Argentines hold general strike against Macri, IMF austerity

Argentina was brought to a standstill on Monday as labor federations and social advocacy groups led a general strike against the right-wing Mauricio Macri administration.

The 24-hour general strike, the third since Macri took office in late 2015, was organized in response to austerity policies imposed as part of his June 8 agreement with the IMF for an unprecedented $50 billion bailout.

The IMF has tied the bailout, a stand-by credit line, to draconian budget cuts which include an 81% cut in public works outlays as well as further devaluation of an already weakened peso - a move likely to push inflation above 30%.

Also included are renewed utility rate hikes, which have already risen by over 1000% since Macri took office - helping lead to 8,000 business closures and a rise in unemployment from 5.9% in 2015, to 9.1% currently.

"This strike is decisive, and there is a reality that cannot be hidden," Transport Union leader Hugo Moyano said. "It is very difficult for this administration to bring solutions because they have given themselves to the IMF - which now governs the country."

From plaudits to bailout

The IMF bailout was precipitated by a record, $31 billion current account deficit resulting from trade and foreign exchange deregulation enacted by Macri early in his tenure.

The moves earned him plaudits from Wall Street and the IMF; but, by 2017, led to a record $8.5 billion trade deficit, $10 billion tourism deficit, as well as $22 billion in capital flight.

Trade deficits are up by 151% so far this year, pushing industrial production down 3.3% despite higher demand from neighboring Brazil.

Capital flight, in turn, nearly doubled to a record $6.2 billion in May alone - a trend that forced the Central Bank to raise its key interest rate last week to 47%.

These losses were financed with a record $52 billion in added foreign debt last year, the sharpest such increase (29%) since a similar debt bubble during the last dictatorship led to a financial collapse in 1981.

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"IMF out": Argentines rally against austerity program imposed as part of its $50 billion bailout - a bailout equal to eight months of capital flight.

The IMF remains among Macri's most prominent cheerleaders.