The banks have not always won over the last 30 years, and in 2001 Argentina did exactly what many economists are now urging Ireland and Greece to do. On Christmas Eve 2001, Argentina defaulted on its debt originating from an overvalued currency which had been pushed by the IMF. Along with devaluation and introduction of capital controls to prevent money leaving the country, the economy soon began to grow rapidly. Welfare payments were increased to help the poorest cope, while non-IMF approved taxes on exports and financial transactions were introduced to increase government revenue. In 2005, Argentina reached a deal with its creditors where it paid just 35p for every pound that was owed.
in the time remaining, to help us understand how the man-made system of capitalism will lead to the extinction of our human species, and so many others.
Thursday, December 23, 2010
Private debt, public pain: lessons for Ireland
by Nick Dearden from CADTM.