Argentina - another right-wing government teeters on economic crisis

Discussion in 'Latest US & World News' started by EarthSky, Apr 28, 2019.

  1. EarthSky

    EarthSky Well-Known Member

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    Argentina's economic crisis deepened this week as inflation has risen to 51% over the last 12 months an and the peso tumbles on international markets. Right-wing President Mauricio Macri, hailed as a free-market reformer when elected has seen his popularity plummet in polls as cost to hold-off huge loan payments bring the country close to default.

    The currency crisis is centered around a record 56 billion aid package borrowed from the IMF and a program of austerity and price controls imposed to pay-off that debt which now looks to be saddled with a better than even chance of default.

    "Investors are dumping Argentina bonds now that it looks even more certain that the man who brought the International Monetary Fund back to Buenos Aires is six months away from losing the presidency.

    Mauricio Macri is in the biggest crisis of his tenure. The market has spoken, and they do not like what they are seeing. Macri is close to becoming a zombie president unless inflation—now over 51% on a rolling 12-month basis—drops dramatically. A decline of 10 basis points won’t cut it.

    A recent poll by Synopsis in Buenos Aires showed respondents listing inflation as the biggest problem facing the economy. Some 44.6% said inflation was their biggest economic concern, followed by 19.2% who said unemployment.

    Some investors have called it Argentina’s “Macrisis.” On Thursday, it looked like that crisis has spurred a panic attack, with investors fearing defaults and selling out of Argentinian debt."

    https://www.forbes.com/sites/kenrap...has-investors-dumping-argentina/#585ab25b6f28


    https://www.businesslive.co.za/bd/w...so-and-debt-rattled-as-economic-crisis-bites/

    https://ftalphaville.ft.com/2019/04/25/1556180002000/Argentina-is-on-the-brink/

    Protests rocked Buenos Aires this weekend against inflation and austerity measures.
     
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  2. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    You can add to this ruthless Hedge funds taking advantage... the wealthy preying on the poor. It is how people like George Soros made their money.

    How one hedge fund made $2 billion from Argentina’s economic collapse
    https://www.washingtonpost.com/news...ollapse/?noredirect=on&utm_term=.60e802672699

    Hedge fund billionaire Paul Singer’s ruthless strategies include bullying CEOs, suing governments and seizing their navy’s ships
    https://qz.com/1001650/hedge-fund-billionaire-paul-singers-ruthless-strategies-include-bullying-ceos-suing-governments-and-seizing-their-navys-ships/


     
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  3. Oh Yeah

    Oh Yeah Well-Known Member Past Donor

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    And as the debt clock keeps climbing in the USA most Americans go about their business and have no concern for the collapse of our financial institutions which are close on the horizon. It seems half the country is ready to embrace the silliness of FREE college education, FREE health care for all, FREE reparations to those who feel bereaved after 160 years, CANCELLATION of all student debt, FREE money for everyone in the USA on a monthly basis and I'm sure there will be more before the campaign season ends. Think I will start selling stocks and looking at gold and silver. Then again a short position on the market may not be a bad bet.
     
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  4. Observing

    Observing Well-Known Member

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    What are free reparations? how does one buy a repartation?
     
  5. Oh Yeah

    Oh Yeah Well-Known Member Past Donor

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    I don't know the logistics of it but there are some that feel they are owed money because the United States endorsed slavery. I guess that 40 acres and a mule didn't quite cut it. Of course there are no Americans that are alive today that were slaves in the 1800's. It is just another identity politics issue to divide the country. I had no relatives who were ever slave owners so why should I pay. In fact my kin were so poor that the other poor people brought them food and clothes. I seen pictures of my mama, when she was a child, in a dress made out of a flour sack and no shoes. It won' be long before the Mexicans will want reparation for the loss of California. The Indians have more claim for reparations than any group that I know of.
     
  6. Reality

    Reality Well-Known Member

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    That's not taking advantage. They made an investment and this government wanted them to just take a good hard ****ing up the ass and take a massive loss.
    The corp was in the position of having similar amounts of power as the .gov in this case. Which is why you see they saw the return on their investment plus damages for the ****ery.
     
  7. Oh Yeah

    Oh Yeah Well-Known Member Past Donor

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    It is a shame that so many people do not understand economics. It should be a mandatory course in high school. It is never too late to learn though. The internet is full of simple rules for investing. Just type in "investing rules for beginners" and start researching. Just as I used Phil Helmuth's web site to learn Texas Hold- em I started watching Mad Money with Jim Cramer on MSNBC. My 1st stock was a bust, as it went bankrupt, but I used it as a learning lesson.
     
  8. Texas Republican

    Texas Republican Well-Known Member Past Donor

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    People hate austerity. They want free stuff from government, which is foolish. That’s something lefties need to learn.

    Anyone supporting the Dems in 2020 has to realize their leaders are making foolish promises that can’t be kept.
     
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  9. EarthSky

    EarthSky Well-Known Member

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    Yup, this is exactly how the predatory lending practices work and there is big profit in doing so. Note also that it was Macri who approved the final settlement that allowed Singer's hedge fund weasel out of the negotiated settlement package that all the other players had agreed to. He was praised by Wall St. as a free market reformer but as always, all that means is he was bending over and allowing foreign interests to reap profit off a poorer nations suffering. Now the country is on the edge of collapse thanks to all that free-market reform.

    Same thing the IMF does, the same IMF that loaned Argentina the 54 billion it now is in danger of defaulting on. And what happens next?

