Financial Times Promotes All-Out War on Argentina
Aug. 16, 2023, 2022 (EIRNS)—In the space of two hours yesterday, the City of London’s Financial Times posted an editorial signed by its Editorial Board, entitled “Argentina’s Perilous Path to Economic Stability,” and a “news” article, “Argentina Struggles To Avoid Economic Collapse after Shock Primary Win.” The message is clear: The FT proclaims editorially that the upset victory on Aug. 13 by neoliberal dollarization fanatic Javier Milei in the presidential primaries, and the poor, second-place showing by Finance Minister Sergio Massa of the ruling Union for the Fatherland coalition, shows that a majority of Argentines are open to accepting a savage free-market program that would rip the country apart. So, it’s open season on the Argentine nation-state, on London’s behalf.
Even amidst the current “gloom,” the London bankers’ rag observes, some investors “remain bullish” about Argentina’s medium-term prospects. “They consider the collapse of the Peronist vote as evidence that Argentines are ready for deep and painful free-market reform.” After all, two-thirds of the electors on Aug. 13 chose right or far-right parties “who want to trim the bloated welfare state, remove artificial exchange controls, halt central bank money-printing and unshackle business.” The FT fails to mention that voter participation in this primary was the lowest ever recorded; 30% of the eligible voters cast no ballots.
This City of London outlet also drools over the wealth of Argentina’s natural resources waiting to be looted: “lithium mining, fast-expanding shale oil and gas production and potent agribusiness exports underpin the case that Argentina’s fundamentals are strong.” Nonetheless, were Milei to win the presidency, the FT admits that without a Congressional majority, he would face a “Herculean task” of putting through his program, pushing through “painful reforms,” and restoring confidence in the economy.
In the meantime, there’s room for destabilization. “Argentina’s path to economic stability and prosperity remains narrow and perilous,” as there is a real risk of a “disorderly devaluation, a lapse into hyperinflation or a government bankruptcy” before the Oct. 22 presidential election. The FT “news” article quotes a Buenos Aires financial guru warning that Finance Minister and Peronist candidate Sergio Massa’s “path to avoid a collapse before the election is getting narrower, shakier and more winding.”