Do you fear a crash similar to 2001?

[sergio]

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:

For those who don't speak Argentine, YouTube has a subtitled version in ten parts.

 

[Bajo_cero2]

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 .

Weird, it is MM who is making Argentina into Venezuela...

 

[perry]

Weird, it is MM who is making Argentina into Venezuela...

I do not like Macri but also I do not support the left . There is no middle ground in Argentina and both political parties are terrible . I found it appalling though that the Peronists supported Venezuela and looked at it as a role model . They are strangely silent about the human rights disaster tearing Venezuela apart .

 

[wrangler]

I do not like Macri but also I do not support the left . There is no middle ground in Argentina and both political parties are terrible . I found it appalling though that the Peronists supported Venezuela and looked at it as a role model . They are strangely silent about the human rights disaster tearing Venezuela apart .

Are you referring to CFK? She does not really belong to the Peronist Party. I certainly don't support Mauricio Macri. He is not capable of running Argentina, or any country. Macri's policies have been an abysmal failure. He gave some retarted comunique yesterday afternoon, and the dollar shot up to 34,50 immediately after. LOL. Does anyone want to place bets on where the dollar is going??

Instead of having these 60 second radio broadcasts, he needs to be a man, and look at the Argentine people in the eyes, and explain what is going on with the country. Let me add that the dollar just jumped to $36.00 while I am typing this. LOL.

I have still not received an explanation as to what Macri has done since he has taken office, and what he doing now???? Any Takers????

 

[MikeB12]

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.

Thanks Bajo for your answer.

My point was a central bank wouldn't expand money supply at 30% if they weren't using some of that cash to balance the budget. Yes the US does do it, but only at a 6% rate. That's part of the reason you don't see such a high inflation rate in the US.

Inflation is paid by everyone but it's a regressive "tax" that hits the poor the hardest. Inflation transfers wealth from creditors to debtors. Government, as the biggest debtor gains, but also the wealthy who have assets financed by debt.

Now with interest rates so high the wealthy can play the rates game.

The poor always pay the price unfortunately...

 

[steveinbsas]

Let me add that the dollar just jumped to $36.00 while I am typing this. LOL.

That was 30 minutes ago. It's now $37,50.

I have still not received an explanation as to what Macri has done since he has taken office, and what he doing now???? Any Takers????

The video I linked to yesterday on page 27 of this thread makes a crucial point about "gradualism" regarding government implementation of needed reforms. Macri is a gradualist but the consequences of his actions are "suddenly" far from gradual.

Does anyone want to place bets on where the dollar is going??

"Higher and Higher" (it's not just a bad Frank Sinatra movie.)

PS: "Suddenly" is actually a pretty good Sinatra movie.

 

[Bajo_cero2]

Thanks Bajo for your answer.

My point was a central bank wouldn't expand money supply at 30% if they weren't using some of that cash to balance the budget. Yes the US does do it, but only at a 6% rate. That's part of the reason you don't see such a high inflation rate in the US.

Inflation is paid by everyone but it's a regressive "tax" that hits the poor the hardest. Inflation transfers wealth from creditors to debtors. Government, as the biggest debtor gains, but also the wealthy who have assets financed by debt.

Now with interest rates so high the wealthy can play the rates game.

The poor always pay the price unfortunately...

Inded. But now it is a lot worse. Do not forget that in this country nobody takes debt unless you are powerful enought to make it public debt later.
The interest rate is now 60% with a imminent crash of the economy so poor people is going to suffer a lot because many of them has no job and many others are going to loose it. And do not forget that the services bills and food prices riser a lot.

The lesser evil was the former administration.

 

[Bajo_cero2]

I do not like Macri but also I do not support the left . There is no middle ground in Argentina and both political parties are terrible . I found it appalling though that the Peronists supported Venezuela and looked at it as a role model . They are strangely silent about the human rights disaster tearing Venezuela apart .

I m practical, CFK is the lesser evil and they are not lefty.
Venezuela vas a good market for exportations during Chavez regime and the only source of usd we had.
The problem there is complex.

 

[Fdipo]

I do not like Macri but also I do not support the left . There is no middle ground in Argentina and both political parties are terrible . I found it appalling though that the Peronists supported Venezuela and looked at it as a role model . They are strangely silent about the human rights disaster tearing Venezuela apart .

There's no middle ground anywhere in the world. 'Centrism' is just rightism except with a suit, tie, and a kind demeanor. The economics of the right and the 'centre' are exactly the same - neoliberalism.

Peronism is not even a leftist ideology, it's simple social democracy which is centre left at most.

It's pretty funny to watch the US expats freak out over what are very very bog standard European capitalist politics. Peron quite literally got his ideas from the young social democratic systems he saw in Europe during the late 30s.

 

[TWB103]

Inded. But now it is a lot worse. Do not forget that in this country nobody takes debt unless you are powerful enought to make it public debt later.
The interest rate is now 60% with a imminent crash of the economy so poor people is going to suffer a lot because many of them has no job and many others are going to loose it. And do not forget that the services bills and food prices riser a lot.

The lesser evil was the former administration.

Better to tthink in absolute terms not relative. This is Argenttinas problem.