Maybe it would be news to you that Argentinia has very high inflation? Probably not. Printing cannot help them unless also they come up with some combination of raise taxes, reduce spending work harder sell assets and more or less do the full thatcher revolution. Ie printing cannot help them at all.
Argentina do not want to become slaves to hedge funds of course. The US 'government' is requiring they pay off the remaining hold offs before they pay the discounted ones because somehow all of the money to pay the bondholders is held in new york. That is the news story.
Reality check:
Iceland held onto its private foreign assets that had been owned by the same banks that the government took over owing the depositors, and did not renege on its government debt and was easily able to get adequate borrowing from friends and the IMF. In the fullness of time the remaining private assets owned by the banks will likely perform and payoff the Foreign governments who bailed out the depositors.
I know arg has high inflation. What I prescribed would help reduce inflation. It will allow the argies to only "print" to the extent of creating real goods and services. Printing to pay off a foreign loan generally creates inflation. I think that has been alanticipTed by the currency markets.
Most people predicted Icand would be doomed if they did not cover the foreign deposits...
I know arg has high inflation. What I prescribed would help reduce inflation. It will allow the argies to only "print" to the extent of creating real goods and services. Printing to pay off a foreign loan generally creates inflation. I think that has been alanticipTed by the currency markets.
Most people predicted Icand would be doomed if they did not cover the foreign deposits...
Most people seemed to have imagined that Iceland did not get help from the IMF nordics and poland, and had triumphantly given the finger to the banksters.
MMT likes to describe Argentina as an unusual case because of the US debt. In reality the MMT case for Argentina is perfectly clear. Raise interest rates, raise taxes, cut back spending and all of the usual boring stuff that is not called printing your way to happiness.
MMT likes to describe Argentina as an unusual case because of the US debt. In reality the MMT case for Argentina is perfectly clear. Raise interest rates, raise taxes, cut back spending and all of the usual boring stuff that is not called printing your way to happiness.
Yep for a country already in a recession that should lift the suicide rate and put a lot of Argentines into poverty so that people who don't need the money can prosper.
Well done as usual Andrew.
Any expressed market opinion is my own and is not to be taken as financial advice
Yep for a country already in a recession that should lift the suicide rate and put a lot of Argentines into poverty so that people who don't need the money can prosper.
Well done as usual Andrew.
Thanks for confirming that MMTers do not care about inflation but instead prefer to print 'to protect the poor'.
As i have said so many times before, MMT is just the looney left in another form.
Most people seemed to have imagined that Iceland did not get help from the IMF nordics and poland, and had triumphantly given the finger to the banksters.
MMT likes to describe Argentina as an unusual case because of the US debt. In reality the MMT case for Argentina is perfectly clear. Raise interest rates, raise taxes, cut back spending and all of the usual boring stuff that is not called printing your way to happiness.
Why are you bring up MMT? Axe to grind?
My position is simple. Argentina should tell the hedgies to fck off.
Lending a foreign currency to another country is dumb. A really bad investment decision.
These hedgies thought they were smart. Now realising they made a bad trade, are now using a US government system (the courts) to try and get out of their position.
Please stop typing bullshit and pretending others have said that.
That's his model....
What poor old andrew can not grasp is MMTers buy currency ISSUERS debt when idiots, like some people here, think they may go broke. That's what mosler did in the 1990's with italian lira bonds - and he cleaned up.
Then dumb hedgies buys the FOREIGN debt at cents in the dollar ... thinking they are the true masters of the universe.....
But they do not understand the difference between a currency user and a currency issuer, these numbskulls blow up their clients money - then cry poor to the US court system - demanding people who could barely feed themselves to pay their penalty interest....while at the same time demanding the US government reduce spending on food stamps.
My position is simple. Argentina should tell the hedgies to fck off.
Lending a foreign currency to another country is dumb. A really bad investment decision.
These hedgies thought they were smart. Now realising they made a bad trade, are now using a US government system (the courts) to try and get out of their position.
A people like you cheer.
Bravo.
I have no axe to grind and i am not cheering anything. Just pointing out that MMTers like yourself and Peter are misguided and naive.
The Argentinian government agreed to the US courts being the jurisdiction, which no doubt enabled them to get much better terms than otherwise.
But nobody is forced to sell their bonds to the government prematurely.
If people like you want to describe reality then you have to be ready to deal with reality.
Yes if the government want to they can stiff whoever they want. And thats the point. Embedded big time in MMT is the idea the government can stiff money holders whenever it suits the government and this should be part of government policy up front so nobody needs to worry too much about spending now and stiffing later.
peter fraser
1 Aug 2014, 09:00 PM
the opposite Andrew, I made it clear earlier that I wouldn't print and pay the holdouts, I would just pay those who had accepted the deal offered.
Please stop typing bullshit and pretending others have said that.
Reality check:
Argentina has 40% inflation by some estimates and my comment has almost nothing to do with the hold outs.
Yes if the government want to they can stiff whoever they want. And thats the point. Embedded big time in MMT is the idea the government can stiff money holders whenever it suits the government and this should be part of government policy up front so nobody needs to worry too much about spending now and stiffing later.[
Source?
You brought up MMT not me....still not sure why. Perhaps you are insecure about it because of your poor knowledge on the subject? That's ok - you are not alone When you calm down, one day I will help you with your many levels of misunderstanding.
Anyway, back to the topic Argentina. My position.
The hedgies made a bad trade - they should just live with it. Argentina should tell them to fck off.
Nothing you have posted constructs an alternative argument. Just your usual MMT is bad ... blah blah blah.
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