Ballots or Bullets: Democracy and World Power
By James Petras | October 31, 2014
The principal reason why Washington engages in military wars, sanctions and clandestine operations to secure power abroad is because its chosen clients cannot, and do not, win free and open elections.
A brief survey of recent election outcomes testify to the electoral unattractiveness of Washington-backed clients. The majority of democratic electorates rejects candidates and parties which back the US global agenda: neo-liberal economic policies; a highly militarized foreign policy; Israeli colonization and annexation of Palestine; the concentration of wealth in the financial sector; the military escalation against China and Russia. While the US policy attempts to re-impose the pillage and dominance of the 1990s via recycled client regimes the democratic electorates want to move on toward less bellicose, more inclusive governments, which restore labor and welfare rights.
The US seeks to impose the unipolar world, of the Bush Sr. and Clinton era, failing to recognize the vast changes in the world economy, including the rise of China and Russia as world powers, the emergence of the BRIC and other regional organizations and above all the growth of popular democratic consciousness.
Failing to convince electorates by reason or manipulation, Washington has opted to intervene by force, and to finance organizations to subvert the democratic electoral process. The frequent resort to bullets and economic coercion when ballots fail to produce the “appropriate outcome” testifies to the profoundly reactionary nature of US foreign policy. Reactionary in the double sense of ends and means.
Pragmatically, the imperial centered socio-economic policies deepen inequalities and depress living standards. The means to achieve power, the instruments of policy, include wars, intervention, covert operations, are more akin to extremists, quasi-fascist, far right regimes.
Free Elections and the Rejection of US Clients
US-backed electoral parties and candidates have suffered defeats throughout most of the world, despite generous financial backing and international mass media propaganda campaigns. What is striking about the negative voting outcomes is the fact that the vast majority of adversaries are neither anti-capitalist nor ‘socialist’. What is equally striking is that all of the US clients are rightist or far-rightist parties and leaders. In other words, the polarization is usually between center-left and rightist parties; the choice is between reform or reaction, between an independent or satellite foreign policy.
Washington and Latin America: Masters of Defeats
Over the past decade, Washington has backed losing neo-liberal candidates throughout Latin America and then sought to subvert the democratic outcome.
Bolivia
Since 2005, Evo Morales, the center left leader favoring social reforms and an independent foreign policy, has won three Presidential elections against Washington backed rightist parties, each time by a greater margin. In 2008, he ousted the US ambassador for intervening, expelled the Drug Enforcement Agency (DEA) in 2008, USAID in 2013 and the Military Mission after foiling an aborted coup in Santa Cruz.
Venezuela
The United Socialist Party of Venezuela (PSUV) and its predecessor have won every Presidential and Congressional election (over a dozen) except one over the past 15 years despite US multi-million dollar funding of neo-liberal opposition parties. Unable to defeat the Chavez-led radical-reform government, Washington backed a violent coup (2002), a boss’s lockout (2002/3), and decades long paramilitary attacks of pro-democracy leaders and activists.
Ecuador
The US has opposed the center-left government of President Correa for ousting it from the military base in Manta, renegotiating and repudiating some of its foreign debt and backing regional pacts which exclude the US. As a result Washington backed an abortive police led coup in 2010 that was quickly defeated.
Honduras
During democratically elected President Manual Zelaya’s tenure in office, a center-left President, Honduras sought to pursue closer relations with Venezuela in order to receive greater economic aid and to shed its reputation as a US dominated “banana republic”. Washington, unable to defeat him at the ballot box, responded by supporting a military coup (2009) which ousted Zelaya and returned Honduras to the US fold. Since the coup Honduras has experienced more killings of popular leaders-200- than any country in Latin America.
Brazil
The center-left Workers Party has won four straight elections against US backed neo-liberal candidates beginning in 2002 and continuing through the 2014 elections. The US propaganda machine, including NSA’s spying on President Rousseff and the strategic state petrol company, Petrobras, and the international financial press went all out to discredit the reformist center-left government. To no avail! The voters preferred an ‘inclusive’ social liberal regime pursuing an independent foreign policy to an opposition embedded in the discredited socially regressive neo-liberal politics of the Cardoso regime (1994-2002). In the run-up to the 2014 elections Brazilian and US financial speculators attempted to strike fear in the electorate by betting against the currency (real) and driving the stock market into a precipitous fall.
To no avail. Rousseff won with 52% of the vote.
