Argentina may soon stop paying its debts and stiff its creditors as President Cristina Fernandez de Kirchner tightens her grip on the economy.
Already Argentina stands accused of rigging its national inflation number, which allows it to underpay investors in its inflation-linked bonds. In 2001, Argentina fired its statisticians and began reporting inflation rates that consistently seemed low. Foreign mistrust was compounded by Argentina’s decision to seize control of Spanish-owned oil producer ypf sa earlier this year. This has impaired the nation’s ability to borrow money on the international market.
