Austerity in Argentina: The Downward Spiral?

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SilentOrbitSenior Member
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#1Nov 20, 2023, 09:10 PM
Argentina's officially bankrupt. Not long ago, Milei's austerity was seen as a turning point, but now the economy's worse than ever. Who knew austerity could shrink an economy? Greece should've taught us something.
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serHero Member
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#2Nov 20, 2023, 10:06 PM
Didn’t the IMF just bail them out for $20 billion six months ago? Honestly, Milei seems out of touch, like he’s living in a fantasy. These kinds of politicians can’t work miracles in such a mess.
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samforkNewbie
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#3Nov 20, 2023, 11:45 PM
You really think 80 years of Peronism plus less than two years of austerity are to blame? Argentina's been in trouble for way longer. People are fleeing because non-austerity policies created a nation of dependents and rampant inflation. Austerity leads to currency devaluation, making everyone poorer except the elite.
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SilentOrbitSenior Member
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#4Nov 21, 2023, 12:06 AM
Never seen a drop like this in Argentina's history. Sure, there have been dysfunctional periods, but the complete collapse from Milei's policies is something else entirely. It’s not something you see in a developed country during peacetime.
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samforkNewbie
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#5Nov 21, 2023, 12:53 AM
Fastest decline in history? No way. The economy was improving until Milei's party lost badly in September. I got sources in Spanish that say otherwise. The Argentine economy has some good news despite global issues.
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SilentOrbitSenior Member
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#6Nov 21, 2023, 03:04 AM
Stats don’t lie. Since Milei, the debt crisis has spiraled. His austerity made things worse. Inflation’s sky-high, the Peso is tanking, and debts are piling up despite rising inflation. He’s strangling the economy.
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alex21Full Member
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#7Nov 21, 2023, 04:59 PM
Austerity isn’t the real issue here. I think keeping his sister in power is a bigger problem. What happened to his plan to abolish the central bank?
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cobra1337Senior Member
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#8Nov 21, 2023, 07:56 PM
I’m no expert on Argentina, but they’ve been in crisis since 2001. So, the bankruptcy isn’t shocking. Austerity can cause massive drops, especially with high taxes and no revenue. They’re drowning in IMF debt.
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5igm4777Member
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#9Nov 22, 2023, 01:34 AM
Seeing how politicians waste funds, I’m not surprised about the bankruptcy after a $20 billion bailout. They grab loans but lack a plan to use or repay them, leaving successors with the mess.
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AtomicForkFull Member
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#10Nov 22, 2023, 06:28 AM
LOL this guy just grabs any biased info to back his views. If things are worse now, it’s because markets fear a communist comeback after Milei lost in September. Inflation was rising before he took office, and he’s managed to bring it back down.
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SilentOrbitSenior Member
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#11Nov 24, 2023, 06:56 AM
Love your posts, FMC! Miss those long debates. But if free markets were really working, the Peso wouldn’t be crashing like it is now. Argentina's stagflation is among the worst globally. Plus, how is Trump handing out bailouts in a free market?
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serHero Member
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#12Nov 24, 2023, 01:06 PM
He won't get that money just like that. But that Nobel winner who ended wars has interests. This bailout is about the US trying to push China out of the region.
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SilentOrbitSenior Member
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#13Nov 24, 2023, 02:25 PM
Funny how China just stopped buying US soybeans and made big orders from Argentina. US farmers are struggling while taxpayer dollars prop up the Argentine agricultural sector.
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#14Nov 24, 2023, 02:30 PM
Argentina used to shine economically, but look at it now. This mess didn’t happen overnight. Political instability, loss of investor confidence, and excessive debt are killing them.
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its_matrixSenior Member
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#15Nov 25, 2023, 03:48 AM
Austerity usually comes after overspending. When a country lacks exports and finances, it’s bound to happen. Politicians like to spend to win votes, but it can ruin the economy. Responsible leaders need to balance budgets to avoid hyperinflation like in Zimbabwe.
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#16Nov 25, 2023, 06:49 PM
How can you fall for the leftist propaganda? Overspending doesn't grow economies! Austerity is needed to tackle debt and inflation. The IMF demands it for loans. Leftist governments that keep spending don’t get any help.
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#17Nov 25, 2023, 10:57 PM
Politics play a huge role in all this. Austerity measures were meant to cut government spending, but real economic change takes more than that. It needs political will to boost productivity.
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planktonHero Member
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#18Nov 26, 2023, 02:36 AM
In my country, the right-wing government is trying austerity to fix the economy. Now unemployment's at an all-time high and prices are rising. Cuts hit the middle and lower classes, while the rich stay fine.
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bull2011Member
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#19Nov 26, 2023, 07:19 AM
Not record time, but how long did Kirchnerism last versus Milei's free market rules? Kirchner was 23 years, Milei only 9 to 15 months with Congress blocking him. No excuses left.
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alex21Full Member
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#20Nov 26, 2023, 08:22 AM
Yes but not in record time. How many years kirchnerism reigned? vs How many years/month are the free market rules in place? I can tell you: 23 years vs 9 to 15 months, with congress working against him most measures were vetoed. https://www.cato.org/blog/milei-has-deregulated-something-every-day Now there are no excuses any more.
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