Argentina
In Argentina a massive popular revolt overthrew the US backed neo-liberal regime of De la Rua in 2001. Subsequently, the electorate elected the center-left Kirchner government over the rightist, US backed Menem candidacy in 2003. Kirchner pursued a reformist agenda imposing a moratorium on the debt and combining high economic growth with large scale social expenditures and an independent foreign policy. US opposition escalated with the election of his wife Cristina Fernandez. Financial elites, Wall Street, the US judiciary and Treasury intervened to destabilize the government, after failing to defeat Fernandez’s re-election. Extra-parliamentary financial pressures were matched by political and economic support for rightist politicians in preparation for the 2015 elections.
Earlier, in 1976, the US backed the military coup and political terror that led to the murder of 30,000 activists and militants. In 2014 the US backed a “financial coup” as a federal judge sided with vulture funds, sowing financial terror in international markets against a democratically elected government.
Paraguay
President Fernando Lugo was a moderate former Bishop who pursued a watered-down center-left agenda. Nevertheless, he raised issues that conflicted with Washington’s extremist agenda, including Paraguay’s membership in regional organizations that excluded the US (MERCOSUR). He appealed to the landless rural workers and he retained ties to other Latin American center-left regimes. He was deposed by Congress in 2012 in a highly dubious ‘institutional coup’, quickly supported by the White House and replaced by a straight-line neo-liberal, Federico Franco with tight links to Washington and hostile to Venezuela.
Globalizing US Threats to Democracy
US subversion of democracy when center-left political formations compete for power is not confined to Latin America – it has gone ‘global’.
Ukraine
The most egregious example is the Ukraine, where the US spent over $6 billion in over a decade and a half. Washington financed, organized, and promoted pro NATO shock troops to seize power against an elected regime (Viktor Yanukovych) which tried to balance ties between the West and Russia. In February 2014, an armed uprising and mob action led to the overthrow of the elected government and the imposition of a puppet regime totally beholden to the US. The violent putschists met resistance from a large swathe of pro-democracy activists in the Eastern region. The Kiev junta led by oligarch Petro Poroshenko dispatched air and ground troops to repress the popular resistance with the unanimous backing of the US and EU. When the rightist regime in Kiev moved to impose its rule over the Crimea and to break its military base treaty with Russia, the Crimean citizens voted, by a large margin (85%), to separate and merge with Russia.
In both the Ukraine and Crimea, US policy was directed toward imposing by force, the subordination of democracy to NATO’s drive to encircle Russia and undermine its democratically elected government.
Russia
Following the election of Vladimir Putin to the Presidency, the US organized and financed a large number of opposition “think tanks”, and NGO’s, to destabilize the government. Large scale demonstrations by well-funded NGO’s were given wide play by all the Western mass media.
Failing to secure an electoral majority and after suffering electoral defeats in the executive and legislative elections, Washington and the EU, using the pretext of Russian “intervention” in the Ukraine, launched a full scale economic war on Russia. Economic sanctions were enforced in the hopes of provoking economic collapse and a popular upheaval. Nothing of the sort occurred. Putin has gained greater popularity and stature in Russia and consolidated its ties with China and the other BRIC countries.
In sum, in the Ukraine, Crimea and Russia, facing independent elected governments, Washington resorted to a mob uprising, military encirclement and an escalation of economic sanctions.
Iran
Iran has periodic elections in which pro and anti-western parties compete. Iran has drawn the wrath of Washington because of its support for Palestinian liberation from the Israeli yoke; its opposition to the Gulf absolutist states; and its ties to Syria, Lebanon (Hezbollah) and post- Saddam Hussain Iraq. As a result, the US has imposed economic sanctions to cripple its economy and finances and has funded pro-Western neo-liberal opposition NGO’s and political factions. Unable to defeat the Islamist power elite electorally, it chooses to destabilize via sanctions in order to disrupt its economy and assassinations of scientists and cyber warfare.
Egypt
Washington backed the Hosni Mubarak dictatorship for over three decades. Following the popular uprising in 2011, which overthrew the regime, Washington retained and strengthened its ties to the Mubarak police, military and intelligence apparatus. While promoting an alliance between the military and the newly elected President Mohammed Morsi, Washington funded NGO’s, who acted to subvert the government through mass demonstrations. The military, under the leadership of US client General Abdel Fattah el-Sisi, seized power, outlawed the Moslem Brotherhood and abolished democratic freedoms.
