Robin Williams, Mental Health, and Social Insanity
By Michael Smith | Legalienate | August 17, 2014
“We are made miserable . . . not just by the strength of our beliefs, but by the weight of hard and all-too real situations, as they bear downward, robbing us of control . . . unhappiness treated by clinicians has much more to do with the sufferer’s situation than with anything about themselves, and for those with few privileges, this unhappiness is pretty well beyond the reach of therapeutic or any other conversation.” – Paul Moloney “The Therapy Industry”
Robin Williams’s body was scarcely cold when liberal commentators began using the tragedy of his death as publicity for suicide hotlines and professional mental health intervention in general. He had long-standing depression, we were told, and his “mental illness” was manifest in his decision to take his own life. Depression sufferers were urged to “be honest” and avail themselves of the services of professional therapists and counselors.
Days later Williams’s widow informed the world that her husband had been diagnosed with Parkinson’s disease, a degenerative disorder that even people with no prior history of depression can find impossible to face. Parkinson’s is chronic, and its symptoms worsen over time, leading to body tremors, muscle stiffness, and the loss of coordinated movement. No one knows why the disease develops, and it is incurable.
We do not know what went through Williams’s mind, of course, but it is not difficult to entertain the idea that the lifelong actor made an understandable decision to take an early exit from life’s stage rather than suffer the appalling loss of body control that the disease entails for its sufferers. Surely there is something more than “mental illness” involved in the desire to avoid such a fate.
Even if Williams’s well-known depression, which long-predated his Parkinson’s diagnosis, was involved in his decision to end his life, the liberal notion that we can and ought to rely on mental health professionals to guide us to health and sanity is more than a little suspect. There is no evidence that this group suffers lower rates of depression than the rest of the population, nor any that any kind of therapy has a cure for it. In fact, the evidence suggests that the mental health profession plays a crucial role in perpetuating a status quo within which depression is said to be growing by leaps and bounds.
Psychoanalyst Joel Kovel demonstrated in the early 1980s that psychotherapy and counseling had become indispensable parts of the capitalist economy, especially in the United States, where turning socially induced misery into false questions of self-improvement long ago reached the status of a quasi-religious movement. Subsequent to Kovel’s published insights came the “diseasing” and drugging of hyper-active American schoolchildren due to what eventually came to be known as “ADHD.” In more recent years, we have seen how “happiness psychology,” particularly the work of conservative academic and writer Martin Seligman, a former chairman of the American Psychological Association and adviser to the U.S. military, informed the Bush Administration’s torture program at Guantanamo Bay. All of this should make us quite skeptical about claims that therapy and counseling have the answer to our mental woes.
Having said that, the challenge of effectively treating mental disorders is surely formidable. According to surveys and clinical data, rates of depression in the U.S. have increased ten-fold since the 1950s, although it must be admitted that individuals of quite divergent symptoms are routinely classified under this broad umbrella, calling into question the validity of the category itself. However, even if some of the increase is due to an increased tendency to define common dissatisfaction as illness, it seems likely that at least some of the increase is genuine, given soaring inequality and an attendant increase in chronic illness, social isolation and reported loneliness, and suicide, especially during the periods of economic crisis that have become a nearly constant feature of U.S. capitalism in recent years.
Contrary to therapeutic claims that a “positive” attitude is the key to mental health, a growing body of evidence supports the claim that the principal influence on people’s mental health is their circumstances, both past and present. We can now say with some assurance that the larger and more obvious the gaps between rich and poor in developed societies – and the more exploitive the relations required to maintain and expand them – the greater the likelihood of violent conflict, mutual distrust, and degraded health, both mental and physical. Features of a particular location in the social hierarchy such as prestige, conditions of work, material circumstances, and wealth largely determine one’s likelihood of enjoying mental and physical health or illness. And to the extent that one belongs to a stigmatized, exploited group, and especially if one is poor, the more likely one is to experience life’s hardest blows – more often, more painfully, and with fewer joyful experiences to compensate for them.
