The British Empire’s Worst Nightmare: Argentina Moving to Nationalize Grain Trade

The British Empire’s Worst Nightmare: Argentina Moving to Nationalize Grain Trade

October 6, 2014 • 7:50AM

Just as Lyndon LaRouche and his associates warned, in its Aug. 22 edition, Argentina has responded to the unrelenting financial warfare waged against it by the vulture funds and their imperial backers with measures to nationalize, or strictly regulate the grain trade, to the detriment of the Empire’s grain cartels.

Some media outlets claim these initiatives as the action of a “desperate” President Cristina Fernandez de Kirchner. In fact, they are consistent with the nationalist policies which Peronist governments have adopted historically, in the face of the Empire’s efforts to destroy the nation-state. The National Grain Board was set up in 1933 to protect farm prices, but in his 1946-55 government, Gen. Juan Peron revamped it as the Argentine Institute for Trade Promotion (IAPI) to nationalize and control every aspect of the grain marketing chain, including transportation, shipping, grain elevators, and ports, taking these out of the hands of the cartels.

Proposed legislation has been in the works for a while, but is now seen as urgent, given producers’ refusal to release for export one half of the 2013-2014 soy crop, in order to force a devaluation, depriving the country of $10 billion in foreign exchange. According to MDZ Oct. 4, the government suspects that the big cartels—Cargill, ADM, Bunge, and Dreyfus, among others—are behind the producers’ sabotage.

One bill already submitted to the Chamber of Deputies’ Agricultural Committee, and expected to go to the floor for debate soon, would create the Argentine Institute for Grains Promotion (IAPG), to control all aspects of domestic and foreign trade of grains and related products and inputs, to “guarantee domestic supplies” and establish long-term policies for the sector, to prevent producers from being able to withhold exports. The bill’s author, deputy Adriana Puiggros, told Noticias Argentinas that even though there have been tougher controls imposed in recent years, the state entity she is proposing would curb the power of the cartels, which now fix prices and control the entry of foreign exchange into the country.

A second proposal is said to be on Cristina Fernandez’s desk, MOZ reports, authored by the Gran Makro group of young economists linked to the pro-government La Campora group. It also urges the creation of a state-run company, which would compete with the current grain collectors by offering small and medium-sized producers a more competitive exchange rate than the current “soy dollar,” as well as an export tax 5-10 points lower than the current 35% tax, allowing the government to directly control 40% of the crop.

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