This is a brief thread to talk about Argentina's upcoming financial crisis.
tl,dr: Argentina is fucked
The roots of the crisis:
1. Argentina only produce primary commodities (farming. mostly onions. Also some mining.). It
2. Argentina can't produce any industrial products since we can't compete with China's slave driven industry. So nobody invest their money since it s a lost cause.
Hence, there are no jobs for us.
Farming is mostly made by machines and a small group of people own the land and/or the rights to use it. That also allows the feudal lords (aka the governors of the inner states), to hold a thight grip on the country.
So most of us can only get a job in the commercial area (bringing those producst mae by the chinese), or in those service industries (law firms, financial consultants firms, macdonalds, bla, bla)
What was the "solution"? create jobs inside the goernment. At the end of Cristina Fernandez's administration, 1 out of 4 Argentinians worked for the government. 10 million people. Even with onions on the rise, all the money she collected by income tax was not enough. So she had to print a lot a money. That gave us a nasty inflation
Now with Macri, he decided to let that stay (since there are no other jobs), but instead he place a bunch of treasury bonds, in order to lower the real amount of paper money in the economy. That worked for a while, but onions prices fell and he didn't want to print more money to fight inflation, so he created a bunch of taxes. (he also lower some other, which he promised during his campaing, but actually he only replace them) one of tose taxes was an income tax to the financial revenue (AKA the interest you would have gain from the treasury bonds) continue...
