The International Monetary Fund has gone soft on Brazil
while keeping its hard line on Argentina. Brazil gets a $30
billion IMF bailout but Argentina stays on bread and water. The
Fund and its godfather, the US Treasury, have told Argentina to
get lost because it has failed to come up with a coherent
economic plan. Brazil, on the other hand, is rewarded for
sticking to an IMF program even while it fell deeper into debt.
It is true that Brazil has not sunk as low as Argentina, but
its ramshackle capital structure has exposed it to the whims of
global markets and brought it to the brink of disaster. This is
because the supposedly ever-vigilant local and international
bond markets and...
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