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Argentina Scrambles To Raise $10 Billion, Avoid Reserve Collapse; BONARs Bidless

Tyler Durden's picture


A few days ago, in the aftermath of Argentina's shocking devaluation announcement, we showed the one most important chart for the future of that country's economy: the correlation between the value of the Arg Peso and the amount of Central Bank foreign reserves, both crashing. And as we predicted when we, before anyone else, started our countdown of Argentina's reserves, once the number hits zero it's game over for the Latin American country. Or rather, game over again, considering the number of times in the past Argentina has defaulted. Unfortunately over the past week, things for the Central Bank have gone from bad to worse and were capped overnight with the following headline:


And this is what Argentina's reserve depletion looks like:

To summarize: Argentina has now burned through $2 billion in less than two weeks, the fastest outflow since 2006, and a trend which if sustained (and we see no reason why it would change), means it has just over half a year left of reserves projecting a linear decline. However, since the lower the amount of reserves, the faster the withdrawals will come, it is safe to predict that the endgame for Argentina will come far sooner, just as its suddenly crashing bonds seem to have realized.

Which is perhaps why, as Argentina's La Nacion reports, the country is suddenly, and long overdue, scrambling to raise $10 billion to "counter the flight of capital" from the country.

 Alas, it just may be too late.

According to the website, Argentina's economy minister Axel Kicillof secretly approached international banks, the same one he has been criticizing over the past months, with a simple request: please give me $10 billion. Alas, considering the country's track record of "honoring" its debt repayment promises, not even promising the required interest rate of +? will do much to generate interest in this particular offer banks can not refuse. Or, rather, can and will.

From La Nacion, Google translated:

Nacion reporters say that the meeting was held in strictest confidence, just in the days before major upheaval in the exchange market. When asked about it, the Economy Ministry spokesman did not confirm nor denied the information, in ABA did not respond to calls from this newspaper.


It is imperative for Argentina to get the dollars that can counter the flight of capital, which in January alone cost the Central Bank (BCRA) U.S. $ 2.499 billion of its reserves. It was the biggest drop since 2006, when the country repaid its entire debt of more than U.S. $ 9 billion to the International Monetary Fund (IMF).


The minister confided bankers requesting leave to look for dollars abroad, either by issuing new debt or through commercial credit lines that banks could get. Some entities, according to sources consulted by the NATION, and would have set to work to organize a tour to Kicillof investment to New York this month.

In other words, Argentina will be meeting Goldman shortly. So, in the aftermath of the Denmark Dong affair, we can probably expect another government "overhaul" in a few months, mediated by everyone's favorite vampire squid who is about to make Argentina an offer it can't refuse. Or maybe even Goldman won't touch this any more:

The order of Kicillof, noted the sources, was debated this week between ABA bankers. Although they pledged to work in private they also recognized that it will be difficult in the current context for Argentina to access fresh funding at a reasonable rate of interest and, especially, in the amounts the Government needs, somewhere around U.S. $ 10,000 million.

It gets worse:

In addition, they assert, although the Government intends to solve their conflicts with the Paris Club and Repsol, the devaluation of 18.6% recorded in January, the highest in the last 12 years, quite complicated negotiations, and that sowed new doubts about the ability to repay debt Argentina.

Yes, well, losing 20% of your investment "gains" overnight due to an arbitrary decision by the government does kinda make one want to invest in said government for a bit to quite a bit. As for the inflationary panic that has already gripped the country, and which we already commented on, well - it's only just begun.

Still, all of the above is largely expected, and was perfectly predictable by anyone not caught up in overconsumption of hopium pills, or having their head stuck in the sand of denial. The one thing we did learn is something which will soon make the front pages of all serious media publications around the globe.

After sharp declines in recent weeks, a sovereign dollar bond Bonar 17 yielded 16.2% yesterday.... Several weeks ago Kicillof announced his intentions to return to the debt markets. The National Social Security Administration (Anses) began in early January to sell their bonds in the market Bonar 18 to contain the escalation of the "dollar bag" on one hand, but also to begin to make a curve in the medium term rates.

Curious what the BONAR is?  Courtesy of this handy glossary of Argentine financial terms and acronyms, we now know that it is the formal name of an Argentina dollar-denominated bond issued under domestic law. Or, as in the case of Greece, precisely the instrument that will quite soon be crammed down due to non-existent covenant protection for creditors.

In other words, in a worst case for Argentina scenario, watch as hundreds of millions of BONARs suddenly deflate to nothing in a bidless market.


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Sat, 02/01/2014 - 18:22 | 4391958 Motorhead
Motorhead's picture

Chile, Chile...!

Sat, 02/01/2014 - 18:33 | 4391985 TruthInSunshine
TruthInSunshine's picture

Brazil will take it directly in its ass in the NOT-too-distant future.

Dominoes is on like Donkey Kong.

