All brands of totalitarian governments fall to the left of the spectrum where less government falls on the right.
Posted on 06/17/2014 5:09:22 AM PDT by Q-ManRN
Argentina's president has said that she would refuse to comply with a U.S. judge's order to pay $1.5 billion to winners of a decade-long legal battle over defaulted debt after the U.S. Supreme Court refused to hear her government's final appeal.
Delivering a nationally broadcast address Monday night, Cristina Fernandez expressed willingness to negotiate with the winners, but said there is simply no way that Argentina can pay the amount in cash, in full, starting just two weeks from now, which is what the U.S. courts have ordered.
Under the U.S. court orders, Argentina must hand over $907 million to the plaintiffs before June 30, or lose the ability to use the U.S. financial system to pay an equal amount to holders of other Argentine bonds.
That could mean defaulting on the vast majority of the country's performing debts, which are held by bondholders who agreed previously to provide debt relief that enabled Argentina to rebound from its economic crisis of 2001.
Bowing to the U.S. courts would force Fernandez to betray a pillar of the government that she and her late husband and predecessor, Nestor Kirchner, have led since he won the presidency in 2003: That Argentina must maintain its sovereignty and economic independence at any cost.
Refusing to comply could win applause from her core supporters, because paying the plaintiffs 100 percent plus interest in cash would mean sacrificing the subsidies and populist programs that enabled her to win re-election by a landslide.
Refusing to comply was "the best option" among a series of grim alternatives that Cleary, Gottlieb, U.S. law firm representing Argentina in Washington, presented to Fernandez ahead of the Supreme Court decision. Defaulting first could be Argentina's last hope for leverage in negotiations with the holdouts, the firm said.
(Excerpt) Read more at foxnews.com ...
In the 19th century, Argentina had been a major world power with a navy that was feared around the world; however, within a few decades of enacting the socialist policies mentioned above, Argentina had staggering national debt, a faltering economy, and a weakened military.
Now, lets jump to the 21st century. Argentina cannot repay it's debt of 1.5 billion dollars. Bear in mind that 1.5 billion dollars is considered lunch money in Washington, D.C. The article points out that they cannot pay that debt without losing their national sovereignty or "sacrificing the subsidies and populist programs that enabled her to win re-election by a landslide."
Take a look at where socialism leads folks. Take a good look at where socialism has led Argentina, the Soviet Union, Cuba, Cambodia, Europe, & more recently Venezuela. Take a good look at where it is leading America- a faltering economy with staggering national debt, diminished standing in the world, diminished national sovereignty, a weakening military, increasing dependence on our federal government & corrupt political leadership that takes more & more money & opportunity from citizens. It is sad that so many Americans have been seduced by socialism despite it's obvious failures and see the destructive changes listed above as a good thing.
Our government does not have to abide by court decisions made in other countries.
Why should the governments of other countries have to abide by decisions made by U.S. courts?
Sounds like time to start seizing Argentinian assets around the world. If Argentina wants to be an outlaw regime, treat it as such.
Hey, why should they have to repay debt? No one else does. At some point in the near future, some American president will be whipping up populist support by refusing to pay US debt. Its one of the last death throes of Socialism — borrowing when you can tax no longer, then refusing to pay back the debt.
And it was “National Socialism” modeled after the Nazis, not Fabian Socialism. Which goes to show that Hitler was of the Left, just like Stalin.
...and no matter what Argentina does or does not do regarding this issue, does anyone REALLY think Obama will allow their access to U.S. financial institutions to be cut off?
They’ll be granted an extension, and then another, and then another... etc. etc. etc.
Correct.
Despite what leftist history professors may tell us, being a little to the right of Uncle Joe did NOT put Hitler (nor anyone else for that matter) on the “far-right”.
All brands of totalitarian governments fall to the left of the spectrum where less government falls on the right.
Thanks.
I’ve been looking for a nicely drawn chart like that. I’ve copied it to my politics folder.
In terms of the current issue a bit more complicated than simply Argentina cannot repay its debt. Most holders of Argentinian bonds accepted a big haircut and are getting paid under the new terms. The hedge funds suing did not accept the hair cut and are trying to get paid at par.
I think you are correct at that...not content with the huge interest payments but on bonds which were debased, they want the whole taco so to speak i.e. the high interest due to implied risk plus they want them at par. Not going to happen IMO. Obamhole will not let it unless it were England.
Exactly that is why I have zero sympathy for these hedge funds suing. Any investor knows one is taking a huge risk lending money to the Argentinians who are chronic defaulters. Of course that is why one gets a huge premium over comparable US Treasuries.
But they have enough money to rattle their swords about taking The Falkland Islands.
“Why should the governments of other countries have to abide by decisions made by U.S. courts?”
They do not. But if they do not, they lose access to the international banking and settlement process. That means for all foreign trades, Argentina loses their banking privileges.
Can you function without being able to do banking ? Yes but you are very isolated and business deals become extremely inefficient.
For international trade, Argentina is practically back to the barter system.
Yes. Please also see my Post #6.
“Argentina legally owes this debt and should pay up!! “
suppose the democrats in 2009 voted to give argentina 1 trillion of US 30 year bonds (which they could have done)
how would you the taxpayer feel about repaying those bonds for the next 30 years.
That is a good point. However, they are still unable to pay without someone getting a financial “hair cut” as you put it. And they are absolutely resistant to cuts in government spending in order to pay that liability which Argentina took on.
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