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[Via Communist Internet... http://www.egroups.com/group/Communist-Internet ] [Subscribe: [EMAIL PROTECTED] ] . . ----- Original Message ----- From: secr <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Saturday, January 05, 2002 3:51 PM Subject: [mobilize-globally] Argentina: Duhalde slams free market ------ Forwarded Message From: Barry Stoller <[EMAIL PROTECTED]> Date: Fri, 04 Jan 2002 22:39:25 -0500 To: [EMAIL PROTECTED] Subject: [IMF-WB-Protest-Discuss] Duhalde slams free market Reuters; AFP. 4 January 2002. Argentina to Devalue as President Slams Free Market; Argentine Congress session suspended over disagreements. BUENOS AIRES - Argentina's new President Eduardo Duhalde, blaming free market policies of the last decade for creating social chaos, asked Congress on Friday to rescue the economy by allowing a traumatic currency devaluation. Duhalde proposed a bill to Congress that seeks special powers enabling him to dismantle the peg that kept the peso one-to-one against the U.S. dollar. That peg was blamed for worsening a four-year economic slump that sparked deadly riots and political chaos. Duhalde is placing the burden of devaluation on banks, foreign investors and big firms like oil companies. "We want to finish with an alliance of decades in the country, the alliance of political power with financial power at the expense of industry," Duhalde, a 60-year-old power broker known for favoring trade protectionism and heavy state spending, said in a speech to businessmen. Harkening back to statism that is largely a thing of the past in Latin America, he plans to fix price limits for basic goods and services including bread and telephone service to stem devaluation-induced hyperinflation of the sort that ravaged Argentina in the 1980s. In a sign that economic nationalism perhaps touched a cord among Argentines, there were no major street protests against the measures. The new program is an about-turn from the free market policies that made Argentina a darling of Wall Street. In Latin America, most countries have accepted a free-market focus with polices often encouraged by the United States. It could pit the government, which defaulted on Thursday on part of its $141 billion debt in what may become the biggest default in history, against foreign bond holders and investors. Oil companies will also be hit with a levy on their exports to compensate banks for what will prove a costly restructuring of dollar debts. Despite the nationalist hue, the government did wink to the foreign financial community by announcing a "sharp" reduction in spending demanded by the International Monetary Fund and Washington and hopes of "favorable effects" in six months. IMF First Deputy Managing Director Anne Krueger talked to Economy Minister Jorge Remes Lenicov on Friday for the first time, but the lender did not reveal details of the call. IMF sources said it would be unlikely that the fund would support Argentina if it went ahead with any plans are not recommended by the fund's governing rules. Meanwhile, the Argentine Congress suspended for a day a session to debate the government's request for emergency powers, amid disagreements over the draft legislation, sources said. The decision was made because of disagreements between lawmakers of the ruling Peronist party and opposition parties. Patricia Walsh, of the United Left, said passing the law would amount to "granting superpowers to Duhalde." While Congress prepared to act, Argentines huddled in pouring rain outside banks wondering if they would ever recover their deposits. Drug stores ran out of medicines like insulin, and shops raised prices to hedge against a devaluation that will be an effective income cut for millions. Many Argentines are lining up by the Italian consulate to ask for visas to leave the country. . . . . . . . . . . . . . . . . . . . . . . . Barry Stoller http://groups.yahoo.com/group/ProletarianNews To unsubscribe from this group, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ ------ End of Forwarded Message To unsubscribe from this group, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ ==^================================================================ This email was sent to: [email protected] EASY UNSUBSCRIBE click here: http://topica.com/u/?a84x2u.a9WB2D Or send an email to: [EMAIL PROTECTED] T O P I C A -- Register now to manage your mail! http://www.topica.com/partner/tag02/register ==^================================================================
