There Will be No Catastrophe if Argentina Defaults; It’s the Vultures Who Will be Isolated

Several Argentine economists are discussing the fact that, should Argentina default, this will not mean the end of the world. Quite the contrary.

“It’s the vultures who are isolated, from an international standpoint,” said anti-IMF economist Aldo Ferrer. “Their only friends are some extreme right-wing Republican legislators and some other [allies] who reside in Argentina.”

But, he added, “we should abandon the idea that if there’s no agreement, the world comes crashing down. Argentina will continue to function, despite the vultures.” The nation has a “promising future,” and a country that is growing, can pay, he said. It will not collapse.

Others echo this argument. Agustin D’Attellis, a pro-government economist from the Gran Makro grouping, told Radio America that there’s no reason for alarm. “The macroeconomy is sound,” and the country can pay. This is not 2001, he said, when Argentina truly was devastated. Should there be a default, there will be some tensions with the black market dollar, “where there is a small group of sophisticated investors who manipulate that market and obtain huge profits, but the Central Bank has tools to handle this….” While there will not be the hoped-for growth in the second half of the year, he added, “there will not be a worrisome scenario of steep economic decline, or job loss, or anything like it.”

D’Attellis stated that behind all the dire warnings of catastrophe are efforts by the vultures and their controllers to go for “something much bigger,” to create an environment of fear, “to push Argentina to negotiate before and after [the deadline of July 30],” and go after assets such as the Vaca Muerta shale oil/gas reserve, which the vultures have their eyes on.

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2 Responses to There Will be No Catastrophe if Argentina Defaults; It’s the Vultures Who Will be Isolated

  1. maria magan says:

    Aldo Ferrer said in the 70’s that inflation would save Argentina. Oh yes. from the boredom of having the same currency for more than 10 years. The country ceased to grow long ago. In the first quarter 2014 310,000 salary accounts were closed in banks (in a country with 16.6 million people working, less than half as legal workers – the others collecting under the table). I am Argentine, 63 and I do know the consequences of default. no imported meds. no elements for surgery. wealthy people flying to neighbouring countries to buy them and bring them back for their loved ones. of course we subsist. and everyday we have less and our future is grimmer. Aldo Ferrer’s error of judgement is not due to his 87 years of age. When young he was just as mistaken as now.

    • Dear Maria,
      If you read some of our other posts you will realize I hope that we are at a turning point in history wherein the age old imperial system is about to be overturned and replaced with a new,just world economic order based on productivity and cooperation amongst nations as defined at the recent BRICS summit. We are very proud of our Argentine friends for being at the forefront of this fight. So why don’t you join them and look to the future and not at past trends?

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