> > Economic measures in Argentina (for the next 60 days??):
>
> 1. Default: no interests payments, no principal payments (if any);
I have been arguing for income re-distribution because I think Argentina is going through an "underconsumptionist" period...Redistribution can take many forms, one of them is not paying which is this one. Not ideal, maybe unfair with small bond holders (any?). You may have tax redistributive policies also. Anyhow, in principle I support this default although, as everybody knows, it had already happen. The issue is what you do with the money
> 2. Third Currency: Treasury Notes...to pay for emergency expenses, such as
> #3......;
> 3. Employment Program of 1m jobs supervised by an NGO...Provinces must create
Good, but why paying with quasimoney if the country is not paying interests and principal. This could get out of control, the Notes will lose value to the dollar and salaries will be lowered....not a good thing. Specially when you are saving a lot of money on the debt side. Inconsistency here
>
> ANY job and the Govt. will pay 200 "notes" (dollars). This quasi-currency will
> float against the dollar;
again, good as long as the Provinces do not create 10 millon jobs!!!!!! Everything counts, the issue is to create jobs, any job. The problems is how are you paying for those jobs
>
> 4. No devaluation, no dollarization,.1peso=1"note"=1 dollar.....
see above. the notes will devalue....purchasing power will be reduced...Not a very transparent scenario
>
>
> comments???
I am afraid the political leadership to redistribute income in a "healthy" way is not there....I am not optimistic. Could be politics as usual.
jj