Sat, 02/01/2014 - 18:56 | 4392015 knukles
knukles's picture

Progressives Forward


beats getting buggered by Woody Allen

Sat, 02/01/2014 - 19:05 | 4392084 ACP
ACP's picture

I just can't believe no one wants Christina's BONAR.

Sat, 02/01/2014 - 19:06 | 4392087 InjectTheVenom
InjectTheVenom's picture

Bitcoin anybody  ? ?

Sat, 02/01/2014 - 19:09 | 4392096 InjectTheVenom
InjectTheVenom's picture

hey is that a worthless BONAR in your pocked or are you just happy to see me ?!

Sat, 02/01/2014 - 19:13 | 4392100 Looney
Looney's picture

... BONARs - bidless

Bohner (and Pelosi) - dickless  ;-)


Sat, 02/01/2014 - 19:48 | 4392178 chumbawamba
chumbawamba's picture

I came here so I could see the chick with the titties.  Where the hell is the picture of the chick with the titties?


Sat, 02/01/2014 - 20:20 | 4392255 Scarlett
Scarlett's picture

TruthInSunshine:  "Brazil will take it directly in its ass in the NOT-too-distant future."


Perhaps, but only temporarily.  The real story isn't in fiat paper, but in energy.  They have offshore oil, good EROEI ethanol--and we spand more oil heating our homes than they spend **for everything**.

You may be right, but the game will shift afterwards.


Chumba look and you shall find -->

Sat, 02/01/2014 - 21:26 | 4392389 WayBehind
WayBehind's picture

Argentina should nationalize Lionel Messi (and every other good Argentinian player) and rent him for few billions a month to Chelsea or one of those Russian oligarch owned soccer teams ... problem solved.

Sat, 02/01/2014 - 21:58 | 4392462 TruthInSunshine
TruthInSunshine's picture

Scarlet, I like Brazilians very much, and this isn't a wish, but my opinion of where current economic events leave Brazil; their offshore oil deposits are a long term storehouse of wealth (that is really only net-positive to extract if oil were priced much higher than currently, being extraordinarily deep under the deep layer of rock that is located under ocean) rather than an immediate source of assets to tap and liquify in order to offset their current crisis born of MASSIVE DEBT/CREDIT expansion.

They do have an efficient sugar cane-to-ethanol processing & refining sector, but it's not of a large enough scale economically to pay down their quickly spoiling shadow debt.

Brazil has a looming date with its debt legacy born of massive misallocation of investment during the "hot money" beta chasing BRIC boom years.

Sat, 02/01/2014 - 22:27 | 4392563 DanDaley
DanDaley's picture

Like Jim Rogers says, commodity based economies, like Brazil, eventually have major problems.

Sat, 02/01/2014 - 23:25 | 4392730 Soul Glow
Soul Glow's picture

Argentina has the hottest women in the world.  It is no wonder how many times they have defaulted.

Sun, 02/02/2014 - 15:09 | 4393762 samcontrol
samcontrol's picture

this top ten is fairly real, and i hit three of them.

Sat, 02/01/2014 - 22:30 | 4392569 Scarlett
Scarlett's picture

I agree on all that; I just happen to think that domino falls but returns quite well after some years.  But what do I know; they could be heading Venezuela with those people in power.

Sat, 02/01/2014 - 23:43 | 4392763 Soul Glow
Soul Glow's picture

Everyone needs to remember the Fed buys USTs putting cash into the PDs hands.  When the Fed is not putting as much cash into PD hands, they can't distribute as much.  In the end, the bonds of States like Argentina go bidless.

Sun, 02/02/2014 - 01:26 | 4392944 Jack Burton
Jack Burton's picture

Indeed!  Fed dollars drive the world, and we are watching more than one currency heading for the shitter.

Sun, 02/02/2014 - 01:50 | 4392983 Freddie
Freddie's picture


Brazil's deep water oil  is years away and as you said is deep under the sea.  Good post.

As far as Argentina - this is what 70 + years or Peronism socialism leads to.  Endless corruption, defaults and more.  Argentina is like the Detroit of South America.  Very attractive people, talented, in a resource rich land of abundant food.  It is pretty sickening that any people could mismanage their affairs so badly.  Kirschner reminds me of Pelosi. Argentina is like a country Pelosi would run into the ground while robbing the people blind.

Sun, 02/02/2014 - 15:22 | 4393808 Crash Overide
Crash Overide's picture

But I thought the World Cup profit generation machine will save Brazil no?

Sat, 02/01/2014 - 22:18 | 4392531 akak
akak's picture

Obviously inflationary.

Sat, 02/01/2014 - 23:39 | 4392757 Soul Glow
Soul Glow's picture

Bullish for South Korean plastic surgeons.

Sat, 02/01/2014 - 20:42 | 4392309 Al Gorerhythm
Al Gorerhythm's picture

I thought you subscribed to Zh only for the articles.

