“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” 

Thomas Jefferson

In an

Economic Hole

STOP DIGGING!

Argentina Wins $50 Billion in IMF Backing to Bolster Economy

Argentina secured a $50 billion stand-by arrangement from the International Monetary Fund to help restore investor confidence as the government takes aim at double-digit inflation and a widening budget deficit. 

The rescue program’s size, which would run for 36 months [DYI: IT WILL GET EXTENDED], is the largest ever in IMF history though it will depend on how much the government taps. It comes amid an emerging market sell-off that has shaken developing economies around the world including Brazil, Turkey, Indonesia and Mexico and has forced central banks to hike interest rates. 

Officials are worried about the risk of contagion amid rising U.S. interest rates and a strong dollar. With the Federal Reserve tipped to raise rates when it meets next week, central bank governors of India and Indonesia this week called on the Fed to be mindful of its actions. 

Of the economies that have been hit hardest, Argentina tops the list. It has indicated it plans to draw on the first tranche of the program, after which it will treat the loan as precautionary, the government said in a statement. 

President Mauricio Macri initiated talks with the IMF on May 8 -- a decision that could cost Macri crucial votes in next year’s presidential election.  

The Fund is unpopular in Argentina and blamed by many citizens for the nation’s historic debt default in 2001 and the ensuing economic crisis.

DYI:  Argentina didn’t win anything but a postponement of the day of reckoning when their government’s debt pyramid house of cards goes tumbling down along with the Argentinian economy.  When you are in an economic hole whether it is a business, government or individual the first thing you do is STOP DIGGING.  Piling on debt with more debt when you can’t pay off the original debt is absolute insanity!  But alas here is how this scam works – and yes people it is a SCAM – the money the International Monetary Fund [IMF] loans is from the major first world governments.  That’s right taxpayers money’s is used so that the banker’s money principal and interest is paid.  Nothing less than a bankers BAILOUT!

What should Argentina do?  The same procedure a family would do when caught in this money trap.  First they will have to cut back on spending to not just balance the budget but create a surplus [5% per year] to paying down the debt.  Add on a national sales tax to bolster revenues without harming savings and capital formation for current and future businesses.  Their federal debt will have to be restructured extending the maturity date of the loans along with interest rate reductions.  If the bankers scream put in ear plugs and place them securely on ignore!  And kick the IMF scammers out of Argentina!

No doubt this would be long hard battle for the elite bankers will resort to bribes, blackmail, intimidation, slander, and use of intelligence services for psychological operations to get their way.  Argentina will need hard core Patriots to move their country back to a sound currency.

DYI