Monday, November 26th 2012 - 19:35 UTC

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.

Cristina Fernandez “has led her nation to the brink of disaster by refusing to play by the rules of global finance”

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.
 

53 comments Feed

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1 surfer (#) Nov 26th, 2012 - 07:47 pm Report abuse
Excellent, sums it up very nicely.

Why is the truth so hard to stomach.
2 Out Of Controll (#) Nov 26th, 2012 - 07:52 pm Report abuse
LOL
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.
3 Anbar (#) Nov 26th, 2012 - 07:53 pm Report abuse
“”“Why is the truth so hard to stomach.”“”

Ask that of millions of Greeks, Spaniards and Brits....
4 Captain Poppy (#) Nov 26th, 2012 - 07:53 pm Report abuse
I had read somewhere that it took so long to get the crew because they had to scrap up the U$ dollars to pay someone.
5 ElaineB (#) Nov 26th, 2012 - 07:54 pm Report abuse
Because CFKC spends all her time trying to make a fairy story reality instead of running the country. Their national fairy story should have been 'Wee Willy Winky' it would have been job done.
6 Anbar (#) Nov 26th, 2012 - 08:02 pm Report abuse
“”“We will see who is crying when you are all begging us for food.”“”

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.
7 Nostrolldamus The 2nd (#) Nov 26th, 2012 - 08:02 pm
Comment removed by the editor.
8 toooldtodieyoung (#) Nov 26th, 2012 - 08:21 pm Report abuse
Is this the “International support” The Harpy keeps bleating on about?

LOL!!!
9 Captain Poppy (#) Nov 26th, 2012 - 08:25 pm Report abuse
#2

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.
10 willi1 (#) Nov 26th, 2012 - 08:27 pm Report abuse
i read dozens of reports like the above and they are all right.
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.
11 Captain Poppy (#) Nov 26th, 2012 - 08:41 pm Report abuse
I don't need light....you do becasue you're in the dark most of the time. Remains the same the the USA is the number 1 country that “gives” away food. Argentina gives away flatuence.....try hiding your light there......argentina's source of gas. In fact....with gas shortages in the future.......maybe all you RG's can band together for a methane gas facility???
12 briton (#) Nov 26th, 2012 - 08:58 pm Report abuse
the picture says it all,

hey, ive got an idea.?
13 tobias (#) Nov 26th, 2012 - 09:20 pm Report abuse
7
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!
14 Captain Poppy (#) Nov 26th, 2012 - 09:32 pm Report abuse
tito the troll clown your new name ttt. You remind my a crazy guy squating in the corner, waxing his wood and occassionally raising his hands to talk to his palms as if he is talking to others. What a puppet. What you have finally mastered tito, is your own domain.
15 ProRG_American (#) Nov 26th, 2012 - 11:40 pm Report abuse
What can you expect from the mouthpiece for the people that sank their our country's economy, the USA. I have talked to dozens of people whose life savings and pension funds were evaporated overnight. No one has gone to jail and no one “fund” is filing law suits over their trajedy. Then our courts pursue other nations instead. Something's not right here.
16 Captain Poppy (#) Nov 26th, 2012 - 11:47 pm Report abuse
You are comparing apples and oranges. But you remain idiots and morons.
17 ProRG_American (#) Nov 27th, 2012 - 12:14 am Report abuse
16 Captain Poppy (#) Who are you refering to? The USA? For being an Englishman, what a disgraceful attitude that you have towards U.S. No way to refer to U.S. after saving your skins so many times.
18 Pirate Love (#) Nov 27th, 2012 - 12:15 am Report abuse
Oh my, what a pretty picture argentina is :))))
“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!
19 Captain Poppy (#) Nov 27th, 2012 - 12:43 am Report abuse
A slight detour here. Has anyone else read about the oil discovery in Paraguay, just north of the border with Argentina. This should really be interesting how it plays out with asslips kirchner. All her neighbors are not just passing Argentina by, they a running past Argentina.
20 ptolemy (#) Nov 27th, 2012 - 12:55 am Report abuse
@19
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.
21 Pirate Love (#) Nov 27th, 2012 - 12:59 am Report abuse
@19 as we speak a map Argentina is drawing up a map showing how paraguay is on the same continental shelf as argentina and that paraguans are implanted peoples on land that was promised to argentina by the king of spain, and how an argentine once visited paraguay , anyone who helps paraguay will be sued in non existent courts,
lookout paraguay you havent got protection against the argentine expanionist machine.
22 Captain Poppy (#) Nov 27th, 2012 - 01:05 am Report abuse
Life is passing Argentina by....and fast. All because of two people named nestor and asslips
23 Pirate Love (#) Nov 27th, 2012 - 01:37 am Report abuse
@22 They are argentinas elected choice, nobody else to blame they voted a populist they got one.
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, :)
24 ElaineB (#) Nov 27th, 2012 - 01:51 am Report abuse
@19 & 20