Sat, 02/01/2014 - 20:59 | 4392339 SolarSystem1932
SolarSystem1932's picture

I found her.

Look at properties of the image.

(Requires knowledge of the RIGHT mouse button)

Now google "Argentina fans"

And there she is!!!!

NICE & Perky!


Sat, 02/01/2014 - 22:16 | 4392527 TruthInSunshine
TruthInSunshine's picture

Must be nippy out.

Sun, 02/02/2014 - 12:11 | 4393413 Flakmeister
Flakmeister's picture

Nah, Maradona was in the house...

She was just happy to see him...

Sun, 02/02/2014 - 15:26 | 4393816 Crash Overide
Crash Overide's picture

"I found her."

It's like something straight out of The Chive...

Sun, 02/02/2014 - 00:49 | 4392893 willwork4food
willwork4food's picture


"I came here so I could see the chick with the titties." 

What, are you horney and want your financial information served naked?

Mon, 02/03/2014 - 00:54 | 4394947 TheReplacement
TheReplacement's picture

Next on CNBC... gotta get ratings up!

But I really do like the idea.  I would probably watch certain hours.

Sun, 02/02/2014 - 00:45 | 4392889 willwork4food
willwork4food's picture

I just knew this post would devolve into an X rated triage

Sat, 02/01/2014 - 19:19 | 4392110 JonNadler
JonNadler's picture

Cristina says: Si les gustan sus BONARS, puden quedarse con sus BONARS. Hey, funsiono para el idiota ese en el norte no?

Y saben donde de pueden meter sus BONARS? 

Sat, 02/01/2014 - 20:03 | 4392118 fonzannoon
fonzannoon's picture

A country is scrambling to raise half of one fine  that JPM farted at? Funny

Sat, 02/01/2014 - 19:31 | 4392139 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

Can SAKS buy DONG with BONAR ?

Sat, 02/01/2014 - 19:47 | 4392176 remain calm
remain calm's picture

Banar or Boner whats the difference, both are going to leave you fucked.

Sat, 02/01/2014 - 19:21 | 4392116 Tim_
Tim_'s picture

Woody Allen (born Allen Stewart Konigsberg) is a jew.

Sat, 02/01/2014 - 19:48 | 4392175 Global Hunter
Global Hunter's picture

Rex Grossman is not a Jew (neither was OJ Simpson).

Sat, 02/01/2014 - 21:28 | 4392397 A Nanny Moose
A Nanny Moose's picture

Roman Polanksi?

Sun, 02/02/2014 - 00:12 | 4392688 Tim_
Tim_'s picture

Roman Polanski (born Rajmund Roman Thierry Polanski) is another jewish rapist.

Sat, 02/01/2014 - 19:00 | 4392069 Stuck on Zero
Stuck on Zero's picture

Obama's solution goes something like this:  If we all go communist together there won't be anyplace for people to run to and no currencies to trade in to.


Sat, 02/01/2014 - 19:11 | 4392097 knukles
knukles's picture

A New World Order founded upon the Chaos wrought by the Cloward Piven Strategy


Starting to make sense to ya' now, huh?

Sat, 02/01/2014 - 19:17 | 4392112 jon dough
jon dough's picture

Chaos...the other red meat...

Sun, 02/02/2014 - 02:36 | 4393013 Vendetta
Vendetta's picture

"If we all go communist together" ->  If we all go fascist together        There, fixed it for ya

Sat, 02/01/2014 - 19:07 | 4392088 whatsinaname
whatsinaname's picture

I predict more Yen will be sold to bail out the Args !!

Sat, 02/01/2014 - 19:28 | 4392131 eurogold
eurogold's picture

The question is ....will christina bail out before the crash ( so she can come back and save Argentina again, or will she stay for the crash to be hung from a lamppost ?

Sat, 02/01/2014 - 18:23 | 4391959 Motorhead
Motorhead's picture

Way to go, Argentinians.  Ya gonna re-elect Frau Kirchner?

Sat, 02/01/2014 - 18:57 | 4392059 El Oregonian
El Oregonian's picture

Frau Kirchner? Man, she'd make my BONAR deflate also...

Sat, 02/01/2014 - 18:59 | 4392065 nmewn
nmewn's picture

Heh...there's nothing worse than a bidless BONAR!

Sat, 02/01/2014 - 22:40 | 4392607 StychoKiller
StychoKiller's picture

As I get older, it gets more difficult to inflate my BONAR!

Sat, 02/01/2014 - 18:26 | 4391963 The Shootist
The Shootist's picture

BenYellen shit 10 billion a day. Maybe they can find it under the mattress.

Sat, 02/01/2014 - 18:27 | 4391966 Max Damage
Max Damage's picture

The 2 bill was the rich getting their money out before robbing the rest

Sat, 02/01/2014 - 18:29 | 4391973 Bunga Bunga
Bunga Bunga's picture


Sat, 02/01/2014 - 22:25 | 4392554 mjcOH1
mjcOH1's picture

A foregone conclusion.

