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[Via Communist Internet... http://www.egroups.com/group/Communist-Internet ] [Subscribe: [EMAIL PROTECTED] ] . . ----- Original Message ----- From: <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Saturday, January 12, 2002 6:39 PM Subject: Riots continue in Argentina From: Barry Stoller <[EMAIL PROTECTED]> Subject: [pttp] Riots continue in Argentina Washington Post. 12 January 2002. Argentina's Peso Is Freed to Float, And Quickly Sinks. Excerpts. BUENOS AIRES -- The Argentine peso lost about 42 percent of its value today, the first day in 11 years it was allowed to float freely on currency markets, as thousands of rioters vandalized banks and destroyed ATMs. Violence erupted early this morning when protesters ransacked U.S.- and Spanish-owned banks, a McDonald's and other symbols of globalization and set at least one bank branch on fire. The demonstration began Thursday night outside the presidential palace as a peaceful protest against a government move to expand a freeze on bank deposits to bolster the financial system, which is mostly foreign-owned. It was the worse violence here since Dec. 20, when 28 people died in riots that led to the resignation of President Fernando de la Rua, who was succeeded by three temporary leaders until President Eduardo Duhalde was installed on Jan. 2. Uncertainly mounted about the new government's ability to maintain order, prop up the faltering banking system and curb the precipitous drop in the peso at the same time. Analysts feared a free fall of the peso could have a ripple effect throughout Latin America, especially in neighboring Brazil, dragging down other currencies and dampening prospects for economic growth in the region. Throughout the day, unruly lines snaked outside currency exchange offices where the peso's value changed by the minute. Trading in the peso had been suspended since the bankrupt government was forced to suspend its 11-year-old peg to the U.S. dollar and devalue the currency. Argentina is attempting to control the devaluation through a new two-tier exchange rate system, which has failed in other countries that have tried it. The official exchange rate for imports and exports is 1.40 pesos to the dollar. The free market rate will be used by the public. The peso fell quickly after trading began. At one point it cost as much as 1.8 pesos to buy $1. The peso closed at about 1.6 to 1.7, a devaluation of about 42 percent. The government has expressed hopes that the peso would level off at around 1.6 to the dollar. Analysts said that if it costs 1.8 to 1.9 pesos to buy $1, that could trigger severe inflation. Many shops and grocery stores are already gouging consumers with speculative price hikes. With the country facing a record 40 percent poverty rate and unemployment near 20 percent, additional inflation could both inhibit economic recovery and lead to serious social unrest. . . . . . . . . . . . . . . . . . . . . . . . Barry Stoller http://groups.yahoo.com/group/ProletarianNews _________________________________________________ KOMINFORM P.O. Box 66 00841 Helsinki Phone +358-40-7177941 Fax +358-9-7591081 http://www.kominf.pp.fi General class struggle news: [EMAIL PROTECTED] subscribe mails to: [EMAIL PROTECTED] Geopolitical news: [EMAIL PROTECTED] subscribe: [EMAIL PROTECTED] __________________________________________________ ==^================================================================ This email was sent to: archive@jab.org 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 ==^================================================================
