When central planning fails (Argentina repeats its crisis again with the radical left)

[Agorism]

When central planning fails

According to the official exchange rate, which is subject to capital controls, 4.4 pesos buys you a dollar. But on the street people are happy to pay up to 6.7. Inflation runs at 25%. The purchasing power of an Argentine’s peso savings is going down by one-quarter each year.

The government claims inflation is 9.9% and has outlawed calculating or quoting any other inflation rate. Forty percent of dollar deposits have been withdrawn from Argentina since last October. Now there are capital controls. You need special permission to move your dollars overseas.

To take a foreign vacation, Argentines have to apply to a bureaucrat for permission and explain where they got the money for the trip. And there are rumors that it will be made illegal to talk about the existence of the shadow market exchange rate for dollars.

http://dailyreckoning.com/crisis-replay-soon-argentina-will-be-on-sale-again/

 

[Agorism]

My favorite line from the article

It’s one crackpot idea after another. And the cycle repeats.

 

[Agorism]

bump

 

[torchbearer]

slave states.

 

[BSU kid]

At least the Chinese and their central planning is pretty efficient, these S. American countries like Argentina don't know anything about economics. It's just straight socialism, and the worst part of it is that Obama is following in the footsteps of idiots like Cristina Kirchner.

 

[awake]

I think it is correctly termed insanity.

 

[Agorism]

At least the Chinese and their central planning is pretty efficient, these S. American countries like Argentina don't know anything about economics. It's just straight socialism, and the worst part of it is that Obama is following in the footsteps of idiots like Cristina Kirchner.

Ya perhaps it works better for the ruling party when there is only one ruling party, and plus they have work\rehabilitation camps they can put people into if they become some sort of perceived problem.

 

[BSU kid]

Ya perhaps it works better for the ruling party when there is only one ruling party, and plus they have work\rehabilitation camps they can put people into if they become some sort of perceived problem.

I'm not advocating Chinese policy, just comparing the two.

 

[Chester Copperpot]

and to think, back in the day Argentina was one of the richest countries... the old saying "Rich as an Argentine"