This is a story on Reuters;
Apparently Argentinian President Christina Fernandez’s popularity is half of what it was a year ago, now at 30 percent.
Funny thing what seizing industries for nationalization and pumping government money into markets will do for the rate of inflation, which for Argentina is now around 20 percent.
Of course this isn’t new for the Argentines as they long had one of the most up and down economies in the world.
Still it’s strange that having had so much experience in the matter they haven’t actually learned anything apparently.
Despite achieving incredible growth through the 90’s as the result of privitization and deregulation, they still were crushed by their debt load when the economy crashed thus depreciating the value of their currency.
Argentina is a prime example of what happens when A) debt overwhelms a nations ability to pay for it. Unfortunately like many other nations, Argentina suffers from the forced IMF and World Bank deals that were forced down it’s throat that have since created more problems for it(as it does in the other cases as well) and B) they are finding out that simply making obstructive rules to level the playing field for the people who are doing (government assigned) jobs they are not qualified for is nothing but a hindrance to real economic production.
The good news is that Argentina is a nice place to visit (I once had a college professor who was originally from Argentina). As long as inflation keeps going up, it will be cheaper to travel down there and have a nice steak dinner for the price of Mcdonalds.