Sat, 02/01/2014 - 18:28 | 4391975 BadKiTTy
BadKiTTy's picture

Honestly, I don't know what to think any more!

The headlines just seem to go from bad to worse(erer) and yet the game seems to stagger on......

Sat, 02/01/2014 - 18:33 | 4391989 booboo
booboo's picture

That's just the way it goes, first the nutty peripheral and then we get to the chewy caramel center and then finally the core where the worms live.

Sat, 02/01/2014 - 18:46 | 4392022 knukles
knukles's picture

And where the worms live is where the Conspiracy Theorists supposedly feast, it taking years before everybody else fesses up to the charade...

In the mean time, enjoy your free fall out of the Helicopter, Mrs Peron

Welcome to the Sodom of Murder and Debauchery we call the Modern World

Sat, 02/01/2014 - 19:12 | 4392103 jon dough
jon dough's picture

Stay tuned for another exciting installment of "Sodom of Murder and Debauchery"...

But first, a word from our sponsors...

GE, Monsanto, BP, We-B-Wookies, etc...

Sat, 02/01/2014 - 19:10 | 4392095 SDShack
SDShack's picture

The headlines aren't bad. It's all Kardashians, Super Bowl, Tweet Me, Legalize Weed, Amnesty, Red vs Blue, Buy iShit, and on and on and on. It's all just a distraction and addiction for the masses to keep the sheeple contained. Bad headlines will be homeless masses rioting in the streets because they are starving. Anything else is just more of the same. The way things are going, we are years from real change for the better. Probably decades.

Sat, 02/01/2014 - 19:27 | 4392133 piceridu
piceridu's picture

How bad is it when you as President can't fly your "Airforce One"?


Sat, 02/01/2014 - 22:42 | 4392613 StychoKiller
StychoKiller's picture

Good luck sellin' them BONARs when everything you've done in the past spells "DEADBEAT!"

Sat, 02/01/2014 - 18:29 | 4391978 the 300000000th...
the 300000000th percent's picture

I have some ocean front land in New Mexico to sell you. AND I have a really good deal on some Argentinian bonds.

Sat, 02/01/2014 - 18:35 | 4391988 Sudden Debt
Sudden Debt's picture


Sat, 02/01/2014 - 18:40 | 4392009 The Shootist
The Shootist's picture

I hope the scourge of fiat is dead before then.

Sat, 02/01/2014 - 18:54 | 4392047 Sudden Debt
Sudden Debt's picture

this crisis has been going on since 2007. 7 years of this shot already and gold is still below 1300.
I'm a very patient guy and we'll all need to be because this shit will drag on at least another 7.

Sat, 02/01/2014 - 19:09 | 4392094 Motorhead
Motorhead's picture

Seven years...isn't that when the Germans are supposed to get their gold back?  Oh, now six years.....

Sat, 02/01/2014 - 20:11 | 4392233 Winston Churchill
Winston Churchill's picture

Argentina has been in crisis since the 1930's when it was in the top 10

wealthiest countries in the world.

At least they are still in the top ten for polo.

What a waste.

Sun, 02/02/2014 - 07:58 | 4393159 samcontrol
samcontrol's picture

top ten in polo? is that a joke.
Maybe you meant that they have the ten best players and/or teams in the world?

World Polo Player Rankings
1. Facundo Pieres
2. Adolfo Cambiaso
3. David Stirling Jr.
4. Juan Martin Nero
5. Gonzalo Pieres Jr.
6. Pablo MacDonough
7. Nicolas Pieres
8. Cristian Laprida Jr.
9. Mariano Aquerre
10. Hilario Ullo

All other countries are waisting their time playing polo, fixed it for you.

ps. 0 Americans with 10 handicap.

Sun, 02/02/2014 - 12:12 | 4393412 Winston Churchill
Winston Churchill's picture

Left of /s.

Know many of those players.m.

Most play in Wellington here in s.Florida frequently.

Sat, 02/01/2014 - 18:36 | 4391990 buzzsaw99
buzzsaw99's picture

Please do not worry. NML Capital will buy them.

Sat, 02/01/2014 - 18:34 | 4391993 Randy Goodnight
Randy Goodnight's picture

Here we go again.  Great documentary on last collapse


Mon, 02/03/2014 - 00:17 | 4393332 matrix2012
matrix2012's picture

Or check out this dvd quality - Memoria.Del.Saqueo.2004.DVDRip.XviD-AXT (Social Genocide)

Documentary by Fernando E. Solanas, in Spanish w/ Eng subtitles, 700mb... 'file is still alive'


{IMDb version}: After the fall of the military dictatorship in 1983, successive democratic governments launched a series of reforms purporting to turn Argentina into the world's most liberal and prosperous economy. Less than twenty years later, the Argentinians have lost literally everything: major national companies have been sold well below value to foreign corporations; the proceeds of  privatizations have been diverted into the pockets of corrupt officials; revised labour laws have taken away all rights from employees; in a country that is traditionally an important exporter of foodstuffs, malnutrition is widespread; millions of people are unemployed and sinking into poverty; and their savings have disappeared in a final banking collapse. The film highlights numerous political, financial, social and judicial aspects that mark out Argentina's road to ruin.

