People and countries start picking their bones!
Ghana – a tiny country in Africa seizes Argentina’s Navy Training Ship Libertad on a court order from New York billionaire Paul Singer – Elliot Management – as collateral for $1.6 Billion in Argentine junk bonds.
This may seem like a funny way to do business, or to leverage repayment, but consider the path we’re on….
Argentina Public Debt: $183 Billion [$4,500/person]
Massachusetts Public Debt: $103 Billion [$15,700/person]
US Public Debt: $16.2 Trillion [$51,500/person]
How long before the Chinese demand that to repay the debt we owe THEM, – we surrender the Hawaiian Islands? And you still want to give Obama another term?
The truly tragic part of this story is that as the 19th Century turned into the 20th Century, Argentina was a thriving Democracy and burgeoning economic power – the rival of the United States.
Then under a series of socialist / communist governments – [often brought about by coups] – including Juan Peron 1946-55 and again 1973-74 – the country slowly but surely took over businesses [ruining them], raised taxes, and discouraged agriculture [to the point of near starvation]. Today the Argentine economy is a mess.
Today, tiny Ghana can humiliate them. They may never get that ship back.