Mortal Help: How the International Monetary Fund destroys the economies of countries

The president of Argentina, Mauricio Macri, said he had agreed with the International Monetary Fund to grant credits worth US $ 50 billion (R $ 234 billion).

The Buenos Aires financial assistance program ends in December 2019. Analysts believe this is the exact date of the moratorium that will destroy the country's economy. Apparently the IMF understands this too.

According to more optimistic estimates, inflation in Argentina will reach 32% this year, although the government has promised it would not exceed 15.7%. The country's GDP, instead of the expected growth of 3.2%, is decreasing by 1%.

In this difficult situation, in order to increase its chances in the upcoming presidential election, Macri is trying to prove to everyone that, thanks to another loan from the IMF, investors will believe in the ability to pay in Argentina and return to invest in the country. .

Meanwhile, both the investors and the president of Argentina and the IMF realize that when the time comes to pay off the debt, Argentina will give a moratorium, canceling all its obligations. This is the main objective of the IMF: as soon as a country is flooded with debt due to the credits granted, it will be possible to buy all its assets at a very low value, to sell them to "certain" investors.

It is worth noting that such an IMF scheme had already been applied in Argentina. In the 1990s, Domingo Cavallo, the country's Foreign Minister and Economy, pursued several monetary reforms, more precisely linked the Argentine peso to the dollar, announced the massive privatization of public property, as well as exempted foreign investors from taxes a period of 5 to 25 years.

The measures led to an improvement in the economic situation and the IMF encouraged Cavallo's actions by granting country credits to pay off the old debts. However, when Brazil devalued its currency in 1999, the investors transferred all their capital to the neighboring country, leaving Argentina.

At that time Argentinian domestic companies were stitched by foreign competitors. And in 2001, the country was unable to pay the bonds on time, encouraging creditors to sell their bonds. Then the fund announced that it was too late to save the country from bankruptcy and refuse another tranche.

The "successes" of the IMF in the devastating national economies are not limited to Argentina. It is worth remembering the year 1997, which became a real nightmare for Southeast Asia.

The "Asian crisis" followed a boom in investment, fueled by borrowed funds and surplus economic opportunities. In Thailand, for example, as a result of huge investments in the construction sector, the supply on the real estate market exceeded demand considerably.

The IMF welcomed the economic wonder & # 39; However, in mid-1997 the Thai national currency was attacked by speculators and began to decline rapidly. Then the collapse of the bond markets collapsed in other countries in the region: Malaysia, South Korea, Indonesia, Japan.

The then Malaysian president Mohammed Mahathir quickly identified the source of financial attacks and ordered the closure of the IMF branch, which expelled all fund experts. Other countries remained loyal to the international lender and promised to comply with the IMF requirements in exchange for credits to restore the economy.

Perhaps the case in South Korea is the most illustrative. In exchange for a loan, the government agreed to sell the assets of the two largest banks of the country to foreign companies, to give foreign financial organizations the right to carry out transactions without restrictions in the country.

In addition, Seoul canceled the ban on land sales to foreigners and eliminated the traditional form of activities of the family businesses of chaebol, which accounted for almost a third of GDP. The economy has been reclaimed, but now it is almost completely controlled by US capital.

Another example comes from Africa. When the authorities of Rwanda asked for financial help from the IMF after years of severe drought, the country received a loan under extremely harsh conditions. The government had to end the support to the farmers and devalue the national currency, so that foreign investors could buy land for a low value. Liberal reforms have led to hyperinflation, an increase in government debt increased fivefold and the transfer of agricultural land to Western companies.

The second largest debtor of the IMF, Ukraine, can hardly expect improvements in its economy. Kiev's foreign debt after the 2014 coup increased from 76.5% to 122% of GDP, despite the fund's claims.

Now the IMF demands that the Ukrainians pay for the debts of the government and announces an ultimatum: authorities should almost double the gas price for the population, otherwise they will not receive a new tranche.

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