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Argentina Defaults On Sovereign Debt

August 1st, 2014

For the second time since 2001, Argentina, the third largest economy in Latin America with a GDP of approximately 400 billion dollars, has defaulted on its sovereign debt. The cause this time is related to its previous default; hedge funds holding  bad debts from the previous default have successfully employed legal means to prevent Buenos Aires from paying current servicing on its restructured debt.

These hedge funds that seek out defaulted loans are commonly referred to as vulture funds. They buy up bad debts at a fraction of their face value, then they employ aggressive legal  tactics to force the defaulting sovereign to cough up substantial payments to the investors, reaping in the process massive profits.

I can think of no better metaphor explaining the mendacious economic distortion of modern-day capitalism.

 

 

 

If Hillary Clinton runs for President of the United States  in 2016, see the video about the book that warned back in 2008 what a second Clinton presidency would mean for the USA:

 

CLICK ON IMAGE TO VIEW VIDEO

Hillary Clinton Nude

Hillary Clinton Nude
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