September 10, 2018 in News by RBN Staff





In case you were wondering why Argentina hit the ‘full panic’ button late last week with interventions and promises of “painful” austerity to solve its currency collapse crisis, look no further than this chart…

As Bloomberg notes, Argentines pulled about $490 million dollars from personal savings accounts in the final two days of August, when the peso reached a record of 41.6 per U.S. dollar.

This is the biggest drop in 15 months as Argentina’s Reserves have tumbled back to pre-IMF bailout levels…

It is evidently very clear that the collapse of the Argentine peso is making the country’s citizens nervous… and the bank run has begun.


Having been told by The IMF that he must stop using their bailout funds to prop up his currency (which has been utterly futile), Argentine President Mauricio Macri addressed the troubled nation this morning to announce his plans to satisfy Christine Lagarde’s demands in order to receive the next tranche of bailout cash sooner.

Argentina is struggling to cope with yet another financial crisis.

On Monday, Argentina’s central bank responded to the currency chaos in Turkey and other sections of the Emerging Markets, including the ongoing collapse of the Argentine peso: It raised its policy rate by five percentagepoints to 45%. Argentina’s annual rate of inflation in June surged to nearly 30%, and indications are that this is getting worse. The central bank (the BCRA) is part of the Ministry of Finance, has no independence, and has been tasked over the decades to fund government spending. But at least the current government publishes inflation data. The prior government made inflation a secret and made independent publication of inflation data illegal.

A recent New York Times piece has sounded the alarm over what Washington perceives as China’s “expanding reach into Latin America,” related to a space mission control center located in the heart of the Patagonia region of Argentina.    It begins with an eerily beautiful description of an imposing structure, guarded by Chinese military personnel, unexpectedly rising out of Patagonian desert.