What is happenning in Argentina

Don’t cry for me Argentina …

I didn’t know a whole country can go banckrupt. I thought Sabena was bad, but this …

I’m beginning to get more and more sympathy for the “anti-globalist” mouvements. The so called ‘free economy’ is making a mess of it. I hope both the US and western Europe realise that if they continue with their liberal policies, all third world nations will end like this. Such a waste of lives …

this comes from CNN

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Argentina declares state of siege after riots

Demonstrators shout anti-government slogans Thursday at Buenos Aires Plaza de Mayo.

BUENOS AIRES, Argentina (CNN) — Hundreds of angry Argentines rallied outside the presidential palace in Buenos Aires on Thursday demanding the resignation of President Fernando De la Rua and his beleaguered economy minister, Domingo Cavallo.

Looting and rioting, which left at least six dead and scores injured overnight, lessened during the morning, but Argentine police at various times used rubber bullets and batons to push back the noisy crowd at De la Rua’s Casa Rosada.

Rioters, who ransacked and set fire to grocery stores and other shops around the capital on Wednesday, said they are hungry and complained the government has not helped them. Responding to the protests and attempting to quell the violence, the government agreed to release $7 million to provide food for the most needy. On Thursday, the protesters waited for the food’s distribution.

VIDEO
CNN’s Lucia Newman reports some Argentinians have resorted to looting supermarkets because of dire economic conditions (December 19)

Looting turned to protest late in the day as tens of thousands of people beat pots and pans, clapped, waved flags and took to their cars, honking horns to protest what they see as an insufficient reaction to the problems they are facing. Firefighters rushed to extinguish fires set off around the Presidential Palace by incendiary devices.

De la Rua, trying to quell the violence, declared a state of siege, a 30-day declaration that suspends constitutional rights and gives the government wide-ranging power to quell the violence.

Sources said De la Rua had accepted the resignation of Economy Minister Domingo Cavallo, who offered to step down along with the rest of De la Rua’s cabinet. There has been no official word from the government, however, confirming Cavallo’s resignation, although most believe it is a foregone conclusion.

In the United States, White House spokesman Ari Fleischer said on Thursday that the Bush administration is closely monitoring the situation.

“Argentina is a valued ally and friend and the United States is monitoring developments in Argentina,” he said. “We’re concerned about the events.”

Cavallo stepped into the economy minister’s seat last March after two De la Rua-appointed ministers stepped down in succession. Hailed for stopping hyperinflation during a 1991-1996 stint in the same post under President Carlos Menem, Cavallo faced opposition for his reform measures this time from members of Menem’s Peronist party.

Domingo Cavallo
And in a further sign of Cavallo’s troubles, a judge investigating allegations of arms tracking to Croatia during Menem’s tenure ordered him not to leave the country while he, too, is investigated.

Stumbling under a four-year recession, the Argentine government implemented stark austerity measures over the summer. But the International Monetary Fund has so far refused to release a $1.3 billion loan payment, saying Argentina has failed to balance its budget despite the plan.

Argentina, where unemployment is near 20 percent, owes $132 billion, mainly to bond holders.

Economists say that without international help, there’s little hope the South American nation can avoid history’s worst debt default from a sovereign nation.

Earlier in the week, people were swarming into banks in an effort to withdraw their savings.

The government is considering seizing pension funds and has already capped bank withdrawals to $1,000 per month.