Argentina has said it will pay its $10bn debt to the International Monetary Fund three years early.
President Nestor Kirchner said Argentina needed control of the tools to build its independence.
His announcement came two days after Brazil, in a similar move, said it would pay off its $15bn debt [two years ahead of schedule].
Is this a good time to talk about saving money and paying your bills? Our own government has the fiscal ethics of a trollop. The secretary of the Treasury prances around abroad advising people to save less and borrow more. Americans have finally achieved negative personal savings from income!
It’s tough out there today. People are renting more ads since they can’t afford to buy.
Jim — surely you can invent a more colorful name.
There you go Eideard. Glad I could help you out.
Our own government has the fiscal ethics of a trollop. The secretary of the Treasury prances around abroad advising people to save less and borrow more.
While the U.S. Comptroller General visits the City Club of Portland [Oregon] on Dec 2, 2005 – with the topic being “Saving Our Future: Today’s Tough Choices”.
A link to an mp3 of the talk is at:
http://pdxcityclub.org/mp3/pdxcityclub12-02-05.mp3
At least somebody in our govenrment appears to have a clue.
This is why NONE of you would ever vote for ME as President.
I would not only cut into EVERY govt. program there is but cut the military AND raise a few taxes. My number one goal in office would be to pay off the debt hopefully in as short of time as possible.
AND I would take away a few ot the things that make it so attractive for folks to run up huge debts.
This from someone like me who has NO debt and paid off my house in 6 years. Yes I am single and I know there are circumstances in life that could change a great many things but as long as I can I will work as hard as I can to keep debt at bay.
I really wish others had the same feelings.
Actually, what’s more interesting about this news isn’t that they’re paying off all their debts. It’s that they’re getting out from under the influence of the US dominated IMF, which tends to dictate to countries who’ve borrowed from it what they can do.
It is completely irresponsible for politicians to run a deficit to help win elections now that will have to be paid for by their children years down the road.
The only time I would ever say it’s okay to has a budget deficit is during a time of declared war.
“The only time I would ever say it’s okay to has a budget deficit is during a time of declared war.”
Haven’t you heard Mike? The US has declared war against terror! So I presume that all rules for everything are out the window untill there’s no more terror. That should only take forever.
Check this:
“President Bush signed a secret order in 2002 authorizing the National Security Agency to eavesdrop on U.S. citizens and foreign nationals in the United States, despite previous legal prohibitions against such domestic spying, sources with knowledge of the program said last night.”
http://www.washingtonpost.com/wp-dyn/content/article/2005/12/16/AR2005121600021.html
After all why is the law important when the US is fighting these criminals!
Generally when debts been paid off in US history, it’s been followed by a recession.
>AND raise a few taxes
http://nationalreview.com/images/chart_bowyer12-15-05.gif
The last round of tax cuts have raised a lot of money.
Hmm. No one has mentioned that Argentina had been defaulting on this debt for 2 years, not repaying any of it. Remember the Argentina debt crisis of 2001(?).
Then they forced through a settlement that paid about 25 cents on the dollar of the original debt. It’s easy to pay off your debt early when you’re only paying 25% of it. All this triumphalism is quite rich for the Italian pensioners getting 25% of their nest egg back.
Argentinian politicians, especially the state governors, were even more profligate than our federal government is now. Yesterday’s incompetent is today’s poster child.
Milo,
The US has not been in a declared war since WWII. Invading a country is an act of war, and there should be a formal declaration of war by the Congress to do so. Like I said, this would be the only time I would accept a federal budget deficit.
The new paradigm (did I spell that right?) is to dive into deep debt while young, stay immersed all your life and then die covered with high interest unsecured debt, thereby putting the screws to all those foolish enough to believe you when you boasted that you always pay your debts.
T.C.:
Actually, Argentina offered private bond creditors 10-25% of face value. Not all of their debt is bonds and neither was all their debt renegotiated, The bonds were sold by traders and banks to all types of investors. Did they explain that 30% annual returns means some risk?
Argentina has cycled between IMF/World Bank poster child to economic basket case more times than Madonna has re-invented her image.
btw..Madonna was horrible as Evita