Posted on 08/26/2014 10:03:45 AM PDT by blam
Tyler Durden
08/26/2014
After spending time in Argentina, BofA's Marcos Buscaglia is concerned... The perception of many locals is that the risks of an economic/currency crisis before year-end have increased significantly. This compares to a view they had before of a muddle-through till the 2015 presidential elections. Policy decision-making is ever more concentrated, and the administration has radicalized, but the severe economic downturn will change political incentives in 2015, in BofA's view. With the official peso rate at record lows once again, the black-market Dolar-Blue tumbled to over 14/USD - a record low indicating dramatic devaluation ahead (which of course, sends ARS-denominated stocks surge to record highs).
Imagine the headlines on CNBC Argentina... think of the wealth effect...
(snip)
(Excerpt) Read more at zerohedge.com ...
Well, they could seize everyone’s 401k, IRA and private retirement plans............oh, wait..........................They already did that.............
Argentina is the antithesis of Galt’s Gulch.
Argentina has been in the grip of Central-planners/progressives/socialists for the last 80 years.
If they ever allowed their Federal Government, with limited Central powers and a precious-metals based currency to operate - the country would be world super-power.
Unfortunately, the culture of all Spanish colonies is one of top-down, elitist, rent-seeking, central planning, monarchy. So I’m not betting on them turning themselves around.
Hmmm. I can think of a certain North American country following not too far behind.
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