14 votes

Argentina: Inflation Riots Blackouts Looting Price Freeze Default Looms

Afternoon Update: Argentine Black Market Wins!
Again, Argentina? Printing their way into collapse and default like 2001? The IMF and Creditors have them by the short hairs now (sigh) say good-bye to your national assets. Greece 2.0... or can Chinese investment rescue them?
Articles: Default Looms Price Freeze China Rescue?


http://youtu.be/CpEHrmt5sG4

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How Do You Buy a Country?

Make the chosen few take out a loan using their country as collateral with no intention of paying it back. The IMF will help see to it that its never paid back anyway. Kudos to Hungary that paid off the IMF EARLY then told them to move their offices out of the country. Bye.

God forgives always. Man forgives sometimes. But Nature never forgives.

Michael Nystrom's picture

Bump

Thanks for the post.

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ok lemme use a chart to show relationships

See what's gonna happen here....an old saying is Argentina catches a cold and Uruguay and Paraguay sneeze.

As my 101 on the region (4 pillars of understanding South America) indicated, maybe not in sifficient depth is the GEOGRAPHY IS PLAYING HERE and the one chart I can throw at you at this point is this nifty popluation density chart;

OK see the dense areas? These very nearly follow where the most accessible shipping lanes are. Like ocean cargo transport. If you can imagine a topographical map showing the major mountain ranges (like Andes) and impenetrable forest swamps (like Amazon basin) you are starting to get the idea how interdependent these nations are upon each other's economies purely from a transport/logistics point of view eh?

So. Uruguay is basically a buffer nation between Brazil to the North and Argentina to the South but it has accessible shipping. Paraguay by contrast is land locked.

Uruguay is embracing free market methods about as fast as it's native inhabitants will tolerate, Uruguay has no articulated policy but more or less to follow the herd at this point IMO. Uruguay has just legalized weed meaning pot, mary jane, the funny stuff not just for medicinal and recreational purposes but for ALL PURPOSES with almost no control. Hmmmmmmm.......they are running against UN treaty to do so and the old killers in the USA that use Latin America as their own personal weapons proving ground (hi demons) are wicked not-happy with them for this.

WILL SELF DETERMINATION AND FREE MARKETS PERSIST AND PREVAIL IN URUGUAY?

AND WHY IS NOBODY TALKING ABOUT BITCOIN IN THIS SCENARIO ON THE DAILY PAUL?

typing as fast as i can folks.

There is nothing strange about having a bar of soap in your right pocket, it's just what's happening.

hiya smudge :)

ok.. i'm your bitcoin huckleberry. :)
(imo)it's the bitcoin 'curve'...
it's very early in that curve yet..
overcoming the 'fiat' 'National currency' mentality will take time.
It IS the answer to debasement...
but
'digital' and 'poverty' are separated by a HUGE firewall...
called ignorance... hard to overcome.
A 'tangible' competing/local currency would have a MUCH better chance
with the commerce on south american streets.
cheers,
G.

Puts a light on some possible squeeze points don't it?

When you got a head of the nation's central bank proposing they might just scrap the national currency in favor of bitcoin it not only underscores their historical problems but emphasizes a prolonged and strung out desperation which borders on complete despair.

Bitcoin's spread seems viral indeed and this loss of control will NOT go unanswered but as bitcoin gains the shroud of legitimacy here and the ugly ones having no predetermined body of law to dump at our feet like a rotting corpse, economic pressure has always been the first and middle resort with Latin America and the United States Marine Corps running a very close second.

With the nasty scent of a putsch looming in Venezuela, DA PREZ has all the historical precedent he needs to run in and take the whole continent in a week. So that presents a range of possibility. See any others?

There is nothing strange about having a bar of soap in your right pocket, it's just what's happening.

News minutes ago...

I didn't realize HALF of this was going on!!
A MUST READ on this thread
http://www.reuters.com/article/2014/01/24/argentina-currency...
The President just announced they will now 'relax' currency controls...
i.e. TAXING use of any foreign currency OTHER than the national currency.. they imposed a 20-35% TAX on foreign currency to (try) FORCE on the populace to have 'confidence' in the Peso...
what happened? GEEEEE... (you'll never Guess!!!)
Ans. A black market developed... and WON!!
Like Dr. Paul sez... MARKETS are stronger!!!

guess I should have brought this downside in eariler

I might have a contrarian opinion but WHATEVER is happening in Argentina can be taken as symptomatic of Latin America in general.

ESPECIALMENTE CON VENEZUELA. ALL EYES ARE ON VENEZUELA NOW.

There are already several nations in the region that are complete write-offs, we're talking hopeless disasters. Argentina has just this one paradoxically redemptive quality in that I CHALLENGE ANY SCHOLAR TO POINT TO ANY CONTIGUOUS 60 SECONDS IN ARGENTINIAN HISTORY WHEN THEY EVER HAD THEIR FISCAL OR ECONOMIC POLICY HOUSE IN ORDER. GAAAAAAH!

What we affirm as investors is the infrastructure and the prior investment plus the obvious resources that keep us hoping that one day a regime will come that's prosperous OR.....

as we will show our investor groups.......

where that's gonna happen next.

Hey jump into Chile now if you can or you might want to get with us now.

There is nothing strange about having a bar of soap in your right pocket, it's just what's happening.

thanks for the update, feels

thanks for the update, feels like these countries are'nt getting nearly enough attention as i like, in respects to being informed of their situation globally, in a media we can understand dependant on the language you understand, SOMETHING I THINK OUR REPRESENTATIVES SHOULD INFACT BE DOING, HIGHEST PRIORITY........GOD DAMN HONESTLY without agendas, so again thanks for the update......even for the niblets of insight reports may provide

bump

you're welcome my brother :)

cheers!
G.

Peso is dropping like a rock

Some friends of mine (US expats) have been living in Argentina
since 2008 - when they go there there was almost no difference
between the unofficial and official exchange rates - three pesos
or so to the dollar. Now the unofficial ("Dolar blue") rate is almost
12 pesos to the dollar and the official rate only about 6 to the dollar.

The unofficial rate dropped from around 6 to twelve in just a couple
weeks and even the Argentine government dropping $200 million in
one day intervening in the markets to support the peso the other day
didn't bring its value back up.

Since any money coming into Argentina through banking channels gets
converted at the official exchange rate anyone who has to get from
outside the country by any way except cash gets screwed in the process.

http://www.nytimes.com/2014/01/24/world/americas/argentinas-...

What a tale of woe

but I am very interested in talking to your friends in English or Spanish.

There is nothing strange about having a bar of soap in your right pocket, it's just what's happening.

...

they've made some serious bad mistakes again(repeatedly debasing the peso)for temporary 'reprieve'.
Only their exports could begin to save them... the Globalist agenda has been to 'blackball' them into capitulation by supressing/blocking their trading potential by a 'credit ratings' smear campaign...
'until' they surrender to another bailout.. complete with pledges, strings attached and of course 'austerity'.
China wants to invest and trade with them... improving their current trade imbalance is their BEST bet... if they can survive the current crisis/pain. Won't be ez.. as the people want 'change' and 'bread'...
and any 'new' leadership... will be 'installed' by the PTB and surrender to the IMF/Pledges/Austerity and more debt.. a vortex into slavery.

I'm from Argentina.

And that's not going to happen. Not only the government won't cut spending, they are increasing it. Just yesterday, the president announced that they will be giving free money to young unemployed adults.