China cancels line of credit, pulling the plug on Argentina’s ‘anarcho-capitalist’ president

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Original article by JAMES MEADWAY republished from People’s World under http://creativecommons.org/licenses/by-nc-nd/3.0/us/.

Dollarization: Javier Milei holds up a giant cardboard sign depicting a U.S. $100 banknote emblazoned with an image of his face during a rally in La Plata, Sept. 12, 2023. Milei wants to replace the peso with the U.S. dollar as Argentina’s currency and says that the country’s Central Bank should be abolished. He’s got a new financial challenge, though: China just cut his line of credit. | Natacha Pisarenko / AP

The Chinese government may have pulled the plug on far-right “anarcho-capitalist” President of Argentina Javier Milei, just weeks after his shock election win.

In a spectacular demonstration of how the lines of geopolitical power are shifting, the People’s Bank of China has withdrawn its “swapline” to the Argentinian central bank, depriving it of a vital source of cheap funding.

This leaves debt-ridden Argentina without ready access to funding to meet its promises to pay creditors. These international creditors include the IMF, to whom Argentina owes a world-record $43 billion. China provided the Argentinian government with funds for its $2.7 billion IMF repayment over the summer, lending it ultra-cheap foreign currency through its swapline arrangement.

Milei, a fanatical free marketeer, was elected with 55% of the vote in November from a population desperate for a break with the failed political Establishment. Developing his public profile through TV appearances and his 1.4 million followers on TikTok, Milei was able to present his program of ferocious spending cuts and the abolition of the Argentinian currency, the peso, as the bitter medicine the country needed to end its economic crisis. Younger voters, in particular, flocked to him in droves.

This was a product of desperation. Two-fifths of Argentinians live below the poverty line, and close to 60% of children. Inflation was over 140% when the election campaign ended, meaning prices doubling roughly every six months.

Since the government defaulted—halted payments—on its debts at the end of 2001, the two decades since have seen governments both pro and anti-neoliberal attempts to negotiate agreements with Argentina’s creditors and break the cycle of crises.

The latest round of these was a colossal 2018 loan from the IMF, attached to conditions on cutting government spending over the following three years.

But what tipped the country over the edge into its latest round of crisis has been the catastrophic drought that began in 2019. This ongoing drought is the worst for over 60 years, hammering farmers and severely cutting harvests—soybean production fell to its lowest level for a century.

For a country dependent on agricultural exports for foreign exchange earnings, it has been a disaster. Its trade deficit ballooned, taxes fell and government spending mushroomed. Government borrowing swelled and the Argentina central bank resorted to issuing more money to cover spending costs. Climate change almost certainly worsened the drought.

Milei’s program offered nothing on this—he is a climate change denier, claiming that those who “blame the human race” for climate change are “fake…only looking to raise funds for socialist bums who write for fourth-rate newspapers.”

The colorful language is very much part of his appeal, along with waving a chainsaw at his public appearances, to symbolize what he planned for government spending, and smashing a piñata of the central bank on live TV.

But cartoonish posing shouldn’t kid us: Milei’s program is neoliberalism on steroids. He campaigned on a promise to cut government spending by 15% of Argentina’s GDP.

His plan to abolish the peso and “dollarize” the economy was arguably even more radical, claiming this would prevent Argentinian bureaucrats and politicians from printing money. Although two other Latin American countries, Ecuador and Panama, use the dollar as their official currency, neither is the size of Argentina, the continent’s second-largest economy.

And while many Argentinians already use the dollar, with $246 billion in dollar savings, the government has no dollars to hand, and would have to either buy them to replace pesos, or perhaps seize them from those mostly middle-class savings.

The plan is a non-starter. Confronted with the economic realities, Milei has rapidly defaulted to conservative type, appointing a former president of the central bank, Luis Caputo, as his economy minister, and appointing a close associate of Caputo as the new central bank head. So much for “burning it down.”

The ferocious spending cuts are still planned, along with a 54% devaluation of the peso as part of a program approved by the IMF.

Far from a radical break, Milei is a stooge for the maintenance of Argentina’s failed elite—including even the rehabilitation of the dictatorship, with his running mate for Vice President, Victoria Villaruel, claiming the figure of 30,000 “disappearances” under the regime is a “myth.”

This is a familiar pattern. Across the world, supposed populists from the radical right have taken power, often with the promise of taking on corrupt local elites. They don’t follow through.

Italy’s radical right government, for example, in August threatened a windfall tax on banks that were profiteering from interest rate rises. But they rapidly backed down after howls of protests from the banks themselves.

Milei has almost certainly bitten off more than he can chew. Expecting protests, harsh new guidelines for police and military, including the criminalization of the parents of younger protests have been rushed through—“prison or bullet,” as one pro-government MP described them. Inflation has accelerated, to 3,678% a year, which the government are now using to justify their “shock therapy.”

However, it is anti-China posturing that could prove his undoing. China is Argentina’s second-biggest market for exports, and loans from China make up over 42 per cent of Argentina’s foreign exchange reserves.

