The Chicago Tribune on the bonds dispute: ‘Cry for yourself, Argentina’
The Chicago Tribune, one of the leading Midwest US newspapers has been following closely the dispute in New York courts between the Argentine government and investment funds that are demanding full payment of sovereign bonds.
The following editorial motivated a strong reaction from the Argentine ambassador in Washington Jorge Argüello, despite the fact it is an objective piece based on facts and events which argues that Argentina’s populist economic policies court disaster.
What a shame to see a country of such great economic promise swerving off the road to prosperity again.
The latest in a history of unforced errors began in 2007. National elections ushered in populist President Cristina Fernandez, who has led her nation to the brink of disaster by refusing to play by the rules of global finance. She restricted international trade, violated contracts and pumped out phoney data to disguise the soaring inflation her policies brought about. All the while she scored cheap political points by blasting the rich countries of the north for their supposed economic imperialism.
Argentina took a grave step in May when it nationalized YPF, its main energy company. The takeover, condemned around the world, forced out Spain's Grupo Repsol, which owned a majority stake in YPF. Repsol was providing the engineering know-how and financial investment to develop Argentina's massive energy reserves—including the huge Vaca Muerta oil-and-gas find.
Negotiations to compensate Repsol for Argentina's asset-grab will end badly for Argentina. The European Union is likely to impose sanctions. Repsol wants 10 billion, and it has sent the message to rival energy companies that it will not permit others to profit from its confiscated assets. Argentina will have a hard time finding partners to help it develop what should be a lucrative resource.
The financial coup against Repsol won strong national support. The approval ratings of Fernandez temporarily shot up. Even opposition parties backed the move. Government officials talked about how they had restored Argentina's dignity by standing up to foreigners exploiting its natural bounty. Meantime, Cristina Fernandez kept the once-hot economy going by nationalizing private pension funds, redirecting the money into housing loans, and expanding welfare programs by decree.
Now Argentina has to pay the price.
Despite its vast potential, this Latin American giant is hurtling toward default. Its economy is slowing. It is running out of hard currency. It is running short of oil and gas too: It became a net importer of energy last year, despite having vast reserves in the ground. Standard & Poor's recently cut Argentina's long-term sovereign credit rating, and may cut it again.
None of this dismal reality compares to the trauma that Argentina experienced during its sovereign debt default in 2001-02. The currency collapsed, businesses failed and economic malaise left deep scars. Compared to those dark days, times remain good.
But the good times can't last. Among other problems, Argentina still suffers from its failure to normalize relations with the rest of the world after 2001. It has limited access to international credit markets. It lacks credibility.
A federal appeals court in New York recently affirmed a ruling that will force Argentina to recognize the claims of investors who still hold its bonds from the default. The decision is likely to boost the cost of the country's debt service, and make managing its economy all the more difficult.
The wheels are starting to come off: An Argentine province recently tried to use Pesos, the local currency, to pay off a debt denominated in U.S. dollars. That won't work. Litigants from the 2001 debt default persuaded a court in Ghana to impound an Argentine Navy training ship at port. It took weeks to evacuate the crew.
We see bad times ahead. With its well-educated populace, rich resources and diversified economy, Argentina should be poised to benefit when the world economy recovers. Instead, it seems destined for isolation and decline as it drives into the same financial trap that wreaked such havoc in 2001.
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Why is the truth so hard to stomach.
The hypocrisy of the Chicago roulette junkies.
We will never pay them a single penny and they know it.
They are powerless to do anything.
The US, EU, Mercosur, China, all impotent would be filibusters.
We will see who is crying when you are all begging us for food.
Ask that of millions of Greeks, Spaniards and Brits....
i'm not sure this comment came out the way you intended.... if somebody like the US was desperate for food they'd just take it off you.... it's not like you've got a military to stop them.
As such I am pretty sure that having a sensible government that understands economics, avoids pointless public ranting and abides by international law, would do a LOT more for Argentines and Argentina than a government that shoots its mouth off a lot and, in the process, shoots its own feet off also.
(a bit like your rant above really....)
If your president hadn't shot her mouth off this situation wouldn't have turned into such a problem for her...and Argentina.
LOL!!!
The U.S. corn surplus on August 31 will be larger than previously estimated as farmers begin harvesting early after a warmer-than-usual spring in the Midwest, and as more wheat is used to feed livestock, according to reports.
