By Kenneth Rogoff (*) - Argentina’s latest default poses unsettling questions for policymakers. True, the country’s periodic debt crises are often the result of self-destructive macroeconomic policies. But, this time, the default has been triggered by a significant shift in the international sovereign-debt regime Read full article
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!
remains badly in need of repairAug 07th, 2014 - 12:30 pm - Link - Report abuse 0
don't lend them anymore..
You want to repair this situation? That is what is happening now. Make this country pay it's debts so the rest of the dead beat tin pot dictators will see that for once someone is holding them accountable. Once the norm becomes pay back what you owe, then maybe they will think twice about stealing the money that is loaned to them and the financial community will be more careful to whom they loan money. That is how the system is fixed. Let the consequences be felt for once!!Aug 07th, 2014 - 12:53 pm - Link - Report abuse 0
Another economist!Aug 07th, 2014 - 02:00 pm - Link - Report abuse 0
Busy people just lately.
Any more out there wanting to add their six penneth worth???????
Everbody and their dog banging on about restructuring ( it is getting more difficult ) seems to me very easily avoided just pay back what you borrowed, then there is no need for restructuring. IT IS VERY SIMPLE YOU BORROW MONEY AT A FIXED RATE AND YOU PAY IT BACK no need for restructuring, or have I got it wrong? Only despotic countries need to take notice.Aug 07th, 2014 - 02:34 pm - Link - Report abuse 0
@2,4Aug 07th, 2014 - 02:54 pm - Link - Report abuse 0
Of course if you are a billionaire or corporation then you don't pay back your debts, we'll tax the poor and pay it for you.
You two are sick.
#5 Tobi Is that what they do you in country asswiper?Aug 07th, 2014 - 03:26 pm - Link - Report abuse 0
@6Aug 07th, 2014 - 03:27 pm - Link - Report abuse 0
Nope, that is UK and US cultural values. Subsidize the rich by taxing the poor.
Again spoken from one who does not know anything outside of Mendoza. I am beginning to think the AE has come further than is believed and you are the beta.Aug 07th, 2014 - 03:40 pm - Link - Report abuse 0
Argentina is fast sinking. I think in the next couple of months it will be ripe to return and buy cheap RE in BA.
8. Cap there's a long way to go with this crisis, it won't play out over the next couple of months. The best time to buy in BA is when you see that they've fixed the blackouts that will plague the city shortly.Aug 07th, 2014 - 03:46 pm - Link - Report abuse 0
Look at Caracas to see where this is heading. BA is not Caracas yet. But if they don't immediately start austerity it will be on short order.
BTW in the long term BA real estate is not a good investment. Buy in u$ and get paid in Pesos or whatever the new currency will be in a couple years? No thanks. You're much better off buying in the USA like the rich Rgs so.
Actually I wouldn't really be buying as an investment, more as a larger place for visits. I am there a couple times a year.Aug 07th, 2014 - 03:49 pm - Link - Report abuse 0
Is there really a global system for sovereign defaults?Aug 07th, 2014 - 03:51 pm - Link - Report abuse 0
It seems to be an ad-hoc depends who your friends are proccess that suits or favours some more than others.
The should be, but, it also should be overseen with a group committee on a rotational basis to shift out the corrupt like Argentina. Some countries need bankruptcy protection just like individuals.Aug 07th, 2014 - 03:53 pm - Link - Report abuse 0
The IMF wants a Sovereign court set up like ICJ but I think they figured out that in the end the only countries that would give up their Sovereignty and sign up are the ones that won't need it. They had huge push back from developing countries trying to get this through.Aug 07th, 2014 - 04:06 pm - Link - Report abuse 0
Cap, its easier and cheaper to stay in a hotel or rent an apt. The condo fees, taxes, utilities will eat you alive and most likely you'll lose money on the sale. Prices are still too high.
Give it some more time I bought over 20 properties in BA, GBA from 2002-2004 and did really well on them but the market got weird and crazy and I got out.
The other thing that scared me is you must register as a foreigner to own property and someday that list will be used to confiscate it. Mark my words...that is exactly why they set that list up.
Dear Kenny:Aug 07th, 2014 - 04:42 pm - Link - Report abuse 0
With regard to -
Given the recurring complications of adjudicating sovereign-debt contracts in foreign courts, and the world’s inability to organize a credible and fair procedure for foreign bankruptcies, perhaps the best idea is to steer the bulk of international debt flows through debtor-country courts. Jeremy Bulow and I made a proposal along these lines 25 years ago; it is still the right approach.
What kind of drugs are you on? Stop. Seek professional help. Exposing your self to the ridicule that this kind rubbish will certainly invoke is hazardous to your possible recovery.
Your postulate is vaguely reminiscent of employing the fox to guard the hen house. To put a sharper point on the idiocy of your proposal, I relate the following true account:
Years ago an individual ran a political campaign in an attempt to be elected sheriff of a small county. In his stump speech he claimed that he could solve 90% of the crime before it occurred. An opposing candidate declared that this was likely true as the first had previously been professionally associated with the majority of the local criminals vis a vie his fencing of stolen merchandise. **Criminals enforcing law?** The interests of the default debtor are entirely opposed to the reestablishment and maintenance of equity.
