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6/28/18

So how's that IMF bailout of Argentina going, Otto?

Ohhhh, about as well as expected, thanks for asking.


And the Peso is dropping hard again today, back at 28 to the USD and challenging the all-time low put in just before Lagarde decided to "help".

PS: Or to put it another way, here's how your humble scribe summed up a short note on the country in IKN474 last weekend:

"...this is also another page  straight  out  of the  1990’s playbook  and  I  for  one  am  under  no illusions about what happens next. The  government is basically offering free dollars  to the market and they will eat them all up.  Once the supply is gone (the first part of this  bailout package  ends  mid  Q3) a  country  still  ravenous for dollars will belch and demand  MORE,  if  not  the  Peso  will  go  into  freefall again. And once they’ve taken as much as  they  can in  hard  dollars  out  of  the  country, the  plug will be pulled and  it’s  bankruptcy  again.  The banks in charge of this rotten and  inhumane treatment do this because they  can,  they do not care about Argentina nor its  people in the slightest, it’s just to get as much  money as possible out of the country before  they  hit  the  big  red  button  and  watch  it  collapse,  there  is  no  other  reason. Back  in  the 2000  to  2002  period  I  witnessed  the  country  get  drained  of  its  money and it was,  quite  literally,  the  financial  lesson  of  my  life. There is no doubt at all  in  my  mind  that the North and the powerful financial institutions  in  charge  of this  unholy  scam,  from the IMF all the way  down,  will  do  it  all  again.