Washington quickly renewed military and economic aid to the Sisi dictatorship and strengthened its ties with the authoritarian regime. In line with US and Israeli policy, General Sisi tightened the blockade of Gaza, allied with Saudi Arabia and the Gulf despots, strengthened its ties with the IMF and implemented a regressive neo-liberal program by eliminating fuel and food subsidies and lowering taxes on big business.
The US backed coup and restoration of dictatorship was the only way Washington could secure a loyal client relationship in North Africa.
Libya
The US and NATO and Gulf allies launched a war (2011) against the independent, nationalist Libyan government, as the only way to oust the popular, welfare government of Colonel Gaddafi. Unable to defeat him via internal subversion, unable to destabilize the economy, Washington and its NATO partners launched hundreds of bombing missions accompanied by arms transfers to local Islamic satraps, tribal, clans and other violent authoritarian groups. The subsequent ‘electoral process’ lacking the most basic political guarantees, fraught by corruption, violence and chaos, led to several competing power centers. Washington’s decision to undermine democratic procedures led to a violent Hobbesian world, replacing a popular welfare regime with chaos and terrorism.
Palestine
Washington has pursued a policy of backing Israeli seizures and colonization of Palestinian territory, savage bombings and the mass destruction of Gaza. Israel, determined to destroy the democratically elected Hamas government, has received unconditional US backing. The Israeli colonial regime has imposed racist, armed colonies throughout the West Bank, financed by the US government, private investors and US Zionist donors. Faced with the choice between a democratically elected nationalist regime, Hamas, and a brutal militarist regime, Israel, US policymakers have never failed to back Israel in its quest to destroy the Palestinian mini-state.
Lebanon
The US, along with Saudi Arabia and Israel, has opposed the freely elected Hezbollah led coalition government formed in 2011. The US backed the Israeli invasion in 2006, which was defeated by the Hezbollah militias. Washington backed the right wing Hariri-led coalition (2008 – 2011) which was marginalized in 2011. It sought to destabilize the society by backing Sunni extremists especially in Northern Lebanon. Lacking popular electoral support to convert Lebanon into a US client state, Washington relies on Israeli military incursions and Syrian based terrorists to destabilize Lebanon’s democratically elected government.
Syria
Syria’s Bashar Assad regime has been the target of US, EU, Saudi and Israeli enmity because of its support for Palestine, its ties with Iraq, Iran, Russia and Hezbollah. Its opposition to the Gulf despotism and its refusal to become a US client state (like Jordan and Egypt) has been another source of NATO hostility. Under pressure from its internal democratic opposition and its external allies, Russia and Iran , the Bashar Assad regime convoked a conference of non-violent opposition parties, leaders and groups to find an electoral solution to the ongoing conflict. Washington and its NATO allies rejected a democratic electoral road to reconciliation. They and their Turkish and Gulf allies financed and armed thousands of Islamic extremists who invaded the country. Over a million refugees and 200,000 dead Syrians were a direct result of Washington’s decision to pursue “regime change” via armed conflict.
China
China has become the world’s largest economy. It has become a leading investment and trading country in the world. It has replaced the US and the EU in Asian, African and Latin American markets. Faced with peaceful economic competition and offers of mutually beneficial free trade agreements, Washington has chosen to pursue a policy of military encirclement, internal destabilization and Pan Pacific integration agreements that exclude China. The US has expanded military deployments and bases in Japan, Australia and the Philippines. It has heightened naval and air force surveillance just beyond China’s limits. It has fanned rival maritime claims of China’s neighbors, encroaching on vital Chinese waterways.
The US has supported violent Uighur separatists, Tibetan terrorists and protests in Hong Kong in order to fragment and discredit China’s rule over its sovereign territory. Fomenting separation via violent means results in harsh repression, which in turn can alienate a domestic constituency and provide grist for the Western media mills. The key to the US countering China’s economic ascent is political: fomenting domestic divisions and weakening central authority. The democratization which Chinese citizens favor has little resonance with US financed ‘democracy’ charades in Hong Kong or separatist violence in the provinces.
Washington’s effort to exclude China from major trade and investment agreements in Asia and elsewhere has been a laughable failure. The principle US “partners”, Japan and Australia are heavily dependent on the Chinese market. Washington’s (free trade) allies in Latin America, namely Colombia, Peru, Chile and Mexico are eager to increase trade with China. India and Russia are signing off on multi-billion dollar trade and investment deals with China! Washington’s policy of economic exclusion miscarried in the first month!
