Responding to IMF President Christine Lagarde using soccer terms to criticize the economic statistics released by Argentina’s government, President Cristina Fernandez de Kirchner used her speech at the opening of the United Nations’ General Assembly to tell the world her country is not a soccer club.
The president pushed back against the IMF, saying:
“I want to tell the head of the IMF that this is not a soccer game. The (global) economic and political crisis is the most severe on record since the ‘30s.”
The problem Argentina faces, is that no one in the world — except Kirchner — believes the numbers the official statistics agency publishes.
Argentina is the only leading world economy and IMF member whose numbers have been rejected by the Washington-based IMF as unreliable.
Critics of its statistics contend Fernandez’s leftist-oriented government greatly understates inflation. The government’s INDEC statistics agency has reported monthly inflation below 1 percent for more than two years, while Argentines have seen price rises of two or three times higher.
Moody’s Investors Service downgraded Argentina’s risk rating last week, potentially increasing borrowing costs for anyone doing business with the country.
And to repeat what I said earlier this has an impact on U.S companies wanting to do business in Argentina and that means it has an impact on U.S. jobs.