Tag Archives: recovery

Don’t Worry Argentina, We Ain’t Crying

29 Aug

This is a story on Reuters;

Argentine leader’s image falls as inflation soars

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.

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Time to redefine “Recovery”

1 Jul

Reason.com has a fun article up called 42 Straight Months of Stupidly Optimistic Official Predictions About Economic Recovery.

If you can’t tell from the title, the piece is a collection of statements made in recent years about the “pending” economic recovery, the quotes come from many sources including President Obama, Tim Geithner, Ben Bernanke, and various news outlets.

Here’s some of my favorites;

March 15, 2009: Federal Reserve chairman Ben Bernanke: “We’ll see the recession coming to an end probably this year.”

July 14, 2009: Secretary of the Treasury Tim Geithner: “The force of the global recession is now receding.”

November 13, 2009: Secretary of the Treasury Tim Geithner: “We are seeing growth resumein the United States.”

March 15, 2010: John Cassidy, The New Yorker: “Economists are still debating what it was thatended the financial crisis and turned the economy around. It is inarguable, though, that Geithner’s stabilization plan has proved more effective than many observers expected.”

April 27, 2010: Vice President Joe Biden: “I’m absolutely confident that the policies that we put in place are sending the economy and the American public in the right direction.”

July 21, 2011: Obama spokesman Jay Carney: “That’s why he is focused every day, he wakes up every day and goes to sleep every night thinking about the fact that he will not rest, he will not cease in his efforts to grow the economy and create jobs until he knows that every American who’s looking for a job can find one. And that will undoubtedly remain true throughout his first term.”

March 9, 2012: Ezra Klein’s WonkBlog, The Washington Post: “There are also some reasons to think this recovery can sustain itself through 2012. Ever since the recession ended in mid-2009, the U.S. private sector has been consistently hiring workers.”

Have a little courage and tell the truth

June 8, 2012: President Barack Obama: “The private sector is doing fine. Where we’re seeing weaknesses in our economy have to do with state and local government.”

Tim Geithner got out to a fast start in the first few years of the administration with a plethora of embarrassing remarks, while The Bernanke has been pretty cool and casually confused evenly across the race. But it’s the big man himself, President Obama, who’s taken the lead down the backstretch, though Jay Carney is just a length behind. VP Joe Biden however….I believe a different set of standards apply for him.

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