Chavez to the rescue: Getting the IMF monkey off Argentina's back

Speaking of plunder and profits, the IMF have been the Loan Sharks of Corporate Capitalism ever since 1945.   As George Monbiot notes,

[The IMF] has just one set of policies. Governments must impose restraints upon the supply of money and credit, open the door to foreign capital, privatise state assets and cut public spending. It justifies these demands by persuading them that they are suffering from unmanageable debt and galloping inflation.

In other words, tie the country down and prepare it for corporate rape.  In a victory for reality and right action over unsound greed-driven ideology, this past week both Brazil and Argentina announced that they will shortly repay their IMF loans back in full.

Dec. 15 (Bloomberg) -- Argentina said it will pay back its entire $9.8 billion debt to the International Monetary Fund, severing 22-year-old ties with the lender that the government blames for its 2001 debt default.

President Nestor Kirchner, who at rallies and speeches this year has called IMF officials ``rude'' and demanding, said at a press conference in Buenos Aires the government will make the payment after three years of economic growth bolstered foreign currency reserves. The economy grew 9.2 percent in the third quarter on a surge in public spending, the government said today.         

Kirchner, 55, vowed to take the decision on several occasions this year to ensure the administration isn't dependent on policies endorsed by the Washington-based lender, including spending caps and higher utility rates. The announcement comes two days after neighboring Brazil said it would repay its $15.5 billion IMF debt.

Kirchner said today the IMF advice and loans in the 1990s helped lead to the country to "failure'' and said the fund has neglected to help since the default when they most need the help. He said the IMF's demands acted as constraints that impeded the economic recovery, and he criticized the fund for not providing financing for the government's debt restructuring this year.

Enter Chavez:

Kirchner also thanked Venezuelan President Hugo Chavez for his assistance, prompting applause from government officials listening to the speech at the presidential palace. Venezuela this year has purchased almost $1 billion of Argentine bonds.

Kirchner said paying back the IMF will save the government $1 billion of interest. "We're trying to pull out of the hell that we fell into," Kirchner said, referring to the nation's debt default and subsequent currency devaluation. He vowed to press for a "deep restructuring" of the IMF.