Argentina: There you go again

Our Latin American neighbors share a common history. Ever since America was conquered by the European Conquistadors, many of its native American tribes became colonies.

The Conquistadors were soldiers who pledged allegiance to a distant Empire. Back in the early 1500's, they set sail for America, with the goal of transforming the continent into a European colony.

The tactics used by European Empires were not always direct action and confrontation. Their other methods were trickery and deception, which generally occurred through trade. They would offer subpar or abundant items, such as mirrors, in exchange for scarce or more valuable items, such as gold. More sophisticated schemes involved imposing philosophies on the natives, such as giving them the option to adopt and worship their religion to continue with their lives. This literally meant forcing the natives to surrender part of their culture and identity. Refusing to accept these ideals would result in certain death.

The ultimate strategy was to subvert the American people in the interest of European empires. Among these empires were the Spanish, Portuguese and English.

Time proved that the colonization of America was essential to pillage natural resources, while coercing the natives into forced labor, making them mine precious minerals for European crowns. Just like us, most of our Latin American neighbors fought hard for their independence.

America's leadership never doubted that a nation of free, sovereign people, with Democratic and Republican principles, was the only way to go. This resolution was not only reflected in our Constitution and ideals, but also in our actions. Sure, things were still far from perfect, as slavery persisted and women rights were nowhere to be found, but the declaration of independence was still a revolutionary and progressive concept, which supported the advancement of human rights. Things would never be the same for the continent, let alone the world.

Interestingly enough, if you were to analyze the actions of some of the leaders in Latin America today, you would be appalled.

The New Conquistadors

The IMF's Managing Director, Christine Lagarde, is a modern representative of the Conquistadors. She represents the latest and most evolved scheme: the economic strangulation of nations in the interest of a few. This occurs through influencing nations to take massive debt while ordering them to inflict serious wounds to their economies.

This latest scheme has been so successful, it was possible to enforce it in the cradle of western civilization.

Just like the Conquistadors, the Managing Directors have been protected from their crimes, provided they are executed in the interest of the Empire. The IMF has always been headed by European Nationals, with a long tradition of difficulties with the law.

A recent example supporting this argument would be the perversions of the infamous Mr. Dominique Strauss Kahn. Mr. Kahn was an IMF Managing Director who thought he could continue behaving like the Conquistadors.

An even earlier example is Mr. Rodrigo Rato. The former finance minister of Spain and also deputy Prime Minister. He was just recently found guilty of embezzlement and sentenced to 4 ? years imprisonment. Mr. Rato's crime was not misleading and destroying economies in the American continent. No, his crime was attempting to do what he did in Latin America, at home, in Europe. For that, he was sentenced to prison. Had he focused in deceiving a former colony, he would be scot-free.

Ms. Lagarde herself is no stranger to scandals either. She oversaw France's Finances from 2007 to 2011, while the European economy was beginning to crumble. In 2011, she became the IMF Managing director, while being investigated for abuse of authority, due to her friendship with many powerful French businessman.

A New Colony

Ms. Lagarde has just visited Argentina, the very country I frequently write about. She has praised Argentina's president for his management of the Latin American nation. She has stated that the economic measures and policies recently implemented in Argentina have been a success, while briefly visiting the country surrounded by bodyguards.

Unfortunately, nothing could be farther from the truth. The country's economy is an absolute disaster, with no end in sight. The government has kept none of the promises made during the election campaign. To add insult to injury, the administration is corrupt beyond belief.

Just like any former colony, Argentina is a country headed by people who have little interest in their constituents. The savings and wealth of all current government officials is deposited in tax havens abroad.

Andorra, Panama, Bahamas, Cayman Islands, pick the tax haven of your choice and that's where they are likely hiding their wealth. Anywhere except the country they are supposed to support.

It is no surprise an IMF Managing Director would support Argentina's current political leadership, just like it would be no surprise the Conquistadors would do so as well. Expecting an IMF Managing Director to have a sensitive, moral and fair approach towards public finances, as Pope Francis would, is ridiculous.