    If Greece or Africa is any example, the banking elites take out these huge loans from the IMF which they know can never be paid back. Then the country's bankers move on to the private sector and the nation is left with all that debt. So the creditors like IMF and World Bank demand austerity to pay back the investment and along with austerity, the privatization of the nations assets such as ports and infrastructure. And it is the pensioners and young people's future that is left to pay while the bankers cash in.

    Quite a scam.
     
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  10. EarthSky

    EarthSky Well-Known Member

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    Please understand that the "free stuff" meme is not something you came up with on your own. It is a highly contrived bit of campaign sloganeering designed to create a talking point for rightist who want to fight back against the rising anger over inequality and tax-breaks for the very wealthy. It is really just corporate propaganda that has been propagated through right-wing corporate media that his no more substance or reality than "welfare queens driving Cadillac's" or "Universal healthcare is Communism." Then people like you pick up the slogan because it sounds like it is trending and fits your belief system while you spread it to forums like this in order to push a political narrative or agenda that is not even really yours but a campaign slogan for the interests of those who do not want to pay their fair share of taxes.

    That "free stuff" is what government should be doing because it is the only entity that can equitably and efficiently take on major infrastructure projects like highways, dams and bridges that have long-lasting beneficial consequences to taxpayers.

    Government should make investments in the social capital of citizens precisely because of these long-term social benefits. And educated population is more able to innovate and adapt to changing economic conditions and a healthier population is more able to contribute to society that one that is in distress. This is what government should be doing not fighting wars that kill people or subsidizing corporations.

    The majority of people understood this after the war; that if government had the capacity to wage total war, then it had the capacity to intervene in the economy on large-scale projects that only it had the resources to implement. This was proven out in the large-scale prosperity and economic growth that took place for decades after the war until the 80's when government investment in social capital began to be scaled back and the era of mass privatization of public commons like education, which used to be minimal in cost, really began.

    Keep in mind that taxpayer money subsidizes private, for profit corporations to the tune of 100 billion per year but you never hear the "free stuff" meme aimed at these corporations or at the very wealthy who get all kinds of tax breaks but still use roads, dams, electricity and infrastructure but pay negligible comparative taxes compared to their wealth for the privilege. But they never want to talk about getting stuff for free themselves, do they?

    So why is corporate welfare in the form of massive taxpayer subsidies to the wealthy and business okay, but revenues used to benefit human capital in the form of living standards, health and education, "free stuff?"
     
  11. EarthSky

    EarthSky Well-Known Member

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    That "free stuff" is not what is creating the American debt problem. And it's not "free stuff." It is what government should be doing because it is the only entity that has the means and resources to do large-scale capital projects equitably and efficiently.
     
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  12. Texas Republican

    Texas Republican Well-Known Member Past Donor

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    From each according to their ability to each according to their need.

    Right on, comrade.
     
  13. Observing

    Observing Well-Known Member

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    Sorry I was being a wise ass. I was referring to the word choice of free and reparations used together like jumbo shrimp.
     
  14. Steady Pie

    Steady Pie Well-Known Member Past Donor

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    This is equivalent to a part of your brain saying "maybe we should stop smashing crack cocaine for like... just 2 days" and immedietly regretting it due to withdrawals.

    Unfortunately, there is no path to sobreiety which does not involve painful withdrawal.
     
  15. markjs

    markjs Well-Known Member

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    Wow, well said!
     
    Last edited: Apr 30, 2019
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  16. markjs

    markjs Well-Known Member

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    Well programmed you are, well programmed. Did you have to consult Hannity for that premanufacted or is it just automatic by now?
     
    Last edited: Apr 30, 2019
  17. markjs

    markjs Well-Known Member

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    Huh? Exactly what point are you failing at conveying here? And WTF exactly is "smashing crack"?
     
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  18. Steady Pie

    Steady Pie Well-Known Member Past Donor

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    High government spending and an inflationary, low interest rate monetary policy is the crack.

    Once you're hooked it causes economic disruption, withdrawal, to get yourself off.
     
  19. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Does anyone think the IMF may be doing more damage than good, with all these loans to Third World countries that just seem to get squandered leaving the country saddled in debt?

    Plus all those strings attached, the IMF demanding certain types of economic policies be implemented by that government.
     
    Last edited: Apr 30, 2019
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  20. Texas Republican

    Texas Republican Well-Known Member Past Donor

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    I can smell socialism/communism from a thousand miles away.
     
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  21. Starjet

    Starjet Well-Known Member Past Donor

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    Whose printing the money? And for what reason?
     
  22. markjs

    markjs Well-Known Member

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    :roflol:

    No, you're not able to; and further, from your posts it's ABUNDANTLY clear you don't even understand the meanings of the two words.:roll:

    :yawn:
     
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  23. Texas Republican

    Texas Republican Well-Known Member Past Donor

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    Just admit you’re a commie. It’s ok. We’ll still accept you here. We don’t bite.
     
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  24. Starjet

    Starjet Well-Known Member Past Donor

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    That’s because rotting human corpses smell to high heaven—and if there’s one thing the collectivists are good at, it’s supplying human history with endless rows of rotting corpses. 100 million plus, and still counting.
     
    Last edited: Apr 30, 2019
  25. Oh Yeah

    Oh Yeah Well-Known Member Past Donor

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    Sometimes smartass answer are the best. Keep up the good posts. :thumbsdown::thumbsup:
     

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