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Thursday, March 20, 2014

Is The Missing Malaysia Flight 370 Another "False Flag"?

The disappearance of the Malaysian 777 has raised more conspiracy theories than 9/11.  In particular, many are convinced that the aircraft was deliberately navigated to a secret location and has not crashed.

Governments from around the globe are searching the Indian Ocean and surrounding areas.  The assumption is that the jet has crashed and therefore must have left behind some sort of debris.

After listening to non-mainstream media there seems to be much left unsaid that should be addressed.  For example, why is it that if a government entity wanted to find an individual they could simply triangulate my location via my cell phone and yet they can't do the same with the phones of the supposedly lost passengers of the "missing" jet?  You see, normally a phone goes directly to voice mail if a cell phone is turned off or destroyed.  Family members who have called their missing loved-ones have reported that these cell phones ring several times and then go to voice mail. This happens when a phone is functioning properly but not being answered.  Bullshit

Alan Spencer who is an expert in telecoms told MailOnline that "if the phones are really ringing, they can categorically not be under the sea".  He added that the phones will only be ringing if they are ‘switched on, not in water, the battery is charged, and [are] near a mobile cell site.  There you have it.  It is clear that the plane/passengers are not under water, not destroyed and within cellphone range of a tower..

What about the "Black Box" that accompanies every commercial aircraft on the planet?  Conveniently malfunctioned?  ABSOLUTE Bullshit.

If a pilot was going to commit suicide why would he go through all of the trouble of swithcing off tracking devices, diverting the plane and flying at altitudes which radar cannot track?  Why not just point the nose down and head the jet into the ocean?  Why would the Malaysian government misrepresent the amount of time the jet was flying.  4 hours longer than originally reported?  Bullshit.


Photo from BBC

Here is a possibility....
What if the U.S. government was intent upon going to war with Iran?  What if they needed a reason?  What if they coordinated with other governments to hijack flight 370?  What if it has already landed and is being disguised, loaded with a nuclear weapon?  Get the picture?

Is it possible that the plane is going to be utilized as a false flag event?  I wouldn't be at all surprised to see this plane show up in a country that the industrial military complex and certain governments wish to see regime change.

Are we to believe that the Wall Street Journal came up with the "nuke" terrorist plot on there own?  This wasn't "leaked" by the U.S. government?  Bullshit.

Anyone want to make a bet that the plane is still intact?

Perhaps this is yet another red herring to divert the mind of the American Sheeple from our economic woes and horrible embarrassment of a president who doesn't seem to have the capacity to lead.

I'm probably way off base, however I have reason to believe that the U.S. is desperate to start another war and will do anything they can in order to cause that to take place.   It is possible that the U.S. will collaborated with an ally and claim that wreckage has been found.   The world will move on and forget about it until the plane reappears with sinister intentions.  Of course, they will claim that the planes are not related.


Worst case scenario?  The plane enters the U.S. with a nuclear device which is detonated over the country giving the government to declare martial law, disarm the populous and to begin bombing "evil doers". This is the beginning of WW3.

Let us be vigilant!  When the government is doing this:







Let us be certain they are not doing this:


Thursday, March 6, 2014

The U.S.A, Russia and Ukraine....What next?

It seems the world has opened a new chapter with players old and new that may affect our very way of life from now forward. After spending years outside of the U.S. I've concluded that we are, perhaps, the most naive and least well informed in populous on the planet.

I hypothesize that having lived at such high standards and having been spoiled without much adversity in our lives we've come to believe that we are somehow morally superior and that our government can do no wrong.  Neither are true.  Our media outlets are bought and paid for by individuals "report" exactly what our government tells them to report.  As good American sheep, we eat at the propaganda trough like ignorant farm animals.

That being said, I wonder exactly what is happening in the Ukraine.  Is the U.S. government behind the unrest?  Are the powers that be; in both Russia & the U.S., colluding to bring us into yet another, and perhaps, final war to end all wars?  It's likely that we shall never know.  What can be known is that whatever we are being told is complete theater.

In my opinion, certain entities from the West are stirring the pot on purpose as the wars in Middle East wind down.  Otherwise, the industrial military complex will have no excuse to build more weapons and thereby gather more wealth.

When reading or watching what passes for "news" these days, I find myself wondering and trying to piece together the real truth.  All the while, those around me switch the channel to find their brand of news that validates their own thinking.  Critical thinking seems to be altogether lost in America all though criticizing is alive and well.


