Sunday, June 10, 2012

Cry for Argentina (They took Paul Krugman's advice)

Yesterday, I reported that the Argentine economy was on the verge of collapse.

There is a huge flight of money out of the country and out of the Argentine peso and into the U.S. dollar. Price inflation in the country is around 25%.

I warned this would occur back in April:
Two women have taken control of Argentina's central bank and are about to use it as if they are on a weekend shopping spree.
Paul Krugman, on the other hand, has been encouraging this mad money printing for some time. He wrote last October:
Argentina was facing deflation; the trouble was that by pegging to the United States, which did not by any means dominate its trade, Argentina exposed itself to the fluctuations of the dollar (any perceived similarities to the problem of a gold standard are completely right)...
Oh yes, according to Krugman, everyone is suffering from deflation---although prices aren't going down at the consumer level anywhere, certainly not in Argentina.

In May, seemingly ignorant of the developing price inflation storm, he wrote about the current Argentine economy:
[I]t’s a remarkable success story, one that arguably holds lessons for the euro zone.
Got that? A country experiencing nationalizations, massive capital flight and near hyper-inflation is to Krugman a "remarkable success story" that should be copied in the eurozone. Krugman's latest book, which encourages the type of mad government spending going on in Argentina for the eurozone, is apparently a big seller in the F PIIGS countries. Heaven help the F PIIGS.

12 comments:

  1. Probably the most destructive thing you can do to your economy is let it be guided by fools that compile meaningless aggregates and then act upon them.

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  2. "Guided by fools?"

    They KNOW exactly what they're doing! They're stowing the money away and don't give a shit about the rest of us.

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  3. Remember women love to spend money or are the simply puppets who are not responsible for actions (someone else is holding the gun to their heads or families' heads) and hence don't deserve the criticism they're getting?

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  4. I'm sure everyone is looking forward to how Krugman explains the collapse.

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  5. Is really the case against Krugman so weak that his opponents need to lie? Apparently.

    The blog post is about Argentina, but Krugman wrote about what the country did TEN YEARS AGO! When you quote him out of context and pretend he said it about Argentina today you're lying. Nowhere does Krugman advocate lying about statistics and having 20% inflation.

    Argentina has had almost 10% growth p.a. every year since 2002 when they defaulted on their debt. Looks like that was a very good idea.

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    1. Are all Krugman proponents this retarded?

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    2. If by retarded, you mean people who dislike lying disingenuous blog posts, then yes.

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    3. Success again for krugman!

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  6. I lived in Argentina for 5 years. Beautiful country, nice, clean environment, fresh, natural water, clean air, pristine land, but politically rotten to the core. The price of meat, poultry and fish went up in 2009 233% literally overnight without any justification, just because Kirchner said so. I was there at that time. I know, I saw this mass looting taking place. Trucks were loading rotten meat from the supermarkets because no one was paying that inflated price and the beef was rotting inside the stores. It was a horrible sight. The stench of rotten meat was everywhere. Dogs on the streets were howling and jumping into the trucks to grab the rotten beef and chicken. All this thanks to that imbecile Cristina Kirchner, ex "pontoniera". People who know Spanish know what a "pontoniera" is. A subversive commie, a traitor, with little or no education who´s setting up barricades and organizing violence, communist instigated street fights, kidnappings and mayhem in general for political purposes. She meets the definition of terrorist. She ought to be on Mr. Obama´s "kill list" for subversive activities against the US. Examples of inflation: a 300g steak was priced at less than a dollar (about 2.6 pesos) in 2006. In 2009 in June, the same steak went up to more than 5 US dollars, same quantity. This is "Argentine economy". Cigarettes go up in price every 60 days by 30 to 80 Argentinian cents a pack depending on the brand. For the nonsmokers this is not an issue, but ALL prices follow the same course, not just cigarettes. A bottle of beer Quilmes (the national brand) was 2.80 pesos per 1-litter bottle in 2007, in 2009 it was 6.25 pesos - supermarket price. Now in 2012 it´s over 9 pesos - SUPERMARKET PRICE, OK? A shitty beer I might add. Donkey piss; a dollar at that time was 3.45 pesos. An interstate bus fare for example from Buenos Aires to Rosario (a 400km distance 4 hr trip) used to be 35 pesos - less than 12 dollars in 2008 through 2009. Gradually the fare went up to 45 pesos same itinerary, same destination, then to 60 pesos in 2010 and now it´s over 200 pesos for the same trip with the same company. So you go do the math. 25% inflation per year? Who the hell says this? I lived there for 5 freaking years. The inflation runs at more than 50% per year. Argentina already went down the shit hole. That´s why I got out of there. No one trusts Argentine banks. You deposit money today and tomorrow the money isn´t there any longer. They steal it. I advise people to avoid Argentina. It´s an economic and financial hell hole.

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    1. Well a lot of lies there man. And the world you are looking for is Montonera. IMPRESENTABLE lo tuyo. This guy is not to be trusted. Furthermore, the collapse talked about never came. Here we are. Argentina is among the few countries that are doing just fine. Regretably for others I want to point out. Well, and to prove you are a liar, you can just check our GDP per capita growth. Or our unemployment rate. Or better yet check the United Nations rate for hunger in Argentina, notice its lower than most Latin America. I live here, I own a buisiness, and this is a GREAT. One more thing : Montonero means dat you were a terrorist yes, but against a military goberment. So, not really terrorist , and they avoided killing civilians as much as they could. There was a civil war . Get a grip !

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  7. Krugmans comments were based on the 70% growth in Real GDP in the past decade. A fact not included here. How can you attack a person and leave out the one fact he was commenting on?

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    1. Well, it's obvious now that the GDP growth was phony. You don't get the kind of inflation that Argentina is experiencing if real GDP growth was 70%.

      Krugman bit into phony Argentinian statistics in addition to his bad forecast.

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