Thursday, February 2, 2023
  • About Us
  • Contact Us
Parliamentobserver
  • Ecology
  • Economy
  • Healthcare
  • Politics
  • Education
  • Business
  • Login
No Result
View All Result
Parliamentobserver
Home Economy

Argentina’s Economy Collapses

Dennis Rogers by Dennis Rogers
September 29, 2022
in Economy
0
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

Argentina’s economy has collapsed. Around 57% of adults in the nation are currently unemployed. The Socialist nation has programs in place to compensate, costing the country around $6 million daily. However, socialism no longer works when you run out of other people’s money. July’s inflation report showed an uptick over 60%.

Related posts

Biden could reduce inflation, mitigate a recession, and strengthen democracy with a new EU-US trade agreement

Biden could reduce inflation, mitigate a recession, and strengthen democracy with a new EU-US trade agreement

September 29, 2022
Recent trends in global value chains and beyond

Recent trends in global value chains and beyond

September 29, 2022

Harry Lorenzo, chief finance officer of Income Based Research, told The Epoch Times, that the government’s constant spending has exacerbated the problem ten-fold. “The Argentine government has been grappling with a collapsing economy for some time now. The main reason for this is the government’s unsustainable spending, which has been funded in part by generous welfare programs,” Lorenzo stated. This is the same issue we see in the US, Canada, Europe, and elsewhere when governments spend without the intention of ever paying off their debt.

Argentina has defaulted on seven separate occasions since gaining independence in 1816. Speaking more recently, Argentina’s economy was already in ruin in the 1980s when they faced a serious debt crisis, and the currency became worthless. Inflation reached 2,600% in 1989, and the nation experienced hyperinflation into 1990. They decided to peg the Argentine peso against the USD in the late 1990s, which proved disastrous. Never in the history of economics has a peg survived because the economy is not a flat line.

By 2001, the peso was completely devalued. US Treasury bonds and Argentine government bonds rose 5,000 bps – bank runs ensued. There was an immediate freeze on bank deposits that December and the people were left with nothing. The International Monetary Fund simultaneously announced it would no longer support Argentina and cut them off from funding. This is when the nation lost its last tie to any foreign capital. The nation had no choice but to default once again at the end of December.

Various leaders, whoever could stick with the job, promised that the government would provide the people with basic needs. Nearly 60% of the nation was below the poverty line by 2002. By 2010, Argentina restructured 92% of its debt. The nation tried to remove trade restrictions and attract investors – but who would want their debt? The IMF granted Argentina one of the largest bailout packages in history in 2018, which totaled $57 billion. The IMF again agreed to restructure $44 billion for the nation in January of this year.

The problem with social programs is that there is never enough money. Rising inflation has increased the poverty level, and the average person can no longer afford an abundance of basic necessities such as food. The people of Argentina have been on strike for months, many refusing to work. The government promised them social programs in exchange for a cut of their pay. Argentina’s economy minister, Martin Guzmán, resigned at the beginning of the month. The Argentine peso continues to decline against the dollar, pushed down further by recent Fed rate hikes. This is what happens when governments spend recklessly, peg their failing currency, and promise the people security that they cannot provide.

The post Argentina’s Economy Collapses first appeared on Armstrong Economics.

Previous Post

Market Talk – July 29, 2022

Next Post

Uncensored: Martin Armstrong – Hell in 2023, Recession, Civil Unrest but Schwab Will Fail!

Next Post

Uncensored: Martin Armstrong – Hell in 2023, Recession, Civil Unrest but Schwab Will Fail!

RECOMMENDED NEWS

The war in Ukraine triggered a global food shortage

The war in Ukraine triggered a global food shortage

8 months ago
Thoughts about sexual assault on college campuses

Thoughts about sexual assault on college campuses

1 year ago
An Easier Solution for Rupee-Ruble Payments

An Easier Solution for Rupee-Ruble Payments

10 months ago
Mental Health in the Start-Up Scene: The Economic and Political Implications

Mental Health in the Start-Up Scene: The Economic and Political Implications

1 month ago

BROWSE BY CATEGORIES

  • Business
  • Ecology
  • Economy
  • Education
  • Healthcare
  • Politics

POPULAR NEWS

  • Klaus Schwab – The Most Dangerous Man in the World

    0 shares
    Share 0 Tweet 0
  • Ukraine Adopts WEF Proposals

    0 shares
    Share 0 Tweet 0
  • Dr. Robert Malone v WEF

    0 shares
    Share 0 Tweet 0
  • Trudeau’s Approval Rating Hits 12-Month Low

    0 shares
    Share 0 Tweet 0
  • Trudeau Backs Down After Banks Scream about Massive Withdrawals

    0 shares
    Share 0 Tweet 0
Parliamentobserver

We bring you latest news about ecology, economy, healthcare, politics, education, business.

Recent News

  • Starting Up: A Look at the Most Interesting Websites for Entrepreneurs and Startups
  • The Role of Healthcare Advertising in Shaping Economic and Political Decisions
  • Mental Health in the Start-Up Scene: The Economic and Political Implications

Category

  • Business
  • Ecology
  • Economy
  • Education
  • Healthcare
  • Politics

Recent News

Starting Up: A Look at the Most Interesting Websites for Entrepreneurs and Startups

Starting Up: A Look at the Most Interesting Websites for Entrepreneurs and Startups

January 18, 2023
The Role of Healthcare Advertising in Shaping Economic and Political Decisions

The Role of Healthcare Advertising in Shaping Economic and Political Decisions

January 3, 2023
  • About Us
  • Contact Us

© 2022 parliamentobserver.com Submit news release

No Result
View All Result
  • Ecology
  • Economy
  • Healthcare
  • Politics
  • Education
  • Business

© 2022 parliamentobserver.com Submit news release

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In