Should Argentina Default On Its Debt?

[Gringoboy]

OK then Joe, morality or not, would someone kindly explain to those of us who fell asleep at economics class, exactly what the implications are to the man and woman in the streets of Argentina, of a default?
I voted NO, corrupt leaders and NO probably out of ignorance and a misguided sense of idealistic romanticism, but then that's just me.

 

[Joe]

This poll was a test in disguise of the economic literacy of BAexpats. You failed.

For example, CFK hinted at a third way out of this debt crisis. I put in a trick question as to how many people believed in a third way. And if you did believe in a third way, what exactly is it? More than 30% voted for a third way - not one explained what the third way is. Not one!

Those that voted for a third way are perhaps expecting a unicorn flying across the sky with a rainbow shooting out of its ass to come save Argentina.

For those who voted for a third way, your score: a big fat F.

 

[French jurist]

So you are equating billions of dollars of Odious Debt paid by the poor to the small inconvenience of converting $300 dollars so you can splurge on a Bife de Chorizo dinner at Don Julio?

I ask again, "at long last, have you no shame?"

Argentina should have defaulted on the Dictadura debt for this reason (odious debt), just like the US did about 4 times during the past 120 years.

 

[EdRooney]

Hey Joe, did you ever figure out how that $15b cheque from the Fed to CFK would cost the US taxpayers money like you claimed?

 

[French jurist]

Anywyay, it's rather a political decision than a judicial one (and the Separation of powers?).

Same stuff with the 16 billions $ fine on BNP-Paribas (1st bank in the eurozone), while it was a 1 billion $ fine for the Libor, a very small fine for the 2008 crisis banksters.

The US goal is also to try to destroy the EU (Greek crisis with the voluntary "shavings", etc.)

 

[French jurist]

If the EU leaders would grow some balls, they would send to jail the CEOs of Amazon, Google, eBay, etc. (Tax delinquency).

They should fine Goldman-Sachs and such with 100 billion $ fines for the 2008 crisis, etc.

 

[Joe]

Hey Joe, did you ever figure out how that $15b cheque from the Fed to CFK would cost the US taxpayers money like you claimed?

The treasury cannot just print money up. They must sell bonds to back that money creation up - otherwise this money creation would be inflationary. This is done through what is termed open market operations.These bonds would be an additional debt on future generations - only a Neo-Keynesian wouldn't find this self evident.

 

[EdRooney]

OK good. So how much inflation has the $15 trillion in liabilities the Fed has taken on since 2008 (QE) caused?

 

[Rich One]

I think a lot of you are making the common mistake of thinking this is a moral decision (expats) or suffering from misplaced pride (locals).

It is not a moral decision.

Do you think corporations make bankruptcy decisions based on morality? That concept is ridiculous. Corporations make the decision supposedly in the best interest of their shareholders but more usually they decide what is in the best interest of top management.

Argentina should default and default now. Morality is irrelevant.

As far as not defaulting out of a false sense of pride that Argentina is not a deadbeat borrower - that ship sailed a long, long time ago...

The best course of action for Argentina is a Big Bang: a default, combined with a time table to remove currency restrictions, new laws to encourage overseas investment and other market friendly measures.

Argentina should repeat the formula that lead to the Speedy Recovery from 2002-2006 . Default + Megadevaluation +Free Floating Currency market...!

 

[Joe]

OK good. So how much inflation has the $15 trillion in liabilities the Fed has taken on since 2008 (QE) caused?

So your argument is it's just a little more - so what harm would it do? So your proposing indebting future generations so that CFK can buy more shoes or that venture capitalist can buy more hookers and blow?