Conventional counseling and therapy isn’t even focused on this problem, much less is it offering a solution to it. Because of its conviction that attitude is everything, conventional approaches put the onus of responsibility on the poor for their poverty. Thus they are given parenting training and other judgmental interventions when what they really need is decent housing, food, recreation, medical care, and above all, money. The assumption is that the poor deserve to be poor owing to their allegedly deficient character, made manifest in poor impulse control, hypersexuality, and a general lack of integrity. If it weren’t for these defects, the theory goes, the poor would be contented members of the middle class. This is one of the most damaging features of therapy, because it teaches exploited people that they are deficient or substandard instead of abused. Unfortunately, the crude stereotypes blaming the poor for their plight are promoted by a wide spectrum of members of the so-called “helping” profession: community leaders, social work educators, and quite a few academic researchers. If this is “help,” what might hindrance be?
Therapists and counselors with a genuine interest in finding a cure for mental illness would do well to investigate the income inequalities hypothesis of population health. Based on the common sense assumption that high levels of inequality are unhealthy (directly for the poor, indirectly for the rich), the thesis is that for modern industrialized countries, the average health, well-being, and longevity of the population depends not on the level of absolute poverty that exists, but on the spread of wealth, and especially on the gap between rich and poor.
As income differentials widen, the theory goes, people start to feel more competitive, and begin to look on others with increasing suspicion and distrust. Wariness, envy, shame, fear, and anger become more pronounced and take on a self-perpetuating thrust, undermining the basis for affectionate and caring relationships. A life of perpetual insecurity (which former Fed Chairman Alan Greenspan declared in Congressional testimony was the principal reason for the 1990s boom years) and perceived threat triggers the release of cortisol and other “stress” hormones into the bloodstream, lowering our capacity to fight infection and ward off heart disease and other degenerative conditions. It should be emphasized that the theory maintains that this harms even the rich, who, amidst increasingly unjust conditions, have less and less opportunity to enjoy their wealth in ease. The public health implications are substantial: an increase of 7% in the share of income going to the bottom half of the population allegedly yields two additional years of life expectancy. [Note: The U.S. has the most unequal distribution of wealth in the developed world. According to the most recent survey by the Federal Reserve, the top decile own 71% of the country’s wealth, while the bottom half claims just one percent.]
One of the more intriguing mental health research findings undermines the “positive attitude” theorists. It shows that moderately depressed people have a more accurate perception of their abilities and their capacity to control events than do “healthy” people. A 2002 study found that mildly depressed women were more likely to live longer than non-depressed or severely depressed women. A longitudinal study of more than 1000 California schoolchildren concluded that optimism was more likely to lead to premature death – possibly because the optimists took more risks. Another study among pre-teenagers found that kids who were more realistic about their standing among their peers were less likely to get depressed than those who had illusions about their popularity. And a 2001 study co-authored by the guru of happiness psychology himself – Martin Seligman – found that among older people pessimists were less likely to fall into depression following a negative life event such as the death of a family member than were optimists.
These findings should provoke a complete reorientation of, not just the helping professions, but the entire society. After all, psychologists have long convinced us that we are all “CEOs” of self, rationally testing our ideas against reality, and that we become disturbed to the extent that we cannot accept the verdict that reality delivers. In short, to the extent that our ideas are unrealistic we are mentally ill, which should mean that President Obama, the Supreme Court, top executives on Wall Street, and virtually the entire Congress are certifiable lunatics.
But of course it doesn’t mean that. WE who cannot make our peace with a social order dedicated to plunder and destruction are mentally suspect, because responsible adulthood entails setting aside the childish notion that the world can be transformed into something within which a decent person would want to live, in order to concentrate on the supremely important matter of reproducing an increasingly imperiled social order dedicated to getting and spending. This is the reigning definition of sanity in our times. God help anyone who insists that social and political reality, not personal attitudes and reactions, is what needs to be adjusted.
Sources:
Barbara Ehrenreich, “Bright-Sided – How The Relentless Promotion of Positive Thinking Has Undermined America,” (Metropolitan Books, 2009)
Paul Moloney, “The Therapy Industry – The Irresistible Rise of the Talking Cure, and Why It Doesn’t Work,” (Pluto Press, 2013)
Thomas Piketty, “Capital in the Twenty-First Century,” (Harvard University Press, 2014)
Russia launches China UnionPay credit card
RT | August 15, 2014
Forget Visa and MasterCard. After the two American credit system payment companies froze accounts without notice in March, Russia has been looking for an alternative in China UnionPay.
