Argentina, like every country, is its own unique beast with a distinct set of political, economic, and historical issues that tend to render its economy a bit of a consistently inconsistent mess. There’s no one explanation on why it is the way it is, or how to fix it. But it’s worth backing into the bigger picture here, an issue that matters whatever the context: the question of institutional trust.
If you can’t rely on your bank to have your money when you need it or your government to keep things stable, it can wreak all sorts of havoc on society and on the economy. Just look at what happened in the US with Silicon Valley Bank’s collapse. It’s sparked widespread concern about the soundness of the US banking system despite the federal government’s best efforts to shore up confidence. The fear of contagion is strong, as America’s crisis is now spreading into Europe and the risk of recession seems to be on the rise once again.
Having been out of country just ONCE.....i was intrigued with this article....a BIG thing to bat around.
Argentina has also been Saber rattling about the Falkland Islands, maybe to divert attention from economic issues? They want to abandon the peace deal and take back the Islands. Would be a good time with the UK giving so much military equipment and supplies to Ukraine. The Brits might find it a lot tougher to re-occupy the Falklands after they have been seized by the Argentine military.
Thomas Sowell: There are no solutions, just trade-offs.
