Crisynomics At Work: Argentina Is Low Debt Superstar

[trennod]

Look, I've been living in Buenos Aires for many years. I've even been a member of this site since the beginning of 2008. I just haven't posted to the forums.

I've met lots of people like you, and I'm not going to get into a debate with you. I've read a lot of the comments here, and I see that some of the people here have some affection for you. I do not. You're a typical kirchnerista. You're a liar, and you try to smear, minimize and discredit anyone who disagrees with you. I know your playbook well.

For the record, I have my own money, which I earned. I don't get paid by anyone to write things and I have no vested interest in this government (unlike you).

I also have observed, by reading the comments, that nobody believes a word you say -- thank god; I'd be very worried it they did.

Some people here find you amusing. I do not. There are millions of people in this country suffering because of people like you, and I look forward to the day when this government is out of power, and hopefully most of the administration are in prison.

If you don't see me responding to any more of your inane posts, it's because I'm ignoring you. I don't have a lot of time to waste replying to ridiculous posts like yours.

Excellent post Sir.

Bajo cero at first used to tell us all how he never used to attack the poster, was always respectful and quote from one post "when you start insulting I ignore you". This has of course turned out to be a lie, given (particularly recently) he has reverted to strongly attacking, abusing & insulting many posters.
Despite always strongly defending Kirchnerism, he still claims he is not a Kirchnerista. How this is possible, I dont understand.

The more and more I think about it, the more I think he is either a) a member of La Cámpora and/or B) a Cyber K.

Dont get me wrong, I think he has added a lot of value to this site (citzenship etc), but then this site has added a lot of value to his clientele as well. Bajo, I am still happy to hear your K points of view, but would appreciate if you stopped the insults & were a little more objective.

 

[Joe]

This chart show that in addition to low public debt, Argentina also has low personal debt. Superstar Squared!

Chile and Brazil are heavily indebted!

 

[ajoknoblauch]

This chart show that in addition to low public debt, Argentina also has low personal debt. Superstar Squared!

Chile and Brazil are heavily indebted!

And Brazil and Chile are on the point of collapse, while a wildly successful Argentina strides proudly across the global stage!

 

[ghost]

Come on!
You cannot compare Argentina with the Pacific Alliance countries, they are ally of the US and this is someting that can never happens with Argentina because we compete with the US for food markets.
good

If you think Argentina and the US compete for food markets you need some serious help. There is a severe shortage of food in the world and regardless of the massive productioncapabilities of either country the demand cannot be filled. We may compete for the quality of customers [ones that can pay] but not the quantity.
Further... Argentina has screwed up it's agro product mix so badly that its agro future is a joke and nearly a one trick pony trained to dance for China.
Bajo K you need to get out more and tango less.

 

[syngirl]

This chart show that in addition to low public debt, Argentina also has low personal debt. Superstar Squared!

Chile and Brazil are heavily indebted!

That chart also shows that personal debt has also more than doubled since 2000.

 

[Matiasba]

So according with you guys the debt is good?
Is good for a country to be indebted?

Thats totally against common sense!!

 

[camberiu]

So according with you guys the debt is good?
Is good for a country to be indebted?

Thats totally against common sense!!

Debt is horrible Matias. But your government is not averse to debt. It just can't get any. That is the crux of it.
And printing money is as bad (or worse) than getting into debt.

 

[Joe]

So according with you guys the debt is good?
Is good for a country to be indebted?

Thats totally against common sense!!

High debt is usually the cause of economic crises: from the Great Depression to the current calamities in Europe - high leverage levels are usually the main cause.

 

[GS_Dirtboy]

Yes, sometimes debt is good (both personal and national). For example, if you assume a mortgage to purchase a house your are taking debt on a (hopefully) appreciating asset. If you take debt on a car that could be bad as it is a depreciating asset.

Unfortunately, not many people know how really to use debt wisely so we have entire generations of people (in the US) who have no idea how to actually save money. Further, my government has no idea how to stop spending themselves into a serious problem using debt.

Argentines have low debt because it simply isn't available to them, both personally and nationally. I certainly don't think debt is the answer to the Argentine crisis. That would just be throwing gas on the fire.

 

[Matiasba]

I still prefer a low debt. Yes its true that it is an investment and that mobilizes economy. But we dont have a paralyzed economy today, as we had in 2000 when we asked for megacanje (a huge loan that indebted us more, didnt avoid the crisis and we re still paying).

As I said before, lending money is a huge bussiness, there are not too many people who can lend money to a COUNTRY, those are huge numbers, and a lot of interests (banks, international organisms). How do we have the entire world with huge debts? because is a bussiness. Its a great bussiness to have countries (national states, that always make money by taxes, etc) indebted, is a way of having a rent, every year, from the national states, which means there are institutions, corporate power, banks, that have more power than the national states, more political and economical power, that manage international organisms to be their voice, their political arm....the interests of the money they lend just control the situation on their favour clearly. Thats how this concentrated economical power governs people more than their actual governments. They have more power than the representatives that we vote. So how can we control them? at least we control the politicians with our vote, changing a government, with democracy, etc, but this people? we dont vote for the president of HSBC!!

So, theres only one winner -the people who lend money. The rest are practically slaves, that have to pay interests (not the debt) that used to be in Argentina a great percentage of GDP per year (today destinated to education, for example).
These banks and international organisms (like IMF) has a lot of lobby, a lot of political power, they force countries to take debt, by especulation, by using local influences.

So I really dont care if this people dont want to lend me money. As I know that lending money (or making countries take debt, thats the correct exp<b></b>ression) is all they want and the moment when their bussiness is achieved, I watch them with their anger when a country have clean acccounts with a very low debt, with an ordered balance of payments, and reject them.
I know this situation wont last forever, though. I know this government will end some day and we will take debt again, and this people will be there to lend us money, because this is who they are, this is what they do, this is when thier bussiness realises. And if some day this K government decides that they want to take debt, I m pretty sure they will negotiate too, and probably finally lend it. But its not probable to see this government knocking that door, asking for money to this people.

Debt oposes to sovereignty, to independence.
Thats my view.