Rosendo Fraga: “A US default will interrupt the weak growing of Argentina”

BUENOS AIRES, July 28, 2011

Politic and economic analyst Rosendo Fraga talked with M24Digital and gave his perspective about the potential US default.

He said that “this possibility is no close because everybody guest that finally there will be an agreement between democrats and republicans, which is logic”.

Nevertheless, “A US default will interrupt the weak growing of Argentina”, he said. “For Latin America, the point is the effect that this can have over the prices of raw materials exported, as they will fall in an international context with these characteristics”.

Argentina should prepare for this eventuality (although it never can happen) and the cleverest will be a strategy with Brazil, the most important country in the region.

Regarding a possible change of paradigm, Fraga said “A US default will increase the question around the Neoliberalism, but it will not affect the Capitalism, because it is the only system with two models: US market capitalism and China state capitalism. With the default of the first one probably the second will be stronger”.