To most people in the US of A, Argentina is some country in South America, and not a terribly interesting one. (A lot of Americans don’t find any country other than America to be very interesting, but that’s a whole ‘nother kettle of fish there).
I briefly discussed in a different blog that Argentina was boldly planning to default on its debts to the US. And, since I’m planning to do an update on all the stories I’ve posted thus far, I decided to see what I could find out.
When will I learn not to do that? (Hint: Not today!)
Argentina is the second-largest economy in South America behind Brazil. It is recovering from a huge default in 2011. The Supreme Court ruling that it must pay hedge fund investors could be a huge problem; not because it can’t pay the debt it currently owes. It can. The concern is that if it pays off one creditor, all the others will come knocking on the door. (Knowing creditors, probably accurate. Also, I guess changing their name and number is not an option for a government). (Thanks to this article for the info).
It has hit the debt deadline as of, well, June 30th (today when I’m writing this) and it has 30 days to avoid default. Despite the CCC- credit rating (the lowest you can go), there is some hope a deal will be reached; however, if Argentina defaults again for the second time in three years, it will bode ill for the South American economy.
All in all, it would be better for everyone if Argentina reaches a deal.
Why am I talking about this on a civil liberties blog? Well, not only does Argentina have a constitution (surprise!), and a federal republic government much like our own (surprise again!), the devolution of economics never has a good effect on civil liberties. (I have no research on hand to back me up on that, but I will stand by that statement unless someone can prove otherwise).