When she had the nose fully, and brought indignant citizens of their cooking pots and cooking spoons from the kitchen. They went out into the streets and squares of Buenos Aires. And then they drummed: the “Cacerolazo contra el Tarifazo”, the “hit the pot” against the tariff increases.

That was on the 28. December: following the announcement by Argentina’s government, that the prices for natural gas, water, metro, Bus and electricity would rise by 35 to 55 percent. Since then, the Cacerolazo, Buenos has made Aires school throughout the country. Again and again angry Argentines gather in these days to hit the pot. To Protest against the latest wave of price increases. Against the economic crisis that will not end. And against the government under the conservative President Mauricio Macri, who does not stop in spite of some reforms in the downturn.

47.6 per cent Inflation, minus 2.6 percent growth, 34 percent of people below the poverty line.

street scene in Buenos Aires in September 2018

Argentina’s economy is in a mess, again. Many a German private investor will be the bankruptcy of 2001 in bad reminder: the world’s biggest sovereign default, as Argentina’s government refused to your creditors, the repayment of approximately $ 100 billion. Or rates of inflation of up to 3079 per cent per annum in the eighties. Or the Dollar black markets that flourished under Macris predecessor, Cristina Fernández de Kirchner and prospered.

“Argentina could be one of the most prosperous countries of South America,” says Mauro Toldo, head of Emerging Markets at Deka-Bank. “The population is relatively well educated, there is a passable infrastructure and large deposits of raw materials, such as Gas and Oil.” On top of that, parts of the country provide ideal conditions for the agricultural economy. But the economy is politically gone on in Argentina, many things wrong over the decades.

“rich as an Argentine” – a winged phrase, was before the First world war in Europe. The South American Nation had one of the highest Per-capita-income of the earth, higher than Germany. Argentina is the breadbasket of the world. And after the Second world war the promised Land for thousands of poverty-refugees (as well as for some of the Nazi criminals). Until the beginning of the sixties, the economic performance per citizen was greater than that of Japan. Then the decline became increasingly evident.

Constant Back and Forth since the Second world war

Argentina’s economic policy is a constant since the Second world war. Initially and later from time to time – ruled for most of the Peroni. They nationalized large sectors of industry, and gave the Watchword, Argentina would prefer to produce important goods instead of import. Until today, Peronist politicians go according to these principles, above all, the 2015 deselected President Cristina Kirchner.

In the Fifties, Sixties and seventies, the military staged a coup on several times to Power. They put economic policy at times on the privatisation of public enterprises and the removal of customs barriers – so exactly the opposite of what made the Peroni.

as different As the conceptions of the two powerful groups, one thing they had in common: If it didn’t go according to Plan, they threw the printing press. And so the domestic currency depreciated more and more. In the eighties, after the end of the last epoch of the military dictatorship, this culminated in a Hyperinflation.

Many Argentines have laid, as far as it was possible for you to dollar accounts across the border. Until today, they distrust the Argentine Peso. And foreign investors have been unsettled by the switch from the constant Rate. The structure of a modern economy was not as desired.

radical change of course charge

Still To decide on international commodity markets about the state of the economy. “If prices are falling, and the deficits grow, the governments always to two means: Either they build up debt or you will pay with the help of Inflation,” says Mariana Llanos from the Giga Institute for Latin American studies in Hamburg,

And the radical change in Argentina are shaping up today. The Peronistin Kirchner was in 2012, the Oil and gas company YPF nationalized, expropriated the Spanish Investor Repsol. And you verdonnerte foreign companies have brought products into the country, to export Argentine goods in the same value in the rest of the world. This led to BMW temporarily one of the largest rice exporters in Argentina, Harley Davidson wine sold and the iPhone is a rarity in the country. Because Apple does not let on such transactions.

Mauricio Macri

As of 2015, Macri and his Alliance Cambiemos (“we Change!”) the Power was again all radically different. About Kirchner, the purchase of foreign currency was severely restricted, so the New free was the exchange rate of the Peso. The old government was dictated by the energy suppliers, at times, the prices for electricity and gasoline (and therefore small), Macri more tariff increases.

This is necessary both for security of supply, as the company had driven in the lean years, their investment and expenditure for the conservation of their plants dramatically. On the other hand, it does not always mean higher cost of living for the people. “Macri works still the consequences of populism under Kirchner. If the government does nothing, can Argentina as well as Venezuela,” says Mauro Toldo, head of Emerging Markets at Deka-Bank, and a native of Venezuelans.

27 Times the IMF for help

rushed To the structural problems and bad luck. Soy products normally account for about 30 percent of all export earnings of the country. But last year, the drought left shaft, the crop yields dramatically plummet. At times of the once world’s largest soybean oil exporter, had to import soybeans from the USA. Result: a foreign deficit of more than six per cent of economic output. The Peso depreciated by more than 40 percent. Interest rates rose temporarily to more than 50 percent. And Macri announced in a televised address of a “plight”.

27 Times the International monetary Fund (IMF) in the past six decades in Argentina, reported the newspaper “Clarín”. Last year, the IMF has extended its financial assistance for the country to 57.1 billion dollars. But the head of the Argentina Mission are optimistic. “The valley of the recession will be reached in the first quarter of 2019,” predicts Roberto Cardarelli, “and in the second quarter, we will see a recovery.”

More about the emerging crisis in Argentina, Turkey, Brazil, On the threshold of the next Crash

The could use Macri urgently. In October, he must stand for re-election: perhaps against Kirchner, his Erzrivalin. And, according to a survey conducted by the newspaper “La Nación” of December, 59 percent of Argentines disapprove of him. Kirchner, however, on 64 percent of opponent. The population is divided. Whoever wins sure is two things: The IMF, Argentina will also be a 28. Time for a visit. And the pot will continue to beat.

Sam Yoon has many years of experiences in journalism. He has covered such areas as information technology, science, sports and politics. Yoon can be reached at 82-2-6956-6698.