• FuckyWucky [none/use name]@hexbear.net
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    5 months ago

    The aim of the loan is to indebt Argentina so much that its currency will continue to go down and down and down, essentially wrecking the economy. That’s what the IMF does. That’s its business plan. It makes a loan to subsidize capital flight, emptying out the economy of cash, leading the currency to collapse, as it is recently collapsed. As soon as the $50 billion was expended, or wasted, in letting wealthy Argentinians take their pesos, convert them into dollars, move them offshore to the United States, to England, to the Dutch West Indies, and offshore banking centers. Then they let the currency collapse so that the IMF model, which it’s announced for the last 50 years, the model is if you can depreciate a currency what you’re really lowering is the price of labor.

    The right wing Chicago School propagandists keep claiming that if a country’s сurrency is depreciating, it must be because its prices are going up. But that gets the line of causality inside out. For debtor countries such as Argentina or other Lаtin American countries, the balance of payments has little to dо with domestic prices, domestic wage rates or domestic cost of production. The balance-of payments – and hence, the exchange rate – is swamped by debt sеrvice.

    https://www.nakedcapitalism.com/2018/07/michael-hudson-argentinas-new-50-billion-imf-loan-designed-replay-2001-crisis.html

    • Tom742 [they/them, any]@hexbear.net
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      5 months ago

      I read this in Michael Hudsons voice, then saw in the link that it was a quote from him, lol.

      It’s definitely well worth the time to read Hudsons analysis if anyone finds this stuff interesting and wants to learn more.