Yes, I read that and can see trouble ahead.
25 si, si, si (#) Nov 27th, 2012 - 01:59 am
Comment removed by the editor.
26 Captain Poppy (#) Nov 27th, 2012 - 02:24 am Report abuse
The vortex gets faster for Argentina.....likes things are gaining speed. They must live with a perpetual headache at the pink house. I gather she is talking to timermann to figure a plan to invade Paraguay
27 Pirate Love (#) Nov 27th, 2012 - 02:35 am Report abuse
@25 my spanish isnt great,but are you saying “you like to insert oranges??”
surely not...
28 aussie sunshine (#) Nov 27th, 2012 - 02:47 am Report abuse
hope they go bankrupt!!
29 ManRod (#) Nov 27th, 2012 - 10:10 am Report abuse
this shows: not England is the Pirate, Argentina is...
30 cornelius (#) Nov 27th, 2012 - 11:17 am Report abuse
They are going to pay the price of their arrogance they will pay dearly.
31 wesley mouch (#) Nov 27th, 2012 - 12:10 pm Report abuse
There are numerous parallels between Obama and CFK. Also between the Democrats and the Peronists. Yet the boobs at the Chicago Tribune can't see it
32 Conqueror (#) Nov 27th, 2012 - 12:59 pm Report abuse
@2 Good selection of a name. You certainly are. This may come as a surprise but there are more than 192 other states in the world. What we want we can get from them. Here's a thought. You reckoned you could bludgeon the little Falklands into submission using economics. How's that going?
33 Captain Poppy (#) Nov 27th, 2012 - 01:01 pm Report abuse
#31
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.
34 capt.poppy cabron (#) Nov 27th, 2012 - 03:54 pm
Comment removed by the editor.
35 Captain Poppy (#) Nov 27th, 2012 - 04:48 pm Report abuse
I find it comical that itty bitty Paraguay will be pumping more crude than the stolen YPF in a years times........maybe Paraguay will be bumping Argentina out of the #3 spot like Colombia bumped them out of the # 2 spot for economies.

www.bernama.com/bernama/v6/newsworld.php?id=711825
36 Idlehands (#) Nov 27th, 2012 - 04:55 pm Report abuse
34 capt.poppy cabron

Where do all these daft spoof names keep cropping up from? Do you not realise it makes you look like children?
37 Captain Poppy (#) Nov 27th, 2012 - 05:20 pm Report abuse
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
38 Nostrolldamus The 2nd (#) Nov 27th, 2012 - 05:24 pm Report abuse
TBH, to whomever is making up these names with epithets, you are so childish. If you are going to do the multi-nick, at least add some originality to the names.
39 Captain Poppy (#) Nov 27th, 2012 - 06:06 pm Report abuse
The fruiut's not falling far from your tree ttt
40 Troy Tempest (#) Nov 27th, 2012 - 08:58 pm Report abuse
@37 Poppy
“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.
41 Captain Poppy (#) Nov 27th, 2012 - 09:14 pm Report abuse
I have been complaining about all of them. ttt is the one that amazes me the most in a comical sense when he compliants himself as another persona.......I find that hysterical.
42 British_Kirchnerist (#) Nov 27th, 2012 - 10:19 pm Report abuse
Is the first paragraph by mercopress, showing its bias now more clearly than ever (and it was already clear!)? Nice picture though, Cristinita looking so vibrant =)
43 Captain Poppy (#) Nov 27th, 2012 - 11:36 pm Report abuse
Yeah BK she just pulled her finger from her nose and came up with a new idea, they will appeal........again! Appeal the appeal.
Yeah BK......facts usually are always biased. Them damned things always create problems....freaking facts.
44 cornelius (#) Nov 28th, 2012 - 11:55 am Report abuse
The Chicago tribune is out of reach of the Argentineans court.
Clarin need to republish the article and see what happen to them
45 Captain Poppy (#) Nov 28th, 2012 - 02:47 pm Report abuse
I believe the article was carried in the Herald
46 Lau-wai (#) Nov 28th, 2012 - 02:55 pm Report abuse
Now that the ara Libertad has allowed itself to be moved - without gun toting wannabe pirates threatening the dockside crews with violence...perhaps this is the first step to normalising relations?
47 Captain Poppy (#) Nov 28th, 2012 - 03:30 pm Report abuse
argentina has no normal relations with any country that is superior to argentina
48 commonsparrow (#) Nov 28th, 2012 - 09:40 pm Report abuse
I'm planning on drinking the finest Argentine wine I can afford on Dec. 15th and drink to all this and pray it just fades away.......
49 Pirat-Hunter (#) Nov 28th, 2012 - 11:45 pm Report abuse
2001 havoc? Do they mean the one brought to Argentina by IMF policies, market liberalization, privatization, and years of peso dollar peg brought to Argentina by menem, you know how all Argentine's know CFK is the best president, because without creating the debt she is the one facing it, 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.
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
50 Troy Tempest (#) Nov 29th, 2012 - 05:15 am Report abuse
@49 Pirat-ALEX VARGAS

“ 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.
51 Captain Poppy (#) Nov 30th, 2012 - 02:37 pm Report abuse
Cuntina is sick once again and cannot attend Unasur to rant about the vulture funds. Seems the smack down from Dilma and her telling argentina to get out of the auto business and be farmers was more than she could swallow.....and that must be a lot !!
52 British_Kirchnerist (#) Nov 30th, 2012 - 09:51 pm Report abuse
#51 Well I hope ma'am gets well soon, and its quite desperate spinning on your part to see the special attention Dilma gives to building links with Cristina's Argentina, prioritising it over the summit, as any kind of smackdown
53 Captain Poppy (#) Dec 01st, 2012 - 01:30 am Report abuse
I guess you have not read the world news with asslips being told Dilma was VERY uncomfortable with argentina talking about ignoring a US Court order, and Dilma was happy to hear that argentina is putting on the table something to deal with the non restructured bondholders and that argentina should abandon the idea of the auto manufacturing and stay with farming.......lol
The utterly consistently embarrassed can never be smacked down when you are as down as you can get

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