China UnionPay plans to have 2 million cards in Russia in the next three years.
Instead of seeing the small Visa and MasterCard logo on credits cards, ATMs, and retail outlets, Russians will start to see the three words “China. Union. Pay.”
China UnionPay first emerged in 2002 on the domestic Chinese market as an alternative to Visa and MasterCard, but quickly expanded internationally, and now is already number one in terms of quantity of cards in the world.
Russia’s biggest banks – VTB- Gazprombank, Promsvyazbank, Alfa Bank, MTS, and Rosbank- are already making technical preparations, running tests on Union Bank cards.
“VTB24 already serves China UnionPay cards in its ATM network and now the bank is in negotiations with this payment system to start acquiring retail merchants,” VTB24’s press office said in a statement.
Most banks just began their relationship with China by offering clients corresponding services- none of the bankers imagined that they would be issuing Chinese credit cards.
In March, both Visa and MasterCard blocked the accounts of cardholders at BankRossiya and SMF Bank, both which were sanctioned by the US over Russia’s involvement in Crimea.
Russian financiers who used to keep their assets in dollars and euros were shocked by the event, and moved their capital back to Russia out of fear one day all their assets would be blocked by politicians in Washington DC.
“Visa and MasterCard have 100 percent trust, but right now, there is no trust in the system, and many, even our clients, have shifted their transactions from American dollar and Euro to Yuan. They are eager to receive this card- we already have a big list of people waiting to get this card instead of MasterCard and Visa,” Denis Fonov, Deputy Chairman at LightBank, a small Moscow-based bank, told RT.
LightBank was working with UnionPay long before it knew the cards would be coming to the Russian market – and ordered 10,000 cards pre-emptively as a side service for clients.
As a result of the freeze, Visa and MasterCard will now have to pay a security deposit to Russia’s Central Bank, which is estimated to be billions for each company. Similarly, once UnionPay begins operating in Russia, it will also put down a security deposit with Russia’s Central Bank, about $3-4 billion, Fonov said.
$5.3 trillion in payments
There are already 20,000 cards in circulation in Russia, and a second order of 100,000 cards is planned for September. In Russia many banks accept UnionPay cards, but not merchants, that’s the next step.
By the beginning of 2014, the payment system had already issued 4.2 billion cards, mostly in China.
In terms of total world trade turnover, China UnionPay is the leader in debt cards, with over $5.3 trillion in payments, or about 47 percent of the market share, whereas Visa has 40.6 percent, and MasterCard only 12.2 percent, according to the Nilson Report.
In overall transactions, Visa is still the leader with $4.6 trillion, and China UnionPay comes in second with $2.5 trillion in transactions in the first half of last year.
UnionPay already successfully operates in Australia and Canada, with their deposits tied to both the local currency and the yuan. In total, UnionPay operates in 142 countries.
China’s UnionPay will be a temporary solution for Russia to detach from the West while it prepares to launch its own payment system, which officially isn’t slated to begin operating for another 16 months, and according to sources in the industry, it could even be 2-3 years out.
EU sanctions ‘shooting oneself in the foot’ – Hungary PM
RT | August 15, 2014
Hungarian Prime Minister Viktor Orban has urged a rethink of the European Union’s sanctions policy towards Russia, saying the measures are like “shooting oneself in the foot.”
“The sanctions policy pursued by the West, that is, ourselves, a necessary consequence of which, has been what the Russians are doing, causes more harm to us than to Russia,” Reuters quotes Orban talking on radio, he added “in politics, this is called shooting oneself in the foot.”
Russia is Hungary’s largest trade partner outside of the EU, with exports worth $3.4 billion in 2013. Also it is highly dependent on Russian energy. Earlier this year Hungary agreed a $13 billion deal with Russian power company Rosatom to expand the country’s only nuclear power plant.
“The EU should not only compensate producers somehow, be they Polish, Slovak, Hungarian or Greek, who now have to suffer losses, but the entire sanctions policy should be reconsidered,” the Hungarian Prime Minister said, saying he is already looking for support to force through changes.
