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Response to question everything (Original post)

Wed Aug 14, 2019, 10:59 PM

2. And even crises in some of these smaller countries have potentially serious int'l implications

Take Argentina's ongoing 'Macrisis':

It's started as a mostly domestic problem.

A carry-trade debt bubble, promoted by neo-con President Mauricio Macri in 2016-17 mainly as political payback for his biggest backers (banksters, both Argentine and foreign), popped in April 2018.

The crisis shut Argentina off from foreign bond markets almost overnight, so what's a Latin kleptocrat to do?

Why, call his top ally and longtime personal friend: Donald Trump.

Cheeto obliged him with no questions asked, forcing the IMF (against their own policy board's advice) to grant Argentina a record-setting $57 billion bailout.

Trump's goal wasn't rescuing Argentina's middling economy (1% of the world's) - but rather to help guarantee Macri's re-election this year.

Suffice it to say, it failed - and badly: Macri just lost the first round on Sunday by over 15% - making his defeat in the 2nd round this October all but certain.

This still leaves the bailout, considered unpayable by most analysts - unless the 4-year standby credit facility can be rescheduled as an extended fund facility (with 10-year repayment terms).

Because Trump's Argentina bailout represents 61% of the IMF's loan portfolio, it's a major solvency risk for the Fund should Argentina default - as 30 other countries have in the past, albeit for smaller loans.

And guess who the IMF would turn to if they need a bailout?

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question everything Aug 14 OP
Wellstone ruled Aug 14 #1
LineNew Reply And even crises in some of these smaller countries have potentially serious int'l implications
sandensea Aug 14 #2
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