Doug Henwood wrote: > > James Devine wrote: > > [clip] > > > >this doesn't make sense.[clip] > > You're thinking too real sector! The fixed exchange rate is a > security blanket for foreign investors, to keep capital coming in (or > discourage it from leaving). Of course that means higher debts in the > long run, but, as a former official in the Jamaican finance ministry > once told me, "You have no idea what it's like to have to come up > with $100 million next week." He was right - I had no idea. > I think Nestor's implict point was that "it didn't make sense." But it does seem to "make sense" for the foreign 'investors' who are looting Argentina of its wealth. I guess one question is how will this play out in some (shorter or longer) "long term" for both Argentina and the lands from which the investment comes. Carrol