Despite the negative sentiment on Tuesday, Hungary’s Agriculture Ministry stressed the Russian embargo won’t significantly affect the Hungarian economy as the banned products account for less than a third of Hungarian agricultural exports to Russia, being only one percent of total national farming exports.
Despite weak growth in the eastern countries of the EU, Hungary, together with Slovakia and Bulgaria have shown better than expected figures, with 0.8 percent quarterly expansion according to Thursday’s preliminary GDP estimates.
On Thursday, Matteo Salvini the leader of Italy’s Northern League party called on Brussels to immediately repeal the sanctions against Russia.
“Only fools, Brussels and Rome, could decide to impose economic sanctions against Russia, which now sends us back tons of Italian agricultural products worth more than €1 billion,” Salvini wrote on his Facebook page “Who will pay our farmers? Renzi? Merkel?”
The politician claims that in order to please US President Barack Obama and German Chancellor Angela Merkel, the Italian Prime Minister Matteo Renzi has “ruined the economy” of the country.
Ukraine’s Parliament adopts law allowing sanctions against Russia
RT | August 14, 2014
Ukraine’s parliament adopted Thursday legislation allowing more than 20 sanctions to be applied against Russia, including a halt to energy transit through the country.
The new law on international sanctions was supported by 244 members of parliament, with 226 votes needed for a majority.
The adoption of the legislation doesn’t mean the special economic restrictions will be applied automatically; it just creates the legal basis for applying them.
The law provides the option to introduce more than 25 types of sanctions on other countries, foreign legal entities and individuals, which according to Kiev are involved in financing terrorism and support the separation of Crimea from Ukraine.
The sanction options include blocking and freezing assets, a ban on business activity in Ukraine, barring participation in privatizations, halting the use of licenses and all transit through its territory. Special economic measures also involve a ban on financial transactions, as well as a ban on entry and movement across the country.
The legislation says sanctions could be applied if, “the activity of a foreign state, a foreign legal entity or individual, other entities that create real and potential threats to national interests, national security, sovereignty and territorial integrity of Ukraine, its economic independence and/or violate the rights and freedoms of its citizen, the interests of society and the state, leading to the occupation of the territory, expropriation or restriction of property rights, property damage, creating obstacles to sustainable economic development or the fulfillment by Ukrainian citizens of their rights and freedoms.”
According to the law, sanctions must be approved by the National Security Council and are introduced by presidential decree. This applies to all of them, except those sanctions related to international treaties. Those decisions will be made by the country’s parliament, the Rada.
On Tuesday the parliament adopted the first reading of sanctions against Russia as members disagreed on a number of issues and needed further debate.
EU to urge Latin America not to export food to Russia
RT | August 12, 2014
The European Union is reported to be planning to dissuade Latin American countries from providing Russia with agricultural produce, saying it would be unfair and ‘difficult to justify.’
“We will be talking to the countries that would potentially [be] replacing our exports to indicate that we would expect them not to profit unfairly from the current situation,” the Financial Times quotes one senior EU official talking at a briefing on the situation in Ukraine on Monday.
The food producers could sign new contracts with Russia, but it would be “difficult to justify” the desire of the countries to pursue the diplomatic initiatives to fill the gap left by the EU, the official added.
Another EU official explained that negotiations could be part of political discussions aimed at addressing the importance of a united international front on Ukraine, rather than hindering food exports to Russia.
Despite being the world’s largest trading bloc, the EU has little influence, as its 15-year negotiations with Latin America’s Mercosur have been mired in difficulties over market access.
Since Russia imposed an import ban on agricultural products from the EU, US, Australia, Norway and Canada, several Latin America countries and trade groups have said Moscow’s measures could offer them a lucrative windfall.
Chile is already tipped as a major beneficiary of Russia’s embargo on European fish, while Brazil immediately gave a green light to about 90 meat plants to start exporting chicken, beef and pork.
“Russia has the potential to be a large consumer of agricultural commodities, not just meat,” Seneri Paludo, Brazil’s Secretary for Agricultural Policy said, citing that Russia may also increase procurement of corn and soya beans.
Besides Latin America benefitting from the embargo, Belarus and Turkey are also believed to win from the supply gap.
