Is Argentina the cyprus of 2014? - page 2.

botany

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Quote from: tinof on August 07, 2014, 12:23:36 PM

Just opening up the country and border will attract foreign capital. Undeveloped land will be bought up and develop by transnational companies and local labor/population will benefit from it.

The only worry is the gates can't be closed after that.
If the US begins to look more attractive, capital could rush out.
And that could lead to a lot more economic devastation.

Super Bitcoin

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everything looks similiar .
im really curios to know and understand about that Cheesy

tinof

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Quote from: polynesia on August 07, 2014, 12:19:43 PM

Quote from: Swordsoffreedom on August 07, 2014, 03:02:45 AM

Quote from: polynesia on August 06, 2014, 11:17:10 AM

Quote from: Connor936 on August 05, 2014, 10:06:55 PM

Argentina could print pesos to buy dollars to pay back their debts. As they sell more pesos, the value of each peso would decrease so the more they print the less dollars they can buy on a per peso basis.

No country has managed to mint its way out of a crisis.

Yep minting is never the solution to a financial crisis usually its development of the countries industries and diversifying the cash flow
The other way is infrastructure spending.
Hard to do when a country is in default though.

But printing more of something worthless would just make it worth less (har har)
Think the Zimbabwae Dollar or the Weimar republic as some examples.

Develop the country's industries, make sure the fiscal deficit is under control..... You will automatically attract capital.

Just opening up the country and border will attract foreign capital. Undeveloped land will be bought up and develop by transnational companies and local labor/population will benefit from it.

polynesia

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Quote from: Swordsoffreedom on August 07, 2014, 03:02:45 AM

Quote from: polynesia on August 06, 2014, 11:17:10 AM

Quote from: Connor936 on August 05, 2014, 10:06:55 PM

Argentina could print pesos to buy dollars to pay back their debts. As they sell more pesos, the value of each peso would decrease so the more they print the less dollars they can buy on a per peso basis.

No country has managed to mint its way out of a crisis.

Yep minting is never the solution to a financial crisis usually its development of the countries industries and diversifying the cash flow
The other way is infrastructure spending.
Hard to do when a country is in default though.

But printing more of something worthless would just make it worth less (har har)
Think the Zimbabwae Dollar or the Weimar republic as some examples.

Develop the country's industries, make sure the fiscal deficit is under control..... You will automatically attract capital.

Swordsoffreedom

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Quote from: polynesia on August 06, 2014, 11:17:10 AM

Quote from: Connor936 on August 05, 2014, 10:06:55 PM

Argentina could print pesos to buy dollars to pay back their debts. As they sell more pesos, the value of each peso would decrease so the more they print the less dollars they can buy on a per peso basis.

No country has managed to mint its way out of a crisis.

Yep minting is never the solution to a financial crisis usually its development of the countries industries and diversifying the cash flow
The other way is infrastructure spending.
Hard to do when a country is in default though.

But printing more of something worthless would just make it worth less (har har)
Think the Zimbabwae Dollar or the Weimar republic as some examples.

twiifm

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Quote from: polynesia on August 06, 2014, 11:17:10 AM

Quote from: Connor936 on August 05, 2014, 10:06:55 PM

Argentina could print pesos to buy dollars to pay back their debts. As they sell more pesos, the value of each peso would decrease so the more they print the less dollars they can buy on a per peso basis.

No country has managed to mint its way out of a crisis.

I agree. Monetary policy alone cannot solve economic problems

polynesia

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Quote from: Connor936 on August 05, 2014, 10:06:55 PM

Argentina could print pesos to buy dollars to pay back their debts. As they sell more pesos, the value of each peso would decrease so the more they print the less dollars they can buy on a per peso basis.

No country has managed to mint its way out of a crisis.

twiifm

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Quote from: Connor936 on August 05, 2014, 10:06:55 PM

Quote from: twiifm on August 05, 2014, 09:35:30 PM

Quote from: michaelwang33 on August 05, 2014, 08:55:31 PM

Quote from: twiifm on August 03, 2014, 09:32:53 PM

Quote from: polynesia on August 03, 2014, 08:44:31 PM

Quote from: twiifm on August 03, 2014, 09:45:17 AM

Quote from: polynesia on August 03, 2014, 07:42:20 AM

Quote from: twiifm on August 03, 2014, 01:29:37 AM

This is about Argentina defaulting on its bonds. Bonds are denominated in USD so they can't print pesos to get out of mess. Not comparable to Cyprus situation. Cypriots bought bitcoin because imposed bank holiday

Stop thinking everything is good for bitcoin. LOL Roll Eyes

If Argentinians could buy USD, they would.
Depends on whether BTC is easier to lay hands on, or USD.
In the end, it could be good for bitcoin.

Did you read the story? Agentina is defaulting on some bonds. What does this have to go people converting their currency

The link is Argentina defaults --> Harder to get external credit --> More printing of pesos --> High Inflation.
In the end, people will have to look after themselves, if their pesos get devalued very quickly.

The bonds are denominated in USD though. Plus they're already having inflation problems. Why would they print more pesos? If anything they'll go back to pegging their currency or they'll go to IMF and be forced to follow whatever IMF reccomends

For regular Argentinian people I think they have already been buying USD but the govt placed limitation in Jan.

I'm gonna ask my Argentinian friend about it. I don't think in times of crisis most people will suddenly start speculating. I think they seek stability

This does work somewhat however the more pesos that are printed the less effective this becomes as this would cause a sell off in pesos.

I seriously doubt that the IMF will bail out Argentina as they are really too big of a country for the IMF to lend to. The IMF usually lends to countries with very small economies that never had access to capital markets while Argentina has had access to the capital markets.

Printing more ARS wont pay off USD denominated debts. They have to acquire USD from somewhere. Is Argentina bigger than S Korea in 1997? IMF actually proposed a restructuring in 2003 but plan was abandoned due to pressures from USA

Argentina could print pesos to buy dollars to pay back their debts. As they sell more pesos, the value of each peso would decrease so the more they print the less dollars they can buy on a per peso basis.

It doesn't work like that.

Now that I've researched the story in more detail. Its not that Argentina can't pay, they refused to pay some vulture funds and they got sued in US courts. The judges ruling forced them to miss bond payment and thats why credit rating was rated as default

But their money is still a mess

Connor936

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