Argentina Rebels Against America's "Judicial Colonialism"
Submitted by Tyler Durden
on 11/26/2012 - 09:11
The ongoing debacle surrounding Argentina's holdout over holdouts appears to be escalating (in rhetoric at least) once again. As Reuters notes
, negotiations or voluntary payment by Fernandez's government appear almost impossible. Economy Minister Hernan Lorenzino called Griesa's ruling "a kind of judicial colonialism"
. "The only thing left is for Griesa to order them to send in the (U.S. Navy's) Fifth Fleet,"
Lorenzino told reporters, outlining Argentina's plans to file an appeal against Griesa's ruling with the 2nd Circuit Court of Appeals in New York on Monday. Many specialists think it unlikely that the appeals court will reinstate the stay. "It may be an issue of process, but Argentina will struggle to justify why it refuses to pay the $1.3 billion," Eurasia Group analyst Daniel Kerner wrote last week. "Argentina has the resources to meet the payment, so in the end it will be a political decision (and) there does not seem to be any political support for paying the holdouts at all." The Argentina case surely brings into clear view the murkiness of investing in sovereign debt and the increasing difference between ability-to-pay and willingness-to-pay.
Mon, 11/26/2012 - 09:20 | 3011020
Mon, 11/26/2012 - 09:50 | 3011096
Actually, this is one of the arguments in my end-of-the-world thesis.
The US 1% has rigged the worlds economy so everyone must pay them, and they are allowed to default on anybody they wish (CDS).
So what happens when actual events don't go as planned? Someone refuses to pay, or refuses to allow a default?
That's the quickest way to WWIII in my opinion. If this ball starts rolling, first Argentina, then all of South America, then the US defaults on China ...
Well, I 'll just keep my eye on this one and think happy thoughts!
Mon, 11/26/2012 - 09:24 | 3011033
Argentina is playing legislative tennis against a wall here.
The bankers ALREADY run the Pentagon. He who writes the checks, makes the "rules" of war.
Of course, those who win wars, often don't follow the rules.