It is too early for clinking glasses but former Argentine president Nestor Kirchner (RIP 2010) will turn over in his grave if he is following current talks to IMF – Please yourself Nestor! Talks are for the sake of Argentine people.
In my last blogpost I informed about the dismal monetary situation in Argentina. Things may light up for the country by allowing the IMF to function as “technical assisctance” (Fincancial Times Deutschland 25-11-2010). Argentina states an inflation rate of 11%. Foreign crtics believe in more than double so IMF’s task is to evaluate a realistic value.
Because Argentina is not considered creditworty in the financial market, it has a tough time in getting new cash to support its economy. By allowing the IMF they are showing good faith for foreign investors, in order to regain creditworthyness.
This step has its opponents. Deceased Nestor Kirchner being one of them, objectors to rules and mechanisms of capitalism the other ones. Most of them consider IMF and its “partisans” as traitors to the “free world”. This Irish blog follows every of IMF’s steps and notes that IMF has done harm to poor countries for the sake of the first world.
Don’t forget one critical aspect here my dear socialists: We live in a financial world. Fish and camels are yesterday’s commodity of exchange. MONEY is today’s. If you want to survive, you need cash. This means letting in the IMF and Paris Club because you failed in setting up financial stabiltiy in your country.
Economic situation is still one of the best in the region, thanks to national consumption and production level as this article explains. Still: lots of work ahead.
Above all, people will get back living quality. If I have a toast tonight it will be to Nestor, moving in his grave. Cheers.