Who would know better the dangers of money printing and inflation than the Argentinean government ? Seems that they quickly forget the concept of fiat money quite quickly...
After the removal of Argentina's inflation figures from the economist's financial indicator section due to these official numbers being "not reliable"; the economist published this week a rather worrying article about new legislation letting the Argentinian government grab money from their federal reserve to pay for debt.
It looks like these guys are about to make the same mistake as in 1999... what do you think ??
Check out the Economist's article here: http://www.economist.com/node/21551507
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Basic supporting fx chart (10 years):
( http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=Linear&… )
Unfortunately that's what happens when financially ignorant politicians steer the economy
yeah, when i was there like a year ago for only 9 months i remember the prices rose dramatically in that short time and the exchange rate went from like 3.6 pesos to 1 dollar up to 4.2....which isnt that dramatic, but considering that it's closer to 5-1 less than a year later, shit will be hitting the fan soon over there.
Isn't this what the Fed has been doing for years ? The dollar is essentially being printed out of thin air.
yeah interesting time here in argentina, very curious to see what will happen in the coming months
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