Unsold supplies will come to 801 million bushels, up from the average estimate of 715 million bushels, though still down from 2011's 1.128 billion bushels, said U.S. Department of Agriculture data. “The USDA is saying that rising wheat supplies will bridge the gap in corn supplies before the U.S. harvest begins,” said Roy Huckabay, an executive vice president of the Linn Group. “Corn supplies are tight, and that will increase attention on crop conditions and weather forecasts the next three months.” Corn futures for May delivery fell 1.4 percent to $6.49 a bushel On April 9 on the Chicago Board of Trade. The commodity has dropped 16 percent in the past year on forecasts that world wheat reserves will rise to the highest since 2002.
Estimates say that 4.6 billion bushels of corn will be used for animal feed, 5 billion for ethanol and 1.7 billion for exports. Global corn consumption will reach 867.29 million tons, an increase from 848.06 million last year, according to the USDA.
Also, go google how much of the surplus we give away FREE, unless argentina selling all their's......is they still can in a few months.
but fellows like lorenzino, argüello, ck and other gov gang members sit so deep in the mud that they can´t hear what the rest of the world thinks about them. and they can´t move: the mud is too tight around them.
hey, ive got an idea.?
Ouchy!
That is 3 and the cockerel has yet to sing.
Not as clairvoyant as your (ex)namesake.
Send my regards to Arifu Gobakuwі in the gulag.
Still, it's better than the La Campora sweat-blog-shop.
Freedom!
“Standard & Poor's recently cut Argentina's long-term sovereign credit rating, and may cut it again.”, and theres the golden ticket, nobody is going to borrow them money for a very long time, all the while argentina goes tits up, and its not even on pay per view free for the world to see.
but wait... whats this..... instead of trying to sort their house in order, they aim towards The Falklands yet again by sending her disciples to go forth and multiply spreading her lies over The falklands referendum.
well done Crustina im glad you have your priorities in place, come march while The falklands are eating cake they will be watching you eat your words followed by a huge slice of the humblest of pies.
mmmmmmm tastes good, just needs a pinch of....
SELF DETERMINATION, ahhhh perfect!
Yes, I have read briefly about it, not many details yet other than it is close to the border with Argentina. Argentina might despute the borders, etc., now.
lookout paraguay you havent got protection against the argentine expanionist machine.
like the uk, i never voted cameron but we have to take responsibility for any consequences the UK gets while hes in office,
The majority of argentina are responsible for electing her and ultimately the mess they are in, its up to them to decide how far they are willing to let argentina fall.
for the blatant disregard by argentina for The falklands human rights past and present, i have no love loss, the harder argentina falls the better.
and just before i sign off, i like to end on a higher note...
SELF DETERMINATION, :)
Yes, I read that and can see trouble ahead.
surely not...
Talk about a reach and stretch in that comparison. While democrats may tend to redistribute wealth at a much smaller scale, they are not authoritarianists or populists, let along crushing criticism by dismantling the press and seeking perpetual seats in power. Nor do they seek state capitalism or have an indoctrinated youth movement by the likes of la campora. Stop taking the drugs they give you and focus on argentina falling apart faster than white being on rice.
www.bernama.com/bernama/v6/newsworld.php?id=711825
Where do all these daft spoof names keep cropping up from? Do you not realise it makes you look like children?
“It's that one moron that goes they call sussie. I continually complaint about the impersonated names. They must truly hate my posts to go to extremes of createad a like name over and over and posting gibberish nonsense.......lol”
Poppy, This multi nick thing seems very common with the other paid trolls. Look at TTT, Nozzy, Arifu(sp) etc.Then there's Think/Dover et al.
I would just think it is one of them, wanting to post their more vulgar childish thoughts. Even if Sussie is a distinct multi-persona, it's typical Troll behaviour - they have to post at any cost!!
I'm sure they get paid per post.
Yeah BK......facts usually are always biased. Them damned things always create problems....freaking facts.
Clarin need to republish the article and see what happen to them
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
“ I will like to know where all the money went as a tax payers I have the right to know and the government has the obligation to share the information with the public, at the end of the day it's Argentina's revenues under threat and all Argentines have the birth right to protect it.”
Good question Alex !! Certainly Argentinians should find out what happened to the $600m that mysteriously disappeared off the books from Santa Cruz province while the Kirchner Kouple were running it.
And not even an investigation from them.
Something fishy there, and its not just CFK's drawers.
The utterly consistently embarrassed can never be smacked down when you are as down as you can get
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