The EU member states are meeting in Brussels on Thursday where they are expected to work out a comprehensive response to Russia’s food embargo.
‘Ukraine committing economic suicide by thinking to stop gas transit’
RT | August 11, 2014
The Bulgarian government is under enormous pressure from the US to cancel the South Stream project, and so Bulgaria is the place to watch now, Daniel McAdams, executive director of the Ron Paul Institute for Peace and Prosperity think tank, told RT.
On August 8, Ukrainian Prime Minister Yatsenyuk announced that Kiev had prepared a list of 172 Russian citizens and 65 companies, predominantly Russian, to put under sanctions for “sponsoring terrorism, supporting the annexation of Crimea, and violating the territorial integrity of Ukraine.” Proposed sanctions include asset freezes, bans on certain enterprises, bans on privatizing state property, refusing to issue licenses, and a complete or partial ban on gas transit and air flights through its territory. Ukraine’s parliament will vote on the final measures on August 12.
RT: Kiev is expected to vote on the sanctions on August 12. Do you think they’ll go through?
Daniel McAdams: I think given the bellicose nature of Prime Minister Yatsenuk and the reckless manner in which he is governing I would certainly expect them to. What Ukraine is doing is committing economic suicide, and the US itself demanding that the EU applies its own sanctions is demanding that the Europeans commit economic suicide. So it makes no sens,e but I suspect it would probably go through in a short term. Remember that Ukraine is spending 6 million dollars a day on its war against the people in the east of that country. This money is borrowed money, the money it expects to make up for not allowing transfer of gas. They are also expecting the IMF, i.e. the American taxpayers, to pony up.
RT: Who do you think will be hardest hit, should Ukraine impose these sanctions?
DM: I find it ironic that the most bellicose of nations, and I’m thinking particularly of Poland and its Foreign Minister Radosław Sikorski… he is the one who is taking the most pleasure in sticking it to Russia, the average Pole is going to have an awfully bitter winter this year, thanks to Sikorski. Poland has around 90 percent of its gas from Russia, so they will be cut off. The Baltic States are also heavily dependent, they are also particularly bellicose against Russia, so they are cutting their own noses to spite their faces.
RT: Ukraine has already lost Russia’s gas. Is the threat to prevent Europe from getting supplies as well, an act of desperation or a carefully planned move?
DM: You have seen Ukraine escalating the situation continuously from the beginning of this government in Kiev and there has been no one to tell them to put the brakes on. However, what are you seeing now in West European media? I think the panic has started to set in. When Russia first announced sanctions on the food items, there was a panic. The Europeans said: “This is not fair, this is playing politics” just after the day they followed the US demand to apply sanctions. The publisher of the huge German economic journal, Handelsblatt, with a very powerful column, yesterday criticized the German government for its sanctions. You saw on Monday an article in the BBC highlighting all of the companies: Scottish fish exporters, Irish cheese makers who are going to take enormous economic hits in these tit-for-tat sanctions. Energy is not different, the only person that will do it well is ironically the US vice-president ‘s son, Joe Biden’s son, who you know is on the board of one of the largest Ukrainian energy companies, who are selling their line to the Ukrainians to make up for all of this by fracking and other alternative sources, which is just a joke.
RT: Do you think this move could speed up the construction of the currently-frozen South Stream?
DM: On one hand, it’s in its interest [Bulgaria] without question to continue with the South Stream and to have as good relations as it can because it gets almost all of its energy from Russia. However, I can imagine there is enormous pressure from the US. One can only imagine the pressure to cancel the South Stream project. So Bulgaria is the place to watch now.
South Stream to Be Constructed Despite Russia-West Stand-Off – Austrian Energy Group
RIA Novosti | August 10, 2014
MOSCOW — The current stand-off between Russia and the West over the situation in Ukraine will not affect the scheduled construction of South Stream gas pipeline, the Financial Times reported Sunday quoting the head of the Austrian energy group OMV.
“Nobody can tell you not to build a pipeline. It’s a matter of national law… Everybody can decide for themselves. A pipeline is a 50-year project, so one should look at things realistically… A few months is not an issue,” Gerhard Roiss was quoted as saying.
