Wednesday, September 24, 2014

Cristina at the UN fighting the #GrieFault

Argentine President Cristina Fernández spoke to the UN General Assembly Wednesday. She had harsh words for the vulture funds seeking to drive Argentina into bankruptcy with the willing help of Nixon-appointed zombie judge Thomas Griesa.

This is Part 2 of an Argentine documentary on sovereign debt and the vulture funds, Deuda: Historia de una extorsión (2 de 5) TV Pública argentina 20.09.2014. This segment features an interview with Argentine Economics Minister Axel Kicillof.

See previous post for Part 1.

As the Buenos Aires Herald reports in CFK denounces vultures' 'economic terrorism' to UN General Assembly 09/24/2014:

President Cristina Fernández de Kirchner today addressed the United Nations General Assembly, accusing holdout investors of committing "economic terrorism" and reiterating her wish for a multi-lateral framework to regulate sovereign debt.

"The vulture funds threaten and attack with actions against our country's economy, causing rumours, mistruths and outright lies," she told the organisation.

"It is almost a type of economic and financial terrorism." ...

Returning on the offensive against those investors who did not enter 2005 and 2010's debt swaps, Cristina slammed them as "economic terrorists that create poverty, hunger and misery through the sin of speculation." [my emphasis]

Cristina's speech is availble as a UN webcast with English translations: Argentina, General Debate, 69th Session 09/24/2014. But it doesn't seem to be available for embedding here. (The UN should make better use of their YouTube channel IMHO.)

This is the full speech, Visión 7 - Cristina felicitó a la ONU por la resolución para reestructurar deudas soberanas TV Pública argentina 09/24/2014:

Here's a Spanish-language news report on the speech, which at 12:00 has a long excerpt of some airhead commentator at Bloomberg News talking smack about Argentina and the debt. As the Argentine commentators note afterward, she's just basically repeating the vulture funds' lobbying spin, Visión 7 - Buitres: El terrorismo económico TV Pública argentina 24.09.2014.

Andrés Cala has an accessible explanation in English of the current situation, Argentina v. the Hedge Funds Consortium News 09/24/2014:

Default or not, Argentina for now appears to be winning the war, at least as defined by the ultimate judge in all financial matters: the market. The market is demanding a higher interest to hold Argentina’s debt, but not too much more. In part that is because Argentina has been shut out of credit markets since its default in 2001. Investors also are looking forward to Argentina exploiting new oil and gas fields.

Thus, Argentina's defiance has so far had little economic impact on the South American nation, while accepting the U.S. ruling would again plunge it into bankruptcy. It is not that Argentina doesn't have the $1.5 billion that the holdouts are demanding. It is that Argentina’s national laws forbid making the concession and – even if legally possible – such a capitulation would trigger an onslaught of new lawsuits and years of renegotiations to offer all bondholders the same terms, which would exceed the amount of its original 2001 default. [my emphasis]
Additional reports:

The Nixon zombie judge is still at it: Griesa asks Argentina to show why it should not be declared in contempt Buenos Aires Herald 09/24/2014

CFK: “En épocas de buitres económicos y halcones de la guerra necesitamos más palomas de la paz” Página/12 2r.09.2014

Victoria Ginzberg,“Es una suerte de terrorismo económico” Página/12 25.09.2014

"Alemania ha tenido una actitud hostil con la Argentina" Página/12 25.09.2014: The Chief of Cristina's Cabinet, Jorge Capitanich, complained publicly about the hostile attitude that Germany's Finance Minister Wolfgang Schäuble against Argentina and in favor of the vulture funds. This is an indication that Angela Merkel's government is fine with making it effectively impossible for countries like Greece, Portugal and Spain to default on any of their sovereign debt.

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