Read this article in the Wall Street Journal. It affects our missionaries in Argentina. It affects the work of God in this special country. We do not want to see Argentina get into the kind of mess that Venezuela is in. Read these quotes then go see the article.
- The peso has lost half its value against the U.S. dollar since January. Inflation expectations are soaring.
- The central bank has boosted its overnight lending rate to an annual 60% to try to stop capital flight. But Argentines are bracing for spiraling prices and recession. According to Alberto Ramos, head of Latin American economics at Goldman Sachs , markets now expect the economy to contract more than 2% this year and inflation to top 40%.
- Mr. Macri has managed to cut back on electricity, water, gas and transportation subsidies, but the fiscal deficit—including provinces and municipalities—will still be around 5.5% this year and 3.5% in 2019, according to Aldo Abram, a director at the Buenos Aires think tank Libertad y Progreso. More reforms are needed, and the risk of a political and social upheaval is real.
- The fastest way to restore confidence would be to put an end to the misery caused by the peso and to adopt the dollar. Argentines could then get on with the business of saving and investing in their beautiful country. Mr. Macri has tried gradualism. Now is the time to be bold.