it's just going to make Argentina's debt more difficult to repay since denominated in dollars.
What it would be repaying it's debt with is worthless money, which is effectively robbing the creditors. If you tell the creditors that you're going to pay back the debt with money that's worth something, they'll be much more amicable to a re-negotiation of the terms of the debt servicing. Weimar Germany actually used it's hyper-inflation to force creditor nations into debt forgiveness because it was clear that there would be no chance of the Germans paying back the value of the debt. Argentina would be doing the opposite: guaranteeing a return of investment to the creditors, as opposed to having a 100% loss.
. The economy doesn't just "repair itself" in a country in such bad situation like Argentina.
Typically, these socialist conditions can be flipped overnight, as the market basically explodes with unregulated trade, especially at the smallest level. The economy actually does begin to recover as price discovery takes effect and regulatory interference is stopped.
The US FED is going to punish them with extreme prejudice.
I see no reason why the FED would have such a need. Fundamentally, the Fed and the IMF want their fucking money back at a certain point, and are ecstatic to keep pushing out USD. Argentina just said that "yes, you'll get paid with USD, and yes we want some dollars". Argentina is clearly not a rival in this scenario, so they're not going to be punished like the Eurozone is.
What it would be repaying it's debt with is worthless money, which is effectively robbing the creditors. If you tell the creditors that you're going to pay back the debt with money that's worth something, they'll be much more amicable to a re-negotiation of the terms of the debt servicing. Weimar Germany actually used it's hyper-inflation to force creditor nations into debt forgiveness because it was clear that there would be no chance of the Germans paying back the value of the debt. Argentina would be doing the opposite: guaranteeing a return of investment to the creditors, as opposed to having a 100% loss.
Typically, these socialist conditions can be flipped overnight, as the market basically explodes with unregulated trade, especially at the smallest level. The economy actually does begin to recover as price discovery takes effect and regulatory interference is stopped.
I see no reason why the FED would have such a need. Fundamentally, the Fed and the IMF want their fucking money back at a certain point, and are ecstatic to keep pushing out USD. Argentina just said that "yes, you'll get paid with USD, and yes we want some dollars". Argentina is clearly not a rival in this scenario, so they're not going to be punished like the Eurozone is.