The US turn is coming...
It works until you run out of other people’s money.
The US turn is coming...
Witness the death throes of the Welfare State.
First, you spend and tax. When you can’t raise taxes anymore on “the rich,” you borrow and spend. When the suckers who loaned you the money ask to be repaid, tell them you aren’t going to repay them and scream about being raped by the international finance system. Repeat this process until the last idiot finally stops lending you money. Then the mob violence, civil war and killings begin.
In 1900, Argentina was one the top 10 richest countries in the world and a favorite destination for ambitious immigrants. Then the Peronists took charge.
Once Argentina defaults I’d be willing to bet that the Kirchner regime will try to invade the Falklands again in order to secure the oil and gas wealth of those islands. And, of course, to distract the Argentine street from the fact that their government screwed up. Again.
For some reason the stocks of Argentinean companies are doing really well.
As sad as it makes me...one day we will be in the same boat....
We have some dealings with some Argentine business people. First rate, decent, courteous, salt of the earth folks. I can’t tell you the depth of contempt, and more, that they have for their government. They are trapped and they know it. They are targets and they know it. I imagine that they have some lively discussions that they are unwilling to share with foreigners. Things could get pretty rough, fast.
The US is following the same trail, except the results will have a racial element - sort of like a national Detroit on steroids.
Then the shooting really starts.
ping
It's happening here, too.
God, she’s starting to look like Hillary.
The debt in question is debt which Singer picked up for pennies on the dollar and is demanding payment at 100% while the owners of the other 93% of such bonds have agreed to something like 30%. We don’t need our courts making enemies out of places like Argentina for that sort of reason.