 | Once again, Argentina finds itself in the throes of a high inflation, weak economy and political upheaval. And once again Argentina finds itself crawling back to, and dancing in the palm of the IMF. If you’re unaware, Argentina has been placing this high-stakes game with the IMF for decades. And it has Argentina holding a number of IMF records, and not any good ones:
One the 3rd point, this is the 23rd bailout Argentina will be receiving from the IMF. The real chaos started all the way back in 2001 where excessive government borrowing(from a previous government) saw Argentina default on their debt obligation under president Aldolfo Rodriguez Saá. It picked back up heavily over a decade later in 2014 with high inflation. Stuff had hit the fan around 2018 with a severe depreciation of the Argentine peso, during a time when the global economy was experiencing distress and the Fed was forced to cut rates after having attempted to raise them in what they thought was a strong economy. Oddly similar to today’s situation. Take a look at the inflation over the last decade. They currently have an average inflation of around 100%. And now with economic distress once more, they turn once again to the IMF for a bailout, as 23rd times the charm. But this time there’s a catch. Don’t get me wrong, there’s always a catch with the IMF, multiple catches at that. Anyone here from a developing nation doesn’t need me to explain the rotten reputation the IMF has with “helping” developing nations. But this time the IMF stipulated: Ironically, it also states that Argentina must support the digitization of payments, but no crypto. No crypto for financial stability. Because the other 22 times the IMF has been helping Argentina, they’ve helped them become so stable, currently with triple digit inflation. And Argentina, ever the servant seemed to have signed on the dotted line as the Argentine Congress has approved of the deal and as of this week: You would think that having currency that you can’t print would help a massive inflation problem. It doesn’t even have to be the sole currency, but could even work alongside the dirty fiat to arrest and reduce the issue. But nope. 23rd times the charm. [link] [comments] |
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