Sadomasochism Writ on a National Scale

So Argentina defaulted! So what?

Well internationally, it is a big deal and a warning.

Argentina defaulted on its debts in 2001, and, as a consequence the only way they have been able to borrow is at high interest rates or from specific funds designed for defaulted nations — but those are sparse. So Argentina went to Hedge Funds in the US, and borrowed.

Argentina paid back, or at least paid interest to the International Monetary Fund and other international funds, but as Socialists are accustomed to do, they want to stiff the private lenders, or, as the President of Argentina calls them, “Vultures.” Their debt is a paltry $1,5 billion to a New York City Hedge Fund.

Many other debtors settled for pennies on the dollar, but the Hedge Fund went to US Court and won a judgment of 100 cents on the dollar! That really annoyed Argentina because if one debtor gets a better deal, all debtors get the same deal!

Argentina is a typical Socialist nation. It has just $26 billion in cash reserves while Apple Computer has $170 billion.

Argentina has 40% inflation rate and its citizens are suffering, but Argentina sits on a huge shale oil potential which, because it is a Socialist nation, international oil companies won’t enter production agreements for fear of their successful operation being appropriated! (It took over a Spanish oil company in 2012, and actually settled with them for $5 billion, which they are paying.)

Of course it is difficult to feel sorry for those who voted for Socialism, and I don’t. Cuba! Venezuela, Argentina…get exactly the government they deserve.

No one knows what will happen in Argentina. It is already an economic basket case and having defaulted twice in 15 years will have to do something. Its salvation is free enterprise, but that is not in the cards — all Socialist nations measure their success in some ethereal concept that does not equate with economic well-being.

It is sadomasochism writ on a national scale.

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