Argentina must repudiate its debt

This is what has happened every time, historically, “libertarian” ideas have been tried in the real world. Its an ideological fantasy of teenagers, not economics. Lowering taxes never increases revenues. Lowering wages always lads to more poverty. The Market always takes the money and runs unless you regulate it.
 
A few things have changed. Inflation is undoubtedly on the way down. Housing supply has improved. Some regulations have been removed so life is easier. Whether it can be sustained is another story. The price of gold would suggest the market does not expect him to succeed.

Unfortunately most people missed the point of the original article. The mistake Milei made is to keep printing money to pay off central bank debts. He should've dishonoured them, because any investor dumb enough to invest in Argentina deserves to lose their money.

As noted in the link below, "By not eliminating the CEPO, Milei could be avoiding currency runs that would cause the peso’s purchasing power to plummet at an accelerated pace and the insolvency of the central bank and the banking system in the matter to materialize. Hence, Milei’s current stance has much to do with political expediency and the interests of bankers, special groups and state agents" https://mises.org/power-market/mileis-monetary-conundrum
 
Murray Rothbard said:
...The mistake Milei made is to keep printing money to pay off central bank debts. He should've dishonoured them, because any investor dumb enough to invest in Argentina deserves to lose their money...
Click to expand...
I was giving you the benefit of the doubt until I read that comment. The very last thing that Argentina needs is yet another default (which may happen anyway).
 
Murray Rothbard said:
... you can start by reading this for the economics behind repudiating debt
Click to expand...
When a country defaults on its debt, it's too late to talk about the economics. It's like the death of an economy. I know 'repudiating' sounds much cooler, but it's basically the same thing. After repudiating the debt, you can only mourn the economy.
 
The IMF violated two of its own rules in loaning the ~35-40 billion USD to the Macri government.

1. It facilitated capital flight, which IMF's own rules very definitely do not allow.
2. It loaned a much greater percentage of its outstanding debt to one country than allowed.

It would, from a certain point of view, be good for IMF to incur a major loss as a result of those rule violations.

Whether or not it would be good for Argentina, well, that's another question.

The IMF supposedly violated these rules in response to strong pressure from the Trump administration, but "supposedly" is the operative word here. With Trump returning to office in January, (barring another fraudulent election), it would pose an interesting situation, no doubt.
 
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