He added that possible EU sanctions against Russia targeting the country’s gas industry would be an unwise decision.
“We have had integration in the area of gas with Russia for 45 years. Customers rely on getting their gas delivered. For that reason I don’t see any room for sanctions on gas,” the OMV chief elaborated.
Roiss also stressed that Russia is already delivering gas via the Opal pipeline with an annual capacity of 36 billion cubic meters even though Russia’s Gazprom had not secured an EU approval to run the pipeline at full capacity. Opal passes through Germany connecting the new trans-Baltic North Stream pipeline with gas transmission networks in Western and Central Europe.
Ross also insisted that an increase in the number of supply routes to Europe will benefit energy security.
“Four pipelines are better than three, and five are better than four. That is the pragmatic view,” he said.
Gazprom is constructing the South Stream pipeline across the Black Sea to Southern and Central European countries with aiming to diversify export routes for Russian gas. The construction started in late 2012, with the first deliveries expected in 2016. The pipeline is expected to become fully operational in 2018.
The European Commission is trying to hamper the project saying it violates the EU Third Energy Package banning the companies involved in gas production from owning long-distance pipelines in the region.
On June 24, Gazprom and OMV signed a shareholder pact of the joint venture South Stream Austria, defining the principles of construction and further operation of the respective gas pipeline on the Austrian territory.
ExxonMobil, Rosneft start joint Arctic drilling exempt from sanctions
RT | August 9, 2014
US oil giant ExxonMobil and Russia’s Rosneft will continue joint exploitation of the Russian Arctic despite Western sanctions, the American company said as the two giants launched exploration drilling in the Kara Sea.
“Our cooperation is a long-term one. We see great benefits here and are ready to continue working here with your agreement,” Glenn Waller, ExxonMobil’s lead manager in Russia, told President Vladimir Putin during a videoconference call.
The Russian leader hailed the exploration project as an example of mutually beneficial cooperation that strengthens global energy security.
Rosneft head Igor Sechin said the launch of the Universitetskaya-1 well drill is one of the most important events for the company this year.
“We hope that this work will discover a new oil reserve here in the Kara Sea. The development of the Arctic shelf would have a big and positive effect for the Russian economy,” he said.
Optimistic company forecasts put oil reserves in the Kara Sea as high as 13 billion tons, more than in the Gulf of Mexico, or the whole of Saudi Arabia.
The drilling is being done by the West Alpha oilrig, built by Norway’s North Atlantic Drilling. It has a deadweight of 30,700 tons and can drill wells in the shelf up to 7 km deep.
The rig was equipped with an advanced iceberg warning system, which tracks potentially dangerous icebergs, giving enough time for either support ships to tow them away, or for the rig itself to seal off the well and evacuate to safety.
Rosneft is one of the Russian companies targeted by Western nations, imposed to punish Moscow for its stance over the Ukrainian crisis. Russia’s retaliation so far has been to ban the import of foodstuffs from the countries that approved anti-Russian sanctions.
US refuses to recognize UN court jurisdiction on Argentina’s debt
RT | August 9, 2014
Washington has refused to allow the UN International Court of Justice (IJC) to hear Argentina’s claims that US court decisions on the country’s debt have violated Argentina’s sovereignty.
“We do not view the ICJ as an appropriate venue for addressing Argentina’s debt issues, and we continue to urge Argentina to engage with its creditors to resolve remaining issues with bondholders,” the US State Department told Reuters in an email.
The State Department sent an email with the same content to one of Argentina’s leading newspapers, the Clarin.
Argentina complained against Washington’s decisions on its debt to the International Court of Justice in The Hague on Thursday.
But according to existing norms, Buenos Aires needs Washington to voluntarily accept the ICJ’s jurisdiction for the proceedings to begin.
The US withdrew from compulsory jurisdiction back in 1986 after the UN court ruled that America’s covert war against Nicaragua was in violation of international law.
Since then, Washington accepts International Court of Justice jurisdiction only on a case-by-case basis.
On Friday, US District Judge Thomas Griesa, who oversees Argentina’s legal battle with hedge funds, threatened that a contempt of court order may be implemented.
