Central banks in most countries are ‘magic money machines for politicians’ – RT’s Keiser Report

Argentine President Alberto Fernandez said last month that he may not seek an $11 billion loan from the IMF, promising instead to “try to revive the economy.”

RT’s Keiser Report talks to Nick Giambruno of CaseyResearch.com about the relative calm in Buenos Aires among the populace, despite the ongoing currency and debt crises.

Argentina has gone through a number of financial crises in the past 100 years and it looks like it is on the cusp of another one, Giambruno says.

According to him, the South American nation is facing another currency cataclysm “which is relatively normal for this country, it has happened repeatedly over the past 100 years.”

And there are reasons for that, the analyst says, explaining that 100 years ago Argentina and the United States were “really kind-of on the same level.” That was “kind-of a golden era for Argentina.”

However, everything changed, a lot, since Argentina instituted a central bank in 1935, Giambruno points out.

“The golden era was prior to the establishment of the central bank… like in most places the central bank is the magic money machine for the politicians and that’s really how Argentina started its long descent downhill,” he concludes.

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