Greg Palast: How Obama Could End Argentina’s Debt Crisis

“The ‘vulture’ financier now threatening to devour Argentina can be stopped dead by a simple note to the courts from Barack Obama,” investigative journalist Greg Palast writes Thursday at The Guardian. “But the president, while officially supporting Argentina, has not done this one thing that could save Buenos Aires from default.”

Palast explains:

Obama could prevent vulture hedge-fund billionaire Paul Singer from collecting a single penny from Argentina by invoking the long-established authority granted presidents by the US constitution’s “Separation of Powers” clause. Under the principle known as “comity”, Obama only need inform US federal judge Thomas Griesa that Singer’s suit interferes with the president’s sole authority to conduct foreign policy. Case dismissed.

While in office, President George W. Bush used this power against Singer’s operation to prevent it from seizing U.S. property despite the fact that Singer is one of the biggest and most influential contributors to Republican candidates, Palast notes.

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