In sum, Washington’s decision to pursue confrontation over conciliation and partnership; military encirclement over co-operation; exclusion over inclusion, goes counter to a democratic foreign policy designed to promote democracy in China and elsewhere. An authoritarian choice in pursuit of unachievable Asian supremacy is not a virtue; it is a sign of weakness and decay.
Conclusion
In our global survey of US policy toward democracy, center-left governments and free elections we find overwhelming evidence of systematic US hostility and opposition. The political essence of the “war on terrorism” is Washington’s world-wide long-term pernicious assault on independent governments, especially center-left democratic regimes engaged in serious efforts to reduce poverty and inequality.
Washington’s methods of choice range from financing rightist political parties via USAID and NGO’s, to supporting violent military coups; from backing street mobs engaged in destabilization campaigns to air and ground invasions. Washington’s animus to democratic processes is not confined to any region, religious, ethnic or racial group. The US has bombed black Africans in Libya; organized coups in Latin America against Indians and Christians in Bolivia; supported wars against Muslims in Iraq, Palestine and Syria; financed neo-fascist “battalions”and armed assaults against Orthodox Christians in the Eastern Ukraine; denounced atheists in China and Russia.
Washington subsidizes and backs elections only when neo-liberal client regimes win. It consistently destabilizes center-left governments which oppose US imperial policies.
None of the targets of US aggression are strictly speaking anti-capitalist. Bolivia, Ecuador, Brazil, Argentina are capitalist regimes which attempt to regulate tax and reduce disparities of wealth via moderate welfare reforms.
Throughout the world, Washington always supports extremist political groups engaged in violent and unconstitutional activity that have victimized democratic leaders and supporters. The coup regime in Honduras has murdered hundreds of rank and file democratic activists, farm workers,and poor peasants.
The US armed Islamic jihadist and ex-pat allies in Libya have fallen out with their NATO mentors and are at war among themselves, engaging in mutual bloodletting.
Throughout the Middle East, South Asia, North Africa, Central America and the Caucuses wherever US intervention has taken place, extreme right-wing groups have served, at least for a time, as Washington and Brussels’ principal allies.
Pro EU-NATO allies in the Ukraine include a strong contingent of neo-Nazis, paramilitary thugs and “mainstream” military forces given to bombing civilian neighborhoods with cluster bombs.
In Venezuela, Washington bankrolls terrorist paramilitary forces and political extremists who murdered a socialist congressional leader and dozens of leftists.
In Mexico the US has advised, financed and backed rightist regimes whose military, paramilitary and nacro-terrorist forces recently murdered and burned alive 43 teachers’ college students, and are deeply implicated in the killing of 100,000 “other” Mexicans, in less than a decade.
Over the past eleven years the US has pumped over $6 billion dollars in military aid to Colombia, funding its seven military bases and several thousand special operations forces and doubling the size of the Colombian military. As a result thousands of civil society and human rights activists, journalists, trade union leaders and peasants, have been murdered. Over 3 million small land-holders have been dispossessed.
The mass media cover up the US option for right wing extremism by describing ruling mass murderers as “center-right regimes” or as“moderates”: linguistic perversions and grotesque euphemisms are as bizarre as the barbarous activities, perpetrated by the White House.
In the drive for world power, no crime is left undone; no democracy that opposes it is tolerated. Countries as small and marginal as Honduras or Somalia or as great and powerful as Russia and China cannot escape the wrath and covert destabilization efforts of the White House.
The quest for world domination is driven by the subjective belief in the “triumph of the will”. Global supremacy depends entirely on force and violence: ravaging country after country, from carpet bombing of Yugoslavia, Iraq, Afghanistan and Libya to proxy wars in Somalia, Yemen, Ukraine to mass killings in Colombia, Mexico and Syria.
Yet there are limits to the spread of the “killing fields”. Democratic processes are defended by robust citizens’ movements in Venezuela, Ecuador and Bolivia. The spread of imperial backed terrorist seizures of power are stymied by emergence of global powers, China in in the Far East and Russia in Crimea and eastern Ukraine have taken bold steps to limit US imperial expansion.
