Vulture Funds are powerful financial organizations which prey upon companies and countries weakened by debt.
They buy up the debts of struggling nations at bargain prices then use bribery and legal muscle to extort the full debt plus punitive interest and court costs. Vulture Funds have successfully sued governments, frozen country’s assets and made vast profits from the poorest nations on the planet. Reverse Robin Hoods they rob from the poor and make the wealthy even richer.
In 1996 Paul Singer – the reclusive billionaire who is credited with inventing vulture funds – paid $11m for some discounted Peruvian debt and then threatened to bankrupt the country unless they paid $58m… which they did. Now he’s suing Congo Brazzaville for $400m for a debt he bought for $10m.
In 2002 another Vulture Fund claimed $700m from the Argentinean Government in the middle of a financial crisis, further damaging their struggling economy.
The current crisis of the global economy tells us some home truths about capitalism.
First, that the market cannot exist without the state. The evidence for this is overwhelming and has a long history from the origins of European colonialism in the 16th century, right up to the post WW2 Keynesian intervention of the state in the economy. The current crisis is the ultimate proof of this calling on massive state bailouts for the survival of the market.
Second, that those who rule the market also rule the state. The evidence for this is also overwhelming and has a long history. Wherever the state intervenes in the market the outcome is in the interest of the capitalist owning class.
Third, that capitalism today is what Marxists call state monopoly capitalism (SMC). If the first two propositions are correct, then we cannot be surprised at the fusion of interests between corporations that become increasingly big and powerful, and the nation states that serve their interests.
Here’s a short Bible study on the pitfalls of worshipping Money: http://www.acts17-11.com/money.html