This is something right out of an Ayn Rand novel. Billionaire hedge fund manager Paul Singer is a come to life modern day Ragnar Danneskjöld, using financial tactics to seize government military planes and ships.
Argentina's ARA Libertad, a navy training ship, has been seized in Ghana as collateral for unpaid bonds dating from the South American nation's economic crisis a decade ago, according to AP.
The Ghanaian judge acted on a claim by NML Capital Ltd., which is based in the Cayman Islands. Its owner, Singer, leads a group demanding payment in full, plus interest, for dollar-based Argentine bonds bought at fire sale prices after the country's economy collapsed a decade ago, forcing a sharp devaluation of its currency.
Argentina has announced the immediate evacuation Saturday of about 300 crew members from the ship. Only the captain and a few other members of the crew of 326 sailors will remain.
NML Capital has said Argentina owes it about $350 million, and offered to let the ship leave if Fernandez's government put up a $20 million bond to be forfeited.
According to AP, the bondholder group could potentially ask Ghana's courts to also seize a military airplane flown by Aerolineas Argentinas.
Will peace come to the world as hedge fund managers seize military ships and aircraft of countries that can't pay their debt?
Will peace come to the world as hedge fund managers seize military ships and aircraft of countries that can't pay their debt?
ReplyDeleteI think it's more likely that they'd set up fiefdoms where the hedge fund has a monopoly on the initiation of force.
Once we can use 3D printers to print 3D printers that can manufacture effective weapons, then, maybe, we'll have some peace.
This is not a surprising story to anyone who has read "Confessions of an Economic Hitman" by John Perkins.
ReplyDeleteAwesome! I can't wait until the several states decide to secede (again) and use "federal" lands to pay for current debts like SS, Medicare, etc.
ReplyDeleteThe Post Office in my city is beautiful and would make a fantastic restaurant.
Perhaps China will repossess the US Treasury.
ReplyDelete