In the United Nations, the President of the United States and his delegate Samantha Powers rant and rave, in a fit of pure insanity, against Russia as “the greatest world terrorist state” for resisting military encirclement and the violent annexation of the Ukraine.
Extremism, authoritarianism and political insanity know no frontiers. The massive growth of the secret political police, the National Security Agency, the shredding of constitutional guarantees, the conversion of electoral processes into elite controlled multi-billion dollar charades, the growing impunity of police involved in civilian murders, speaks to an emerging totalitarian police – state inside the US as a counterpart to the violent pursuit of world power.
Citizens’ movements, consequential center-left parties and governments, organized workers, in Latin America, Asia and Europe have demonstrated that authoritarian extremist proxies of Washington can be defeated. That disastrous neo-liberal policies can be reverted. That welfare states, reductions in poverty, unemployment and inequalities can be legislated despite imperial efforts to the contrary.
The vast majority of the Americans, here and now, are strongly opposed to Wall Street, big business and the financial sector. The Presidency and the Congress are despised by three quarters of the American public. Overseas wars are rejected. The US public, for its own reasons and interests, shares with the pro-democracy movement’s world-wide, a common enmity toward Washington’s quest for world power. Here and now in the United States of America we must learn and build our own powerful democratic political instruments.
We must, through the force of reason, contain and defeat “the reason of force”: the political insanity that informs Washington’s ‘will to power’. We must degrade the empire to rebuild the republic. We must turn from intervening against democracy abroad to building a democratic welfare republic at home.
Argentina warns US against slandering Buenos Aires over debts
Press TV – November 1, 2014
Argentina’s President Cristina Kirchner has warned the United States against the serious consequences of what she called US officials’ slandering Buenos Aires over its debts.
In a harsh five-page letter on Friday, the Argentina president criticized US President Barack Obama’s choice of hire for a high-level advisory position in his administration.
“Could this be a case of namesakes?” Fernandez asks her American counterpart, referring to Nancy Soderberg, a politician who Obama appointed as head of a board at the Public Interest Declassification Board (PIDB), while also holding co-chair position at the American Task Force Argentina (ATFA), the most prominent well-funded lobby group in opposition to Argentina’s debt refinancing efforts.
According to the letter, the ATFA, which has spent millions of dollars lobbying against Argentina, is “an entity specifically created to attack and slander the Argentine Republic and its President.”
The Argentina president said it is a conflict of interest for Soderberg to give sound advice to the president and other US officials because Soderberg’s organization has received payments from one of the vulture funds.
“If confirmed by you, [this] would have grave implications for relations between our two countries,” Kirchner wrote in her letter.
“As you are certainly aware, the functions of the PIDB encompass sensitive issues of national security and include giving advice to the president and to other US executive branch officials,” she added.
Argentina is currently contesting its disputed debts in US courts.
US Court Rejects Argentina’s Appeal in Vulture Funds Case
teleSUR | October 23, 2014
The ongoing saga between Argentina and the vulture funds continues after a U.S court rejects Argentina’s appeal to allow the country to pay its creditors.
A United States appeals court has dismissed the Argentine appeal of an order directing Bank of New York Mellon to hold on to US$539 million dollars that Argentina deposited to pay its bondholders.
The appeals court said that it lacked jurisdiction over the appeal as an earlier ruling by U.S. District Judge Thomas Griesa was a clarification rather than modification of his earlier rulings on the matter.
In Griesa’s original ruling, the judge ruled that Argentina deposit with Bank of New York Mellon to pay bondholders who had renegotiated their debt with Argentina was “illegal,” and ordered the bank to hold on to the funds.
No progress has been made in talks between the country and hedge-fund holdouts, led by Elliott Management and Aurelius Capital Management.
Griesa has also scheduled another hearing on December 2 to weigh arguments over whether Citigroup Inc (C.N) should be allowed to process an expected interest payment by Argentina on bonds issued under its local laws following its 2002 default.
The hearing comes less than a month before an interest payment by Argentina on the bonds is due on December 31.
The hold outs, commonly referred to as vulture funds, had previously rejected all Argentina’s past restructuring offers on the country’s debt, most of which was incurred under Argentina’s military dictatorships and neoliberal governments. Ninety-two percent of creditors accepted the offer, and Argentina has been taking steps to continue to pay them back in spite of Judge Griesa’s ruling.