Griesa said it will be put forward if Argentina continues to “falsely” insist that it has made a required debt payment on restructured sovereign bonds.
The warning caused confusion, as the judge didn’t specify who will face the punishment – Argentina or its lawyers.
It will be quite difficult to sanction the Argentinean state, as US federal law largely protects the assets of foreign governments held in the US, said Michael Ramsey, a professor of international law at the University of San Diego.
“You can’t put Argentina in jail, so I’m not sure what he’d have in mind besides monetary sanctions,” Ramsey said.
Later on Friday, Argentina’s economy ministry issued another statement, accusing the US judge of “clear partiality in favor of the vulture funds.”
“Judge Griesa continues contradicting himself and the facts by saying that Argentina did not pay,” the statement said.
Previously, Argentina announced the restructuring of 93 percent of its 2001 debt, but creditors holding the other seven percent of the bonds demanded full payment and initiated a legal battle.
A New York court ruled that Argentina had to pay $1.33 billion to the hedge funds, blocking the transfer of $590 million that Buenos Aires forwarded in order to cover its restructured debt.
The judge said Argentina had to start talks with the lenders that didn’t approve the debt restructuring and negotiate to postpone the payment with those who did agree.
With lenders unable to receive payment, international regulators and rating agencies announced Argentina’s ‘selective’ default.
Argentina files lawsuit against US over debt dispute
Press TV – August 8, 2014
Argentina has attempted to sue the United States at the International Court of Justice (ICJ) in The Hague, the UN’s highest court, over a debt dispute.
The lawsuit was filed on Thursday after a US judge blocked Argentina from servicing its restructured debt, with Buenos Aires accusing Washington of violating Argentinean sovereignty.
New York District Judge Thomas Griesa has ruled to freeze Argentina’s June debt payment of $539 million in a US bank because two American hedge funds are demanding a full repayment of their money.
The two hedge funds, NML Capital and Aurelius Capital Management, have been described by Argentina as “vulture funds” that are seeking profit out of the country’s financial misery.
“Given that a state is responsible for the conduct of all the branches of its government, these violations have generated a controversy between the Republic of Argentina and the United States, which our country submits to the ICJ for resolution,” President Cristina Kirchner’s office said in a statement.
However, the ICJ declined to take any action, claiming that it is powerless to act “unless and until the United States of America consents to the court’s jurisdiction.”
Argentina’s 2001 economic collapse caused the country to default on more than $100 billion in debt. Argentina is still fighting to deal with the crisis.
Last week, Argentinean Economy Minister Axel Kicillof went to New York to try to resolve the impasse on the eve of his country’s default. There, he slammed the US judge for his ruling.
“A judge in one jurisdiction can’t be allowed to block the debt payments of an entire country,” he said. “There’s something called sovereignty.”
Who is hit hardest by Russia’s trade ban?
RT | August 8, 2014
Germany and Poland will lose the most trade with Russia, and neighboring Finland and Baltic states Lithuania and Latvia will lose a bigger proportion of their GDP. Norway will see fish sales to Russia disappear, and US damages would be very limited.
Russia has banned imports of fruit, vegetables, meat, fish and dairy products from the 28 countries of the EU, the US, Canada, Norway, and Australia for one year.
EU trade is heavily dependent on Russian food imports. Last year Russia bought $16 billion worth of food from the bloc, or about 10 percent of total exports, according to Eurostat.
In terms of losses, Germany, Poland and the Netherlands- the top three EU food suppliers to Russia in 2013 – will be hit hardest. Food for Russia makes up around 3.3 percent of total German exports.
French Agriculture Minister Stephane Le Foll said his government is already working together with Germany and Poland to reach a coordinated policy on the new Russian sanction regime.
Last year, Ireland exported €4.5 million worth of cheese to Russia, and not being able to do so this year is a big worry, Simon Coveney, the country’s agriculture minister, said.
Farmers across Europe could face big losses if they aren’t able to find alternative markets for their goods, especially fruit and vegetables.
Some are already demanding their governments provide compensation for lost revenue.
“If there isn’t a sufficient market, prices will go down, and we don’t know if we can cover the costs of production, because it is so expensive,” Jose Emilio Bofi, an orange farmer in Spain, told RT.