{freedocumentaries version}: Documentary on the events that led to the economic collapse of Argentina in 2001 which wiped out the middle class and raised the level of poverty to 57.5%. Central to the collapse was the implementation of neo-liberal policies which enabled the swindle of billions of dollars by foreign banks and corporations. Many of Argentina's assets and resources were shamefully plundered. Its financial system was even used for money laundering by Citibank, Credit Suisse, and JP Morgan. The net result was massive wealth transfers and the impoverishment of society which culminated in many deaths due to oppression and malnutrition.

And here's the Topdocumentaryfilms link.

{neithercorp version @YT}: Neithercorp is featuring this fantastic documentary due to its uncanny similarity and relevance to the economic looting that is now taking place in the United States and elsewhere. We are also focusing on this particular doc because it is not an English language film, and a lot of Americans are not aware of it. This is an extremely well-made film that will provide a clear perspective on how engineered financial collapses occur, who carries out these policies, and what to expect in an extreme hyper-inflationary depression scenario. Please watch it and share it with those you care about.  We would like to thank Youtube user WorldIssues2000, who originally posted this documentary. We hope WorldIssues2000 and the makers of this doc do not mind us helping them spread their work to new audiences. We just want the film to be seen.

{Prisotnoststeje version @YT}: Documentary on the events that led to the economic collapse of Argentina in 2001 which wiped out the middle class and raised the level of poverty to 57.5%. Central to the collapse was the implementation of neo-liberal policies which enabled the swindle of billions of dollars by foreign banks and corporations. Many of Argentina's assets and resources were shamefully plundered. Its financial system was even used for money laundering by Citibank, Credit Suisse, and JP Morgan. The net result was massive wealth transfers and the impoverishment of society which culminated in many deaths due to oppression and malnutrition. Official name: Memoria del Saqueo by Fernando Solanas 2003.

Sat, 02/01/2014 - 18:36 | 4391996 jon dough
jon dough's picture

I say Boehner, you say BONAR...

Let's call the whole thing Kicillof...

Sat, 02/01/2014 - 18:38 | 4392003 Rising Sun
Rising Sun's picture


Sat, 02/01/2014 - 18:38 | 4392008 Silver Garbage Man
Silver Garbage Man's picture


Sat, 02/01/2014 - 18:39 | 4392010 yogibear
yogibear's picture

Argentina, Just kidnap the US federal Reserve key members and ask for billions in ransom. They'll print billions to get them back. Your problem is solved.

Sat, 02/01/2014 - 18:39 | 4392013 Stockmonger
Stockmonger's picture

Krugman says Argentina is doing great.  In fact he is in the running for the next finance minister.

Sat, 02/01/2014 - 18:49 | 4392037 knukles
knukles's picture

Yeah, but somebody said Krugman is an asshole.

Sat, 02/01/2014 - 18:50 | 4392040 jon dough
jon dough's picture

Know what you mean...

I mean, who would do that, for realz?

Sat, 02/01/2014 - 18:57 | 4392056 knukles
knukles's picture

Not me....

Sat, 02/01/2014 - 19:03 | 4392076 jon dough
jon dough's picture


I did see where the Urban Dictionary has an entry where Finance Minister is now hip code for Asshole, so he's got that going for him.

The more you know, the weirder it gets.

Sat, 02/01/2014 - 19:11 | 4392101 knukles
knukles's picture

One of my all time favorites:

"It's just not weird enough, yet."
        - Hunter S Thompson

Sat, 02/01/2014 - 19:15 | 4392107 jon dough
jon dough's picture

Tru dat...

Sat, 02/01/2014 - 19:48 | 4392174 logicalman
logicalman's picture

It was quite a while ago he said that - it's got a lot weirder since then.

rapidly approaching 'enough' I think.

Sat, 02/01/2014 - 21:09 | 4392360 Keyser
Keyser's picture

We are well past 1.21 jigawatts of weird in my estimation...

We have gone too far, too soon, too fast and are now in the land where nothing is funny... - Robin Williams



Sat, 02/01/2014 - 18:41 | 4392018 world_debt_slave
world_debt_slave's picture

Yellen to the rescue!

Sat, 02/01/2014 - 18:42 | 4392021 Jack Sheet
Jack Sheet's picture

Where's the busty chick in blue and white from the preview photo? She appears to have more than adequate reserves.

