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

[Diana Clark]

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

Cyprus, Argentina..the first of many.

On another note, now that alt coins are developing true anonymity, the governments are really screwed. Tax revenues will drop like a rock.  Everybody that has a computer has a TAX HAVEN. Who needs Switzerland when you have anonymity and an encrypted hard drive.

So in reality, the governments are driving the growth of virtual currencies. Adopter just need to be patient and let the gov do their part.

[Schinder75]

I think it's not a problem of capitalism. The problem is the money system itself likes it's implented in the world.

Where does money come from? Every $ running around is the debt someone has made at some point. Money and debt is essentially the same. To put new money in the system, it's only possible by credits. But each credit has an interest rate. So the sum of all debts incl. interest is always higher than the amount of existing money.

Money is no longer for payment, it's more like a weapon. Economic hitman it's called. Put countries in the debt trap and get all out of the country that has value. This results in destroyed countries and helpless people.

To keep the system running, more and more debts are needed. The wheel turns faster and faster. And now we are at a point where it's obviuosly that the system will not work any longer. Argentina, Cyprus lots more to come. The only advantage the USA has is that they can print there own money. If they cannot do that, USA would be 3rd world country instant.

And here is the chance of bitcoin to make this f**ing world a more fair.

[spinf]

less corrupted probably, but not sure about fairness when you look at bitcoin wealth distribution...
Latecomers from developing countries will have a hard time coming in the game

[Morbid]

as far as i know argentina has some sort of a dollar cult there. nobody wants peso but dollar is like forbidden fruit for average mortals. though dollar black market is thriving there. i believe that unlike in cyprus where those loosing most money being well informed investors driving the price up, in argentina situation might be different as btc is now having much larger market cap and amount of people getting into it will be limited to a small number of wealthy people who already hold dollar. if there to be foreign btc traders on the ground, would they buy pesos?

to me the situation looks like fed is desperate to have some usd demand not minding collapsing a country or two in the process.

[Cicero2.0]

I think it's not a problem of capitalism. The problem is the money system itself likes it's implented in the world.

Where does money come from? Every $ running around is the debt someone has made at some point. Money and debt is essentially the same. To put new money in the system, it's only possible by credits. But each credit has an interest rate. So the sum of all debts incl. interest is always higher than the amount of existing money.

Money is no longer for payment, it's more like a weapon. Economic hitman it's called. Put countries in the debt trap and get all out of the country that has value. This results in destroyed countries and helpless people.

To keep the system running, more and more debts are needed. The wheel turns faster and faster. And now we are at a point where it's obviuosly that the system will not work any longer. Argentina, Cyprus lots more to come. The only advantage the USA has is that they can print there own money. If they cannot do that, USA would be 3rd world country instant.

And here is the chance of bitcoin to make this f**ing world a more fair.

A bit mafia like isn't it? Get a business owner into debt then use their credit lines to acquire merchandise, sell said merchandise and leave the owner in banruptcy.

[Morbid]

http://www.newyorker.com/online/blogs/currency/2014/06/could-argentina-default-on-its-debt.html

At this point, there are two possible outcomes. Either Argentina negotiates with the holdout creditors (since paying them back in full is all but impossible), or it defaults on its debt. Depending on whom you talk to, these eventualities count as two options or one; some argue that a default is inevitable, because even if Argentina negotiates with the holdouts, those talks are doomed to fail. Blitzer is not one of these skeptics; he thinks that if Argentina shows that it’s seriously willing to negotiate, the courts and the creditors will be obliging. “No one thinks a hard default would be in anyone’s interest.”

Payments on the restructured bonds come due on June 30th; after that, there’s a monthlong grace period—some maneuvering room—and then Argentina will officially be missing its payments on the bonds it has spent years trying to pay back. There are, in theory, ways for Kirchner to save face while negotiating with the holdouts. She could push for another haircut on the claims or angle for a lower rate of interest on the bonds in question; she could also request a longer period over which to pay back creditors, which would make repayment less painful in the short term.

edit:

A few weeks ago, the Financial Times turned up a confidential memo written by Argentina’s American lawyers to the Argentine minister of economy and public finance. Dated May 2nd, the document details what Argentina could do next, legally speaking, should the Supreme Court deny its petition. At the time, the lawyers were considering a hypothetical, and brainstorming; now the document is being scrutinized as a plan of action. The lawyers wrote, “The best option for the Republic could be to permit the Supreme Court to force a default and then immediately restructure all of the external bonds so that the payment mechanism and the other related elements are outside the reach of the American courts.” This would mean reissuing the bonds under local, Argentine law, rather than on the New York market. This would be hard to pull off, according to Charles Blitzer and Anna Gelpern. But the tack is revealing: Argentina is desperate.

guess which payment mechanism would be most suitable one in such scenario? everybody's breathing down their necks.

[Harley997]

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

Cyprus, Argentina..the first of many.

On another note, now that alt coins are developing true anonymity, the governments are really screwed. Tax revenues will drop like a rock.  Everybody that has a computer has a TAX HAVEN. Who needs Switzerland when you have anonymity and an encrypted hard drive.

So in reality, the governments are driving the growth of virtual currencies. Adopter just need to be patient and let the gov do their part.

It isn't so much governments that are driving the growl of virtual currencies it is governments that are unable to meet their obligations.

[albus]

Everybody that has a computer has a TAX HAVEN. Who needs Switzerland when you have anonymity and an encrypted hard drive.

Love that!!

Just afraid that at some point governments are going to try getting back those taxes they're missing!

[ShakyhandsBTCer]

as far as i know argentina has some sort of a dollar cult there. nobody wants peso but dollar is like forbidden fruit for average mortals. though dollar black market is thriving there. i believe that unlike in cyprus where those loosing most money being well informed investors driving the price up, in argentina situation might be different as btc is now having much larger market cap and amount of people getting into it will be limited to a small number of wealthy people who already hold dollar. if there to be foreign btc traders on the ground, would they buy pesos?

to me the situation looks like fed is desperate to have some usd demand not minding collapsing a country or two in the process.

their currency is very volatile and their citizens do not like to use it as they don't know how much their money will buy from day to day