Yet Milei called China an “assassin” during his election campaign, promising to sever ties and instead reorienting Argentina towards full-throated support for Israel and the U.S. Argentina’s foreign minister has confirmed that the country would not be joining the China-led BRICS coalition, as pledged by the last government.

This was treated as a “slap in the face” by China: Cutting loan support to Argentina is the inevitable response. As Milei himself might put it: Fuck around and find out.

Morning Star

Original article by JAMES MEADWAY republished from People’s World under http://creativecommons.org/licenses/by-nc-nd/3.0/us/.

Continue ReadingChina cancels line of credit, pulling the plug on Argentina’s ‘anarcho-capitalist’ president

Just Stop Oil’s Art Auction

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https://theauctioncollective.com/auctions/you-may-find-yourself/

You May Find Yourself…

02 JUNE 2023 – 23 JUNE 2023, Ends 04:00 PM (UK time)

Known across the globe for targeting artworks and cultural events with non-violent direct action, Just Stop Oil supporters have continued to engage with contemporary artists, academics and activists.

Artists and collectors, such as Gavin Turk, Rut Blees Luxemburg, Jamie Reid, William Mackinnon, Peter Kennard, Boy George and more will showcase their works in support of Just Stop Oil’s demand: that the British government immediately halts all new fossil fuel licensing and consents. 

Standing with them are FILET space, The Koppel Project, The Auction Collective, and the Vivienne Foundation. 

This is where we find ourselves, living at a crisis point that will birth a new age. This is an intervention. And this is just the beginning.

Avenger Angel

https://theauctioncollective.com/auctions/you-may-find-yourself/avenger-angel-9/

Avenging Angel is Jamie Reid’s appropriation of Titian’s Bacchus, with added phallus and molotov cocktail, taking revenge on the all encompassing threat of Global Capitalism.

In Bed With Big Oil

https://theauctioncollective.com/auctions/you-may-find-yourself/in-bed-with-big-oil-11/

The UK Government’s Hypocritical Stance on Protest

https://theauctioncollective.com/auctions/you-may-find-yourself/the-uk-governments-hypocritical-stance-on-protest-51/


“A cartoon I drew while in prison for nonviolent protest after hearing Rishi Sunak comment on China’s response to protesters.”

Mair is 35, lives in Derby and works as animator making science communication videos for environmental researchers. She’s been involved with climate protests since 2019 and was imprisoned for 6 weeks on remand as part of the JSO M25 actions in November 2022.

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COP26 News review day 10

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COP26: China and US agree to boost climate co-operation

China and the US have agreed to boost climate co-operation over the next decade, in a surprise announcement at the COP26 climate summit in Glasgow.

The two countries released a rare joint declaration promising action.

It says both sides will “recall their firm commitment to work together” to achieve the 1.5C temperature goal set out in the Paris Agreement.

What do countries on the frontline of the climate crisis think of COP26?

How has the news of progress at COP26 – or lack of it – and the prospect of a 2.4 degree increase in temperature, been going down in countries of the Global South, already struggling with the effects of climate change?

Boris abruptly ends Cop26 press conference after just 22 minutes: ‘Gotta go’

Continue ReadingCOP26 News review day 10

COP26 News Summary day 0

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Sir David Attenborough’s call to arms for ambitious nature recovery at COP26

Sir David Attenborough has today appeared in a new video calling for “bold action” at COP26 to help nature recover.

In the short film, released by The Wildlife Trusts to coincide with the start of the global climate summit, Sir David highlights the role of wildlife in addressing the climate emergency.

He says: “Nature has extraordinary powers to lock up carbon dioxide; to provide clean air and water; to help protect us from flooding and extreme weather; and to provide the food which sustains us.”

But Sir David comments on the decline of wildlife, saying that nature has reached “breaking point”.

COP26: Rainbow Warrior plots a course for Glasgow in defiance of river ban

Greenpeace said it had been warned by port authorities not to sail up the River Clyde to the global climate conference, but added the vessel would still attempt the journey.

If the voyage is successful, the four youth activists on the Rainbow Warrior plan to meet fellow members of the Fridays for Future climate strike movement on Monday afternoon outside the summit to deliver their message.

Nicola Sturgeon on Cop26: There are turning points in human history. This must be one of them

The stakes could hardly be higher. The consequences of the world failing to agree on the action needed are potentially catastrophic. Already we are seeing the devastating effects of the climate crisis.

Those impacts are no longer distant or theoretical. They are being experienced now. Just this year we have witnessed wildfires in Greece, massive flooding in Nigeria and Uganda, a food crisis in Madagascar – as well as devastating flooding in western Europe.

The recent report of the Intergovernmental Panel on Climate Change could not have been clearer about the necessity of action. Compared to pre-industrial times, global temperatures have already risen by more than one degree on average.

And, as the UN Secretary General made clear last month, the definite promises made by member states at that stage – assuming they were all delivered – were sufficient only to keep temperature increases to 2.7°C. He said that would create a “hellscape” on earth.

