From bigxc@prairienet.orgSun Feb  5 07:26:57 1995
Date: Fri, 3 Feb 95 16:13:27 CST
From: Brian Redman <bigxc@prairienet.org>
To: Multiple recipients of list <conspire@prairienet.org>
Subject: Conspiracy Nation -- Vol. 3 Num. 79


              Conspiracy Nation -- Vol. 3  Num. 79
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                    ("Quid coniuratio est?")
 
 
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PESO BILL'S BAILOUT PLAN
 
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Aid For Mexico: Six European countries, uneasy with President 
Clinton's plan to rescue Mexico's economy, withheld their 
approval for a $17.8 billion U.S.-backed loan package approved by 
the International Monetary Fund. Britain, Germany, Denmark, the 
Netherlands, Belgium and Switzerland say that they were not 
consulted and that the package for Mexico, largest in IMF 
history, threatens support for Russia and eastern Europe. [USA 
Today, 2/3/95]
 
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[From *700 Club* broadcast, 2/3/95 interview with 
Representative Duncan Hunter, R-California]
 
[...]
 
LEE WEBB:
What about this split in the GOP over the bailout. Is Speaker 
Newt Gingrich carrying bipartisanship a little too far?
 
 
DUNCAN HUNTER:
Well I like to think of it as a split with President Clinton, and 
I think every Republican has to take his own position.
 
I've looked at the situation, and a couple of things come to 
mind: first, there isn't an apocalyptic situation developing in 
Mexico; they've devalued the peso regularly, over the years, and 
we haven't had this "the sky is falling in" scenario that Mr. 
Rubin and others have painted, on Capitol Hill.
 
Secondly, a lot of the investors who put money in Mexico were 
very sophisticated investors; they were maaking a high rate of 
return. They didn't share their *profits* with the American 
taxpayers. And now that it appears they're going to be taking a 
loss, they want to share their *losses* with the taxpayers.
 
And lastly, in this scenario... in this time in government 
frugality when we have passed the balanced budget amendment, and 
when we are going to be slashing domestic programs across the 
board -- this is a *tremendous* amount of money to be exposing. 
This is twice this country's annual foreign aid budget -- going 
simply to one country, Mexico.
 
So I think that this is the wrong time. I think there's *not* a 
disaster of apocalyptic proportions developing in Mexico. And 
lastly, the leadership of Mexico, the 34 or so billionaires who 
*do* control politics in Mexico, seem to have less interest in 
securing the future of their own country than we do! Most of them 
have *their* money in *dollars*, invested in the united States. 
They have their payrolls in Mexico, so when a devaluation occurs 
and the peso loses its value, that means (for these big 
industrialists) the cost of their payrolls has been cut by 30 
percent! They *like* that.
 
So the Mexican elite *thrive* on devaluations. And as long as you 
have that situation, you're going to have a historical trend of 
devaluations, every 5 or 6 years.
 
 
BEN KINCHLOW:
Mr. Hunter, this is Ben Kinchlow, with *Newswatch*. You obviously 
disagree with the President's plan. So I guess we would ask you, 
what is *your* recommendation? What would *you* recommend, for 
dealing with the Mexican economic crisis, since you obviously do 
not feel that it is an "end of the world" situation?
 
 
DUNCAN HUNTER:
Well I think that Bill Siedleman(sp?), former chairman of the 
FSLIC [Federal S&L Insurance Corp.], a very renowned, 
conservative, economic leader, had it exactly right. He said, 
"Listen. You had a lot of sophisticated Wall Street investors who 
made a bad deal. And they made big profits, at first. Now they're 
on the hook. They're gonna lose some money. And the best way to 
-- when you have a debtor and a creditor: the debtor being 
Mexico, and the creditors being these investors around the world 
that have these *bonds* that are gonna have to be paid back this 
year. Let the debtor and the creditor work this thing out between 
themselves! They don't have to have a government from *any* side 
interfering with this. They don't need the united States of 
America to step in. So let's do it the old-fashioned way: let 
Mexico restructure its debt, with its creditors, and work this 
thing out with *no* interference by the united States."
 
 
LEE WEBB:
How can we force them to do that though, congressman?
 
 
DUNCAN HUNTER:
Well the way you force them to do that is by not stepping in and 
bailing them out! And as these bonds become due, Mexico will have 
to... Just like, if you owed money to a creditor, and you wanted 
to keep your creditworthiness -- you had a bill coming due -- 
you'd haave to go down [and] sit down with them and work out an 
arrangement to restructure your debt over a longer period of 
time!
 
And Mexico has *enormous* assets with which they could do that! 
They've refused to sell off PEMEX (that's their petroleum giant). 
They've refused to do a lot of things -- take money out of the 
massive portfolio of the Bank of Mexico and sell these assets or 
use them as collateral to extend this debt into long-term debt.
 
So, once again, the elite who run and control Mexico -- the 
billionaires who control Mexico -- have much less interest in 
addressing this devaluation of the peso than we do! Which is an 
ironic situation. They *thrive* off peso devaluations. They 
profit off them. As long as that occurs, we're not gonna see 
these crises... we're gonna see these devaluations in a regular, 
historic pattern.
 
[...]
 
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Aperi os tuum muto, et causis omnium filiorum qui pertranseunt.
Aperi os tuum, decerne quod justum est, et judica inopem et 
  pauperem.                    -- Liber Proverbiorum  XXXI: 8-9 

 Brian Francis Redman    bigxc@prairienet.org    "The Big C"
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    Coming to you from Illinois -- "The Land of Skolnick"        
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