Argentina's central bank hikes rates to 60% as the currency collapses

[brooklynite]

Source: CNBC

Argentina is struggling to cope with yet another financial crisis.

Investors are increasingly concerned Latin America's third-largest economy could soon default as it struggles to repay heavy government borrowing. This comes after Argentina's government unexpectedly asked for the early release of a $50 billion loan from the International Monetary Fund (IMF) on Wednesday.

The Argentine peso crashed to record lows on the news. It saw steep losses in the previous session and collapsed another 15 percent to hit 39 pesos against the U.S. dollar on Thursday morning.

The peso is down more than 45 percent against the greenback this year, exacerbating pre-existing fears over the country's weakening economy while inflation is running at 25.4 percent this year.

Read more: https://www.cnbc.com/2018/08/30/argentina-crisis-peso-crashes-to-record-low-amid-imf-plea.html

[DBoon]

1. With all Venezuela's problems

It must be said that right wing governments are also capable of serious ecenomic mismanagement

[sandensea]

2. Certainly. Macri pursued Bush-style financial deregulation, and naturally got a Bush-style collapse.

Except, of course, that Argentina doesn't have a Fed that can print $20 trillion out of thin air to paper over the losses (and thank goodness they did).

[sandensea]

3. Macri was warned of the dangers of stoking a bubble - but fired anyone who tried to tell him.

https://www.democraticunderground.com/110856500

No wonder he and Cheeto are such good friends.