Argentine President Hardens Stance Toward United States
By Martin Hacthoun | Prensa Latina | October 1, 2014
Buenos Aires – President Cristina Fernandez has taken a harder stance against the United States, even issuing a warning against groups inside Argentina confabulating with foreign forces to topple the government, after the ruling by New York judge Thomas Griesa that decreed Argentina in contempt.
“Don’t think for a moment that this is simply an isolated action by a senile judge in New York,” she said in four speeches last night at government headquarters, the first at the Bicentennial Women’s Hall, where she announced policies to encourage public works and urban renewal.
The other speeches were delivered at each of the three courtyards at the presidential palace where young political leaders and union members were gathered.
In response to a request from the vulture funds, Griesa declared Argentina in contempt for its non-compliance with his previous ruling that demanded the country pay the speculative groups $300 million.
Fernandez asked who would ever bet on Argentina again “if we ruin everything” for the 92.4 percent in order to favor the one percent, alluding to the vulture funds who launched the litigation under the protection of the U.S. judicial system.
“The absurdity has never gone so far, and yet the absurdities continue to mount. What a coincidence that the ruling came out the day before we were to make our second payment (of the year) to our creditors,” she pointed out.
Fernandez charged that the real motive is to throw the entire restructuring of Argentina’s restructured debt out the window and return the country to forced debt payments in the billions.
“And if that means doing away with sovereignty, international respect, they have no problem with that, except that afterwards, they cloak themselves in the gorgeous robes of defenders of the law,” she criticized, insisting that “sovereignty is not negotiable.”
“I wouldn’t be the least surprised to see them insist on economic sanctions 20 days from now,” in relation to the possible fine threatened by Griesa.
With respect to the confabulations against the national and popular plan that she is pushing forward, she warned that “they are exerting pressure on the exchange rate so that the currency can be devalued and collective agreements liquidated.”
Fernandez said that economically and politically powerful groups are looking to unleash an internal crisis. “This is not an economic problem; these are concentrated sectors that want to overturn the government,” she denounced.
In the same vein, she warned about the interference from the interim Charge D’Affaires at the U.S. embassy in Argentina, Kevin Sullivan, even calling the alleged threat against her from the terrorist Islamic State group, published in the opposition newspaper, Clarin, a tall tale that has no factual basis.
“If something happens to me, no-one should look east; look northward instead,” Fernandez emphasized, in a clear allusion to the United States of America.
US Judge Claims Argentina ‘in Contempt’ of Court
teleSUR | September 30, 2014
U.S. Judge Thomas Griesa, who has repeatedly sided with vulture funds, has declared Argentina in contempt of court for its attempts to pay back over US$200 million in interest to creditors.
The Argentinian debt case reached a new landmark on Monday, as U.S. Judge Thomas Griesa ruled Argentina “in contempt” of court for attempting to pay back the debt it owes to bondholders.
Argentina defaulted in 2001 but reached debt exchanges with nearly all the creditors in 2005 and 2010, with a tiny minority refusing the deal.
Griesa justified his latest decision by saying the country is taking “illegal” steps to avoid his orders. Griesa had previously ruled that hold out creditors, known as vulture funds, had to be paid before other creditors could be settled with.
“These proposed steps are illegal and cannot be carried out,” Griesa said, during a court hearing in lower Manhattan, referring to the steps that Argentina has taken to pay back bondholders.
The judge also rejected any recognition of the newly approved law on Sovereign Debt in Argentina, passed by both its Congress and Senate.
In a further extraordinary rejection of Argentine sovereignty, Griesa warned that he will impose unspecified penalties on Argentina.
Argentine Foreign Minister Hector Timerman said in a statement late on Monday that the judge’s decision was a “violation of international law” and would have no impact other than to embolden the vulture funds against Argentina.
“The Argentine government reaffirms its decision to continue defending national sovereignty and asking the U.S. government to accept the jurisdiction of the International Court of Justice to resolve this controversy between both countries,” he said.
Argentina passes law to reclaim default debt from New York
RT | September 5, 2014
Argentina’s Senate has passed a law that will let the country continue paying off its default debt by transferring international bond payments from New York to local banks, which would let other investors buy Argentine debt.
The scheme, to get around a US judge’s order to immediately pay back $1.6 billion to “vulture” hedge funds in Manhattan, is the initiative of President Cristina Fernandez de Kirchner. The bill passed by a vote 39 to 27.
