“…the love of money is the root of all kinds of evil. By coveting it, some have strayed… and many troubles have been caused “. (1st. Letter to Timothy chapter 6 verse 10)
Argentina nested a metamorphosis that seemed illusory, almost science fiction. All this occurred within the framework of the last stage of global hegemonic totalizing neoliberalism of the last 45 years, which placed the money as the center of everything, having evicted man and God from recent history. That’s how Francis thought too.
Globalization acquired a unified image, firstly, with the US as the center of world political decisions and, secondly, with international chartered corporations more powerful than dozens of nations.
Thus, in the 1990s, wealth had begun to be heavily concentrated, sterilizing cultures. Adventures like those of Menem, Fujimori, Color de Melo, Bucarán, Temer, Macri, Piñera had been promoted.
Before neoliberalism-mid-seventies-two concurrent and simultaneous events stood out: 1) the fall of the welfare state with the loss of the rights acquired by the most vulnerable sectors. 2) the extreme concentration of wealth supported politically by governments and gendarme judges of the concentrated groups and the international financial sector. This from lowest to highest since the seventies, with trend and exponential growth.
THE 100 YEAR DEBT
In Argentina 2017, the leadership lived a parallel reality. The 2015-2017 time frame revolved around corporations, the hegemonic media, land rent, soybean-mining complexes, and opportunists entrenched in power.
Industrial SMEs and merchants closed their businesses. Its employees could be compared with those excluded by the privatizations in the nineties.
Suddenly we find out that we are in debt for 100 years. Within days, the Financial Times defined the bond of the century as the “craziest” in the international market.
The General Audit of the Nation issued a lapidary report against the 100-year bond issued during the administration of Luis Caputo in the Ministry of Finance of the government of Mauricio Macri. He claimed that Caputo would have personally benefited from the operation.
with that operation investors were guaranteed a rate of 7.9 percent for a century. The balance of that operation was that it allowed the financiers “that in a 13-year term they could recover the initial investment and have 87 years of net profits”pointed out the General Audit of the Nation.
In June 2017, federal prosecutor Juan Pedro Zoni accused caputo on suspicion of criminal conduct to the detriment of the National State and asked federal judge Ariel Lijo to investigate the operation. In March 2018 the judge Lijo decided to ignore the filein an obvious political decision so as not to bother the Macri government.
The report on the debt management of this bond mentions that “lacks financing strategy”. This would imply that for some reason Caputo chose this form of financing despite the fact that there were better financing conditions. More than 25 alternative offers were received from international banks, all at shorter terms and rates. No records were presented that any of them have been analyzed. The AGN report specified that “an investment fund created by the then Finance Minister who designed the debt instrument was allowed to participate in the operation.” It was favored Noctua Asset Management LLCfounded by Luis Caputo in 2009. Caputo thus placed himself on both sides of the counter, as issuer of the bond and as buyer.
Confirmation of a border country, after everything that had to be, just an emerging country and, it could not be. Border country (psychology), nonsense of compliment. Frontier is a desperate person, unstable and unable to take advantage of his abilities. These people destroy relationships that they cannot do without. They are people who live in permanent anguish. Living with such a person is being trapped in the same hell with him or her. This is how rating rating companies saw us.
The royal power was desperately trying to establish the incipient “Ceocracy” to centralize the domain, for the benefit of the concentrated economic groups. This mutation also meant the spread of an anti-popular culture in the way of relating government-society, society-society.
Meanwhile, a mixture of former Spanish-patrician nobility with the bidding vernacular-bourgeois knavery was self-glorifying.
The pronunciation of a cheeky-uncultivated-disrespectful-impertinent jargon of ill-informed interlocutors, amalgamated older people with diminutives or nicknames: “Fede”, “Toto”, “Mau”, “Hori”, “Gaby”, etc.
The bookstores were empty, the return to the culture of reading achieved in previous periods was erased at the stroke of a pen. The purchase of books on contemporary history, philosophy, political science, sociology, psychology, was on hold.
In a low voice he trivialized and despised the epic and the epic: it was heard say that “Belgrano wanted to go to the consulate because his father was bankrupt” or “The Malvinas would be expensive to maintain, and we had plenty of territory”.
All this scaffolding was deriving in prosaic forms of analysis and decisions of private sector bureaucrats who worked by trial and error on important issues, on transcendent issues.
We were in the presence of an absolutist presidentialism, surrounded by a court that was not noble, not very chivalrous: “the best team of the last 50 years”.
The “journalists falsely called independent”, Argentine Roman Catholics, offended Pope Francis with impunity as never before seen. So much so that he Pope Francis visited Chile and Brazil, but did not come to Argentina. The Kirchnerist Holy Inquisition was created, with judicial persecutions and biased and selective pressures towards the most unseemly judges of Comodoro Py. New cracks were being pushed every day.
This being the case, on the economic issue, it could happen that a new mess would occur. The international media criticized the dismissal of Prat Gay; who had announced the exit from default, a year and a half before accumulating more than 100,000 million dollars of foreign debt (with the novelty of taking 100-year term loans) and, in addition, 700,000 million pesos of internal debt (BCRA: equivalent to others 44,000 million dollars) in solo 18 months.
It could be that “returning to the world” meant alienating the country, believing in pure pragmatism, “the end justifies the means”. Ezeiza was full of travelers as with Martínez de Hoz. Thousands of “first time” Argentines swarmed in Miamieager to buy clothing and electronics at half and up to a third of what everything cost in Argentina.
In the tacky debate on TV, the politicians of Cambiemos helped by the “auto journalists Martín Fierro, from their own media”, expressed fallacies with inconceivable cynicism.
Particularly economists with more right-wing ideological convictions criticized Braun-Peña for being a socialist. In that area there was little taste.
Other particular visions, they were ceasing to sympathize with Macri and were beginning to see him as a reckless subject, they spoke of methodological coincidences with Kirchner…
In politics, difficult times are approaching. What would follow would have a fundamental influence on the economic and social future, without a doubt it would be the most sinister experience since the return to democracy.
Graduate Professor UBA and Masters in private universities. Master in International Economic Policy, Doctor in Political Science, author of 6 books. @PabloTigani
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.