Argentina Debt Crisis: U.S. Demands 1.5 billion cash (Bitcoin to Rescue?)

[abercrombie]

U.S. wants 1.5 billion cash, Argentina says they can't but are willing to settle.  

If I were in Argentina, I'd be moving my savings to Bitcoin ASAP.

Argentina: Won't submit to 'extortion' on debt

http://www.sfgate.com/news/politics/article/High-court-rejects-Argentina-s-appeal-over-debt-5555358.php#photo-6463213

[candydaze59]

Am i the only one who sees the "Cyprus 2011" story here ? 

[beetcoin]

wait, why is it extortion on debt? if you owe the money, then you have to pay it.. no? can't blame a debt collector from collecting debt.

[acs267]

wait, why is it extortion on debt? if you owe the money, then you have to pay it.. no? can't blame a debt collector from collecting debt.

In my life time, I don't even think the U.S will come close to repaying our debt. It's so huge everyone basically has a 'debt' on them.

But I agree with you. And moving to Bitcoin doesn't help, since the IRS view it as property. Argentina sort of has it bad, also, due to the corruption and such. And if a country want's their money, I'm a hundred percent sure they're going to go through Hell's Bounds and back.

[beatljuice]

wait, why is it extortion on debt? if you owe the money, then you have to pay it.. no? can't blame a debt collector from collecting debt.

In my life time, I don't even think the U.S will come close to repaying our debt. It's so huge everyone basically has a 'debt' on them.

But I agree with you. And moving to Bitcoin doesn't help, since the IRS view it as property. Argentina sort of has it bad, also, due to the corruption and such. And if a country want's their money, I'm a hundred percent sure they're going to go through Hell's Bounds and back.

While I agree that a creditor has a right to collect, why the f*&k are they doing it now? Are they trying to cause a collapse? We (the US) send billions to other countries all the time to help them out, why are we now hurting the economy of someone that I assume is an ally?

[Honeypot]

It's strange that Argentina borrows from another with relatively wide berth in terms of conditions, than calls it 'extortion' when they are meant to return that money.

Argentina had a responsibility towards its citizens to straighten themselves out, and understand that loan obligations is something they have to take into account. Right now they are just funneling and diverting their own failures to anti-US sentiment, while obviously failing to do what they need to do for their own economy with someone else's money.

BECAUSE they are nominally allies, they need to hold themselves to such standards and be straight forward with us in their dealings. Argentina has a history of defaulting conveniently when it suits them best, while taking advantage of the agreement at the expense of others and breaching contractual agreements.

This one has actually been dragged out too long. Argentina is obligated to itself to take care of its own business while meeting the mutual conditions of loans it gets from others. To attempt to frame this as an 'extortion' is a pretty sorry ass excuse.

[LostDutchman]

It should be remembered that the reparations forced onto Germany by the Versaiiles Treaty of World War One were finally paid off in 1980, some 62 years after the end of that brutal conflict.

[Cicero2.0]

The will just devalue their currency even more to pay it. We play the bad guy so a corrupt regime can stay in power. 

[franky1]

wait, why is it extortion on debt? if you owe the money, then you have to pay it.. no? can't blame a debt collector from collecting debt.

guess you missed the video's about how mortgages, loans, credit is how money is created.

US 'created' money (no true value went to argentina) but now US wants true value back

now that most people understand bitcoins and altcoins.. i can use a crypto analogy to explain FIAT, rather then the other way around

imagine the USA made an altcoin, called BONDScoin. and said each bondscoin was worth 1million bitcoins (purely because they said so) and then gave 1 bondscoins to argentina. stipulating that they dont want the bondscoins back, but they do want 1.5 million bitcoins back

[S4VV4S]

Am i the only one who sees the "Cyprus 2011" story here ? 

No, I see it too coz I lived it 

[brokedummy]

BONDScoin to da moon!!!

[Meuh6879]

what the problem ...  argentine can pay with FED bon of treasury 

[ArnoldChippy]

Argentina should take a leaf out of America's book.
Repay the 'debt' by printing a load of Pesos at the current US$ exchange rate.

[Swordsoffreedom]

Hasn't Argentina defaulted a few times now
Or am I mixing it up with another state nope looks at the link and thinks their is a place called the Foreign Debt Museum
That said it looks like these bonds will become Junk soon

[S4VV4S]

Argentina should take a leaf out of America's book.
Repay the 'debt' by printing a load of Pesos at the current US$ exchange rate.

I might be wrong but I think the Federal Reserve print their money too.
So, they wont accept it.

[allthingsluxury]

Hasn't Argentina defaulted a few times now
Or am I mixing it up with another state nope looks at the link and thinks their is a place called the Foreign Debt Museum
That said it looks like these bonds will become Junk soon

Correct, they've defaulted a number of times in recent history.

[pening]

guess you missed the video's about how mortgages, loans, credit is how money is created.

US 'created' money (no true value went to argentina) but now US wants true value back

You should read the article and a few related sources.  They borrowed money, some which would have been from pooled private savers, pensions etc, and they defaulted.  A company hoovered up the worthless bonds and sued them to pay back, which they won and the US courts verdict means they either pay or get cut off.  They actually have the cash $ but don't wish to spend it on repaying this debt.  They want to be at the party but not bring a bottle.

[franky1]

guess you missed the video's about how mortgages, loans, credit is how money is created.

US 'created' money (no true value went to argentina) but now US wants true value back

You should read the article and a few related sources.  They borrowed money, some which would have been from pooled private savers, pensions etc, and they defaulted.  A company hoovered up the worthless bonds and sued them to pay back, which they won and the US courts verdict means they either pay or get cut off.  They actually have the cash $ but don't wish to spend it on repaying this debt.  They want to be at the party but not bring a bottle.

... bond holders... so i think we are on the same page..

[ShakyhandsBTCer]

What the issue is, for those who are not familiar with the backstory:

Several years ago Argentina issued debt to investors. They were perceived as risky and had to agree to certain terms. One of the terms was that they agreed to give up "sovereign immunity" for the debt in question and disputes would be resolved by the US court system. In other words they gave up certain rights that countries normally have when issuing debt and in the event of a dispute the court case would be herd in US Federal Court.

Some time later Argentina was having trouble "servicing" it's debt and worked with creditors to restructure. A good portion of bond holders agreed to a reduced principle and reduced interest payments (they took losses). Not all bond holders agreed.

Argentina has decided to pay interest to bondholders that agreed to take losses while not pay anything to bond holders that didn't.

......

Now the US has said that if it does not pay the bondholders that did not take losses (they are in default on those bonds and due owe money to these bondholders) then Argentina would not be able to use the uS financial/bank system to pay bondholders that did take losses (bondholders that they want to pay). 

[Erdogan]

Basically, some holders accepted a partial payout, some said no, we want it all. Argentina wants to pay to the ones in the deal, and nothing to the ones who want it all (the so called holdouts). The court said no, you can't do that.

You can not force anyone to not default. If there is no money to pay in due time, there is a default and that reality can not be changed. A dual standard, paying some and not others, is an act of will. It is a game to try to consume more of other parties' money (continuation of "access" to the market). It is wrong.

Anyway, any government should be able to manage without lending. Continually expanded lending means the inevitable crisis down the road.