This Paul Singer (the rentier of rentiers) vs. Argentina story has all the elements familiar to homeowners facing foreclosure across the U.S.:
1) Giant corporation (i.e., Paul Singer’s hedge fund) trying to enforce questionable debt
2) Judges favoring giant corporation over people (i.e., Argentina)
3) Giant corporation pushing people into default
4) Judge calling people deadbeats
5) The giant corporation is not the original “lender”
The headline of this Huffington Post story says it all: “Billionaire Republican Donor Pushes Argentina Into Default.” From the story:
“But the fact is that one conservative American billionaire and a handful of American judges have just pushed Argentina, a nation of 43 million people with an economy bigger than that of the Netherlands or South Africa, into defaulting on its debt. It’s a move that threatens not only chaos for the Argentinian people, but potential chaos for other countries hoping to borrow money in the future.
“This is America throwing a bomb into the global economic system,” Columbia University economist Joseph Stiglitz told The New York Times on Thursday in a front-page story about the battle.”
Destroying a whole country over fake money
Doesn’t really matter if the guy is conservative, liberal, white, black, or anything else. What matters is that with the cooperation of the judiciary of the United States, one rich man is being allowed to jeopardize the future of an entire country. And why? Because years ago he bought some of Argentina’s debt for pennies on the dollar— which, like all such debt/money, was created out of thin air—and wants the debt paid in full plus interest.
This kind of BS is the logical conclusion of fake, fiat, out-of-thin-air money—the kind that doesn’t exist, and is admitted to be created out of nothing. That logical conclusion? One man can throw an entire country into chaos. That’s not the kind of world I want to live in, which is why I have embarked on the admittedly quixotic mission of trying, in my own small way, to get people to see that, as one article here on LRM puts it: “THE SOLUTION: SINCE THE MONEY ISN’T REAL, THE DEBT ISN’T EITHER”. From that article:
“And this is what I was trying to get at in my earlier post, titled ‘Bank Says: If You Believe Banks Lend Deposits, You Are Wrong.’ We have been purposely misled about money creation. We have been purposely trained to think that banks lend deposits and/or the bank’s own, pre-existing money and that therefore we have a duty and–their favorite word–an “obligation” to pay it back. It is this mistaken belief that has caused the financial crisis and this belief that threatens to drag the United States, if not the entire world, into financial ruin.”
And indeed, that is what is happening here—quite literally, the world is heading into financial ruin through the Paul Singer/US courts mantra of “everyone must always pay their debts.” That an “obligation” to “pay back” money that never existed in the first place trumps every other consideration. To that, I say no. I reject that entirely. There is a higher obligation—to decency, to freedom, to people over profit instead of the other way around.
Good for Argentina for refusing to pay someone who didn’t loan them money and bought the fake “debt” for pennies on the dollar.