Topic: Argentina defaults (Read 1940 times)

+1 This is true today, however it was never a secret that Argentina bonds were not exactly the safest investment. They had to give up certain rights that are normally given to sovereign nations because of their history of defaulting.

I believe that the major credit ratings firms have Argentina rated as "in default" as well because.....this really does not need to be explained.

Almost the same is happening in Ukraine right now. The IMF is trying to pave the way for Shell to get access to the resources in Eastern Ukraine (to the shale gas fields in particular).

The premium is based on the peso price of bitcoins when converting pesos at the government controlled exchange rate. It is not usually feasible to convert pesos to dollars at this exchange rate due to currency controls, especially with any large amounts of money.

If you were to use the "blackmarket" exchange rate for peso/dollar then the preium is really not there anymore. I think this is simply people selling their  pesos for bitcoin so they would not need to experience additional massive inflation with the money they have saved.

There are behind the scene deal which let international companies getting the country resources at huge discount.

What is Argentina's credit rating? Anyone know how this will afftect their credit? I mean, its obvious it cant be good, but I'm just curious how bad it can get.

That is a very good question and I'd like to know myself. 

The IMF really does not loot developing countries. They really do quite the opposite. They lend to countries that cannot otherwise borrow are very attractive rates and will often forgive debt that really should not be forgiven.

And the system would work even better, if there are countries like Argentina which can be safely looted by the IMF and the likes whenever there is an opportunity (by the way, I don't excuse or defend Argentina here).

Perfect definition of what US is doing, but hey, they print the currency they owe everyone debt in, so that doesn't count

The problem is all the resources in the country are privatized while all outstanding debt have to be paid back by the taxpayers.

I couldn't have said it better myself. Excessive spending leads to default. But people still vote for politicians that promise things that they can't afford.

So you may conclude: Most people are either dumb or simply don't give a sh*t about the future.

ya.ya.yo!

I had forgotten that the IMF showed up with tanks, guns, biological weapons and nuclear weapons that forced the Argentinian government to borrow money (repeatedly), agree to having disputes litigated in US courts, pretty high interest rates and then try to avoid doing what they agreed when paying it back.  Face it, after the default ~13 years ago, no sane person would lend them money without specific guarantees (and ditto before the 13 years ago default, they wanted specific guarantees then too).  Argentina keeps making agreements and then failing to live up to them.  Each time the requirements get tougher - frankly though I am surprised anyone would loan them any money at all.

I am no fan of the IMF and its policies, most are stupid and just encourage the same bad behavior that leads to the crises in the first place, but blaming the IMF for Argentina's default is like blaming the drug manufacturer for your drug problem.  Argentina's government has been profligate for many decades, each time getting worse, trying to live at someone else's expense. Until they realize they can't live beyond their means, this will keep happening.  (And the same thing is happening all over: Greece, US, Portugal, Italy, Spain, France, many other places.  Everyone thinks they can borrow, borrow, and borrow and never have to repay it because money just grows on trees.)

And no one here mentioned the true culprit in the Argentinian disaster of the recent years, that is the IMF and the role it played in the default of this country. The IMF in Argentina turned from "being a lender for development to a creditor demanding privileges" (as per Argentina's president Kirchner). And obviously not only there, now we see Ukraine treading the same path.

Well this is what happens when people give into greed.

How easy is it to bring the money out?

I've also read about the premium on Bitcoins in Argentina on the forum but had no idea someone could make such profit.  That is a really interesting idea to travel and use coins to pay for your trip, thanks for the tip!  How ironic that Argentina used to fleece foreigners and now finds itself in the same position.  I hope this is good for bitcoin and Argentinians of lesser means can acquire btc without being fleeced because they will be under the most pressure.

Yeah, but who wants to sell their BTC for Argentinian pesos?
I guess it depends on the spread, but would you trade  your BTC for worthless paper?

When hard working Argentinians once again have their savings confiscated (outright theft or through hyperinflation) they'll see the merit in bitcoin and its unrivaled ability to transfer wealth across borders regardless of laws and regulations.

Bitcoin is highly volatile and risky as an investment, but right now the chances of the average Argentinian losing their life savings is looking pretty certain.  Pity, it's almost ironic in a country named after silver.

Worst case scenario, Argentina actually pays everyone everything they need to pay, lol. Then Argentina's foreign reserves become totally shot and the currency inflates to 0.