[ CHAPTER 6 ]
Robbing Pedro to Pay Pablo
FOR SOMEONE who is trying to make the case that a new day is dawning, breakfast can be a favorable time to hold a meeting. The early morning atmospherics worked well for Domingo Cavallo when he first met Paul O’Neill, the new U.S. Treasury secretary, on April 4, 2001, during a gathering of finance ministers from thirty-four Western Hemisphere countries in Toronto.
Cavallo, the father of convertibility, was back as Argentina’s economy minister. In an electrifying move aimed at resurrecting the country’s sagging fortunes, de la Rúa had named Cavallo—one of his rivals in the 1999 presidential race—to replace López Murphy on March 20 and entrusted him with sweeping authority. Brimming with the self-confidence ...