Sat, 02/01/2014 - 18:45 | 4392025 Josh Randall
Josh Randall's picture

Keyboard cat sighted leaving the Argentinian treasury building

Sat, 02/01/2014 - 18:46 | 4392028 MsCreant
MsCreant's picture

They will wipe their asses with BONARS.

They will throw their BONARS on the fire to keep warm.


Sat, 02/01/2014 - 18:49 | 4392039 knukles
knukles's picture


Selling useless BoNaRs to the Columbians to use as TP

Sat, 02/01/2014 - 18:56 | 4392058 jon dough
jon dough's picture

I realize you and MC are offering Boolean choices here but I have to up arrow you both for the quality. Apologies for skewing your results.

Sat, 02/01/2014 - 20:06 | 4392223 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

That is a thought raise money by selling BoNaRs to the Venezuelans to alleviate their TP shortage. It has got to be worth something on the black market.

Sat, 02/01/2014 - 20:25 | 4392276 knukles
knukles's picture

sung to the tune of "Barbisol"


Makes you butt
Feel fresh and clean
After dumps and

Sat, 02/01/2014 - 19:14 | 4392104 snr-moment
snr-moment's picture

We do the same with mine.

Sat, 02/01/2014 - 23:28 | 4392736 TheMeatTrapper
TheMeatTrapper's picture

What is the difference between  T Bill and  BONAR?


About 10 years.

Sun, 02/02/2014 - 07:55 | 4393161 samcontrol
samcontrol's picture

I know what a t bill is,not a binar

and I live in Argentina.
I don,t watch the news.

Sat, 02/01/2014 - 18:52 | 4392042 debtor of last ...
debtor of last resort's picture

Bidless markets. Yes, bidless markets & the scrambling for precious metals, with a touch of gasoline and dogfood.

Sat, 02/01/2014 - 18:53 | 4392049 hmmmstrange
hmmmstrange's picture

Anyone in the Falklands getting nervous?

Sat, 02/01/2014 - 21:15 | 4392368 akak
akak's picture

The sheep are ALWAYS nervous ... I hear.

Sat, 02/01/2014 - 18:54 | 4392050 ncdirtdigger
ncdirtdigger's picture

Where is the Pope?

Sat, 02/01/2014 - 18:58 | 4392066 knukles
knukles's picture

Looking for his little red shoes neath the bed amongst the altar boys

Sat, 02/01/2014 - 19:07 | 4392086 jon dough
jon dough's picture

They're right next to his signed, mint condition copy of The Communist Manifesto.

Sat, 02/01/2014 - 20:00 | 4392203 FredFlintstone
FredFlintstone's picture

Hey, I think this pope happens to be awesome. We need more awesome stiff on the world right now damn it.

Sun, 02/02/2014 - 07:55 | 4393164 samcontrol
samcontrol's picture

stupi question , stupid answer.

in Rome.

Sat, 02/01/2014 - 18:55 | 4392051 snr-moment
snr-moment's picture

Yeah, but Christina was actually pretty hot 30 years ago.

Sat, 02/01/2014 - 19:00 | 4392068 knukles
knukles's picture

So was fonestar's mom

Sat, 02/01/2014 - 19:05 | 4392080 jon dough
jon dough's picture

Coincidence? I think not...

Sun, 02/02/2014 - 07:55 | 4393168 samcontrol
samcontrol's picture

f you made me barf.

Sat, 02/01/2014 - 18:55 | 4392052 FreeMktFisherMN
FreeMktFisherMN's picture

reality is even many of these 'emerging markets' in many cases only have growth because they are making their exports cheaper. There is no such thing as a free lunch; sure you can obtain more work by making it cheaper but then when you want to consume, your currency won't buy much. 

Freeing up markets always has to be the goal. Some of these countries like China have taken huge strides, but to increase returns on that they need to have sound money that reflects the productivity, as opposed to selling it all off to foreigners for worthless fiat and depriving its people of higher standards of living. 

Sad to see even some ZHers on here seem to go along with the idea that the Greeks' panacea would be to just print a bunch of drachma to get out of its problems. Of course the Greeks and everyone else need national sovereignty, but printing does not lead to prosperity, What they need is sound money like anyone else. Reduce labor costs by eliminating taxes and having more certainty as to the purchasing power of your money, i.e., having it gold-backed. The reality is that while of course the Greek politicians sold out to the ECB and IMF, the people went right along with the spending and have tons of culpability as well. These pols who support such evil are a reflection of evidently a large number of citizens; same could be said for the U.S. 

Sat, 02/01/2014 - 18:58 | 4392064 FreeMktFisherMN
FreeMktFisherMN's picture

Central planning and intervention in markets always fails is the bottom line, whether it leads to credit-fueled consumption or malinvestments or both. I will say that I wouldn't underestimate the Chinese despite their huge malinvestments because they have such a proclivity to save and save in terms of gold increasingly, apparently. And it's easier to transition to reaping the benefits of one's own productivity than it is to do what the Western nations will have to do which is go through legitimate austerity and save and produce.