Ms. Lagarde represents the Latin American people, just as much as the Conquistadors did. In fact, she not only shares heritage with the Conquistadors, but also similar intentions for the Latin American continent. As such, she went on to worship Argentina's president, for having done all the dirty work she was expected to make him do. You see, had Argentina's president been doing anything honest and righteous, she would have criticized him. But as he is creating a modern colony in Latin America, she praises him.

Why would she do this? For the same reasons the Conquistadors would.

Argentina has too many resources to be doing the right things.

For one thing, it is an agricultural superpower, being the top exporter of many crops, ranging from soybean to lemons. Its output literally feeds an important portion of the world's population. In addition, the country found Vaca Muerta during the last decade, an important tight oil and shale gas reservoir. But it also has one of the most important elements required for human life: water. Everything Europe is missing is available in Argentina, in spades.

Listening to the IMF

Ms. Lagarde is extremely happy with the economic success of Argentina's current administration.

But what exactly is she calling success? Well, for one thing, the massive tax cuts for the wealthy. This includes eliminating taxes of crop exports, which results in local people struggling to buy food, while most of it is sent abroad. This ensures Europe will receive plenty of food, while the locals struggle to feed themselves. Just by looking at the images coming from Argentina last year, when the Buenos Aires supermarkets offered limited discounts, brought memories of the food shortages in Venezuela or Africa. People queued for up to 6 hours to be able to buy food.

The country also granted huge tax cuts for the mining activity, so it can be accelerated, along with a labor reform that not only cuts benefits for the retired, but also makes it harder for employees to keep their jobs.

But the icing on the cake is the massive debt Argentina is taking. During both 2016 and 2017, Argentina was the #1 developing country in terms debt issuance, setting a new world record. While doing so, it not only dedicated huge portions of its national budget to pay ridiculous interests, but it also forced millions into poverty, setting a commercial deficit which is a new national record.

Additional self-inflicted wounds included cutting pensions for the retired and disabled, along with diluting the purchasing power of the working class. Cutting subsidies for utilities, along with increasing their prices drastically was also in the mix.

Argentina's economy is on track to repeat its history with the IMF. It is a history that Argentinians know too well, but for some reason, its leadership has forgotten.

Doing the same thing over and over again, expecting different results, is literally the definition of insanity.

There is no doubt there is a lot of it in Argentina's current administration.

If America were to need guidance from the IMF, it would definitely be the beginning of the end.

However, Argentina's leadership thinks the IMF is a good start.

The New Lies

Just this week the government published figures stating that poverty rates have dropped during 2017. The government claimed almost 2 million people left poverty last year. These figures were published by the INDEC, the same government body the President called liars less than 3 years ago, when he was in the opposition.

However, the Catholic University of Argentina, the President's alma mater, has a different opinion. Poverty during 2017 became more profound, reaching roughly 50% of children in Argentina.

But just in case you think this is good news, the government has just announced an increase of 32% for heating costs, starting as of next week, as the winter season is right around the corner. Heating costs in Argentina have increased by as much as 650% since the current government took office 2 years ago. Just imagine if those increases were benefiting foreign corporations, along with the personal finances of the Minister in question.

To make matters worse, the Minister announcing the increases is none other than the public official who keeps his wealth as far as possible from his own country. The reasons? He lacks confidence in his country. Yes, one of the most Senior Ministers in Argentina's cabinet has no problem in admitting he does not trust the country he represents.

But let us not forget the current Labor Minister, who not only employed an undocumented female worker, but also harassed her over the phone, while firing her. A true gentleman.

There is also the Finance Minister, who made a personal fortune issuing Argentina's century long debt, while concealing legal entities that profited from the people he represents. Here is a person who would make the Conquistadors look like amateurs.

To make matters worse, the Governor of Buenos Aires, considered by many as the President's successor, has just decided to remove funding for the Red Cross in Argentina, forcing it to consider bankruptcy.

The same person who promised the Argentinian electorate they would not lose anything they already had, is now forcing the Argentinian Red Cross into bankruptcy.

Meanwhile, the President aims to create a voluntary retirement plan, with the purpose of pushing thousands of professionals in government research agencies to retire. The program will include professionals in the prestigious SENASA, INTA, INTI, PAMI and other agencies. Their know-how will no longer be at the service of the public, but instead move to the private sector, at a huge cost, if not leave the country, as it happened in the past. And if you thought nobody in their right mind should be celebrating such plan, you would be right.

