We're reading sentences like "the president fled the presidential palace in a helicopter" in connection with a country that is more integrated into global capital markets than any other emerging market. This is significant, no?
What follows is a conspiracy theory that I don't necessarily believe. How farfetched is it? The Bush administration leaned on the IMF to cut off Argentina in the hope that this would lead to De la Rua's fall from power. Then they made a secret deal with the Peronists that upon taking power they would dollarize. In exchange, Washington would support them with bilateral aid. Hence the Peronists recent refusal to join in a coalition government. The payoff for Washington: Argentine dollarization nixes Mercosur and puts Argentia firmly behind the FTAA.
Is this crazy?
Seth