For the eight time, Argentina is likely to fall into a debt crisis.

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The expropriation of energy company YPF Repsol by former president Cristina Fernández Kirchner in 2012, seen by The Economist

Debt implies repayment, some day

At a time when some “modern monetary theory” economists want to make us believe that public debt can be unlimited, the disequilibrium between assets and liabilities, as well as between revenues and debt repayment reminds us that excess leads to crisis.

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Macri’s economics. Source: The Economist, link

The crisis of confidence

Can the IIF Principles become enforceable?

The Institute of International Finance’s “Principles for Stable Capital Flows and Fair Debt Restructuring” have been adopted on a voluntary basis by most countries… until they get in trouble. There are a dozen countries from Africa, Asia and Latin America who are currently in sovereign financial trouble.

Written by

CEO at Galileo Global Advisors and Adjunct professor Columbia Law School.

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