Monday, October 13, 2014

Argentina defies US Judge


Aug 20, 2014
Argentina, which thought it had put the last crisis behind it with an IMF-brokered settlement and which has successfully been meeting those obligations, has now had the settlement invalidated by a New York Federal judge, and has been thrown into a sudden solvency crisis.

As is quickly becoming apparent, Argentina's rejection and defiance of the judge's ruling is a direct challenge not just to a New York court or some Wall Street investors, but to the Empire itself.  It's not purely accidental that Argentina should be the first vassal state to do this.  The Empire could and would have squashed Greece like a bug last year, before the BRICS development bank, before Russia's challenge to the dollar, and given its size and location.  The Empire must and will try to crush Argentina now, because 100 other countries are watching and will attempt their own breakouts if it escapes.  
What are the Empire's options here?  Probably not a military assault; Argentina is much easier to defend than Greece, and much has changed in the world over the past year. Argentina is much larger, better organized and more self-sufficient.  Of the US-controlled nations from which military aggression could be launched, Paraguay could easily be pressured by Brazil, and Chile is on the other side of the Andes Mountains.  Since the fall of the Soviet Union the Medeterranian is virtually a US-owned lake, but the only naval base the Empire has near (or, arguably, within) Argentina is in the Falklands.
The greatest threat Argentina faces is from its own military, with its ties to the US and a history of US-supported coups.  That same military however does have a recent history of challenging the Empire over the Falklands.  The Argentine government and leaders must move quickly to reorient its military toward Russia, China and especially Brazil, and to purge or sideline the officers who are known to be overly tied to the Pentagon and the US Embassy.  
It seems like everyone on this site (ZH) loves to diss the government of Venezuela.  But the turning poiint there was when the Venezuelan military, with US help and direction, staged a coup and took President Chavez prisoner, and the junior officers and rank and file troops rebelled and in 24 hours forced the top brass to back down.  That was the critical event when Venezuela passed outside US control.  This was possible because the entire people, including the members of the armed forces, were part of the national conversation about Venezuela's dilemma, about Latin America's dilemma.  
Argentina will soon face such a moment.  The future is unknown, but the formation of the BRICS bank has radically improved their odds.  This is a critical moment for Russia, China, India, Brazil, South Africa and other Latin American nations, a fateful test of their understanding and commitment to the project they have declared.
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