Argentina reaches debt repayment deal with Paris Club

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2. True - and it's the SAME thing that bankrupted Argentina during the dictatorship in the early 1980s:

The 'Bicycle': Local (and some foreign) investors rake in outsized profits from high-interest short-term notes (issued by the government in unethically massive numbers).

Dollarization: The investors then trade the peso profits for dollars - with the central bank borrowing tens of billions to make sure the dollars are available.

Finance is deregulated, such that dollarization can take place with few (if any) restrictions.

Offshoring: When the 'bicycle' looks as though it's about to collapse, the dollars are quickly offshored (though many don't even wait that long).

The country is thus left with the massive foreign debts - plus all the economic damage done by measures such as raising interest rates to discourage excessive offshoring, as well as the crisis itself.

Sad enough to, well, cry for Argentina.

Thanks as always for reading and sharing, Judi. Have a great week!