I hope, for the sake of mankind, that the egos and money somehow have moments of clarity and see the potential gravity of the situation.  However, I have little hope that they will.  It appears that the elite and the powerful have won.  They will continue to start wars until there is nothing left to steel.  At that point everyone else on earth will be enslaved in some manner or another.  Meanwhile, the populous, like a baby, casts it's gaze upon the jingling set of keys instead of the things that will effect their lives in the future. 



In the mean time....I'm going fishing. 

Thursday, February 27, 2014

El Gringo Is Back!




Much has occurred since my latest blog post which was last July.  To my faithful followers, I apologize for being "MIA".

First let me say that having lived in Argentina for the last few years really allowed me to disengage from everything USA.  In the midst of my absence the U.S. has been systematically dismantlement at an alarming rate.

Since my return, I've poured over information to catch up on what has been happening economically and politically in my native country.  I was stunned at what I found.  They've done it. The military industrial complex and the banks have managed to get all the aces in the deck, all the money and all the power.  There is little left to do but wait and prepare for the fallout.  Sadly, Americans will be living different lives than they ever imaging in the not so distant future.

As fucked up as Argentina is, I am leaning towards a hasty return if things occurre like I think they will in the States.  I'm not one to engage in conspiracy theories but the jury is in regarding the global economic situation.  There is no way in hell that the U.S. will honor its debts and as a result we will default which will trigger wars, both external and internal throughout the world.

I'm fearful of the world my son will inherit.

Again, I'm not a big conspiracy theory but it appears that much of what was predicted by the "crazies" is coming to pass.  Consequently, I've begun preparing.  I would love to share the details of my preparations but it seems that certain government entities are tracking those who disagree with the current regime.

Saturday, July 20, 2013

100,000 Page Views

Thanks to my readers for 100,000 page views!!!!

Tuesday, July 16, 2013

Back In The Good Ol' USA



Being back in the States feels good.  Everything is familiar and predictable.  Food from all countries can be easily found and it actually has an interesting taste. There are no gas lines nor police stops on the edges of towns.  It's nice to be able to have a conversation with a woman and know that she doesn't secretly despise me because I'm an American man.

Yet, the country is changing in ways that make me also appreciate living in Patagonia.  The U.S. government has been heading towards authoritarianism for decades and is evermore invasive.   Taxes are breaking the back of the people and there is no relief in sight.  Big Brother can't help but protect Americans from themselves.  What is most disappointing and frightening is that the people seem to be OK with it.  Most of them even embrace the idea that government should take care of them and give them whatever they want.

But, alas, I digress.  Summer in the U.S. is spectacular.  Water sports, horse racing, fishing, outdoor concerts and every other manner of fun. I do love it here despite all of the bullshit going on.

Saturday, June 8, 2013

Winter Without Work? Leave...

As winter falls upon the weak and weary expats of Patagonia work is scarce if not impossible to find...well, at least for a gringo.  So, what is a gringo to do?  Leave.  I've never been much of a skiier nor do I care for winter.  In fact, if I could follow the Summer year around that is precisely what I would do with the occasional Spring and Fall mixed in just to keep things interesting.

With that in mind, I believe I will head to the States to put some dollars in my pocket.  In the meantime, my business partner and I can meet and discuss the purchase of land and the construction of of Patagonia Distillery.

I'll be back when it's cold up North and warm down South.....  Stand by for more as I will be blogging from time to time from the States until I return.

Monday, June 3, 2013

Living in Argentina is like......


When people ask me what it's like living in Patagonia, I tell them it's like walking in cold molasses.  Everything and everyone moves slow.  It's one of the best places on Earth to live, if you don't "NEED" to get anything done.  The second that something important needs to get done the beauty of Patagonia fades behind bureaucracy and/or laziness...  This week I was presented with yet another example of just how inconvenient life can be living in remote Argentina.

Knowing the challenges of living in Patagonia I thought I was prepared as I began to change both the timing belt and alternator on my truck.  Even with my expectations adjusted to Patagonia Standard Time they were still set too high.  Out of 4 replacement parts they sold to me one of them was correct, two of them were "close" but not correct, and the fourth wasn't even for an automobile.  Fortunately, my MacGyver like upbringing while growing up Star, Idaho allowed me to "refine" 2 of the 4 parts (read... cut to fit).  The other was the timing belt itself so MacGyvering was not a good option.  In the end and after 3 solid days of head scratching and dremel cutting the truck functions again.  This is normal life in Patagonia.

Wednesday, May 29, 2013

Head Lice In Argentina

Head lice?  Really?  Even though I'm working on three years living in Argentina I still can't manage to get my head around why kids have head lice almost constantly.  Actually, the reasons are obvious and yet it's very frustrating.

