The Chavez play

摘要

Just as Venezuela is known for its exports of crude, Argentina is famous for its exports of IOUS. Less than two years after it handed its creditors a world-record loss in a sovereign debt-exchange, Argentina's government has found an eager new patron in its oil-rich ally. Over the last year, the government in Caracas has bought some $3.1 billion in Argentine bonds. Is this a case of Hugo Chavez, Venezuela's tub-thumping president, putting political solidarity ahead of fiscal prudence? Look closer.