The initiative proposes to begin challenging payments through third parties, and allowing them to trade their bonds for new debt issued under Argentine law. Argentina’s state Banco de la Nacion could become the trustee for payments, replacing the Bank of New York Mellon. Another proposal is to make Paris a main destination for debt payments.
The US district court that ruled on Argentina’s debt maintains this is illegal.
Next week the law will be discussed in Argentina’s lower house Chamber of Deputies.
It is a brazen move against the ‘vulture’ funds that sent the country into default in July after demanding the immediate payment of $1.6 billion ($1.3 billion plus interest) in restructured debt, instead of the planned $539 million to bondholders. The ruling banned Argentina from making interest payment on restructured debt before settling with the New York hedge funds. The hedge funds had rejected Argentina’s requests to restructure the debt in 2005 and 2010.
“Sometimes there are court decisions that cannot be followed,” Miguel Angel Pichetto, head of the government’s Victory Front coalition in the Senate, said on Thursday.
Argentina has said it will take the US to the International Court of Justice for judicial malpractice.
“To pay the vulture funds would be very dangerous,” Pichetto said.
Ghosts of Olavarría: Human Rights Trial in Argentina Seeks Justice for Victims of Military Dictatorship
By Nick MacWilliam | Upside Down World | August 26, 2014
The central quarter of the Argentine city of Olavarría, with its leafy main square, whitewashed church, and historical architecture, merits its National Heritage status. Thanks to mineral extraction of the rock on which it stands, Olavarría is a prosperous and tranquil place, and home to the social science and engineering schools of the University of Buenos Aires Province. Now, however, this seemingly pleasant city has become the latest battleground in Argentina’s ongoing struggle to bring justice to those guilty of crimes during the military dictatorship of 1976–1983.
Olavarría, a city of around 100,000 inhabitants, is the setting for the upcoming trial of several ex-army officials accused of human rights abuses during the dictatorship. A high level of public interest surrounds the proceedings, due to one of the defendants’ alleged involvement in a case which has dominated national media in recent weeks.
In early August, the human rights organization Grandmothers of the Plaza de Mayo announced that the long-lost grandson of its president Estela de Carlotto had been identified and was living in Olavarría under a different name. Guido Montoya Carlotto had been taken from his detained mother in 1978 when just a few hours old, one of hundreds of babies born in captivity and then raised by families linked to the military authorities. In most cases, their biological parents were murdered by the military. The Grandmothers of the Plaza de Mayo have campaigned since the 1970s to reunite the stolen babies with their natural families and to expose the guilty parties.
Estela de Carlotto The recent news, a welcome dose of positivity on front pages of the country’s newspapers, has received intense media interest. Estela de Carlotto is highly-respected within Argentine society for her tireless campaigning as president of the famous headscarf-wearing Grandmothers. But, as the story has moved on from its initial feel-good element, there are now many questions over who was responsible for taking Guido from his mother, Estela’s 22-year-old daughter Laura Carlotto, who was killed soon after giving birth. The father, Walmir Montoya, abducted alongside his pregnant partner, had been murdered several months earlier.
The spotlight has shifted to Olavarría, location of the impending trial and the city in which Guido Montoya had lived until recently as Ignacio Hurbán. Although the trial date was set several months ago, it is now alleged that one of the accused participated in the transfer of Laura Carlotto’s baby to an adoptive family. Laura, who was handcuffed to a stretcher throughout the entire labor and birthing process, spent only a few hours with her newborn before being returned to her cell at the La Cacha detention center in La Plata.
On September 22, a court will begin listening to evidence against a number of ex-military officials charged with crimes against humanity, including kidnapping, torture and murder, committed at the Monte Peloni detention center in Olavarría. The officials on trial are: the local commander, Ignacio Verdura; Chief of Intelligence, Walter Grosse; Officer Horacio Leites; and Sub-Officer Omar Ferreyra. All of them are currently serving sentences for earlier convictions. While the trial is not directly connected to the removal of the Montoya Carlotto baby, it is suspected that Verdura was involved in the appropriation of babies.
For the last few years, the Grandmothers of the Plaza de Mayo have claimed that an Olavarría businessman, Carlos Francisco Aguilar, acted as an intermediary between the military and adoptive families. Aguilar, who died earlier this year, owned the land on which Guido Montoya’s adoptive parents worked and was known to have strong links to the armed forces and the church. As a wealthy landowner, he moved in the same social circles as high-ranking military figures, such as Ignacio Verdura, the then-chief of the regional 2nd Tank Regiment.
