Who is Stupid Enough to Buy Argentina’s Lies or Its Debt?

Posted in the Falkland Islands Forum

Deanstreet

Stanley, Falkland Islands (Malvinas)

#1 Feb 16, 2013
By Larry M. Elkin Feb 13, 2013,

Since 2007, Argentina has saved $6.8 billion in interest payments on its government-issued, inflation-indexed bonds, according to Buenos Aires-based research firm ACM Consultores. That would be good news, except for the fact that, in this case, the word “saved” could be replaced more accurately with “chiseled.”

The International Monetary Fund recently took the rare step of censuring Argentina for systematically misstating economic data, including its inflation rate. By claiming that inflation is lower than it really is, the country has avoided paying the full interest due on its $37.6 billion of inflation-linked bonds. The bonds make up 21 percent of Argentine government debt.

In 2012, Argentina’s inflation rate climbed to 25.6 percent, according to private economists. The official report put the inflation rate for the same period at 10.8 percent. Rather than inviting the private economists to discuss the source of the discrepancy, the government has forced them to retreat into anonymity under threat of heavy fines for challenging the official figures.

The censure marks the beginning of a process that could eventually lead to Argentina’s expulsion from the IMF. Argentina has until Sept. 29 to implement reforms before it risks losing membership privileges, such the ability to borrow from the IMF. If it fails to mend its ways, Argentina would be the second country to be forced out for failing to provide accurate economic information. The former Czechoslovakia was kicked out for the same reason in 1954.

Neither Argentina’s data manipulation nor the IMF’s response comes as much of a surprise. What does surprise, or at least puzzle, me is that anyone is still willing to buy Argentina’s lies – or its debt.

Continued below...

Kindest regards from the Falkland Islands
MAlvinas Argentinas

Richmond Hill, Canada

#3 Feb 16, 2013
Deanstreet wrote:
By Larry M. Elkin Feb 13, 2013,
Since 2007, Argentina has saved $6.8 billion in interest payments on its government-issued, inflation-indexed bonds, according to Buenos Aires-based research firm ACM Consultores. That would be good news, except for the fact that, in this case, the word “saved” could be replaced more accurately with “chiseled.”
The International Monetary Fund recently took the rare step of censuring Argentina for systematically misstating economic data, including its inflation rate. By claiming that inflation is lower than it really is, the country has avoided paying the full interest due on its $37.6 billion of inflation-linked bonds. The bonds make up 21 percent of Argentine government debt.
In 2012, Argentina’s inflation rate climbed to 25.6 percent, according to private economists. The official report put the inflation rate for the same period at 10.8 percent. Rather than inviting the private economists to discuss the source of the discrepancy, the government has forced them to retreat into anonymity under threat of heavy fines for challenging the official figures.
The censure marks the beginning of a process that could eventually lead to Argentina’s expulsion from the IMF. Argentina has until Sept. 29 to implement reforms before it risks losing membership privileges, such the ability to borrow from the IMF. If it fails to mend its ways, Argentina would be the second country to be forced out for failing to provide accurate economic information. The former Czechoslovakia was kicked out for the same reason in 1954.
Neither Argentina’s data manipulation nor the IMF’s response comes as much of a surprise. What does surprise, or at least puzzle, me is that anyone is still willing to buy Argentina’s lies – or its debt.
Continued below...
MALVINAS ARGENTINAS
Who cares,Argentina will last longer than uk..uk is FINISHED! PELOTUDO excrement!
BritBob

Eton, UK

#5 Feb 17, 2013
MAlvinas Argentinas wrote:
<quoted text>
Who cares,Argentina will last longer than uk..uk is FINISHED! PELOTUDO excrement!
http://www.youtube.com/watch?v =XbLfje8_jgIXX
Malv,

the video is 4 years old and we've paid off 1/4 of a debt and the UK government has just announced that another North Sea oil field is to come on line. And there's all that Falkland Oil that's going to be flowing to the UK via Uruguay.
Zool

London, UK

#6 Feb 22, 2013
BritBob wrote:
<quoted text>
Malv,
the video is 4 years old and we've paid off 1/4 of a debt and the UK government has just announced that another North Sea oil field is to come on line. And there's all that Falkland Oil that's going to be flowing to the UK via Uruguay.
The news keeps getting better for Britain BritBob, Two new oil finds in the North Sea, The worlds largest deposit of POTASH have been discoverd in Yorkshire some 1.8 Billion tons, worth a staggering 2 Trillion & they may have to increase that number again as it was based on 5 Metre thickness as Sirius Mining now believes its 81.8 metres thick. The Times is also reporting that we are also sitting on 1700 tcf+ of shale gas enough to last Britain 1500 Years & propel it to the No1 position for Shale gas reserves in the world.

Argentina may have to wait a very very very long time for its predictions of Britain's demise to come true.
Ricardo

Buenos Aires, Argentina

#7 Feb 22, 2013
Zool wrote:
<quoted text>
The news keeps getting better for Britain BritBob, Two new oil finds in the North Sea, The worlds largest deposit of POTASH have been discoverd in Yorkshire some 1.8 Billion tons, worth a staggering 2 Trillion & they may have to increase that number again as it was based on 5 Metre thickness as Sirius Mining now believes its 81.8 metres thick. The Times is also reporting that we are also sitting on 1700 tcf+ of shale gas enough to last Britain 1500 Years & propel it to the No1 position for Shale gas reserves in the world.
Argentina may have to wait a very very very long time for its predictions of Britain's demise to come true.
Ha ha ha ha
The Times reporting reserves....
Did they say where these are and what was the technical support?
I recommend you not to rely in press aticles to buy stock
El Malvinense

Scarborough, Canada

#8 Feb 22, 2013
Zool wrote:
<quoted text>
The news keeps getting better for Britain BritBob, Two new oil finds in the North Sea, The worlds largest deposit of POTASH have been discoverd in Yorkshire some 1.8 Billion tons, worth a staggering 2 Trillion & they may have to increase that number again as it was based on 5 Metre thickness as Sirius Mining now believes its 81.8 metres thick. The Times is also reporting that we are also sitting on 1700 tcf+ of shale gas enough to last Britain 1500 Years & propel it to the No1 position for Shale gas reserves in the world.
Argentina may have to wait a very very very long time for its predictions of Britain's demise to come true.
PELOTUDO!! Nothing compares with the Shale gas,Potash,GOld,Uranium,Silver ,Lithium that Argentina has......
Deanstreet

Stanley, Falkland Islands (Malvinas)

#9 Feb 22, 2013
El Malvinense wrote:
<quoted text>
PELOTUDO!! Nothing compares with the Shale gas,Potash,GOld,Uranium,Silver ,Lithium that Argentina has......
mally

you might well be correct...

However, the greed, corruption and downright thievery of argentina, helps a lot - does it not..

Kindest regards from the Falkland Islands

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