Should Argentina Default On Its Debt?

[GS_Dirtboy]

We've circled the wagons here in Belgrano. Sent the womenfolk and chillens up into the hills. We have enough gunpowder and water to last 3 days.

KFC, Inc. could issue bonds to cover the payment required to comply with the judge's ruling. They would avoid a default and international markets would look favorably on this move. There is plenty of soy to go around for everyone for awhile, at least if the commodities prices hold.

The other option is to abdicate the Throne before the US Navy shows up demanding gold.

 

[French jurist]

Actually, if Griesa's political/judicial decision kills a few thousands of Argentines with an even bigger crisis, should the Argentines say thank you?! I'm not really an US basher, but this is clearly imperialism.

Argentina should default.

 

[Joe]

If a default was combined with a return to orthodox economic policies the market would look favorably upon it. This is how it is usually done for both corporate and sovereign defaults. It would offer CFK the political cover to return to more orthodox policies by "sticking it to" the vulture funds.

She could establish her legacy of leaving Argentina on an upward glide path. Unfortunately I don't expect it because I'm afraid she has been drinking the sweet KoolAid of her own economic populism.

 

[dennisr]

Actually, if Griesa's political/judicial decision kills a few thousands of Argentines with an even bigger crisis, should the Argentines say thank you?! I'm not really an US basher, but this is clearly imperialism.

Argentina should default.

Do not know about imperialism my friend but something is definitely rotten in Denmark

http://www.politicapress.com/2011/11/argentina-the-vulture-funds/?lang=en

 

[Gringoboy]

Kind of a farce in many ways:
http://www.bloomberg...ures?cmpid=yhoo

Excellent article and really helped me understand this prickly problem a little more.
My money is on KFC defaulting and bringing the bonds into Argentine law.
Politically, does she want to be seen crawling to the vultures? Especially after all the things she has said?
She needs to save face and she's taking it personally, especially after Griesa's comments about her.

 

[ajoknoblauch]

Do not know about imperialism my friend but something is definitely rotten in Denmark

http://www.politicap...-funds/?lang=en

Not very transparent for a source claiming to be "prensa independiente."

 

[ajoknoblauch]

If a default was combined with a return to orthodox economic policies the market would look favorably upon it. This is how it is usually done for both corporate and sovereign defaults. It would offer CFK the political cover to return to more orthodox policies by "sticking it to" the vulture funds.

She could establish her legacy of leaving Argentina on an upward glide path. Unfortunately I don't expect it because I'm afraid she has been drinking the sweet KoolAid of her own economic populism.

Had CFK known when and how to make the switch to something more orthodox, both she and the country would be in much better shape today. Her (and Kicillof's) problem is a failure to acknowledge that their neo-Keynesianism (while it was an essential expedient) did not have an expiration date.

 

[Gringoboy]

Basta de cadena nacional!

 

[ajoknoblauch]

Basta de cadena nacional!

¡Y FPT!

 

[AmigoArtistico]

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?"

Hey, Joe (Kennedy, is it?),

If I convert US$300, it's so I can pay my expenses and keep a roof over my head. I eat at home, or occasionally go out for the plato del dia for 25 pesos at the local bodegon. Just because you're daddy big bucks doesn't mean that all expats and their Argentine families are in the same boat. It's an erroneous assumption that you make in most of your posts.

It's a little galling to see you call for the end of the blue dollar (which finally allowed me to receive the recommended daily amount of nutrition again), and then turn around and have a discussion about all your frequent flyer miles.

When you ask who has no shame, perhaps you should look in the mirror.

I'm not suggesting that you're a bad person. But I think you're perspective is a bit warped. Yes, some ex-pats are living quite well here, but many are not.