When I was a child a classmate would come to class from time to time and would be "diagnosed" with head lice.  God forbid this ever happen to you because everyone around you was thinking the same thing.  They were thinking that you were dirty and probably hadn't showered for ages.  Now, I know that's not fair nor is it true but at the time you were instantly stigmatized if you had head lice.  Most parents took great care to avoid letting their children get the critters in their hair.

In Argentina, however, if you mention having head lice you barely get a shrug.  I walked into a farmacy tonight and announced without any hesitation and without hushed voice that I need a remedy for "Piojos" for my son and I.  No one even batted an eyelash.

Something one should know is that the head lice here have developed resistance to nearly all remedies.  That is why I use alcohol and water.  Nothing else seems to work even if recommended by your pharmacist.  They are happy to sell you stuff that even they know doesn't work.

Monday, May 27, 2013

Will Copahue Volcano Dump Ash On Argentina?

According to news groups yet another Chilean volcano is ready to erupt and likely pelt Argentina with ash.    Authorities in Chile have issued a red alert and ordered the evacuation of more than 3,000 people living near the Copahue volcano which is across the boarder in Argentina. Apparently, some 600 families are being affected within a 20 mile radius of the volcano.  The alert has since been lowered to orange.  Copahue (Ko-Pah_Way) sits at almost 10,000 feet in the Andes mountains.

Typically, when these volcanoes erupt near the Chile/Argentina boarder the ash and debris are carried into Argentina by winds coming from the Pacific Ocean blowing Eastward.  The two largest Argentine cities who may be in danger of ash fallout are Neuquen and Bariloche which was heavily pelted by ash during the eruption of Puyehue.  Both cities have issued yellow alerts in response to the imminent eruption.


In 2008 Chaiten Volcano erupted in much the same manner covering an area of Argentina about 3 hours by car South of Bariloche.  The majority of the ash from Chaiten fell upon the city of Esquel and surrounding areas.  More recently Volcano Puyehue (pronounced poo-Yay-way) erupted and nearly wiped out the Argentine tourist destination of Villa Angostura.

LIVE VIDEO of Comehue here:  http://www.sernageomin.cl/camaras/Copahue/fija/copahue.jpg

Copahue Update May 30, 2013:  She is still rumbling but there is still nothing new to report.

Friday, May 24, 2013

The Most Compelling Reasons To Expatriate From The United States

Those who know me well understand that I am a political atheist who doesn't subscribe to political religions.  In other words I am not one of millions of Republicans and Democrats or any other party affiliated sheep who fights for the party platform above all reason.

That being said, what is being revealed in U.S. politics these days is even more concerning than where the economy is headed.  The U.S. government has lost it's mind!


Does anyone remember what happened in Benghazi? The U.S. government, instead of admitting that they may have been able to prevent the terrorist attack, not only denied they had information about it prior to the attack they invented some bullshit story about the attack being a response to a video.  Yes, a damn video!  That is all these jackasses could come up with?

Instead of taking responsibility and being apologetic, they blamed a video regarding muslims for the assassinations of four American Citizens including U.S. Ambassador J. Christopher Stevens.  The reality is that the administration was aware of the probability of attack and did nothing to prevent it.  The American people seem to be OK with it....
  
The Senate Committee on Homeland Security and Governmental Affairs investigated the incident and reported, "there was a high risk of a 'significant' terrorist attack on U.S. employees and facilities in Benghazi in the months before the September 11, 2012, assault on the Mission, and the State Department failed to take adequate steps to reduce the Mission’s vulnerability."  There you have it.  They were aware it was a serious threat, it occured and then they lied their asses off to cover it up.  No one seems to give a shit.

The fact that the administration made a mistake is not the problem.  Mistakes are made every day and people of good character take responsibility for those mistakes.  The clear problem in this case is that they intentionally covered up the mistake by lying about it.  This is nothing knew in government but four Americans are dead because of it.

More disturbing than the Benghazi incident is U.S. Department Of Justice's (DOJ) illegal investigation of journalist James Rosen for, "classified newsgathering activities".  He was accused of being a co-conspirator in a plot to leak sensitive information that could possibly put the nation at risk.
An interview of Judge Andrew Napolitano who referenced the U.S. Constitution, noted that free speech is explicitly protected by the First Amendment, “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press.” He continued by stating that, "There is simply no crime. For the FBI to tell a federal judge that James committed a crime by receiving classified information and offering to publish it, even by asking for classified information, is absolutely wrong.  James, like all of us who are professionals in this business, has an absolute constitutionally protected right to seek news of material interest to the public wherever that news may be."
 
