Can countries go bust? IMF created new form of modern mass slavery - -> asalbuchi.com.ar/2013/08/can … s-slavery/
Argentine peso suffers biggest fall for 12 years - -> telegraph.co.uk/finance/curr … years.html
Apparently on the street it’s over 12 pesos to the buck.
How they’re able to run an official rate that’s so much lower is amazing to me.
If you have 8000 pesos, presumably the official vendor must give you $1000 minus commission.
Even if commission = 3000 pesos, that is a tasty profit.
They’d have to sic the undercover cops on the buyer to prevent him making a killing.
And if commission is prohibitively high, how do small legitimate businesses that deal with tourists survive?
I’ve heard it’s a fantastic place to visit, by the way.
My guess is that the official vendor will simply shrug his shoulders at the sight of 8000 pesos and say the most he can give out to each customer today is $100.
the official rate here is basically a lie. a friend went on holidays to mexico last year, bought the package holiday, did the paperwork and got approval to buy the grand total of 50 dollars for a 2 week holiday. basically the official does not exist for the man on the street.
Yesterday many argentines on holiday abroad brought forward their return because they didn´t know how much their purchases abroad would cost anymore. 23% in 2 days. The govt are becoming more and more rudderless as well. They actually remind me of the Fianna Fail govt in 2011 weeks before they called the election… change of direction every day, emphatic that they won´t devalue, then they devalue, emphatic that the currency controls would be kept, then they change that… several members of the govt being publicly abused too in the last few weeks. Hopefully things won´t get too ugly and they can stabalise things a little but the current group don´t inspire much confidence sadly…
correct in saying it´s a great place to visit by the way, and just to let you know - i could give anyone a generous rate on pesos
Argentine Default Chaos Relived as Blackouts Follow Looting - -> bloomberg.com/news/2014-01-2 … oting.html
Bit sensationalist… There were power cuts, some of them prolonged. There was a tense week in December with looting in several parts of the country but as a colleague said to me - December is always a complicated month here anyway. The government have a serious problem accepting the reality of the inflation. Was watching the television last night and felt like punching the screen when the Economy minister was speaking. One of the main reasons for the fall in reserves is an energy deficit. Oil needs to be paid for in dolars and Argentina which has oil has become a net importer - in part due to the failure of Repsol to invest for 10 years in extracting the oil that is here. This was the main reason for the appropriation last year and I have to say I support the move. The country also has massive gas deposits, so potential definitely there. The problem now is that they seem to have lost the confidence of everyone both inside and outside the country. Momentum is against them. A change of govt would do a lot of good especially since they´re so rigidly dogmatic in following the “model” at all costs.
9 die in fire destroying Argentine bank archives - -> chron.com/news/world/article … 206658.php
Iron Mountain Statement Regarding Feb. 5, 2014, Facility Fire in Argentina - See more at: ironmountain.com/~/link.aspx … C419FA741B
Argentina Bust Lures Investors After 200 Years of Defaults - Boris Korby and Katia Porzecanski -> bloomberg.com/news/2014-02-0 … aults.html
Argentina has 2 weeks to negotiate with bond holders…
Argentina says it has no team for talks in debt battle - -> reuters.com/article/2014/06/ … RK20140619
Ruling Risks New Argentine Default as Monday Deadline Approaches - -> bloomberg.com/news/2014-06-2 … nt-1-.html
Argentina debt holdout: Argentina “appears determined to default” - -> finance.yahoo.com/news/argentina … 24896.html
Argentina defaults on debt for second time in 12 years
Calling this a second default appears to be a lie.
The judge is ruling on the default that happened 12 years ago. The guys suing want Argentina to reverse the decision made in 2002 to default. Argentina says no, our 2002 decision stands.
A second default would be if Argentina issued bonds after 2002 & didn’t pay those. Arguably.
Not really, the holdouts are not trying to reverse any court decision in 2002 or at any other time. They are observing the letter of the law, spirit might be another matter. In 2002 the current holdouts led by Paul Singer had the option of accepting the the Argentine/Court terms or holdout for a better day later. They chose the latter. I’m not endorsing their actions just stating the facts.
The issue has gotten quite a bit of coverage in the biz press in the US because a US judge earlier this year made a controversial decision that put Argentina between a rock and a hard place, that many claimed demonstrated his lack of understanding of the issues. He ruled if Argentina didn’t pay the holdouts, they could pay nobody. Argentina then filed for cert with the Supreme Court but they declined to hear it. Not sure if Argentina still has the right to go back to the Court of Appeals since they tried to leapfrog over them and go directly to SCOTUS. I’d guess they have.
The bond market has been practically risk-blind for the past few years, pushing junk bond yields exceptionally low.
Of course, the primary cause has been the ZIRP of the west, which has forced investors to take on increasingly higher risk in an effort to seek returns (of any kind).
It’s going to be a bloodbath.
You’re starting to hear speculation in the US that the Fed may make a small move on interest rates soon due in part to the good employment numbers. Well in excess of 200k new jobs every month this year so far. But I’ve no idea how much or little credence to attach to that spec. Fed has also reduced it’s bond buying subsidy this year from $85B a month to I think $60B and has said it wants to reduce further. When?