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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (14323)	12/21/2001 6:37:42 AM
From: unclewest	Read Replies (3) \| Respond to of 281500

argentina continues to crumble....president follows vice president and minister of economy and resigns. argentina is south america's second largest country. they appear to be headed back to the "peronists" for leadership. a coupla quick points....the country was ruled ruthlessly by juan, and after his death, by isabella peron(in an earlier relationship peron was was married to the famous evita). juan and isabella had a saddam type oppressive regime...during their reign, 30,000-50,000 people disappeared (lots of terrorist history in argentina). the Brits kicked their butt over the falkland islands. it is important to know that peronists are fascists. they had an extensive secret army, elements of which remain essentially still intact. cocaine rules much of the countryside and weapons are plentiful. the on-going collapse of the argentinian economy coupled with the mexican economic difficulties are imho huge for south and north America. Argentina is/was a big import/export country. not that argentina is such a huge trading partner with the USA by themselves...but the collapse of their economy is having a negative ripple effect across south american and we stand to get hit a little from everywhere. i do not know the exposure of American banks to the debt that argentina is in default on. the IMF has already bailed out argentina several times...eating $132 billion may just be too much. yet failure to do more may doom all of south america to a major recession or worse. i am not suggesting pouring more $ into their economy...i am suggesting that south america is ripe for terrorism expansion. many of the leaders of such orgs are strongly anti-American. msnbc.com clips... Argentine president resigns Economy spirals into political crisis;... The Peronists take their turn at trying to tame a crisis that has left the country perilously close to defaulting on its $132 billion debt burden.... In working-class neighborhoods in Buenos Aires province, hordes of teen-agers ransacked grocery stores as outnumbered police stood by helplessly.... The economy has been mired in a 42-month-long recession, and gross domestic product has been contracting at a better than 10 percent annual pace since the summer. Economists say about 20 percent of the working age population is without jobs..... Analysts said De la Rua’s resignation probably would condemn the long-troubled economy to slide into debt default and to a currency devaluation that would bankrupt thousands of businesses and put many more people out of work. “Argentina’s practically already in default, and devaluation is now the next step,” said Walter Molano, an analyst for BCP Securities in Greenwich, Conn. “I think the devaluation will be enormous, around 50 or 60 percent. Corporations won’t be able to pay debts, and many banks will collapse.