By Gregory Wilpert
GREG WILPERT: Welcome to The Real News Network. I’m Greg Wilpert in Baltimore.
Argentina’s economic crisis, which we have covered here on The Real News Network several times before, continues to worsen. Following an August 12th free-for-all primary election in which the incumbent President, Mauricio Macri, lost by 15 points to opposition candidate Alberto Fernandez, Argentina’s currency, the peso, became significantly devalued. Initially it lost about 40% of its value relative to the dollar. The devaluation, in turn, intensified an already very high annual inflation rate of 54%, and raised the specter that Argentina could default on its sky-high foreign debt. The bond rating agency, Fitch, said that the devaluation “suggests a real risk of default” and that it raises the potential for a sharper deterioration in economic growth.
Argentina’s economic crisis began early last year. Also last year, to shore up its financial situation, the neoliberal government of Mauricio Macri took on the largest IMF loan in history of $57 billion. In return, Macri committed his government to a series of austerity measures including layoffs of tens of thousands of public employees and…