Do you fear a crash similar to 2001?

MikeB12

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The fiscal imbalance is because he abolished taxes to minning and reduced them to farming.
Bajo, I saw you state this before. Implying there wouldn't be a fiscal imbalance if the gov't didn't abolish taxes to mining and ag. If this was the case, then why would the previous gov't who had those taxes in place expand money supply by 30% a year since 2010?

Doesn't make sense that they would expand money supply at such a dramatic rate unless they were covering fiscal imbalances. To be fair the current admin has continued this rate of expansion.

Seems like neither government wants to do what appears necessary. Cut spending.
 

Bajo_cero2

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I stand corrected. I have no knowledge of art 99 nor what it forbids, however, according to the text of one of the google searches you suggested
( https://www.apertura.com/negocios/Molinos-consigue-perdon-oficial-a-reclamo-de-us-70-millones-20180827-0007.html ) if I am reading it correctly, the 70 MM tax has not been removed. Macri's decree only permitted the company's appeal of that tax assessment to continue to be processed by the appellate court (where it has apparently been mired for 10 years).
It seems to me you should have known this. Did you? Instead of defining the economic policy of decreasing taxes on mining and farming entities as corruption per se or making other unspecified charges of corruption, would you please address this specific Molinos tax issue? You said above that "Macri forgave 70MM [the tax]." That is not accurate, is it? Further, if art 99 disallows the president to do what he did, i.e., to allow the court process to proceed, presumably the courts will rule on that.
Could you address my other question above regarding the identity of the "them" that purchased USD at an artificially low price?

p.s. USD up 6% today to 35.
If you confess that you are clueless about the art. 99 of the NC, then you are wasting my time.
I cannot continue reading your reply.
 
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Bajo_cero2

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Bajo, I saw you state this before. Implying there wouldn't be a fiscal imbalance if the gov't didn't abolish taxes to mining and ag. If this was the case, then why would the previous gov't who had those taxes in place expand money supply by 30% a year since 2010?

Doesn't make sense that they would expand money supply at such a dramatic rate unless they were covering fiscal imbalances. To be fair the current admin has continued this rate of expansion.

Seems like neither government wants to do what appears necessary. Cut spending.
With all my respect, there was not Fiscal imbalance in the previous government. In fact, instead of taking loans they were paying them.

The explanation is very simple: to print money is a free way for a government for financing. The US does it all the time. The inflation is the cost that is supported by the whole population. In opposition, this government prints lebacs with no limit paying 40% interest for what used to be for free.
The fiscal deficit created by the abolishment of taxes is paid with loans in usd that are going to be paid by the medium and poir class who can not evade income tax while richs evade it with off shore fake companies. So, poors finance farmers and minery (income tax 35% is a tax for paying external debt).

While the former administration had 20/30% inflation this one has over 40% and goes straight to hiperinflation like Venezuela.
 
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Bajo_cero2

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I strongly recommend this movie about the same economy decisions made in 1978 for those who want to understand what is going on instead of trolling:
 

Bajo_cero2

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It is not stupidity, it is corruption. They do not have a goverment plan, instead they have a criminal plan.
 
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perry

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This does seem like a engineered crisis as the decisions made seem clearly designed to destroy the economy in a very short time .We need to look at Argentina in the context of Venezuela which just 10 years ago was the wealthiest country of South America with the highest wages . Now its people are lucky if they can earn 10 dollars a month and its literally hell of earth . The scary thing is that due to Macri and his inept government Argentina will be given on a hot platter to the left and they will not be so benovelent as last time turning Argentina into a communistic society where a few wealthy live well but the majority of the people are serfs . Cuba and Venezuela could be our future where there is no hope left .
 
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