What idiot would entrust the enforcement of a contract to the debtor/defaulter - let alone the likes of the illustrious Cretina K and Elvis Kissoff. Would you have a sane, non-drug addled mind submit to the capriciousness and thievery of the likes of Greece or Venezuela? Or perhaps there is something more substantial in your proposal like the fomenting of anarchy in the international rule of law by the ultimate destruction of global securitization of assets or could it simply be that the concept of fairness and equity is unknown to you.
The poor pay for the rich? In most countries the poor don't earn enough to pay tax.Aug 07th, 2014 - 04:53 pm - Link - Report abuse 0
@15Aug 07th, 2014 - 05:41 pm - Link - Report abuse 0
You like all EUians and NorthAmoans are brainwashed into thinking like that.
You wouldn't understand sorry.
We already, my wife owns properties in Recoleta, and some land outside the city.Aug 07th, 2014 - 06:01 pm - Link - Report abuse 0
I see the Hague sent a request to the USA over the debt......lol. Now why are they not so quick with the Falklands? (rhetorical)
In the USA 43% of the population pays no income tax and they earn in the range of 35k per year.
tobi #16 do you hate that fact that you are poor? Do you hate hard working people with some money? Are you brainwashed into thinking money is evil from la campora?
@16 I understand perfectly. You made an ill-informed statement worth challenging.Aug 07th, 2014 - 06:04 pm - Link - Report abuse 0
How much to you contribute in taxes, TTT? We all know you are taking from society but how much do you give? You have already told us you are poor and proud of it. I just wondered how much you a robbing from tax payers.
@18 Elaine B,Aug 07th, 2014 - 06:19 pm - Link - Report abuse 0
I just wondered how much you a robbing from tax payers.
Quite right, Elaine.
Even Nostrils' fellow Argentinians, Pgerman, and ALEX VARGAS, acknowledge that is the main problem with Argentina.
pgerman also admits that CFK and the Peronists are corrupt thieves, as well.
@7 Alistair Nigel (EUian)Aug 07th, 2014 - 06:42 pm - Link - Report abuse 0
Whilst in Argentina the poor taxpayer has to subsidise CFK & Co.’s ambitions to join the super-rich.
That is much fairer, of course.
Does anyone recall when he Taliban took over Afghanistan and destroyed thousands years old historical statues and such? This is what asslips kirchner is doing to the statue of Christopher Columbus at the pink house. I saw it last month........it was all chopped into blocks. Someone needs to remove that mad woman.Aug 07th, 2014 - 06:55 pm - Link - Report abuse 0
I'm not going to respond to personal attacks that are misguided and crutch attempts to grasp at straws when logic escapes their argument.Aug 07th, 2014 - 07:29 pm - Link - Report abuse 0
Please post the evidence.
@22 No, it is an example you should be able to understand from a personal perspective. Instead of regurgitating La Campora sound bites 'the rich are stealing from the poor', look at the facts. You said ”we'll tax the poor and pay it (the debt) for you (the rich).” But it isn't true. The poor do not contribute hardly anything in tax but they do take from society. I am sure you have enjoyed free schooling, healthcare, use of infrastructure, protection of the law etc. whilst not paying any tax. So, your statement is wrong.Aug 07th, 2014 - 07:38 pm - Link - Report abuse 0
If anything, it is the middle class that suffer. The people that contribute to society and try to provide a better life for their children and make a comfortable life. They are hacked down by governments like the Kirchners. CFK is one of the super rich so she will be fine.
Man up and stop dodging the debate.
23 Elaine BAug 07th, 2014 - 09:20 pm - Link - Report abuse 0
Very nicely put, and spot on, info-wise!!
I should add that personally I think a civilised society should support the young, old, weak, sick and people in times of hardship. I don't have a problem with a tiered tax system to make a fairer society but it is a bit much when non-contributors (other than indirect taxing) start claiming they are bailing out society and supporting the rich. They are not. It is more crap they are fed by the likes of CFK whilst she is one of the super-rich and stealing money from the struggling middle-classes.Aug 07th, 2014 - 10:24 pm - Link - Report abuse 0
If TTT wants to rant he should look no further than the Argentine government. Now that is a conspiracy with some actual substance.
http://www.theguardian.com/business/economics-blog/2014/aug/07/argentina-debt-crisis-barack-obama-paul-singer-vulture-fundsAug 08th, 2014 - 01:47 am - Link - Report abuse 0
@ Narine from FranceAug 08th, 2014 - 02:13 am - Link - Report abuse 0
What happened to that Chinese accent you've been sporting lately?
Only people who net pay-in to a gov't should be allowed to vote. That would solve most of the Societal ills around the world.Aug 09th, 2014 - 12:19 pm - Link - Report abuse 0
Is that your concept of of a voter based democracy yb? Are your trying to create a socialist America?Aug 10th, 2014 - 02:29 pm - Link - Report abuse 0