Argentina has had problems with its National Debt for perhaps twenty years, maybe even longer. Recently a U.S. District Judge ruled for a hedge fund, which Argentina owes some $1.5 Billion to on its defaulted debt. Argentina has appealed, since other creditors had agreed to take lesser amounts. The case had been in the U.S. Court because Argentina sold the bonds through the U.S. Credit Markets.
Argentina has been trying to escalate the situation by suggesting that the United States Government has refused to, or cannot, squash the Court ruling. That ruling caused Argentina into its second technical default since the record $100 Billion issue in 2001. Argentine President Christina Fernandez claims that the hedge funds are vulture creditors, and is blaming President Barack Obama for conspiratorial actions for political reasons.
In a fiery speech on Tuesday, President Fernandez stated that: “If something was to happen to me, nobody should be looking to the east (Brazil?), but to the north, after the things that are being done in diplomatic offices.” She has separately denounced the U.S. Embassy in Buenos Aires for issuing a report warning of insecurity in Argentina. Christina, exactly who do you think that that report might have been referring to? Anybody you know?
The Obama Administration did, in fact, back Fernandez’s government by filing a friend-of-the-Court brief in 2012. But, when Argentina appealed the ruling to the U.S. Supreme Court, the Administration did not intervene.
It appears that President Fernandez is not really “on the ledge”; but, rather trying to create a ruse in order to blame her country’s economic problems on the Obama Administration. Argentina has been in a recession, and inflation is running quite high. Additionally, Fernandez seems to be suggesting that local Argentinian business people are participating in the conspiracy with the U.S.