Posted on 10/24/2017 2:54:17 PM PDT by Jagermonster
SHIFT IN THOUGHT In a world awash in red ink, Argentina’s reforms since 2015 show how attitudes can shift toward excessive debt.
The world’s largest economies are awash in red ink, the International Monetary Fund reported in October. And they are hard-pressed to service their debts, which on average amount to more than twice their domestic output. China accounts for much of this global rise in debt. After a leadership reshuffle this week, Beijing may start to finally tackle the problem. But one country in particular, Argentina, has shown how to change attitudes and turn around an unhealthy dependence on debt-fueled spending.
In 2001, after decades of subsidizing basic services in order to win elections, populist leaders in Argentina decided to stop paying foreign creditors. The debt default was the largest in modern history. The country saw a run on its banks. Inflation ballooned and the economy deflated. The government started to lie about economic statistics. Once one of the world’s wealthiest countries, Argentina dropped to 66th.
In 2015, voters elected a new president, Mauricio Macri, who promised to tackle the debt crisis and make Argentina a “normal” country. The former engineer and Buenos Aires mayor cut energy subsidies, ended currency controls, and started other reforms that have allowed Argentina to win back the favor of international financial markets. The economy is expected to grow 2 to 3 percent this year. Inflation is down by half.
In midterm elections on Oct. 22, voters endorsed Mr. Macri’s reforms, showing an appreciation for the idea that social services should not be paid by excess borrowing. Macri’s Cambiemos (Let’s Change) coalition picked up seats in the Senate and lower house. It became the first party since 1985 to win in Argentina’s five largest electoral districts.
(Excerpt) Read more at csmonitor.com ...
” China accounts for much of this global rise in debt. “
Debtors blaming their creditors for being foolish enough to lend them money?
Gee, if only the price of oil hadn’t gone down, Venezuala would be just as prosperous as it always was.
Argentina has to try really hard to be poor. Its a big country, blessed with generally smart spanish and italian immigrants.
Debt is s symptom. Kirchner was an utter disaster. The woman looked like an aging hooker running a brothel, and treated her country the same way.
She single-handedly destroyed several export industries such as beef, pork and fruits with Venezuelan-style, Marxist whims on production planning and making product available “for the poor.”
Excuse the typo for “Venezuela.”
Maceman regrets the error.
I suppose we ought not think too hard about where the money is coming from...
I know Argentina, it is a lovely country. Be that as it may, if you could buy an Argentine for what he is worth and sell him for what he thinks he is worth, you would be a millionaire.
They're talking about the rise of Chinese debt in China.
Massive debt is a tool of the elites to economically enslave entire populations.
It's all part of the plan.
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