{"id":37293,"date":"2018-09-03T08:28:19","date_gmt":"2018-09-03T13:28:19","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37293"},"modified":"2018-09-03T08:28:19","modified_gmt":"2018-09-03T13:28:19","slug":"argentine-president-admits-more-poverty-to-come-announces-price-controls-higher-taxes-smaller-govt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37293","title":{"rendered":"Argentine President Admits &#8220;More Poverty&#8221; To Come, Announces Price Controls, Higher Taxes, Smaller Govt"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-09-03\/argentine-president-admits-more-poverty-come-announces-price-controls-higher-taxes#comment-12302400\"><span class=\"field field--name-title field--type-string field--label-hidden\">Argentine President Admits &#8220;More Poverty&#8221; To Come, Announces Price Controls, Higher Taxes, Smaller Govt<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"2073\" data-gtm-vis-first-on-screen-2077925_22=\"2073\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<div class=\"a2a_kit a2a_kit_size_32 a2a_default_style\" data-a2a-icon-color=\"#222\">\n<div>Having been told by The IMF that he must stop using their bailout funds to prop up his currency (which has been utterly futile), Argentine President Mauricio Macri addressed the troubled nation this morning to announce his plans to satisfy Christine Lagarde&#8217;s demands in order to receive the next tranche of bailout cash sooner.<\/div>\n<\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>Things have not worked out so well since The IMF &#8220;bailed them out&#8221;&#8230;<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-09-02_8-55-18.jpg?itok=FPoOVwDV\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/2018-09-02_8-55-18.jpg?itok=FPoOVwDV\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-09-02_8-55-18.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018-09-02_8-55-18.jpg?itok=FPoOVwDV 1x\" alt=\"\" width=\"500\" height=\"262\" data-entity-type=\"file\" data-entity-uuid=\"dc5da23d-013b-4346-aaee-aabdf3249a7a\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>In his address, there was good news, bad news, and ugly news.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/macri.png?itok=ZdmSAO40\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/macri.png?itok=ZdmSAO40\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/macri.png\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/macri.png?itok=ZdmSAO40 1x\" alt=\"\" width=\"500\" height=\"283\" data-entity-type=\"file\" data-entity-uuid=\"77a13d29-7c2e-467e-a165-8e6e32e67df9\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p><em><strong>&#8220;Everyone has to make sacrifices,&#8221;<\/strong><\/em> Macri implored of his nation&#8217;s citizens &#8211; who have lost 50% of their wealth year-to-date due to the collapse of the peso, which he also attributes to <strong>being &#8220;exaggerated by Turkey and Brazil weakness.&#8221;<\/strong><\/p>\n<p>Having<strong> blamed &#8220;mostly external factors&#8221; <\/strong>for the collapse of the economy (not bingeing on too much dollar-denominated debt in order to manufacture a smoke-and-mirrors-based boom), Macri notes that investors &#8220;have started doubting&#8221; Argentina&#8217;s ability to function.<\/p>\n<blockquote><p><u><strong>The Good News<\/strong><\/u><\/p>\n<p>Macri has promised to dramatically<strong> shrink the size of the government, eliminating several ministries entirely<\/strong>, adding that Argentina must <em><strong>&#8220;set a goal not to spend more than we have.&#8221;<\/strong><\/em><\/p>\n<p><u><strong>The Bad News<\/strong><\/u><\/p>\n<p>In an effort to close its budget gap, Macri will <strong>raise taxes on its one positive economic attribute &#8211; its exporters<\/strong>.<\/p>\n<p><strong><u>The Ugly News<\/u><\/strong><\/p>\n<p>Amid the hyperinflationary regime shift that is occurring, <strong>Macri will resort to price controls of some essential foods<\/strong>. When has that ever ended well.<\/p><\/blockquote>\n<p>All of which, as Bloomberg notes, is intended to <strong>signal a shift in the government\u2019s strategy as it heads into talks on Tuesday with the International Monetary Fund to speed up the disbursement of cash from a $50 billion credit line<\/strong>.<\/p>\n<p>Macri is now caught between the &#8216;rock&#8217; of pleasing investors by cutting spending, and the &#8216;hard place&#8217; of ensuring that the belt-tightening of austerity doesn\u2019t cause social upheaval ahead of next year\u2019s election.<\/p>\n<p><strong>These measures, Macri warned &#8220;will lead to more poverty.&#8221;<\/strong><\/p>\n<p>For now, the peso is stable (modestly weaker)&#8230;<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Argentine President Admits &#8220;More Poverty&#8221; To Come, Announces Price Controls, Higher Taxes, Smaller Govt Having been told by The IMF that he must stop using their bailout funds to prop up his currency (which has been utterly futile), Argentine President Mauricio Macri addressed the troubled nation this morning to announce his plans to satisfy Christine [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2251,40,6177,413,418,434,21502,4318],"class_list":["post-37293","post","type-post","status-publish","format-standard","hentry","category-economics","tag-argentina","tag-austerity","tag-christine-lagarde","tag-hyperinflation","tag-imf","tag-international-monetary-fund","tag-mauricio-macri","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37293"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37293\/revisions"}],"predecessor-version":[{"id":37294,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37293\/revisions\/37294"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}