Argentina May Default in 2011, Pesso up VS USD

D

Debaser82

Argentina May Default Without Debt Accord: Week Ahead

Oct. 13 (Bloomberg) -- Argentina will be forced to default by 2011 unless the government reaches an accord with investors holding $20 billion of bonds kept out of the last restructuring offer, Stone Harbor Investment Partners says.

President Cristina Fernandez de Kirchner is negotiating terms of an agreement, which the government needs to regain access to international capital markets that it lost after stopping payments on $95 billion of debt in 2001. Since then, Argentina has relied on local markets and loans from Venezuela to meet financing needs, and seized about $24 billion of pension fund assets last year to compensate for falling tax revenue.

Argentina’s peso gained 0.3 percent last week to 3.8288 per U.S. dollar. The Merval stock index advanced 7.1 percent to 2,169.04.

http://www.bloomberg.com/apps/news?pid=20601086&sid=aGTGKOvk9DW0

Isnt that ironic.
 
Will the USA seize the overseas assets of domestic citizens, in order to repay foreign creditors, if things get particularly bad for the dollar?

That's the scenario I'm worried about. Americans that are planning for a collapse of the domestic economy, may very well be fooling themselves if they think they can avoid it by investing overseas.

Peter Schiff rants every Wednesday evening on his radio show about how the US government is seizing all of the purchasing power, but might they eventually go after the assets of his clients directly?

Imagine the furor that the public would hold, for instance, if, during World War 2, some members of the community were heavily invested in shares of German and Japanese firms.
 
You must log in or register to reply here.
Back
Top