Sat, 02/01/2014 - 22:48 | 4392629 StychoKiller
StychoKiller's picture

I don't believe anyone here thinks that printing moar is the solution, but what do Govt's do?  That's right, they print!

Sat, 02/01/2014 - 18:58 | 4392054 walküre
walküre's picture

Argentina has no capital controls? Color me surprised.

This has the fingerprints of IMF and World Bank plastered all over it.

Sat, 02/01/2014 - 18:56 | 4392055 disabledvet
disabledvet's picture

Didn't they throw Italian Pensioners under the bus in big way the last time "but still got the money anyways"?

And then they nationalized Repsol.

"Our list of allies grow thing Gandalf. And now you tell me Sauron has deserted us and has raised an Orc Army that can fight by Day???!!! THE EYE IS FIXED ON BUENES AIRES GANDALF! ISILDOR! CAST YOURSELF INTO THE FIRE!"

Sat, 02/01/2014 - 18:56 | 4392057 Quaderratic Probing
Quaderratic Probing's picture

Don't worry about the rich I think they got out in time

Sun, 02/02/2014 - 07:58 | 4393172 samcontrol
samcontrol's picture

actually I got in right on time.

It is like the madman who thinks he is on the right side of the gate.

want to compare taxes...

Sat, 02/01/2014 - 18:59 | 4392062 seek
Sat, 02/01/2014 - 19:00 | 4392071 knukles
knukles's picture

Perfect sports companion.
Knobs for channel and volume

Sat, 02/01/2014 - 19:07 | 4392090 jon dough
jon dough's picture

Explains the guys shit-eating grin.

Sat, 02/01/2014 - 19:08 | 4392089 Miffed Microbio...
Miffed Microbiologist's picture

Nice rack but the chest bones turned off Mr. But he tends to be picky.


Sat, 02/01/2014 - 20:24 | 4392268 DosZap
DosZap's picture

Picky hell, gay.LOL

Those were the last things MOST of us looked at.

Sat, 02/01/2014 - 20:29 | 4392283 knukles
knukles's picture


Those are not chest bones
They're the growing alien implants about to be birthed.

Sat, 02/01/2014 - 21:24 | 4392385 trip kitchen
trip kitchen's picture

I don't see chest bones, I see irrigation canals

Sun, 02/02/2014 - 08:00 | 4393173 samcontrol
samcontrol's picture

beat me to it . +1

Sat, 02/01/2014 - 20:40 | 4392308 Miffed Microbio...
Miffed Microbiologist's picture

No he's all red blooded hetero male. He loves my 36D without the washboard on top.


Sat, 02/01/2014 - 20:17 | 4392249 DosZap
DosZap's picture

That thumbnail pic needs to be viewed at full size to be fully appreciated.


She must really get around since your pic is from South Africa.Come to think of it, she could likely float that far.

Sun, 02/02/2014 - 08:06 | 4393178 samcontrol
samcontrol's picture

the World Cup was played there.

South American women use the cup as a TV platform..
they show their tits and become national stars after the cup..

Then want to be famous and/or try to marry some rich stupid fuck or some want to be tv star with a hard on.

Sat, 02/01/2014 - 19:00 | 4392070 NoTTD
NoTTD's picture

"Axel Kicillof"?  "Kirchner"?  Are the ex-Nazis openly running that country now? 


Common greeting heard on the BA street:

Sat, 02/01/2014 - 19:04 | 4392079 philosophers bone
philosophers bone's picture

These global financial crises are revolutionizing language.  Creditors got the BONAR; Vietnamese got the Dong and Taxpayers got the Shaft

Sat, 02/01/2014 - 19:15 | 4392108 knukles
knukles's picture

"The RecoveryTM"
     - Jesse

Sat, 02/01/2014 - 19:12 | 4392102 Peter Pan
Peter Pan's picture

Weak and fragile governments can be at the mercy of foreign powers who knock on their door with gifts.

Look at the hot spots over the last few years and US fingerprints are all over them.

The USA methodology may be crude and rude but it is still the driving force in this deteriorating world.

No one should underestimate the reach and resolve of the US to do what it is doing for as long as it holds the privilege of the major reserve currency.

None of what's going on will cease until that privilege is lost.

Argentina of course has created its own hell and turned from being the richest country in the world to a basket case.

Sat, 02/01/2014 - 19:13 | 4392105 Save_America1st
Save_America1st's picture

Burned through 2 Billion in 2 weeks???  Pussies...shit, our Fed has been printing 2.5 Billion or more each fucking day for over a year and look how great everything is now!  I'm sure now that Ben Shalom has some time on his hands he could always fly down to Argentina and show them bitchez how to use CTRL-P ;-)

Sat, 02/01/2014 - 19:15 | 4392111 ThroxxOfVron
ThroxxOfVron's picture

"BONARs suddenly deflate to nothing"

ZH is a fucking comedy goldmine!

