January 12, 2012
Argentina crisis escalating
Many of us will remember how 10-years ago, the government of Argentina collapsed and social chaos erupted.
Within a matter of days from the government collapse, the country had burned through several presidents, the currency collapsed, inflation soared, unemployment shot up, crime rates spiked, and the government defaulted on its debt.
Well It seems the government of Argentina is at it again. The economy is rapidly deteriorating, and street-inflation has surpassed 25%.
Naturally, the administration of President Cristina Fernandez insists that inflation is not a problem, despite the Argentine peso losing 25% of its value against the US dollar over the last three-years (and far more against gold).
Meanwhile, Fernandez has imposed capital controls, raided pension funds, nationalized private property, and taken control of the media… all in the attempt to delay the endgame.
A few weeks ago, the government passed a package of new laws, essentially criminalizing public protest under the auspices of combating terrorism. The legislation, snuck in at a midnight session during the holiday period, provides severe punishment for various crimes under a very broad definition of terrorism.
Fernandez herself maintains that the law would -never- be invoked to restrict the legitimate rights of Argentines. This, from a woman who simultaneously passed legislation to seize control of the country’s newspaper industry.
Worth keeping an eye on Argentina since unfortunately we are witnessing the same trend in Italy and other European countries, when it comes to debt and default unfortunately Argentina has a lot to teach the world and Europe on how to mess up a country.