Argentina to Europe: You Can Recover from a Crisis Without Killing People
August 1, 2012 • 9:35AM

When Argentina makes a final payment in August on the Boden 2012 bonds held by citizens whose bank savings were frozen in 2001 by madman Finance Minister Domingo Cavallo, it will be a moment of "economic independence," Finance Minister Hernan Lorenzino has stated. In July 28 remarks to Tiempo Argentino, he announced that the payment represents the "final chapter of the 2001-2002 debacle," from which Argentina was able to recover without killing its own citizens through brutal austerity.

Both President Nestor Kirchner and his successor and widow, Cristina Fernandez de Kirchner, assumed the responsibility of repaying citizens the money Cavallo had confiscated and placed in the so-called "corralito," or "little corral."

Echoing EIR's "Program for an Economic Miracle in Southern Europe" report, which contains a chapter entitled "What Europe Can Learn from Argentina," Lorenzino pointedly referred to the European crisis. "It's worth remembering," he said, "that you can recover from a crisis like the one we had without making the most needy bear the cost and sacrifice."

The difference between what's going on in Europe today and Argentina, he explained, is that "we repaid people whose funds were frozen, but at the same time unemployment dropped, the mortality [rate] dropped; today there's more employment than nine years ago — 4.5 million jobs were created. There's the Universal Subsidy per Child, and a social-safety net for the most needy. We did it without austerity, by growing. There's a way to recover from a crisis that has nothing to do with the prescriptions which, despite Argentina's [2001] example, financial organizations continue to impose on countries with problems such as we had," Lorenzino said.

The Finance Minister added that Argentina has no intention of returning to foreign financial markets, because "going back to financing current expenditures with debt is to return to the 1990s. This has not been, nor will it be, this government's policy. Financing infrastructure is what we've done, and what we'll continue to do."