Argentina Gets Biggest IMF Loan in History

Michael Hudson: Argentina Gets Biggest IMF Loan in History | naked capitalism

Hudson, as usual , totally nails it, invoking Plato:

"The madness of this was spelled out over 2000 years ago. In Book I of Plato’s Republic you have Socrates arguing against the idea that all debts should be paid. He asks, what if you borrow a weapon from a crazy person, and he asks for it back. Should you give him a weapon if he’s likely to hurt people?
This applies to creditors in general: Should you pay off debts if the creditors are going to use their money to impoverish society and reduce people to debt dependency? That’s what the Republic is all about. We’re still dealing today twenty four hundred years later with the same issue.
The issue is: what should come first: the people’s welfare, or that of creditors?"
 
IMF are snakes. How can a gov't so deep in trouble pay back $50 billion in 3 years. Many national assets and companies will be privatized and the severe austerity measures forced by IMF will cripple Argentina further.
 
So the US was behind this... not surprised:farmajoyaab:.

Does creating millions to debt dependency, mass poverty, de-industrialization, supporting an oligarchy and economic collapse help another country get richer? The US. with its buddy IMF has been doing this for decades and the benefits seem to be short-lived.

At least China's motto of helping other nations do better and thus benefiting themselves strategy seems to be more of a common sense and mutual beneficial way of both prospering in the long-term.

Prospering and getting wealthier shouldn't be a zero sum game.
 
IMF are snakes. How can a gov't so deep in trouble pay back $50 billion in 3 years. Many national assets and companies will be privatized and the severe austerity measures forced by IMF will cripple Argentina further.
Just another failed version of Greece it seems like. It drove them further into poverty whereas in Ireland it has actually helped them. It’s how they use it. If they’re lucky enough they’ll remove some of the loans.

I wonder what’s Somalia’s debt from all IGOS?
 
Just another failed version of Greece it seems like. It drove them further into poverty whereas in Ireland it has actually helped them. It’s how they use it. If they’re lucky enough they’ll remove some of the loans.

I wonder what’s Somalia’s debt from all IGOS?
Listen to the podcast, the US has played a part in this disaster..

" In Argentina it was called the Dirty War. The Americans came in and applied the Chicago School economic principle that you can only have a free market if you’re willing to assassinate labor leaders, land reformers and university professors. Tens of thousands of Argentine reformers were tortured and killed to put the oligarchy in power and slash taxes on high incomes. Their tax laws make Donald Trump look like a moderate. And like most financial elites, they took the money and ran, putting their takings offshore in Argentina dollar bonds."

The affects of this is still present..
Most 3rd world countries seem to get the short end of the stick when dealing with the IMF.

Check out this on why Ireland survived their crisis and Greece didn't. It seems their economies and problems are very different.
Greece is not Ireland – and it’s not just about the economics

You're right, Argentina is gonna play out like Greece, they both have oligarchies controlling the economy.



 

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