MercoPress. South Atlantic News Agency
Foreign exchange clamp forces Argentine province to pay dollar bonds in pesos
The foreign exchange clamp in Argentina is reaching the provinces, one of which at least was unable to honor maturing bonds in dollars and made the payment in Argentine Pesos. Read full article
Comments
Disclaimer & comment rulesWho is the creditor that issued these bonds in dollars?
Oct 10th, 2012 - 08:33 am - Link - Report abuse 0What Dollar clamp, there's no Dollar clamp in Argentina, right?
Oct 10th, 2012 - 08:46 am - Link - Report abuse 0CFK said there was no dollar clamp, surely she wouldn't lie to the world?!
Oct 10th, 2012 - 08:57 am - Link - Report abuse 0Once this gets onto the markets it will not matter what AG and TMBOA claim about a dollar clamp: the reality, which all the Brits & Americans on here know for a fact is that THERE IS such a clamp.
Oct 10th, 2012 - 10:15 am - Link - Report abuse 0So, they expect investors (that's delusional for a start) to invest USD in AG bonds but get back toilet paper.
Just about sums it I think.
Bet we don't get any Trolls on this one.
Am I right in assuming it was “Buenos Aires” that issued these bonds denominated in dollars? - making this an internal matter.
Oct 10th, 2012 - 10:35 am - Link - Report abuse 0”here is a run on the government bond market (what’s left of it) after a province said on the weekend it would pay some of its USD denominated debt in pesos.”
Oct 10th, 2012 - 11:04 am - Link - Report abuse 0What else did they expect?
@2 The Chilean perspective (#)
Oct 10th, 2012 - 11:13 am - Link - Report abuse 0Oct 10th, 2012 - 08:46 am
That is what I was going to say. Didn't KFC stand up in public and say at that there is no dollar clamp in Argentina?
Chaco is the canary in the coal mine.
Oct 10th, 2012 - 12:06 pm - Link - Report abuse 0In effect another corralito, savers gave the Arg gov't U$ but now are going to get back Pesos. Watch other Provinces follow Chaco.
Will these stupid Rgs ever learn?
I have been saying for a very long time, the Kirchner “economic miracle” was a ruse, a shame, a big lie they all bought into and now it is all crashing down.
This time will be much much worse for the RGs than in 2001, why you may ask? This time the gov' t is defaulting on YOU not the Int'l community! ( big difference)
How do you default in your own currency?
You print and print and print.
Devaluation is imminent.
Hyperinflation is assured.
A generational Depression is guaranteed.
Every single utility is bankrupt and has decided to stop paying suppliers, this is going to have a HUGE ripple effect throughout the country. How do you fix the grid when EVERY PART IS IMPORTED and you have no U$? No gas and electricity No Manufacturing/ No commerce. What does that bring Mass Unemployment.
Merry Christmas.
@8
Oct 10th, 2012 - 12:14 pm - Link - Report abuse 0We used to have a chap at work called the canary. After Lehmans fell we would come into work each day and ask someone in the corporate department to check and see if the canary was still there. The day he was made redundant was the day all the shit started to hit the fan...at that point we knew no-one was safe...
“savers gave the Arg gov't U$ but now are going to get back Pesos”
Oct 10th, 2012 - 12:38 pm - Link - Report abuse 0...sound like business as usual a la Argentina,LOL
they deserve the government they have, this is brilliant!
@8 Does this mean that any creditor will be able to go in and take whatever they want?
Oct 10th, 2012 - 01:43 pm - Link - Report abuse 011. Only the creditors that have won judgements can seize property. Because Argentina doesn't respect the rule of law those properties would have to be out of their jurisdiction and not be considered Embassy property. From what I understand everything else is up for seizure.
Oct 10th, 2012 - 02:00 pm - Link - Report abuse 0@12
Oct 10th, 2012 - 02:34 pm - Link - Report abuse 0interesting piece from the FT here. The last line is particularly telling...
http://blogs.ft.com/beyond-brics/2012/10/09/argentine-bonds-fall-on-selective-default/#axzz28uDPalU8
13. Rgs ignore contracts and scoff at the rule of law. That is why no one will invest there.
Oct 10th, 2012 - 02:55 pm - Link - Report abuse 0Massive Devaluation
Hyperinflation
Depression
Inevitable
12
Oct 10th, 2012 - 04:40 pm - Link - Report abuse 0I can see how Argentiona is heading up a body of water without the means of self propulsion. But if ARgentina goes down the rest of southern SA is going to take a MASSIVE hit. Im wondering if there would there be some sort of 'bailout' for ARgentina from its neighbours seeing as they have the most to lose if Argentinas economy collapses.
