic like inflation occurs. Wall Street to the rescue! Loans, not investment, pour in from NYC. The "Argentine Miracle" of the late 90's begins. To "stop inflation", The Argentine Peso is pegged to the dollar at a one to one exchange rate. Most public and private debts are then denominated in dollars. People are paid in pesos. *Click on this if you want the technical details of the loans.

The bankers through their front organization, the International Monetary Fund, want to collect interest on the national debt-maybe even the principle later. More and more of the government's income and hence its expenditures goes to pay the compounding interest. in exchange for further loans, the bankers blackmail the government into eliminating many public services like libraries, recreation facilities, etc. Then they cause the government to privatize (sell off) public things like highways, railroads, the national airline, the telephone company-all of which were once owned by the citizenry. Price supports for food and medicine go next.The poor are always screwed of course. But then the vibrant well educated middle class start to really suffer too. Further "austerity" measures come into play to divert more to the bankers. Saleries and pensions are slashed by up to 13%.

Peoples' standard of living starts its slide into the abyss. They go hungry-but a debt is a debt right? People are panicking and doing the unthinkable-They're lining up to withdraw their own dollars from the bank because they know that a devaluation or a seizing of savings and pensions to pay the bankers is coming.

Government can't allow people to have their own money because the international bankers want their interest! A bank holiday and limit on how much one can withdraw. Gotta keep enough dollars on hand to pay this month's installment so that more loans can come forward and paper over the old ones.

Even the world bankers have had enough. "No New Loans are Forthcoming" they say.

It's foreclosure time! On the whole country! The vultures are circling. You are gonna be able to pick up a nice luxury apartment in Buenos Aires -the Paris of the Southern Hemisphere- for nothing (if you have dollars.) And the people that couldn't pay their dollar denominated mortgages? What about them?

Oh... they'll just turn in their keys and go off and seek new opportunities somewhere else-after all it's a free market and if they worked and invested in private pensions, as most did, maybe they can go live in a shack in Patagonia.

But then the government raids pensions by freezing the accounts and substituting government treasury bonds or "debt repayment bonds' for people's pensions. what are these? Best we can figure is that you get part of your pension back when the bond matures in X years: meanwhile it earns a low rate of interest for you while your money is paying the 18% or so to the World Bankers.

Official Unemployment climbs to 18% and the government austerity measures cut public spending by a further 20%.

A general strike is called all over the country to protest the financial ineptitude of the government and outrage at the Harvard-Business-School-World-Bank-Mafia that is plundering the country.

Shotguns versus cardboard in the New Argentina
Three generations at the protest.
The President of Argentina declares a State of Siege all civil liberties are suspended.

Further demonstrations by the general populace.

The president resigns. His successor is already tainted by scandal. The finance minister resigns.

Cheering demonstrators burn down the finance ministry.

Bet you would like to watch some movies of all the action pictured above? There's an hour long video about all this (in Spanish), great visuals though. "Memorias Del Saqueo" or "Memories of the looting", Fernando Solanas 2003) Google it.

To try and pacifiy the bankers, public employees and others are now going to be paid in a new currency, The Argentino, that will exist alongside both the Peso and the dollar which will be reserved for outgoing payments to the bankers.

What about mortgages and company debts denominated in dollars?

How do you pay them if you're paid in monopoly money like the

(Forget going to the banks to withdraw your savings in dollars.

They're only allowing you to withdraw $1,000 per month-at least for the time being.)

Your pension has now been replace with government bonds-hard to buy food with those.

Default on the debt is most highly desired by the People.

The first missed payment was on Jan 3. Argentina is technically in Default.

Need medicine to stay alive? Tough luck-no one is selling it or sending it into the country.

So now the pharmacies are looted.

The Argentino printing presses are running at full speed.

So that's where it stands. Poor Argentina.

They'll never be able to repay "their" $132 Billion debt.

Default: the unthinkable (to the world financial community)-something has to be done!

But, Hey, that's what American Taxpayers are for Right?

We rescued Mexico, we rescued Long Term Capital...maybe we can rescue Wall Street?

(That was written before the secret 7.7 TRILLION taxpayer dollar bailout of the banks on Wall Street).

Spontaneous street protests.

Hungry people do the funniest things!

McDonalds, Burger King, and 20 MB of free bandwidth aren't enough to keep them happy?

See signs in background.

Some win, some lose.

Get food while you can-------get rich off the exchange rate------------get food if you can

Order must be maintained

A job for life: A retired public employee sells newspapers.


We have been destroyed By Julia Marini, a 73-year-old pensioner living in Buenos Aires "I retired in 1993, at the age of 65, from my job at the Goethe Institute in Buenos Aires..."

One family's story: "There is no future here

Their future sacrificed to pay the bankers in NYC 

Their savings go to pay the bankers in NYC 

A financial criminal at work

All protest is in vain; the debt must be paid

 Day to day financial details behind the rage.

A nice analysis of the history of social rebellion in Argentina and the lazyness of the middle class: until they were affected. 


The well-oiled machine at work

Let 'em burn a few Vatican banks but not CITIBANK!


More Argentine news in Spanish 

Here's a nice explanation of how SAPS

(structural adjustment programs) work. 


But will the patient live?

Now this couldn't happen here in America could it? This is one reason we wrote the Overcoming Consumerism web site, to show methods that people can use to help immunize themself from economic disasters like Argentina.

Example: our how to raise your own food page

The thousands of Buenos Aires backyards with good soil used to store cars, play basketball, build swimming pools and other useless friperies that we have seen: Now they're going hungry-they should have planted gardens yesterday.

Several directors of the world bank have resigned in protest. If you really are interested in this institution you should read their farewell speeches: Joseph Stieglitz and Herman Daly.

Ten Years later things are on the mend in Argentina. Short version, they told the International Monetary Fund and the parasitical bankers in New York to go to hell, they were not going to pay them the debt taken out by criminals in the Argentine government who were no longer in power.

From 2002 onward, Argentina grown nearly twice as fast as Brazil, and has sported one of the highest growth rates in the world. Its success is not dependent on a commodities boom. It has increased social spending from 10.3% of GDP to 14.2% of GDP Inequality has fallen. Poverty and extreme poverty have fallen by roughly 2/3. What is particularly striking is how quickly Argentina’s economy rebounded after its default.

From a paper by Mark Weisbrot, Rebecca Ray, Juan A. Montecino, and Sara Kozameh:

This is a valuable lesson for Europe and for America.




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