Why Argentina should not pay

September 6, 2014

Here’s an interesting take on the continuing saga from Juan Pablo Nicolini. I’ve taken some liberty with the translation, but believe this captures the spirit of his remarks: 

In my family, debts are paid, but in Argentina that is not the view of the majority. In the recent past, our political representatives nationalized YPF. And they had huge popular support. Before that they nationalized the administration of pension funds — also with huge popular support. We are a country that distrusts private capital. We cannot make decisions without having that in mind.

So should we pay what we owe? I vote no. I vote no because I do not want my government to be able to borrow. My grandfather never borrowed money. And he lived happily. I wish the same for my country. If we borrow, we’ll be stuck paying credit card rates once more, rates that apply to the worst borrowers. Better that we do as my grandfather.

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