Tobers, I don't see why you think that?
Oct 10th, 2012 - 04:54 pm - Link - Report abuse 0You have Chile and Brazil on either side. I don't see either one bailing out Argentina. It is in their own best interest to keep them just above desperation level. The long and short term history will show that a strong Argentina is not good for their neighbors.
They could them some sort of loans to pay for imports but I doubt that too. Why would you loan someone with no hope in getting paid back?
I just don't see anyone coming to their rescue. The USA is going to teach them a lesson to obey through the IMF. It will be a good world example of what happens when your leader choose to ignore the rule of law.
Im not sure on this but doesnt Brazil, Chile and Uruguay etc do most of their foreign trade with Argentina? Argentina's neighbours will have to find new foreign markets all of a sudden to fill in their huge trade deficits by a non buying bankrupt Argentina. Or something..
Oct 10th, 2012 - 05:03 pm - Link - Report abuse 0@17, short term that's a possibility. The global market has a neat way of self-correcting that sort of thing though. With Argentina in default in the medium-term Chile and Brazil will likely end up finding other markets further afield for their produce. More stable markets with less nonsensical protectionism and currency restriction.
Oct 10th, 2012 - 05:15 pm - Link - Report abuse 0Venezuela may step in again and help Argentina. They bought all the bonds so Argentina paid off the IMF loan.
Oct 10th, 2012 - 05:17 pm - Link - Report abuse 0Chile trades with 42 countries. I suspect they have been planning ahead.
Brazil has been looking outwards for a long time and, yes they trade a lot with Argentina, but their future is the wider market.
It is no secret that CFKC has been driving the Argentine economy off a cliff.
Tobers, Chile doesn't do much overall trade with Argentina, has a number of territorial issues and have HATED them for about 200 yrs. I don't see them helping them out one bit. Also I think the USA would tamp that down pretty quickly.
Oct 10th, 2012 - 05:24 pm - Link - Report abuse 0I think the USA wants to have Brazil step up. They whine and whine about trying to sit at the grown up table then when push comes to shove they want to be considered an emerging nation. I think the USA wants to saddle Brazil and Venezuela with Argentina to keep them busy and wasting their resources downa a black hole. Time will tell.
There is no dollar clamp in Argentina, people just want to avoid paying taxes and like to repeat what their leaders say, besides the only legal tender in Argentina should be pesos not dollars. We pay a lot of fees to private banks in US dollars to send our money home. Why shouldn't Argentina collect their own fees from the exchange as well, I don't really like the english people trying to tell us to do the opposite of what they themselves do, what ever advise they shout is something they should be doind themselves, don't listen to them, they are talking about themselves to each other. Their comments has Nothing what so ever to do with Argentina.
Oct 10th, 2012 - 05:26 pm - Link - Report abuse 0Argentina's trade with Brazil and Uruguay is important to both countries, but not so big as to cause distress, more distress will be caused by lack of tourism to Uruguay. Brazil will suffer a bit more but not drastically. As far as Chile is concerned, trade with Argentina is relatively small compared with her trade with the Pacific Rim countries and the USA.
Oct 10th, 2012 - 05:27 pm - Link - Report abuse 0How unlucky to observe ze Inselaffen and US-kackmericaners salivating at the thoughts of demise of a land, how Schadenfreude of all of you?
Oct 10th, 2012 - 05:31 pm - Link - Report abuse 0Somewhen you will be sorry for the venemous mindset you possess.
Lots and lots of problems today in BA. It may be getting out of hand...
Oct 10th, 2012 - 05:33 pm - Link - Report abuse 0I wonder what constitutes out of hand 3 cars burned? 7? Maybe it is how many are on fire at the same time.
hahahhaaa
#24 Out of hand is when people take out the civil servants and execute them like animals in broad day light as it was wisely done in Libya US and UK ally. Burning cars is an American past time during cup season be it hockey, football or soccer season. The typical north American always care more for SUV's then people and for the same reason lack any ethical and moral values. CFK and Argentines never killed innocent Muslim women and children around the world in Afghanistan, Iraq, Libya, Lebanon, Palestine, Syria, Egypt, Yemen, south Arabia and Turkey, as US and UK does as their favorite past time.
Oct 10th, 2012 - 06:20 pm - Link - Report abuse 0(A concurrent CIA memo obtained by The Associated Press cited intelligence suggesting the demonstrations in Benghazi “were spontaneously inspired by the protests at the US Embassy in Cairo” and “evolved into a direct assault” on the diplomatic posts by “extremists.”)
http://m.nypost.com/p/news/international/state_protest_says_ambassador_never_kLMmVIuzyc7Y68ChCCcn4M
@24 yankeeNobody
Oct 10th, 2012 - 06:29 pm - Link - Report abuse 0Lots and lots of problems here in the USA ...and nothing you can do....
