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Argentina will support the Peso with international reserves

Thursday, August 22nd 2019 - 16:26 UTC
Full article 11 comments

Argentina will not allow a chaotic fall in the peso and will use its dollar reserves to bolster the currency against political uncertainty that has swept the country since the Aug. 11 primary election, Treasury Minister Hernan Lacunza said on Wednesday. Read full article

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  • Tarquin Fin

    Ooops! Guess who's talking now? Pro-market liberal “Nielsen” almost in charge of the economic transition. I wonder how long it will take for the clashes with the Ks to start.

    This could start ok but end up in disaster.

    Aug 22nd, 2019 - 06:33 pm - Link - Report abuse +2
  • Jonaz_BsAs

    “..support the peso with international reserves”

    Why not defend the peso with unicorns and easter bunnies? See, they're just as real.

    Aug 23rd, 2019 - 03:08 am - Link - Report abuse +2
  • Enrique Massot

    Not only this is a sad end to yet another experiment on textbook “free-market” recipes...for disaster.

    The government voted into office in October will need to do a balancing act in order to alleviate the pressure on people's empty pockets while facing quickly-approaching foreign debt repayment deadlines.

    This is what happens when you let the sorcerer apprentices aka 'successful businessmen' toy with a country's economy while aiming to maximize their own profits.

    Aug 23rd, 2019 - 04:59 am - Link - Report abuse -2
  • bushpilot

    Kicillof was the ultimate economic sorcerer apprentice.

    And he and CFK lied to the Argentine people, including its working class, with false economic figures.

    Macri does right by the Argentine people in this regard, and you use his honest economic figures to bash him.

    A central tenet of socialism is lying to the masses and you, being a socialist zealot, are a liar too.

    And most people are convinced that those in the Kirchner administration profited immensely by lining their pockets while running the government.

    Even you know they did this, you just stay silent about anything that makes your political ideology look bad.

    Aug 23rd, 2019 - 04:35 pm - Link - Report abuse +1
  • Zaphod Beeblebrox

    bushpilot,

    “...you just stay silent about anything that makes your political ideology look bad.”

    Facts, and their interpretation, are Enrique's kryptonite. :-)

    Aug 23rd, 2019 - 05:10 pm - Link - Report abuse +1
  • bushpilot

    ZB,

    EM was silent on the socialist revolution in Venezuela too. He, “preferred not speak on things he wasn't familiar with”. As if a socialist zealot like him didn't notice that anti-capitalist free-for-all. It just makes socialism look bad, so he stayed silent about it.

    The only time EM commented on Venezuela was to say that “Macri is leading Argentina towards the economic conditions in Venezuela”. He only brought up “socialist” Venezuela once, to bash “free-market” Macri.

    But either way ZB, at 54% inflation, and a recession, I knew Macri was finished. No matter what a bunch of polls from where-ever we no nothing about were saying. That preliminary vote is a useful mechanism, and the only poll anybody needs to give any weight to.

    A shitty economy trumps everything.

    Maybe Argentina just can't do anything besides “hand-out Peronism”.

    Those hand-outs turn people into instant believers in “social safety-net” socialism. That government check in your hand is just way too easy. But recipients of them don't grow, they become even less useful to society and in a short time are helplessly dependent on those government checks for the rest of their lives. Any attempt to check that problem results in riots which perpetuate hand-out socialism.

    So, western democracy is now “hand-out” democracy. (the U.S. and France most of all, the two main proponents of “la liberté”).

    Somebody here calls them Beggars. Others say they are not beggars. If you seek monetary assistance, if you are asking for money, if you accept that money, you are a beggar.

    “We'll give you money, and no one is aloud to tell you the truth that you are begging”.

    Never mind the truth.

    This current government in Argentina is going to prop up that Peso, no matter what the cost, to win the election. But they can't win it.

    If the Peso stays stable, EM will bang on about the high costs of that.

    If they let the Peso crash instead, EM will bang on about how worthless the Peso now is.

    Aug 23rd, 2019 - 06:57 pm - Link - Report abuse +2
  • Tarquin Fin

    bushpilot,

    Yours, I humbly state, was a very precise and accurate grasp of the situation. I almost seems as if you live down here in this sitcom called Argentina.

    I particularly liked your:

    'Maybe Argentina just can't do anything besides “hand-out Peronism”'

    That's at least something we're really good at.

    Aug 24th, 2019 - 07:02 pm - Link - Report abuse +2
  • bushpilot

    TF,

    I am sure their are millions of Argentines that are really good at earning their own way.

    These won't like high inflation either and the only other option this time is a hand-out party.

    My own experience is with socialism and handouts in the U.S., which has given itself over to handout democracy also.

    I believe an individual must be his own social safety net. Pond-scum bureaucrats and politicians just aren't going to care about you the way you are going to care about you. Actually, they have no care for you. Controlling oneself and one's future is easier than controlling low-life, lying bureaucrats and politicians.

    A human being has to wake up in the morning and go out there in the world and hustle, however and as best he can in the world he lives in.

    They can be glad they are able to depend on themselves, and not have to depend on disgusting, lying bureaucrats and politicians.

    There are exceptions to this, a few people need help, but freeloaders abuse those exceptions.

    And handout freeloaders will always believe they deserve a part of someone else's money.

    Socialism can't sustain itself forever, but, maybe it can.

    A quote we've all heard:

    “The problem with socialism is it runs out of everybody else's money”.

    France couldn't support itself anymore outside of the EU. They are a net contributor to the EU, but they still found more money for their piles of social programs by being in the EU. They still have regular riots. That is a people who are really given over to handout socialism.

    But, as long as socialism finds more money, it will go on.

    Can anybody say, “Yuan”.

    Aug 24th, 2019 - 10:57 pm - Link - Report abuse +1
  • Tarquin Fin

    bushpilot,

    You're definitely not an Ocasio-Cortez fan!! Good. I couldn't agree more with you.
    It would really be a shame if that kind of populism roots itself in the US. Watch out though. Many Venezuelans never saw it coming. Not to mention us rgies ...

    The thing is that if Fernandez and The Lady win, what money will they use to live up to the expectations of their voters?

    I just keep my hopes that Alberto will keep Cristina at bay while implementing the reforms our economy desperately needs. I know this sounds very far fetched but it is the only logical outcome since basically there is no more money in Arg.

    Who knows, Alberto wining could bring about the end of sudaca socialism.

    Hope is free anyways.

    Aug 24th, 2019 - 11:31 pm - Link - Report abuse +3
  • :o))

    International reserves? Whose? Surely, not of Argentina!

    Aug 27th, 2019 - 09:38 am - Link - Report abuse +2
  • Zaphod Beeblebrox

    BP,

    “The problem with socialism is it runs out of everybody else's money”.

    In June, the new governor of Chubut was elected, after he promised increases in salaries. Two months after his election, he now says he cannot afford to pay those salaries that he was going to increase, so he is “layeiring” the payments - people take turns getting paid. His finance minister has already resigned.

    Aug 29th, 2019 - 05:38 pm - Link - Report abuse 0

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