The truth is that they have been looking for loans since Milei He won the elections and they can’t get anyone to lend them. Neither to strengthen reserves, nor to pay the IMF (January payments are still late). With respect to Extended Facilities Agreement, officials reminded him that it cannot be changed. They should know it. For all that has been said, the next four months will not decompress, the pot will have to be scraped and social protest will increase, they will be months with very high shocks.
Caputo argued during the 9pm monserga that the “unverifiable” possibility of accessing new loans is open, but that is not the government’s intention. False, of all insincerity.
It ended again with the insufferable clarification of: “if you spend more in your house than you earn…”.
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Telam
The only truth is reality (Aristotle)
If you earned $500,000 before December 10, and spent $500,000, you were on a balanced budget. But since then there was a devaluation of 120%, fuel prices rose more than 100% and affect transportation directly and indirectly, prepaid medicine increased 40% and is coming for more – since it is oligopolistic and is not subject to international competition – , food prices doubled, energy is going to quadruple, and rent doubled.
To equalize your salary, they should increase your salary by 100%. But if your salary is not increased 100%, you could also get another job where you earn another $500,000 and thus equal the calculation, achieving “zero family deficit.” The problem is that in the real economy, since there is a recession and rampant inflation, they will not be able to increase salaries as prices have increased and will continue to grow, and since there will be fewer jobs available because companies will be billing a lower volume. in units, they will be laying off staff, therefore, you will not be able to get additional employment.
On the contrary, you should be praying to God so that you don’t get fired. So her family, which is not a country and cannot ask for loans from the IMF, nor place securities abroad, nor issue currency, will have a difficult time. A country is not like a family, it is not even like a company.
From now on, when an economist makes you believe that he understood with that indecent comparison, explain that you don’t like being taken for being under-endowed. It is very easy and in very bad taste to make someone believe that they understood economics.
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Depositphotos
Markets have no memory: 1981, 1983, 1989, 2001
They rushed up before listening to the minister, because a message was set up for them that was dropped on the “prime time” show. The organized idea was to introduce pressure to the IMF and generate expectations of favorable announcements, because many businessmen have been suspicious of the viability of the Caputo.
Obviously there is nothing to celebrate. The officials answered only docile questions and without cross-examination to friendly media. News of an adjacent disbursement was expected. The real part is that there is no new agreement, continue the agreement carried out by Martín Guzmán and then followed by Sergio Massa. The Agreement He was tired and exhausted in the last stretch of the previous government, which he carried out to the letter.
The last thing the IMF could do was let the Argentine debt moratorium take place.. It could be a catastrophe if the credit of the IMF’s most exposed client collapsed, it could cause contagions.. The international organization was extremely focused on composing and “continuing to turn Chinese dishes around.”
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The IMF canceled the 2018 rating
The idea of reviving the grade obtained by Macri of US$57.5 billion, never disbursed, precisely due to the past ineptitude of Luis Caputo 2018, which could have produced an increase in reserves, dissipating the very short-term uncertainty.
It is that the Argentina must pay to IMF US$1,915 million in January, US$763 million in February and US$1,915 million in April, adding US$ 4,592 million in the first quarter of the year. It would have been very important to achieve the contribution of a larger amount to the payments to strengthen reserves and remove pressures. Without fresh money, nothing changes, distrust grows regarding the success of the economic program and, heThe social viability of the economic scheme is doubtful.
The aforementioned “new commitments assumed” are not clear. It only transpired that The IMF seeks exchange rate unification and the lifting of the CEPO that Macri and Lacunza established in August 2019.
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A single advertisement and many inaccuracies
“The staff of the IMF will send the recommendation with the new goals…”. For now, nothing has been approved… If the Board of Directors ratifies the task of the bureaucracy – it seems obvious that this will happen – it will only be for the equivalent of the payments that they themselves will ensure they receive so as not to bear the equivalent of a default, which is being played after the Dujovne catastrophe onwards.
During the conference, inaccuracies were confirmed, Caputo He seems little interested in reading, he has expressed enormous ignorance about Argentine economic history, probably due to disinterest or periods of absence in the country. Argentina was never the power he spoke of, nor the utopia he fantasized about. Milei. Life in the Argentina 100 years ago it was a subsistence without rights or happy moments for the majority of the few inhabitants of that time.
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Painful
Finally, Bausili said that the IMF is comfortable and, what he did not say, is that society is irritated. Not only 45%, but part of those who voted for Milei. Two sides of the same coin, the brutal adjustment they established, comforts the IMF, because it exceeds its adjustment expectations, but condemns the poor and the working class to layoffs and a drop in wages, as a consequence of the phenomenal recession that has already begun. to cause suffering.
“We believe it is time for the country to resolve its financial problems.” solving their underlying structural problems, which is their addiction to excess public spending and fiscal deficitwhich is ultimately what ends up generating the problems that society later suffers,” he said shamelessly. Caputo, who in 2017 achieved the highest fiscal deficit since the Malvinas war.
When Caputo spokeor the deception of asking for money to finance fiscal deficit, he omitted to say that during the period of Mauricio Macri he was the Minister of Finance and president of the BCRA who indebted the country with new credits for 106,000 million dollars, not counting the debts in LEBAC , which later became LELIQ.
What is clear is that the IMF, which asked Mauricio Macri to kick Luis Caputo out of the BCRA, has not yet renewed confidence in him. as the private bankers and investment funds that Milei went to visit last month did not. As long as Caputo is in charge, the most appropriate thing is the slogan that they were given in the US and later transferred to cumbia, “for you “THERE IS NO SILVER”.
Source: Ambito
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