Sat, 02/01/2014 - 19:19 | 4392113 Peter Pan
Peter Pan's picture

Read the last sentence again. It says "in a worst case scenario."

No need to down vote you.

Sat, 02/01/2014 - 19:19 | 4392115 monopoly
monopoly's picture

"Make the front pages of serious media papers around the globe!" Eh, I make that at about 5 total on the planet. Less if you select TV media.
Tick Tock.

Sat, 02/01/2014 - 19:24 | 4392128 Peter Pan
Peter Pan's picture

Maybe Jamie or Lloyd  can fly down and offer to take their gold......about 62 tonnes worth.Makes it about 2.5 billion dollars.

Makes me wonder where Lybia's gold is and what the Venezuelans have done with theirs.

Sat, 02/01/2014 - 19:27 | 4392132 Gromit
Gromit's picture

Thunderstorm this mornng in Buenos Aires, sun came out around 7pm.

Maybe a massage next, then dinner, going to a party tonight.

Argentina receives terrible press stateside because of its unwillingness to kowtow to the New World Order.

It's very calm and peaceful here. Excellent harvest just gathered in the countryside. So long as the price of Soy holds firm, Argentina will muddle through.

Might buy a few of those BONARs or maybe BODENs.





Sat, 02/01/2014 - 20:06 | 4392224 Carl Popper
Carl Popper's picture

Lol.   A guy like you who can afford massages and dinner out is in the top 20 percent per capita income bracket for sure.  


You wouldn't dare walk alone at night in the neighborhoods where the bottom half live, not dressed up for dinner and a party anyway. 

Sun, 02/02/2014 - 15:44 | 4393866 Gromit
Gromit's picture

Carl - did I say something that offende you?  If I did so I apologize.

Four hand massage at Spa Libertad with upsell - 1000 Pesos  ARS ($80 US), very enjoyable.

Dinner at my departmento  in Recoleta (started to rain again)  pork chop, boiled potatoes and peas from Disco supermarket (50 Pesos.)

Private party afterwards - priceless.

Buenos Aires is a lovely place for a tourist with dollar source income. Friendly expat community to share info:

Buen aproveche!



Sun, 02/02/2014 - 13:17 | 4393550 matrix2012
matrix2012's picture

@ Gromit

I do appreciate your leadership's unwillingness to kowtow to the Worldly Gods' interests, may the nation of Argentina muddle through the hardships and be resilient, be vigil and remain to be independent, keep its sovereignty both politically and economically!

Globalization has been swallowing so many nations and enslaving many of them today.

Sun, 02/02/2014 - 15:22 | 4393806 Gromit
Gromit's picture

It 's surprising to me how little sympathy Argentina recevies here on ZH.

The"End the Fed"  fraternity should be natural supporters of a government more interested in people's welfare than corporate mutinationlaas profits.

But maybe the temptation to "pile on" is just too strong.

I'm not Argentino - just a tourist with dollar source income enjoying a fine vacation.

Sat, 02/01/2014 - 19:28 | 4392136 Atomizer
Atomizer's picture

Raffle off those tits or pop up a dick washing tent to raise cash. Otherwise, take your corruption pill and STFU. How much longer do we to endure this mess?

Sat, 02/01/2014 - 19:29 | 4392142 Make_Mine_A_Double
Make_Mine_A_Double's picture

The head line news though was Christina annoucing new government scholarships to high school students. Not a word about the Peso.

Stick the BONAR in the Anses and that should keep the idiots busy for awhile.

Sat, 02/01/2014 - 19:37 | 4392156 pitz
pitz's picture

Only $10B?  That's childs play.  Even modest Ponzi schemes in America can pull that in no problem. 

Sat, 02/01/2014 - 19:59 | 4392205 Carl Popper
Carl Popper's picture

No such thing as a free lunch. When you peg your currency too high for political reasons the eventual exchange rate crash will be worse than necessary.

Even a low circulation currency like the peso would be more stable and cause less capital misallocation if it were freely floated with a central bank making a (non manipulated) derivative market

Sat, 02/01/2014 - 20:00 | 4392208 Carl Popper
Carl Popper's picture

Maduro in Venezuela  is going to learn his lesson too. 

Sat, 02/01/2014 - 20:34 | 4392302 1stepcloser
1stepcloser's picture

LOL at least he's doing better than Murkel, Venezula gots its gold

Sat, 02/01/2014 - 20:16 | 4392251 tbd108
tbd108's picture

"Alas, it just may be too late.": What's "alas" about about a group of socialist jackasses getting what they deserved?

Sat, 02/01/2014 - 20:33 | 4392299 401-Kulak
401-Kulak's picture

How many clicked looking for the protest babe?

Sat, 02/01/2014 - 20:51 | 4392326 gafgroocK
gafgroocK's picture

Me, Me!

But I would have done it if she was shirtless, too

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