Posted on 12/26/2004 10:50:49 AM PST by Napablogger
When the Argentine economy collapsed in December 2001, doomsday predictions abounded. Unless it adopted orthodox economic policies and quickly cut a deal with its foreign creditors, hyperinflation would surely follow, the peso would become worthless, investment and foreign reserves would vanish and any prospect of growth would be strangled.
But three years after Argentina declared a record debt default of more than $100 billion, the largest in history, the apocalypse has not arrived. Instead, the economy has grown by 8 percent for two consecutive years, exports have zoomed, the currency is stable, investors are gradually returning and unemployment has eased from record highs - all without a debt settlement or the standard measures required by the International Monetary Fund for its approval.
(Excerpt) Read more at nytimes.com ...
People imagine the world they want, then build it. Economics follows dreams.
Economic forecast and related predictions are guided by similar forces as the US Stock Markets. First, guaranteed stability and next the hard numbers. The US and Europe are the only real models to apply the hard numbers in a logical and meaningful way to predict future economic conditions.
Another factor is the independence from IMF edicts and a course for the people of Argentina. It is no wonder that a people can bring themselves up by the bootstraps if they can escape the predatory practices of the international bankers.
The moral of the story is don't get in bed with the IMF and World Bank.
Right......but that's one big elephant in the living room that drives a lot of things. The reality is the uncivilized world needs to catch-up, something that will not probably happen in our lifetimes. Quite frankly, nationalistic and/or individualistic poverty has little to do with money and a lot to do with humane development. So we exist while attempting to be humane.
Yep! Dumping $100 Billion of debt is bound to stimulate the Argentine economy.
Unfortunately, it is also likely to stimulate every other third world country to default on their debt too! And, it would be my guess that the USofA is the holder of most of that debt....
Maybe it has something to do with the fact that the Argentine Central Bank has been buying up gold bullion to back the government currency.
So, is there any hope for US?
It's inevitable.
thanks everyone, now I am more confused than ever:) I guess the IMF is bad news, but I think they at least need to have some plan to pay this money back or get forgiven.
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