Thursday, July 31, 2014

A little 'Argentino' default?


We've been hearing about an Argentina default for some months. It looks like the default may be here before the weekend, according to Reuters:
"The country's economy minister, Axel Kicillof, speaking at a news conference at the Argentine consulate in New York, repeatedly referred to the holdout hedge funds as "vultures" after two days of talks failed to produce an agreement.    
"Unfortunately, no agreement was reached and the Republic ofArgentina will imminently be in default," Daniel Pollack, the court-appointed mediator in the case, said in a statement on Wednesday evening."
Argentina's default matters for several reasons:

1) Argentina has the 4th largest GDP in Latin America after Brazil, Mexico and Colombia.  This is not a small country;

2) Argentina's political class borders on immaturity and silliness.  Calling the foreign creditors "vultures" may get some applause locally but won't encourage anyone else to invest in the country;

3) The Argentina economy is already in trouble; and,

4)  The default could impact smaller countries with debt problems. 

Hopefully, Argentina can figure out someway of avoiding default.  However, I'm not optimistic, primarily because Argentina is not run by serious people.  

P. S. You can hear CANTO TALK here & follow me on Twitter @ scantojr.
 


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Wednesday, July 30, 2014

A little "narco story" brewing in US-Venezuela issues

(My new American Thinker post)

There is a lot on President Obama's plate so few people have heard about the Venezuelan general who is wanted by the US DEA.    This is from FOX News:
"Aruba's government released a former Venezuelan general who was detained on U.S. drug charges when he arrived to serve as his country's consul on the Dutch Caribbean island, sending him home Sunday night and defusing a diplomatic fight with its neighbor."
General Carbajal is back in Venezuela today   He was Chavez' head of military intelligence.  He was greeted as a hero upon his return to Caracas.
As Fausta Wertz reports, Carbajal was indicted for allegedly transporting 6 tons of cocaine from Venezuela to Mexico.  My guess is much of that cocaine was destined to the US. 
Furthermore, the BBC reports that US Treasury blacklisted General Carbajal in 2008 for ties to left wing terrorists in Colombia.
ABC reports that Venezuela threatened Aruba, a small island.     
What is the US government doing about this?   Nobody knows for sure!
It seems to me that we should be quietly telling the Maduro government that we expect General Carbajal turned over to US authorities.   We should increase the volume, and economic sanctions, if the Maduro government plays games.

P. S. You can hear CANTO TALK here & follow me on Twitter @ scantojr.

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INFLATION, SHORTAGES AND MORE VIOLENCE IN VENEZUELA WITH COMANDANTE CAZORLA





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