The violent popular uprising in Argentina and abrupt collapse of its government should be understood as a warning bell, reminding the governing elites how unstable--and unjust--their system of globalization remains. Unfortunately, the Washington establishment prefers instead to dwell on its global war against terrorism. The Bush Administration's battlefield successes in that war, its diplomatic victories in the new trade round launched at Qatar and the House's narrow approval of fast-track negotiating authority for the President seemed to confirm America's self-image as benevolent steward of the world.

When Argentina exploded, it should have blown away the smugness, but instead we witness once again the supple forgetfulness that allows the globalist architects of the IMF and their cheerleaders to skip past obvious contradictions in their ideology. Argentina, one has to recall, was toasted not very long ago as the best case for "responsible leadership" in the developing world. Its regime included the requisite "Harvard-trained economist" as finance minister, who advanced the same austere measures that Washington demanded from the sinking Argentine economy: Squeeze the populace as harshly as necessary until capital accounts are balanced so foreign creditors may feel protected from devaluation or default (they are now likely to experience both).

The Argentines endured quite a lot--four years of recession, unemployment approaching 20 percent, shrinking incomes and public spending--until they swarmed screaming into the streets, looting supermarkets and battling police, with many casualties. Now, Eduardo Duhalde, Argentina's fifth president in two weeks, has lashed out, blaming US-backed free-market policies adopted in the 1990s for the country's collapse. "Argentina is bankrupt. Argentina is destroyed. This model destroyed everything," Duhalde said in his inaugural speech.

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