As everyone knows Fox News is a very right leaning news organization who has been very critical of Democrats and the current administration.  It's no surprise that they jumped at the chance to go after one of their nemesis'.  The problem is that it was an illegal search that violated his 1st amendment right!  Of course, the constitution is meaningless in the States these days and has ceased to serve any real purpose.

 The investigation of Mr. Rosen is a symptom of government gone awry.  They do whatever the hell they want and no one in the U.S. seems to give a shit.  As long as the American citizen is quiet the government will continue to invade and take every last freedom they have....and deservedly so.

 Perhaps the most damning government scandal under the Obama administration's watch is IRS's targeting of Republican supporters and organizations during the presidential campaign.  
The bottom line is that federal employees/representatives are using government agencies to target citizens with opposing views.  Has it been so long ago that President Nixon used the IRS to intimidate opponents that we don't remember what happened to him?  Have we become so complacent that we will allow something as sinister as this to stand?!
 I'm stunned and frightened at the relative quiet surrounding these issues. Heads should be rolling....where are the street protests?!
 
 Before you so called "progressives" get sand in your vaginas, let me say that I have as little regard for the Bush's, Clintons and all other politicians as I do for Obama.  They are the elite class of American politicians bent of serving themselves first, their friends and family second and to hell with the citizens and small business.


NP4NTE68SXPW

Monday, May 20, 2013

DESPARATE Argentina Reaches Out To China


In what many are saying is an effort to save the peso from devaluing and mitigating dollar flight, which has cost the central bank of Argentina $4 billion thus far this year, Cristina Fernandez de Kirchner (CFK) has struck a deal with the Chinese.  

The two countries agreed upon a currency swap that only comes into play if there is a critical situation such as a payment trigger for debt (fasten your seatbelts China, it will happen).  One could say it's a last resort insurance policy.  However, lets just say that if the insurance policy is executed then Argentines had better have already prepared for the worst. The triggering of this swap would sent a strong negative signal to everyone involved and likely result in a very negative market response.

Apparently, the swap will be implemented if Argentina's international reserves deplete to a certain level.   At which point the country would have made available to them the equivalent of $10 billion dollars in Yaun.  In exchange Argentina would deliver (swap) the Chinese for Argentine Pesos.  The Chinese government would then use the Argentina Pesos as fuel for electricity generation plants and for toilet paper. 

While the situation looks like the Chinese are helping Argentina the reality is that China must hold pesos in order to trade with Argentina.  It's much the same as China purchasing massive amounts of debt from the U.S. Treasury.  However, in this case, the peso is more like monopoly money!  Many see this as the Chinese helping the Central Bank, I do not take this view as the Yuan is an nonconvertible currency.  This currency swap should be seen as a zero sum difference upon the Central Bank's dollar issue in the long run.  Simply put, the swap is taking place for trade purposes.

Recently the Kirchner clan implemented a new 'whitewashing' bill or amnesty bill that would allow Argentines who illegally and secretly harbor undeclared dollars to come clean.  The idea is for these otherwise intelligent Argentines to exchange their undeclared dollars for worthless government promissory notes or bonds.  These pieces of paper, backed by the full faith of CFK and the Argentine government, can be utilized to invested in oil and gas development, real estate and construction.  There is to be no tax associated with the newly "cleaned" money.  The main instrument in the tax amnesty or whitewashing bill under consideration in Congress which would enable Argentines to exchange their undeclared assets and dollars for equivalent government promissory notes and/or bonds yielding 4% per year, which could be invested in the real estate and construction industry or in oil and gas development. There are no tax consequences for revealing your dollars and the bonds will yield 4% annually.  Of course, these dollars would automatically boost the Central Bank's dwindling reserves.

I can't imagine a situation where an Argentine, intelligent and wealthy enough to stow away dollars, would choose to trade them for paper backed by a government who continually defaults, with pride, on their debts.  Nor can i imagine the dose of morphine it would take to get an Argentine to invest in gas and oil when CFK is likely to nationalize the assets in the future as she did Repsol's YPF!?!

Saturday, May 18, 2013

The "Blue Dollar" In Argentina

The word "Black Market" typically congers up images of shady characters selling radios from the trunk of their car.  There has always been a black market, or as it's called in Argentina, a "blue market" for world currencies in Argentina.  And it's not just shady characters or the wealthy who take part.  Now every Argentine with a job is avoiding the peso like a one night stand.

