Porto Alegrecan Put a Debtor’s Cartel on the Global Agenda Jeremy Brecher, Tim Costello and Brendan Smith

International investors have imposed their will on the world by means of a creditors cartel""embodied in the IMF, the World Bank, the G-7/8, and their creatures and allies. They have imposed cruel and destructive policies on the people of debtor countries. The elites that control most debtor governments have often cooperated with the foreign investors and enriched themselves. Now the people of Argentina have said: Enough! As long as Argentines act alone, the creditors cartel will have the power to impose further cruelties on the max "and they're preparing to do so. But there's a strategy for turning the tables…

The Rise and Fall of Enron Updated April 26, 2002

In December 2001, Enron filed the biggest bankruptcy protection case in US history. Ten congressional committees and federal agencies have announced investigations into suspected illegal activities at the once high-flying firm. Enron's swift rise in 10 years was powered by the deregulation of energy markets in the 1990s. Good political connections and publicity ensured a favourable legislative climate. Enron's methods accumulated fantastic wealth in the hands of top executives who sold their stock before the company went bust. Thousands of other employees, trapped in a lock-stock arrangement, lost their savings and pensions. In a hearing before the Senate Commerce, Science,…

Confronting the IMF – Argentina’s Road to Recovery Tom Gill

"For many years in Argentina," declared Eduardo Duhalde as he assumed the presidency on January 1, "they have made us believe that amid this new world order, there is only one possible economic model. This is a complete falsehood." Argentinians, who once lived in a country as rich as France, will be hoping he is right. These days, after two-and-half-decades of IMF-backed free-market reforms, more than 40% of the 38m population live below the poverty line and 100 children die daily from hunger and disease. As a leading member of the Peronist party, which under Carlos Menem brought Argentina to…

On Some Common Macroeconomic Fallacies Prabhat Patnaik

Fallacy 1: The interest rate in the Economy is High because the Fiscal Deficit is high The interest rate is the return on a particular asset, namely a debt instrument. It must be determined therefore as part of a stock equilibrium. The fiscal deficit is a flow concept. To say that the interest rate is determined by the size of the fiscal deficit is tantamount to saying that the price of a stock is determined by a flow, which is plain illogical. But, it may be argued, while the fiscal deficit may not determine the interest rate, it certainly affects…

The Macroeconomics of Imbalance and Adjustment C.P. Chandrasekhar

This article traces the theoretical lineage of neoliberal macroeconomic policies. It provides a critique of these theories and relates the changes in the theory underlying IMF-style stabilization and adjustment to the imperatives generated by the rise to dominance of finance capital internationally. macroeconomics (Download the full text in PDF format)

Distraught Argentines Look for Solutions

Peso plunges by 44 pc against dollar Argentina’s peso tumbled as much as 44 per cent against the dollar as exchange houses opened for the first time since the Government said it would devalue the cur­rency and default on its debts. The peso was quoted at 1.8 per dollar at money-changers in Buenos Aires, indicat­ing President, Mr Eduardo Duhalde, will fail to keep it fixed at the 1.4 rate set, trad­ers said. Mr Duhalde gave up the one-to-one peg to the dollar, in place for a decade, in a bid to revive growth and rebuild confi­dence in the economy. Hundreds…

Argentina Faces Medical Crisis

With banks remaining closed for the 19th day, the Argentine President ,Eduardo Duhalde, declared a national medical emergency due to a shortage in medications such as insulin, local news agencies reported. The Foreign Minister, Carlos Ruckauf , returned from Brazil yesterday with 275,000 doses of insulin donated by the Brazilian Government, the first instalment of a larger donation.The Presidential spokesman , Eduardo Amadeo , said that Duhalde, a populist Peronist, had appointed Juan Pablo Cafiero, a centre left politician, as interim Social Affairs Minister to ``take all necessary measures to ensure that products are available''. Argentine laboratories have stopped producing…

Economic Debacle In Argentina : The IMF strikes again Arthur MacEwan

In the midst of their fourth year of recession, with the official unemployment rate approaching 20%, and with increasing cutbacks of social programs, Argentineans took to the streets in the days before Christmas. Sparked by the government's latest economic policies, which restricted the amount of money people could withdraw from their bank accounts, political demonstrations and the looting of grocery stores spread across the country. First the government declared a state of siege, but with the police often standing by watching the looting "with their hands behind their backs," there was little the government could do. Within a day after…

US Demands a Secure, Complaint Hemisphere Janette Habel

"The key question about the defence of the American hemisphere is: what is the threat? In the past, the Americas faced a relatively well-defined threat that the average American could understand (1). Today that threat has become infinitely more complex and more difficult to define." That was Professor Lewis Arthur Tambs, diplomat, historian, professor at Arizona State University and the author of a report on the future of the Americas, summarised in nine points the nine Ds the guiding principles for the hemisphere's security before 11 September. (They are defence, drugs, demography, debt, deindustrialisation, populist post-cold war democracy, destabilisation, deforestation…