The Outlook

As Argentina's administration promised happiness and prosperity, it is clear that the future will be somber. The country has taken record amounts of debt. Already in a low interest rate scenario, the country allocates a considerable portion of its budget to service that debt. If rates were to increase, as planned by the Federal Reserve, the country's economy would suffer.

It is no longer a question of if, but instead a matter of when.

While taking huge debt, the administration has made good on its promise to cut taxes on the rich, allowing questionable mergers in the telecommunications and media industries, along as deregulating as much as possible its financial sector. The next step is likely to be privatizations across the board, as the debt will become too heavy of a burden for the economy. Once that happens, Argentina's education and healthcare systems will be next.

The administration has already proved it does not care much about its public education system, while paying teachers as little as possible. Argentina's education system is already being portrayed as a heavy burden that needs to be scrapped. Once that happens, the end will be near for the great South American nation.

The measures taken by Argentina's government today are reminiscent of the past, right before the 2002 crisis. Back then, the country was also negotiating with the IMF, to later go bankrupt beyond repair.

If the policies of the current administration do not change, the outcome is likely to be the same.

There is no doubt the Conquistadors are back in Latin America.

But they better watch out, as the Libertadores are bound to return as well.

Blog Website: https://chuckmccarthy.wordpress.com/

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About the Country:

Argentina has without doubt some of the most amazing landscapes in the world, from the glaciers in Patagonia to the falls in Iguazu, from the height of the Andes to the Atlantic coast, there is something amazing for everyone to see. It is a country with all climates, impressive wildlife and breathtaking sceneries. When it comes to wines, it is world-class. And did I mention the beef ? Incredible. People are extremely friendly, they love to talk and are generally wearing a smile. They are highly educated, extremely opinionated, and everyone has the courage to speak English to help you with anything. It is like taking a trip to Spain and Italy at the same time, but with a Latin American warmth you will find nowhere else. Ultimately, it is a country condemned to success, yet that success is on vacations abroad. If you have the chance to go there, do it.

About the Author:

An academic in his late 60's, who has dedicated most of his life to education. A historian that knows that history repeats itself, and each time it does, the price goes up. A romantic with a soft heart, but an unwavering voice. An American man in love with a beautiful Argentinian woman.

A traveler, who has seen the world and been to Argentina on at least a dozen occasions, in his search for a new home. A professional recruiter, who is able to find the perfect person for that crucial job. A friendly neighbor, who is always willing to help. A God-fearing man, who respects all religions as much as his own. A pacifist, who prays for peace, but knows that some things are worth fighting for.

A Professor of Law, who is not shy to have a heated debate, under the common rules of respect and within the boundaries of truth. An analyst, whose opinions are based on facts. An experienced man, who wishes to leave a better world than the one he found.

A person who welcomes your opinion, even if different from his own.

Links to previous articles:

Argentinians Unite:

www.dhirubhai.net/pulse/argentinians-unite-charles-mccarthy/

Argentinian Beauty:

www.dhirubhai.net/pulse/argentinian-beauty-charles-mccarthy/

Argentinian Courage:

www.dhirubhai.net/pulse/argentinian-courage-charles-mccarthy/

?Argentina's mo$t horrible sport:

www.dhirubhai.net/pulse/argentinas-mot-horrible-sport-charles-mccarthy/

Argentina, don't make me cry for you:

www.dhirubhai.net/pulse/argentina-dont-make-me-cry-you-charles-mccarthy/

A huge loss for Argentina:

www.dhirubhai.net/pulse/huge-loss-argentina-charles-mccarthy/

The Pope vs. the President:

www.dhirubhai.net/pulse/pope-vs-president-charles-mccarthy/

How do you imagine Argentina in 5 years?:

www.dhirubhai.net/pulse/how-do-you-imagine-argentina-5-years-charles-mccarthy/

Difference between Canada and Argentina:

www.dhirubhai.net/pulse/differences-between-canada-argentina-charles-mccarthy/

Argentina to repeat 2016 results in 2017. Results may go unnoticed:

www.dhirubhai.net/pulse/argentina-repeat-2016-results-2017-meager-may-charles-mccarthy/