Don’t cry for Argentina? Cry for overcrowded, soon-to-be-bankrupt Britain

No blog today as I’m busy swotting up on what I wrote in my book THE GREAT EUROPEAN RIP-OFF five years ago as I’m being interviewed by Russian TV this morning. However, here’s an email I received from a reader in repsonse to a blog I did mentioning Argentina’s president Christina “Botox” Kirchener. Maybe Argentina is really a paradise on earth (unlike Britain) and not a soon-to-be-bankrupt dump being unnecessarily run into the ground by a bunch of corrupt, kleptocratic buffoons (a bit like Britain). Who knows?

Dear Mr Craig

I generally agree with most of what you write in your website. Your insight, analysis and revelations of the UK and EU politicians are informative and authoritative.

However, I surprisingly find myself in a position where I disagree with you, and it is regarding Argentina and its President.

You have stated that Argentina is bankrupt and President Kirchner is one of the most corrupt and thieving leaders in the world. You are incorrect on both counts.

Let’s look first at the supposed bankruptcy of Argentina. You are a man of facts and figures so here are some of them.

Between 2003 and 2013 Argentina DOUBLED its GDP, this is equivalent to an annualised GDP growth of over 7% every year. Even better, this great GDP growth is based on the trade (both internal and external) of real and tangible agricultural and industrial products; rather than being based on financial fantasies, speculation and casino banking.

Whilst doubling its GDP, it has reduced its public debt by a great margin, in fact it is one of top countries (if not the very top) in the world for public debt reduction.

Despite this debt reduction, huge investments were done by the federal government in social welfare, health, education and infrastructure. Just to give you an idea – thousands of new schools, new universities (which are free, unlike England) and hospitals, thousands of kilometres in new and/or renewed gas, water, sewage, electricity, roads and railway infrastructure. All these thigns had laid forgotten by previous federal (neoliberal) governments.

Also, the country was able to substantially reduce its gini coefficient (its inequality). And all this whilst actually reducing public debt !

And no, it is not true that Argentina is not paying its debts. It is paying them but on its own terms. Some nasty vulture funds are the ones that complain.

Whilst the UK (and much of the so called “first world”) suffered through the worst economic downturn in decades, Argentina was enjoying both fiscal and trade surpluses.

UK’s REAL public debt = 150% of GDP (approx) Argentina’s public debt = 47% of GDP (approx) most of which is NOT foreign

UK’s REAL overal debt = 600% of GDP (approx) Argentina’s overall debt = less than 70% of GDP (approx)

Argentina has trade surplus and fiscal surplus. UK has years long trade and fiscal deficits.

So how can a country that has less than 100% in overall debt (and most of it internal), has doubled its GDP its GDP in 10 years (by selling real things) and has both fiscal and trade surpluses be considered bankrupt ?

If Argentina is bankrupt then may the full pantheon of the gods help the UK, with its 600% overall debt (400% of it foreign owned), laughable growth (and mostly based on financial speculation and credit bubbles) and both fiscal and trade deficits.

Argentina is not a paradise of course, but to say it’s bankrupt is incorrect. Compared to most of the supposed rich “first world” nations and taking debt into account, it is actually a wealthy, stable and prosperous country.

Here is a suggestion for a future article on your website – the GDP per capita (in purchasing power parity) of various countries AFTER debt has been discounted from GDP.

Regarding President Kirchner, you are probably not aware of this but her wealth and finances (and her late husband’s) have undergone independent auditing and not a single peso was found to have been earned illegally or dishonestly. Is there a possibility that she has been “wheeling and dealing” despite this auditing ? Yes. But nothing that can be proven in a court of law (yet). Besides, whatever she and/or her late husband (also a President) may have stolen, they have at least done a great deal of good for their country and most of its people. She is no more corrupt than any and every senior politican from the UK, EU, North America or Oceania (who at present are not doing a lot of good for their countries).

You have to bear in mind that her government is under constant attack by much of the media (within and outside of Argentina) because she has dared to put some controls and regulations on the neoliberal capitalism which (as you very well know) is responsible for much of the economic problems of the so called “first world”. The Argentina of today is actually a very good example of how things SHOULD BE done.

Those that have gotten rich from the recent global financial collapse do not want the rest of the world to follow Argentina’s example and therefore do anything they can to make Argentina and its President look bad, particularly by using compliant mainstream media (msm). I’m sure that I don’t have to remind you that the msm has an agenda and much of what they report is not correct or accurate. Look at the msm’s treatment of President Putin of Russia – it’s true that Putin is no saint but he’s portrayed as an evil warmongerer.

President Kirchner is also a victim of the msm and the vast majority of the “bad things” said about her, her government and Argentina are at best exaggerations and at worst outright falsehoods.

Believe it or not, she is actually carrying out many of the measures that you, me and the vast majority of sane, normal people that live in the UK, EU, N.America and Oceania have been begging our useless politicians to do for years.