Argentina ready to default
Reading the news from some South East Asian countries
recently, it became clear that many of the traders in countries like Singapore,
Malaysia and Thailand are very concerned lest any country in the world defaults.
They make it clear that should a country like Argentina default for example,
this could have a very serious affect on the world trade as each country is
connected and a default would bring about what is called a domino effect.
We therefore turn with interest to the Weekend Herald,
3 November 2001, where we read the headline: "Argentina faces $US95bn default
-– Argentina's President Fernando de la Rua said the country will exchange
existing debt for new securities that pay lower interest...
Investors expected the country would default after the
Government failed to cut spending and stuck to a fixed exchange rate that
increasingly made exports uncompetitive and pushed the economy into recession...
Argentina, which last defaulted in the late 1980s, is the
biggest seller of emerging market debt, accounting for a quarter of all bonds
sold by developing countries trading overseas. About 60 per cent of the nation's
bonds are held by international investors...
The President reiterated that the country will keep the
peso pegged one-to-one with the US dollar...
The International Monetary Fund today ruled out additional
financing for Argentina...The Government said it doesn't expect new
S&P has cut Argentina's credit rating three steps
closer to default, to 'CC.'" (emphases added).
A Scripture from Luke 21:25-28 seems to apply prophetically
to those of us living at the end of the first year of the New Millennium 2001.
We quote from verse 25:
"And there shall be signs in the sun, and in the moon, and
in the stars; and upon the earth distress of nations, with perplexity;
the sea and the waves roaring;" (emphasis added).
Verse 26: "Men's hearts failing them for fear, and for
looking after those things which are coming on the earth; for the powers of
heaven shall be shaken."
We need to recognise that there is a blessing on the horizon,
in the middle of all this mess, for then we read in verse 27:
"And then shall they see the Son of man coming in a cloud
with power and great glory."
Verse 28: "And when these things begin to come to pass,
then look up, and lift up your heads; for your redemption draweth nigh."