..... big stupid Isolde!
@17 Tobers
Oct 10th, 2012 - 06:40 pm - Link - Report abuse 0Argentina has already restricted imports from its neighbours, they are already taking “some of the hit” of their Argentine market not being there.
There may be some token mercosur/unasur effort, other than Hugo being willing to help (at a price of course) yankeeboy is probably right.
Huge protesters in Buenois AIres today yankee. I know people that hada to leave work early or they would get caught up in the chaos; Loooks like other provinces are going to default on their bonds also like chaco. I expect a massive sell off on argentine bonds tomorrow. It will be like a game of musical chairs with 100 players.....and 5 chairs.
Oct 10th, 2012 - 06:59 pm - Link - Report abuse 0http://www.bloomberg.com/news/2012-10-10/argentina-s-formosa-tucuman-may-follow-chaco-ambito-says.html
agentina is currently been downgraded to “frontier” status and is facing another possible downgrade. What is lower than frontier......neantherdal?
The U.S. supplies half of the food aid in the world.
Oct 10th, 2012 - 07:10 pm - Link - Report abuse 0Isn't Argentina a net recipient of foreign aid?
http://www.thesun.co.uk/sol/homepage/news/politics/4154362/Britain-funds-450m-aid-to-Argentina.html
U.S. humanitarian help in Libya:
http://www.thesun.co.uk/sol/homepage/news/politics/4154362/Britain-funds-450m-aid-to-Argentina.html
We give humanitarian aide to everyone, but no one really cares other then us taxpayers Ayayay. What do you mean by half the food in the world?
Oct 10th, 2012 - 07:36 pm - Link - Report abuse 0@25 Prvtes-Humper
Oct 10th, 2012 - 10:23 pm - Link - Report abuse 0”(A concurrent CIA memo obtained by The Associated Press cited intelligence suggesting the demonstrations in Benghazi “were spontaneously inspired by the protests at the US Embassy in Cairo” and “evolved into a direct assault” on the diplomatic posts by “extremists.”)“
Did you even read the article you posted?
It says exactly the opposite to what you tried to say!
excerpt from your article:
”The committee hearing followed assertions Tuesday night by the State Department that it never concluded that the Sept. 11 attack stemmed from protests over an American-made video ridiculing Islam. Ambassador Chris Stevens and three other Americans died in what the administration now says was a terrorist attack.
Asked about the administration's initial — and since retracted — explanation linking the violence to protests over the anti-Muslim video circulating on the Internet, one official said, “That was not our conclusion.”
You are not being intellectually honest.
You're just making it up as you go along...
*rolls eyes*
@CaPn
Oct 10th, 2012 - 11:31 pm - Link - Report abuse 0Keepin me honest!
“The United States is by far the biggest donor,
providing about half of all food aid.”
http://www.trust.org/alertnet/news/food-aid-how-does-it-work/
Ahhhhh...yes donor or food. I was not sure exaactly what you meant by largest supplier. Thank you for the clarification Ayayay
Oct 11th, 2012 - 12:02 am - Link - Report abuse 0@30 Thx, CeePee. I'm on the income-light side of the spectrum :) but hey, sales tx. At the moment. I'm learnin!
Oct 11th, 2012 - 02:07 am - Link - Report abuse 0I AM wealthy in health & happiness ;)
@34 Half of all food aid for the entire world is pretty amazing. But we're all devils right?
Oct 11th, 2012 - 03:30 am - Link - Report abuse 0“Few want to oppose her on the fear of her reprimands. In July, Fernández admitted on national television that she’d asked the tax agency to investigate a real estate broker, whom she named, after he had said that government policies had slashed home buying. ”
Oct 11th, 2012 - 04:05 pm - Link - Report abuse 0When will they be required to sig heil?
http://www.emergingmarkets.org/Article/3100171/Economics-and-Policy/ARGENTINA-Sleight-of-hand.html
“It would be helpful to make changes now rather than to straightjacket the economy and wait for an explosion,”
He looks happy! They got to use this in a tourism ad.
Oct 11th, 2012 - 10:49 pm - Link - Report abuse 0#24 “It may be getting out of hand...”
Oct 19th, 2012 - 10:59 pm - Link - Report abuse 0Surely you'd be admitting surprise that its not yet out of hand, if you were being honest about your posts on here for the last year...
#36 Or maybe Cristina's oligarchic opponents are more likely to be tax cheats. Surely you're not against the idea of a government clamping down on tax cheats?
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