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Buenos Aires Mayor Mauricio Macri sent a bill to the city legislature that would allow it to go forward with a delayed $250 million international bond sale without federal approval, the head of the city's public credit department said.
[url]http://www.bloomberg.com/apps/news?pid=20601086&sid=aRASR54ZrsSw[/url]
Hold on to that old Ipod, it could be worth thousands by the time Cristina get done with her tax hikes. The chic is crazy.
[url]http://www.buenosairesherald.com/BreakingNews/View/16452[/url]
[QUOTE=Tessan][url]http://www.bloomberg.com/apps/news?pid=20601086&sid=aRArKQlsc06A[/url][/QUOTE]Question is: will Argentina or USA default first?
[QUOTE=Hubbster]Question is: will Argentina or USA default first?[/QUOTE]The US never need to default, since it can print as many dollar as it wants. The money supply as gone way up recently with the fed creating money because of the economic crisis.
[url]http://www.chartingstocks.net/wp-content/uploads/2009/03/money-supply.gif[/url]
Argentina borrows in dollars, and it cannot print dollar, so if it runs out of dollars it defaults.
Printing dollars can weaken the dollar, and create inflation. If you look at the spike in the chart I posted, it is suppressing that the dollar has not weaken more.
The Fed promised to pull money out, as soon as the economy start doing well. If you look at the chart, they have already pulled some money out, the chart goes down a little at the end. They say allot of the money is in the form of loans, which do not have to be renewed. They can also stop buying stuff on the open market, and then sell some of the stuff they brought. But this will be hard to do, since the politician in Washington will cry out, when they start to pull money out of the economy, saying they are harming the Economy.
So my answer in short is that the US never has to default, but the dollar might get weak. Argentina will default again, some point in the future. If Argentina can get access to international Markets, it may delay it for a while, until they max out there credit. They system as it stands in Ar now does not work very well.
[QUOTE=Sidney]'' Showing that AR has serious problems in attracting investments[/QUOTE]That this is in fact true on both public and private fronts.
Just been quoted 95 pesos for resoling a pair of shoes. Definitely cheaper in the UK.
[QUOTE=SteveC]Just been quoted 95 pesos for resoling a pair of shoes. Definitely cheaper in the UK.[/QUOTE]Holy crap! For that sum I could buy a decent pair where I come from. Maybe not luxurious but certainly of good quality.
Don't you miss the golden days of the crisis?
[url]http://hotair.com/greenroom/archives/2009/11/21/dont-cry-for-me-america/[/url]
A brief history of Argentina's historic fall from an economic super power.
Exon
[QUOTE=Whiskas]Don't you miss the golden days of the crisis?[/QUOTE]When I first came here early in 2002 there were people banging pots outside banks, but I felt like a thief in the almost empty restaurants, it was so cheap. I cook at home a lot more these days.
Exon.
Excellent history lesson.
Please send a copy to Ricardo and waterboard Ricardo until he reads it. I can't tell you how much I was fed up with Ricardo's 'I'm from the government, I'm here to help' bullshit.
[QUOTE=Exon123][url]http://hotair.com/greenroom/archives/2009/11/21/dont-cry-for-me-america/[/url]
A brief history of Argentina's historic fall from an economic super power.
Exon[/QUOTE]Did you seriously post a link to a site called "hotair." It's at least a good example of oversimplification to prove a point.