Re: Argentina and the IMF

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

Taht is because the Mexican Central Bank manage to protect foreign cpital and
creditor from financial loss by squeezing the Mexican economy.  Also Mexiso has
the advantage of extra dollars sent by Mexicans working, both legally and
illegally, in the US.

Henry C.K. Liu

Etelberto Ortiz Cruz wrote:

> Dear PKTrs:
> It is very interesting all the observations that now appear about the Crisis
> in Argentina. Just let me remember that almost all those events also ocurred
> during the mexican crisis between january 1994 and february 1995. The worst
> part of it is that we, I mean mexicans, still have the same governor of the
> central bank.
> Etelberto Ortiz
> -----Mensaje original-----
> De: dkostzer@xxxxxxxxxx <dkostzer@xxxxxxxxxx>
> Para: pkt@xxxxxxxxxxxxxxxx <pkt@xxxxxxxxxxxxxxxx>
> Fecha: Martes, 14 de Mayo de 2002 03:07 p.m.
> Asunto: Argentina and the IMF
>
> >Dear PKTrs:
> >A very interesting article by Stiglitz on Argentina was published last
> >sunday in the Washington Post.
> >http://www.washingtonpost.com/wp-dyn/articles/A3893-2002May10.html
> >I think it is worth taking a look at it.
> >The world press highlights the role of corruption on the Argentinean
> >crisis, something that it is fully true, but nobodies says that corruption
> >is a bilateral crime. Look to whom were the beneficiaries of the
> >corruption and you will have the other side of the coin.
> >Stiglitz highlights the role of the privatization of the pension fund
> >schema on the fiscal deficit, that reduced state revenues and enlarged its
> >obligations, but at the same time there was a reduction by half of the
> >contributions by employers, what enlarged the deficit, not to account the
> >debt servicing, and all that under the pressure of the IMF.
> >The privatization of the pension funds implied an enormous transfer to the
> >private sector of 5 billion dollars per year. The reduction of the
> >contributions is of the same amount and benefits mainly the service
> >sector, not the tradables.
> >Since the beginning of 2001 the banks, mainly international ones, flew the
> >money taking advantage of the currency board. 83% of the reduction of
> >deposits was explained by the private banks, while 59% by the first 10
> >banks. The IMF encouraged the internationalization of the banking system
> >under the argument that the local branches will require funds from their
> >centrals in Spain, England or USA. None of that happened.
> >Didn愒 know the IMF that silently banks were inducing capital flights? It
> >is almost funny to see that public banks saw a reduction of 4.9% in their
> >balance sheets of  the item ?ther credits?and ?ther liabilities?while
> >private banks presented reductions of 48.5%. Something was happening there
> >and the IMF and the Central Bank looked to the side.
> >To have the silent and ordered withdrawal of reserves from Argentina,
> >banks had the complicity of the IMF auditors and the Central bank. Is it a
> >mere coincidence that the IMF was pushing to abolish the laws that made
> >the heads of the central bank liable for their acts? Is it to adhere to
> >conspiracies theories to think that there are second intentions in the
> >abolishment of the white collar crime law or the reform of the bankruptcy
> >law are a requirement in order to achieve IMF support? One of the bankers
> >in jail is the partner of David Mulford . Their bank is accused of major
> >capital flights after the December crisis.
> >On top of that, there is the suggestion of major  orthodox adjustments in
> >the economy.
> >Dear PKTers, there should be an alternative for us Argentineans. Perhaps
> >many of you had thought on that. Will be nice to discuss ideas and
> >alternatives.
> >
> >Daniel Kostzer
> >