1982+Debt+crisis

= 1982 DEBT CRISIS =

= = = = > The Arab countries have a lot of money -> USA was recovering from the Vietam war
 * kind of a consequence of the 1973 crisis :

**1 .** U.S. no money due to 1973 oil embargo and Vietnam War **2. ** * Latin American countries were willing to use that money to develompent matters, so received loans

• Monetary Fund (IMF Intenational) > Colombia is conditioned to fight illiteracy as an example. Economy and polictics always come together

• (cheap money)  -> Lot of money in the economy evolves very low price of U.S. ---> began to recover the money in Latin America was also to encourage or promote their industries and compete Worldwidwide - > When money began to deplete Latin America could not afford their own foreign debts

**3. ** The U.S. dollar and the Latin American foreign exchange exhausted its foreign debt couldt pay more

**4 **. Debtor countries began to feel the strain of payments manthly that got bigger due to the recession of the economy

<span style="font-family: 'Comic Sans MS',cursive;"><span style="color: #009eff; font-family: 'Comic Sans MS',cursive;">**5.** In August 1982, Mexico stated that couldent pay the debt plus

<span style="font-family: 'Comic Sans MS',cursive;">**<span style="color: #009eff; font-family: 'Comic Sans MS',cursive;">6. ** Announcemets you were from other countries such as Brazil, Peru, Argentina and Chile

<span style="font-family: 'Comic Sans MS',cursive;"><span style="color: #009eff; font-family: 'Comic Sans MS',cursive;">**7**. Massive defaults bank has low levels of capital

<span style="font-family: 'Comic Sans MS',cursive;"><span style="color: #009eff; font-family: 'Comic Sans MS',cursive;">**8.** Major players in the crisis, the World Bank, the IMF a global financial meltdown averted

<span style="font-family: 'Comic Sans MS',cursive;">**<span style="color: #009eff; font-family: 'Comic Sans MS',cursive;">9. ** Mudding through ---> (plan to retablished the world economy ) was an approach of the WB and the IMF to help to solve the crisis

<span style="font-family: 'Comic Sans MS',cursive;">**<span style="color: #009eff; font-family: 'Comic Sans MS',cursive;">10 ** .* agreed reductions on goverment fiscal deficit
 * <span style="font-family: 'Comic Sans MS',cursive;">control of inflation
 * <span style="font-family: 'Comic Sans MS',cursive;">increase current expotations devaluluation -- PIGS (Portugal, Ireland, Greece, Spain)
 * <span style="font-family: 'Comic Sans MS',cursive;">to change the IMF, the WB will follow

<span style="font-family: 'Comic Sans MS',cursive;"><span style="color: #009eff; font-family: 'Comic Sans MS',cursive;">**LATIN AMERICA** --> suffered the crisis of the capitalist countries, but depended on them to resolve their crisis fonancil

<span style="color: #009eff; font-family: 'Comic Sans MS',cursive;">**impact of the crisis** <span style="font-family: 'Comic Sans MS',cursive;">> intrnation bank was illiquid <span style="font-family: 'Comic Sans MS',cursive;">--> disarticulation of economy <span style="font-family: 'Comic Sans MS',cursive;">---> impoverishment and pauperization <span style="font-family: 'Comic Sans MS',cursive;">-> deterioration of cspitalist system <span style="font-family: 'Comic Sans MS',cursive;">---> deteriotation of welfare satate

=<span style="font-family: 'Comic Sans MS',cursive;">﻿ =