Why should Argentina repay the money it borrowed? **Debt tossing and turning.
The only reason why Argentina is famous is inflation!
In other countries, inflation is in the single digits, but in Argentina, it is in the triple digits.
Unthinkable inflation has become the norm in Argentina.
This is due to the fact that successive Argentine administrations have "managed with care", and for several generations they have set one glorious record after another in such a "glorious" work as inflation.
However, even as Argentines, they could not accept such an "honor", let alone a foreigner.
As soon as Milley became Argentina's **, Argentina's inflation rate soared to 255%, the highest ever!
If you add up the inflation rate for the whole year, it's 211The inflation rate of 4% is "astronomical".
Milegan first resorted to massive curtailments** spending and a strict budget to control the "monster".
However, the monster didn't seem to buy it, and instead of showing mercy to his men, he slapped Millay in the face.
Milley was a little furious by such "arrogant" inflation.
In the end, he couldn't hold back any longer and said a sentence that had been held in his heart for a long time: let the Argentine ** bank close!
Thinking of this, everyone was confused. Isn't it a bit radical to close the ** bank?
Argentina's ** bank has not been able to control inflation for several years, but if it is really closed, then Argentina's financial system, won't it collapse?
But on second thought, Milley wasn't without reason. Banks have been doing it for so many years, saying they want to control inflation, but really control inflation?
When the time comes, it is not every day that you have to give in and let inflation continue to spread. Instead of raising the ** bank, it is better to simply close it, and save him more money.
Moreover, in the early years of his administration, Mr. Milley also vigorously pursued a draconian economic policy to combat inflation.
But inflation doesn't care, but because he is the new president, he is even more arrogant, so he will let him know how powerful he is.
Milley was so angry that he decided to teach this "bully" who looked down on him for so many years desperately to teach him a lesson.
Milley naturally knew that his own anger alone would not allow the ** bank to fail.
But his words are a good signal that if inflation continues to worsen, then don't blame him for being ruthless.
Now it seems that Milley's various countermeasures against inflation have not had much effect.
However, his vision was to save Argentina from inflation and turn it into an ordinary rich country.
In order to realize his ideals, it is as if he is fighting to the death against inflation.
The International Monetary Organization provided Mr. Milley with "life-saving money", which was like a timely rain for Mr. Milley. But can these funds really be a "life-saver"? How long can it last?
The International Monetary Organization (IMO) injected $4.7 billion in liquidity into Argentina, much of it to help it pay its maturing debts.
This fund worth 4.7 billion is simply a timely rain for Argentina's **, which can temporarily ease their situation.
However, this money is only a drop in the ocean compared to Argentina's huge foreign debt.
Argentina now has 44 billion in debt and almost no foreign exchange reserves, which is just a small drop of water for the "sea" of Argentine debt.
If the money is used to pay the debt, it will be temporary, and it will not be long before the money disappears like a bubble and the Argentine's debt will be in trouble again.
Since these funds will be quickly depleted, will Argentina be able to find a way to "nurture" them and make the most of them?
This method has long been used by Argentina, that is, "to repay new debts with new debts".
Whenever it was time to repay, Argentina borrowed everywhere and used the new borrowing to pay off the old debt.
He is like a gambler, and whenever he loses everything, he goes to a new creditor to pay off the old debt.
Argentines have been using this method of borrowing new money to pay off old debts for more than 20 years, and they are as skilled as professional gamblers.
But such days did not last long, Argentina has lost its credit, and no one wants to lend to them anymore.
The $4.7 billion in "life-saving money" provided by the International Monetary Organization to Argentina this time is likely to be the limit of what it can easily borrow.
For Argentinians, this is a gamble within a gamble, and how long they can hold on depends on the Argentine's own luck.
Argentina owes so much money and now it is starting to pay its debts again, what is the situation?
Argentines are a textbook approach to debt, and the most important thing is to never take money seriously.
Argentina declared its debt in arrears in 2001, totalling $150 billion.
In the face of huge debts, the Argentines have come up with a peculiar way of repayment: only 30% of their par value!
It's like someone borrowed 100,000 yuan, and then suddenly jumped up and said righteously: "I only need to pay you back 30,000, and the remaining 70,000 yuan will be regarded as a friendship exchange between us!" ”
The other creditors felt very uncomfortable, but they thought that talking was better than nothing, so they had to agree with tears.
Argentina began a nationalization of the country in 2003, which was supposed to be a good opportunity to pay off its debts.
However, most of the money on the left is used to improve people's livelihoods, not the economy.
As a result, Argentina is facing multiple political changes with high inflation and constant devaluation.
But no matter who governs Argentina, it has not been able to reverse this decline, and the debt problem has never been properly addressed.
After Fernandez came to power in 2019, he once again launched the process of privatization of state-owned enterprises.
He borrowed money from the International Monetary Organization, which was the only way to alleviate the current crisis.
But two years later, when it was time to repay, Argentina's foreign exchange reserves were running out.
There is no way, Argentina can only regret it again.
Argentina has been using new debt to pay off old debts for more than 20 years.
Countries take turns in power, but when it comes to solving the debt problem, it is the same, that is, perfunctory.
In fact, Argentina still has the money to pay off its debts, and with their agricultural technology and their economic development, it is not difficult to pay off their debts.
They would rather live in fear than take their debts to heart.
Argentina's more than 20-year history of "circular defaults" can be seen as an act of betrayal responsible to its nationals.
Will Mr. Milley be able to end Argentina's 20-year record of defaulting on its debt and restore Argentina's vitality?
Argentina has been inflationary for many years, and it looks like a curse that has left several generations helpless.
Can Milley end the pain caused by inflation in Argentina?
Inflation in Argentina looks hard to solve, but it's not for nothing.
The biggest problem is that Argentines have long distrusted their currency, and as soon as they get their paychecks, they exchange them and keep them at home.
Only domestic money flows in the market, creating a lack of foreign exchange reserves and uncontrollable inflation.
In the last 20 years, neither the left nor the right has been able to deal with this issue thoroughly.
People on the left are distributing social resources, and people on the right are making private investments, which has led to inflation and a sharp drop in foreign exchange reserves.
Now, when Melly takes office, he's embarked on a series of powerful moves to slash spending in an effort to curb inflation.
But instead of slowing down, inflation has reached new peaks. Milai was also so angry that he simply sealed the ** bank.
Mr. Milley is so extreme, in part, because of his inability to do anything about successive **s.
But anger alone is not enough to remove the curse of inflation, and Mr. Milley needs to recognize the root of the problem.
Milley still has a long way to go, and it remains to be seen whether inflation in Argentina will end smoothly.
Argentina, as an old giant in South America, has to be said to be a regrettable thing.
In the past few years, successive generations have caused Argentina to lose its original property, and the people have had a difficult life, which is constantly changing on the surface, but in reality it is stagnant.
Neither the left nor the right has failed to address the root cause of Argentina's downturn.
There is speculation about whether Mr. Milley will be able to end Argentina's years-long inflation and debt woes.