Do you fear a crash similar to 2001?

[pizzadreams]

Regarding capital flight, nothing new. Argentina has had decades of incompetent administrations, which lead to widespread distrust in the country´s institutions. Whoever keeps their capital here has to be either very savvy or very stupid.

 

[toongeorges]

An explanation of the IMF loan that even I could understand. Capital flight. The loan will never be repaid.

I think the explanation is simplistic and one dimensional "Macri, IMF: bad, poor Argentinians: good.". The IMF loan will cause problems, I agree with that. The motives for the loan would be more nuanced than explained in the video.

 

[pizzadreams]

An explanation of the IMF loan that even I could understand. Capital flight. The loan will never be repaid.

Didn´t know this economist, but oh boy, one has to wonder what credibility a guy who defends Maduro has. Taken off his own website:

"It made me appear to be criticizing Venezuela’s politicians and, by implication, President Maduro. But at no point had I criticized Venezuela’s attempts at reform. Rather, I had criticized the problem of neoliberal opposition to countries trying to uplift their populations along the lines that Venezuela had done, using debt leverage to force countries to impose austerity. It looks to me like Venezuela is getting the “Greek treatment.”
I was appalled to find the article a hit-piece on Venezuela, and to make me appear to criticize President Maduro by implying that the country is not helpable. I never said that I was not “a fan of the socialist leader.” I applaud his attempts to maneuver as best he can within the corner into which Venezuela has been painted."

 

[pizzadreams]

By the way, whats so "neoliberal" about Macri´s administration? If anything, he´s -ironically- heavily criticized by liberal economists. Apparently, trying to live within your means warrants one to be called a "neoliberal" nowadays. Ridiculous.

 

[pizzadreams]

SHARMINI PERIES: Michael, why is it that Argentina needs such a huge credit line from the IMF?

MICHAEL HUDSON: For precisely the reason that you explained. The neoliberal policy has its aim rolling back any of the wage increases in employment that Mrs. Kirschner, the former president, implied, as part of the class war. So in order to shrink the economy, you have to basically cut back business, cut back employment. And so the purpose of the IMF loan was to enable the wealthy Argentinians, the oligarchy that’s run the country for a century, to get all its money out and run. So like almost all IMF loans, the purpose is to subsidize capital flight out of Argentina so that the wealthy Argentinians can take their money and run before the currency collapses.

Hard to believe there are well read scholars that say these things...

 

[toongeorges]

And so the purpose of the IMF loan was to enable the wealthy Argentinians, the oligarchy that’s run the country for a century, to get all its money out and run. So like almost all IMF loans, the purpose is to subsidize capital flight out of Argentina so that the wealthy Argentinians can take their money and run before the currency collapses.

Hard to believe there are well read scholars that say these things...

Argentinians did not dare to send money out of the country before, they all waited years for Macri to take out an IMF loan. -sarcasm

Also the guy was explaining that the previous IMF loan was a plot of the US government. "Because the loan followed US law, the Kirchners could be forced to pay back the full loan, which made them look bad, so a neoliberal like Macri could be elected"

 

[sergio]

I don't get it. The loan is to enable currency flight. What on earth prevented that prior to the loan?

 

[pizzadreams]

I have no interest in defending the IMF or whoever, but isn't it funny the other country often set as an example of the supposed predatory ways of the fund is Greece, whose chaotic ways are mired in historical corruption and fiscal ruin? How about taking responsibility for the people the PEOPLE THEMSELVES elect into power? It is always easier to blame others. The good/innocent versus evil Marxist rhetoric reminds me of the picture of a child who breaks an expensive toy and blames his parents for not buying him a new one. And when they finally give in, complains he can only use it under their supervision.

 

[Bajo_cero2]

Would love to know what´s the alternative to the IMF loan, which consists of the lowest interest rate Argentina can get. Nevermind the fact that the country got there in the first place because the goverment inherited a country in flames financially.

What are you talking about? Are you a troll of the government?
There was fiscal superavit. This was the inheritance.
The option was to follow the IMF advice and to go back to tax the soy and minary exports because all the deficit ia because MM abolished them.

 

[Bajo_cero2]

I don't get it. The loan is to enable currency flight. What on earth prevented that prior to the loan?

The loan is to secure currency flights!