Cutting spending in a recession, what could go wrong?
Developing market problems always play out the same way. This will end up as another example of austerity that makes the problem worse.
The aim is to cut public spending by 0.7% but tax revenues are undoubtedly going to plunge and capital will continue to flee.
Really, there are no easy answers. Argentina just has too much debt, same as in 2001 and a half-dozen other times in Argentine history.
The acute problem at the moment is that he government can't borrow at anything close to a reasonable rate.
