One year after our current neo-con government went to the IMF for its first loan, here are three screenshots which clearly demonstrate the terrible damage which our government of criminals and that financial terrorist entity have done to my beloved adopted country.
People's Exhibit One
above, shows that one year ago the wholesale rate for buying US dollars was about 23 pesos, and the prime rate was 40%. Today, it takes almost 45 pesos to equal one dollar, and the prime rate is an incredible 73%. We'll come back to that incredibly, ridiculously high prime rate in a bit, but for now, on to the next slide...
People's Exhibit Two
above, shows that before borrowing from the IMF, Argentina's risk of default, as estimated by JP Morgan, was 489 and the National Debt was 57% of the Gross Domestic Product. Today JP Morgan estimates our risk of default at 917 and the National Debt is up to 86% of Gross Domestic Product.
People's Exhibit Three
above, shows that nine months ago Argentina's economy was growing at an annual rate of 1.5% and today it is shrinking at an annual rate of 5.3%
Not Shown
is the fact that the inflation rate was 2018 was 53%, and we are showing a steady 4%+ inflation rate per month so far in 2019. Also not shown is the fact that a liter of milk now costs more than a liter of premium gasoline. For reference of those not familiar with metrics, a liter is roughly one quart, a fourth of a gallon.
About That Prime Rate
Right, so, back to that 73% prime rate. The idea is that offering a stupidly high interest rate on pesos will encourage those with capital to leave their money in pesos, rather than converting it to dollars, and that this will reduce demand for dollars, preventing the exchange rate from climbing higher. But stop and think what that is doing to those who bought a home with a variable rate mortgage. Yes, that's right! They're getting savagely buttraped until their asses bleed.
( All pictures above are my own screenshots from a livestream by Argentine TV station C5N, to whom I owe sincere gratitude for their courage and persistence in the face of terrible persecution. )
never trust IMF.
There is a lot of truth in those three words :)