Humanity faces ‘stark choice’, UN chief warns at COP26 opening

At the formal opening of the conference, Patricia Espinosa, UN climate chief, told delegates that humankind was at a “pivotal point in history”.

The message was wholeheartedly endorsed by Scotland’s First Minister Nicola Sturgeon, who said she “couldn’t agree more”.

The summit kicks off this weekend before world leaders attend the summit for an official opening ceremony on Monday.

Speaking to delegates earlier, Epinosa warned: “Humanity faces stark but clear choices. We either choose to achieve rapid and large-scale reductions of limiting emissions to keep the goal of limiting global warming to 1.5C or we accept that humanity faces a bleak future on this planet.”

Last seven years hottest on record, UN experts say as Cop26 kicks off

The last seven years have been the hottest on record – with sea levels rising to new highs and climate-related destructive weather extremes in 2021, UN experts have said.

In its annual state of the global climate report launched as the UN Cop26 summit gets under way, the World Meteorological Organisation (WMO) said that 2021 is likely to have been the fifth to seventh hottest year on record.

While it is not quite as hot as some recent years, due to a “La Nina” weather phenomenon in the Pacific – which has a cooling affect on global temperatures, it still averaged 1.09C above pre-industrial levels, the WMO said.

The last seven years since 2015, when countries secured the Paris Agreement to curb temperature rises to 1.5C or well below 2C to avoid the worst impacts of climate change, have been the hottest in records dating back to 1850.

And the UK’s Met Office warned the world’s temperature has reached an average exceeding 1C above pre-industrial levels for the past two decades, the first time a 20-year period has been at that level since the records began.

Extinction Rebellion march through Edinburgh in COP26 protest

Extinction Rebellion activists marched through Edinburgh in solidarity with protests taking place across the world during the COP26 climate summit.

The demonstrators walked from George IV Bridge, Bank Street, North Bank Street, Market Street, Jeffrey Street and Canongate to reach the Scottish Parliament at Holyrood at about 1pm.

A rally was then held, with short speeches by representatives from charities and action groups addressing issues contributing to the climate crisis.

Participant Mike Grant, 61, from Rosewell, Midlothian, said: “I am marching today to make clear to those gathering for Cop26 that the people demand far bolder and far faster action now.

Children’s hospital staff arrive at Cop26 after 800km cycle journey

A group of cyclists who work in children’s hospitals and as medical bosses arrived at Cop26 after cycling 800km (500 miles).

The 39 activists, members of Ride For Their Lives, cycled from London to Glasgow to raise awareness of the health damages air pollution can cause, particularly in children.

The group have carried with them the Healthy Climate Prescription letter, a document signed by organisations representing 45 million health professionals around the world.

The letter says “the climate crisis is the single biggest health threat facing humanity”, with air pollution at the top of the list of deadly impacts.

It calls for a rapid and just transition away from fossil fuels, the cause of both problems.

Scapegoating China over climate change is craven – and inaccurate

FORMER business secretary Alok Sharma, Boris Johnson’s appointee to chair Cop26, sought to put China in the dock today with his widely publicised comments “we expected more” — hardly the best way to win consensus ahead of a critically important conference.

There are two issues here. One is truth. The other is the contrast of approach between two different social systems.

In terms of carbon emissions per head, China today stands at 7.3 tonnes and the US at more than double that at 15.2.

More striking, however, is the speed of China’s development of zero-carbon technologies. In 2016 the EU generated 101 gigawatt of solar power and China 78.

Today the figures are reversed: China 204 and EU 134. Equally with wind power. In 2014 the EU generated 128 gigawatt and China 114. Today China produces 281 and the EU 201.

And in terms of relevant technologies China is well ahead. It produces 80 per cent of the world’s solar panels. It has over two-thirds of the world’s high-speed electric trains. It has as almost as many electric cars as the US and the EU combined — and 57 percent of its Belt and Road energy investments are for renewables as against 28 per cent two years ago.

Continue ReadingCOP26 News Summary day 0

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https://www.nytimes.com/reuters/2020/02/26/business/26reuters-apple-shareholders.html

(Reuters) – An Apple Inc shareholder proposal critical of the company’s app removals in China received a relatively high level of support at the iPhone maker’s annual meeting on Wednesday, enough to push the company to respond, experts said.

The proposal, which called for Apple to report whether it has “publicly committed to respect freedom of expression as a human right,” was defeated, but 40.6% of votes cast supported the measure, according to company figures.

The proposal highlighted Apple’s 2017 removal https://www.reuters.com/article/us-china-apple-vpn/apple-says-it-is-removing-vpn-services-from-china-app-store-idUSKBN1AE0BQ of virtual private network apps from its App Store in China. Such apps allow users to bypass China’s so-called Great Firewall aimed at restricting access to overseas sites, and Apple’s action was seen as a step to preserve access to the country’s vast market.

Wednesday’s vote stood in contrast to previous years when critics made little headway with big investors on the issue.

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