Argentina vs The Whole World
I deeply regret it for the readers, but we are going to suffer. Denying it, ignoring it, hiding is not going to solve what we are going to go through. You have to know it, prevent it and face it.
by Rodolfo Florido
All the indications show us that we are heading towards a break with the IMF.
The International Monetary Fund is an international financial institution, headquartered in Washington, D.C., consisting of 190 countries.
The expressions of Minister Guzmán and those of the President indicate this. I'm not going to stop at pointing them out one by one. It doesn't make sense, all readers know it is so. In this regard, it is remarkable the effort made by some journalists and economists to deny this possibility, in the face of the terror that implies finding ourselves on this path. The denial of the obvious makes no practical sense.
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If we add the attitude and way of writing of the media related to the government, this assumption becomes stronger. With the excuse that we are not going to subject the Argentine people to an adjustment and the veiled or not so veiled threats of a greater rapprochement with Russia and China, we are going through a de facto adjustment (due to inflation, increase in rates, real fall in wages and daily devaluation increase) that deepens the deep difficulties of the middle class contributing to the looting imposed by increasing tax burdens.
It is claimed that this is done so as not to unprotect the most backward and/or poor sectors of the economy. A brutal fallacy. These sectors only grow in number and their income is either destroyed or subjected to the gifts administered as glasses of water when dehydration reaches them. A kind of perverse mechanism that exacerbates their shortcomings to disguise that they are given a few thousand pesos when the absence of income is confused with hunger and the future is a bridge too far away to see.
Of course, there are those who say that at the last minute an agreement will be reached with the IMF, that perverse and dark body. What they do not say is that the IMF is an organization in which 184 countries are integrated, that is, almost the entire world. I mean, we're fighting with 184 countries, but they're the wrong ones, not us.
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And what do that wicked organization want?
They want to collect what they gave to Macri, who took that credit to pay what Cristina owed. There are many people who believe that Argentina has a problem because it owes the IMF 45 billion dollars. The Argentine people need to know that our debt has already exceeded $270 billion.
In other words, our debt to the IMF does not reach 18% of the total of what we owe.
The national government is disgruntled saying and asking... "let us grow so we can pay." Of course, while they affirm this, they put tax pressure on the most productive sectors that could provide the most growth. They distribute unproductive money from productive sectors, with the excuse that they do it to make a more egalitarian society. Billions of devalued pesos are not going to generate work, education or productive enterprises, no. They are distributed like a drip serum so that the patient believes he is alive, while waiting in the guard of a hospital for a cure to arrive that will take him out of the disease of endemic poverty at risk of being pandemic. Money that operates as a kind of monetary cortisone that hides the disease while generating small moments of gratitude.
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But let us be optimistic and think that an agreement is reached with the IMF. What would happen? It would be presented as a result of the negotiating strength of the national government. The semantics of the adjustment agreement would be concealed or drawn and the agreement would most likely be breached in the very first half of this. Then it would seem that the maximum possible adjustment is being made without condemning the Argentine people to poverty. That is, dialectic, story.
It is like the government's request to the opposition to support it in the agreement with the IMF.
First, he asks for support and a meeting,
then, he suspends the meeting for another date,
later, he suspends the meeting again only now without a date and, when the opposition gets tired and says that he will not go to any meeting, the government says... if they support us, we will not be able to move the country forward.
Everything is over and over again in the same way. It's like what they did to Morales. On the one hand, they thank him for being condescending to the government and for expressing that we must go to the meetings that it convenes because it was the PRO that asked the IMF for the loan. And immediately afterwards, Interior Minister Wado de Pedro travels to Jujuy to meet with the imprisoned and condemned Milagro Sala to complicate the Jujuy governability of Governor Morales, that is, to complicate the life of the one who had shown himself to be a contemporizer and who had paid the political price for trying to throw a cable at the government with the opposition.
In short, we are on the road to a brutal adjustment, with or without the IMF. The only difference is that confronting the 184 countries that make up the IMF will make an adjustment with an epic tinge.
And if there is an "agreement" it will be breached in the short term.
And what do I do will the reader wonder?
Very simple. If you can, avoid superfluous expenses, sort your internal accounts, order the payment of your cards in order to avoid the brutal punitive bank charges on unpaid cards in full. If you have any rest, convert your pesos into hard coins and hold the air. If you have no rest, buy non-perishable products that you can store and consume for several months. Be frugal, this year is going to be very hard and next year is not much better. The government may try to create a parallel reality, but reality always prevails. The scenery, although it seems solid, is never the same as reality.