Reality bites
A series of unfortunate events descended upon Argentina in the last four weeks that disrupted the fragile Pax Financiera the country had enjoyed since August of last year. Trumpian economics or, more accurately, the global uncertainties created by it, was the first mishap. Here, the concern is how Trump’s trade wars and his “Drill, Baby, Drill” policy would affect the prices of the two commodities Argentina is most dependent upon, soybeans and oil, and whether the increase in global risk aversion triggered by the reassessment of US growth and inflation prospects could limit Argentina’s access to foreign financial markets at a time when said access is desperately needed, especially for the national government.
A second unfortunate event was political, the result of two unforced errors incurred by the government: the Libra meme-coin scandal, which involved the president himself, and the failure of the administration to get congressional approval for two Supreme Court judicial appointments.
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