Prof. Hudson's right - and even most of the business press is more or less saying the same thing now
Thank you for finding and posting this, Judi. Recommended to anyone who'd like to know, in a nutshell, what the current crisis down there is about, and why - and for whose sake - the IMF rescued Macri (if only temporarily).
I'd add only that the IMF bailout has thus far been for $15 billion, rather than $50 billion. The larger figure is the size of the credit line; but it's on stand-by, which means that further approval is needed for Macri to tap anything beyond the $15 billion he's already borrowed.
And Mnuchin (who, as you know, can veto any IMF decisions) openly said in Buenos Aires last week that he won't approve any further draws from the credit line.
This, of course, means that once Macri uses up the $15 billion to finance capital flight, as Prof. Hudson explained, Argentina will have to start drawing from their own reserves. That should happen around November.
All this is almost exactly what happened in 2001 - even down to the month. And as far as December, hopefully history won't repeat itself this time. One can only hope.
Thanks again, Judi. Have a great Sunday.