Throughout the 1970s, Olavarría was a site of left-wing militant activity, which brought the city to the military’s attention. State repression began with worker organizations before targeting the lawyers representing them, and later moving on to the student movement. Those who felt the heavy hand of the state included striking workers at the Loma Negra (Black Hill) cement company. The company’s response to the strike was to call in the military to end the dispute with detentions and other suppressive tactics.
Carlos Moreno was a lawyer who represented the Loma Negra workers. He was detained in Olavarría and tortured before being killed in May 1977. A trial in 2012 exposed links between the military and civilians who had allowed their property to be used for detaining prisoners. The trial also ordered an investigation into the role of Loma Negra, whose president was Amalia Lacroze de Fortabat, one of the world’s wealthiest women until her death two years ago at the age of 90.
Speaking to the Página 12 newspaper, Moreno’s son Matías said companies such as Loma Negra reaped the benefits of military rule.
“Before the dictatorship, Loma Negra was suffering losses, but its profits tripled under the dictatorship. The abduction of my father was intended as a disciplinary measure, after which there was a fall in labor costs,” said Matías. This was the aim of all the abductions.”
He also revealed that Commander Verdura lived next-door to the Moreno family. Any neighborly recognition, however, was irrelevant when it came to the military eliminating its opponents.
The Monte Peloni detention centerThe Monte Peloni detention center, where the majority of those detained in the zone were held, was a farmhouse in the countryside near Olavarría. Several prisoners, many of whom remain disappeared, passed through the center, which was administrated by the 2nd Tank Regiment of Ignacio Verdura.
Among the crimes that Verdura and his cohorts stand accused of are the disappearance of a young couple, Isabel Gutiérrez and Juan Carlos Ledesma, the detention of Isabel’s father Francisco Gutiérrez, and the murders of Jorge Oscar Fernández and Alfredo Serafín Maccarini. The latter was a prison guard whose rumored empathy for political prisoners made him a target for the military. Another ex-prisoner, Lidia Araceli Gutiérrez, who was raped and tortured in Monte Peloni, is to give evidence at the trial.
The Olavarría trial is the latest step in the legal battle to hold those involved in the abuses of the dictatorship accountable. As many as 2,000 people connected to the dictatorship have been accused of complicity in abuses, as, according to Human Rights Watch, Argentina has made “significant progress in prosecuting military and police personnel for enforced disappearances, killings and torture during the country’s ‘Dirty War.’” Yet the fact remains that a great many of those who willingly participated in dictatorship abuses have yet to answer for their crimes.
The stealing of babies from people who were subsequently killed continues to be a matter of great sensitivity, as the majority of stolen babies are now unidentified adults living normal lives in Argentine society. The Guido Montoya case was the 114th positive identification of a baby forcibly removed from its biological parents. However, it is estimated that there are hundreds of other citizens now approaching middle-age with little idea of their true identities. For families of the disappeared, the discovery of lost relatives can serve as an act of closure for their longstanding grief. Having spent decades dwelling on the past, they are finally able to look ahead.
In 2012, the dictator Rafael Videla, already serving a life sentence for human rights abuses, was given a further 50 years for his part in the systematic transfer of babies from prisoners to families linked to the military regime. Several other officials, including the country’s last military leader Reynaldo Bignone, have been convicted and imprisoned for their involvement in abuses. Bignone, who like Videla had already been found guilty of torture and murder in earlier trials, was said by the court to be complicit in “the crimes of theft, retention and hiding of minors, as well as replacing their identities.”
But the campaign of forced removal was perpetrated at all levels of the military hierarchy. As Guido Montoya Carlotto said in a recent interview with the newspaper El Popular de Olavarría, in his hometown “there are people who have to thoroughly explain themselves … I hope that people learn to question that which has been covered up, so that this not only represents my restitution but also the restitution for other people experiencing doubts.”
As Argentina continues to come to terms with the traumas of military rule, stories like the Carlottos’ provide inspiration for the justice movement to keep fighting. Yet, this is a journey that is unlikely to ever be fully resolved. The entrenched political system of brutality and repression was too widespread to hold all the guilty to account. But each small step signifies progress. Many will be closely watching the Olavarría trial in the hope that Argentina continues on its path toward redemption.
Nick MacWilliam is a British freelance writer and editor based in Buenos Aires.
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.
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