Since the Argentine government began regulating the purchase and sale of dollars, effectively making it illegal to do either, the blue market has taken on a life of it's own.  President Cristina Fernandez de Kirchner (CFK) is fearful of running out of dollars in order to pay the countries debt.  Consequently, she and her cabinet clamped down on dollar trading.  Like most of CFK's policies it was akin to putting a band-aid on a severed arm.  As with any draconian government controls the black market doesn't pay heed to rules and regulations and will tell the real value of products and services....in this case the value of the dollar.

Currently the Fx is trading around $5.18 pesos per dollar while the so called "Blue Dollar" recently set a new record of $9.40 pesos per dollar.  That is a $4.22 peso difference or 81% premium over the Fx market.  An estimated $10-40 million dollars are change hands everyday under the table throughout the Argentine.  Pages have even been setup on Facebook called "Dolar Blue" in large cities like Buenos Aires and Cordoba to help facilitate the buying and selling of dollars.  As expected iPhone App developers are getting in on the game with "Dolar Blue" applications that tell you, in real time, rates of the parallel and official markets.

So, why is the gap between the Fx and Blue markets so great and growing daily?  There are several reasons but I will touch on a few of the most important ones.  First, inflation is and has been out of control for several years. The government is printing money at a break-neck pace with no end in site which will continue to push inflation upward.  Over the next 12 months inflation is expected to reach 33%.  With the pace of goods and services outrunning the peso, even with price controls in place, savvy Argentines are hedging by accumulating dollars. 

The economic crisis of 2001 is not a distant memory for most Argentines, many of whom are still recovering from it's effects. Holders of pesos were devastated when the dollar and peso which were at par were allowed to float.  In the mind of Argentines the dollar remains the safest asset to hold in case of a devaluation. When CFK put restrictions upon buying dollars last year the blue market began to surge and has gained momentum ever since.

The psychological factor is playing an important roll as well.  The increase in the price of dollars is becoming a self fulfilling prophesy.  As the perceived panic of getting rid of pesos spreads throughout the country the competition for scarce dollars is intensifying and thereby driving the dollar higher in the blue market.  In a sense no one wants to be left holding the last peso when it plunges.  Consequently, there is a sense of urgency that is becoming more prevalent almost by the day.  

In real life the difference between the parallel and official markets can make everyday life interesting if not difficult.  I have a gringo acquaintance who went to an airline office to purchase a ticket to Buenos Aires.  The person at the desk suggested he purchase the ticket online using a credit card in order to save 15%.  He declined the offer because even with the 15% discount the exchange rate that the credit card company would have given him would have been in the neighborhood of 5.15 peso to 1 dollar.   Recently, he had sold his dollars at 80% premium to the 5.15.  Consequently, paying via MasterCard would have cost more even with the discount.

So, in the end, who loses?  Those who aren't sophisticated enough to understand the ramifications of holding on to their pesos rather than buying dollars.  Interestingly, these are the same people who put CFK into office....twice.

UPDATE 3/25/2014:
The official rate of the peso reached 8:1 to the dollar today and shows no signs of stopping.  At some point, something has to give.

"We Don't Talk About Inflation In Argentina"

Recently a video of Hernan Lorenzino, Argentina's economy minister, was released and quickly became an internet sensation amongst Argentines.  Apparently, he believed that he was to play patty-cake with the Greek reporter whom was interviewing and assumed she knew nothing about Argentina much less anything about the economy and inflation.  He was wrong.

The female reporter asks Lorenzino directly, "I have a very simple question for you that seems very complicated these days.  How much is inflation in Argentina at this moment".   The look on his face was golden.   If you've read my blog you know that the government office (INDEC) which is in charge of inflation statistics was ransacked by the Kirchner government in 2007.  The old employees were replaced with Kirchner cronies and told that inflation would be whatever the president says it is.  Consequently, inflation has been wildly under-reported since that time.  Over each of the last five years inflation has hovered around 25% while the INDEC has reported around 10%.

Because most media in Argentina is controlled directly or indirectly by the current administration which utilizes it for it's propaganda campaigns Lorenzino was unprepared to be questioned about inflation.   No one in Argentina would dare ask a question!



The video shows a visibly shaken Lorenzino who can't seem to talk his way out of the bad situation.  What was his response to this seemingly simply question?  "Official statistics show month after month the inflation and this is the only inflation possible, that provided by the official stats office. The only office with the capacity to measure any statistic is the INDEC that comes under the Economy Ministry".  He was clearly speaking from a defensive position by indicating that the only possible inflation that could be correct is that which is calculated by the INDEC.  Last year several independent economists were fined up to $500,000 pesos each for providing "false" inflation statics.

The journalist retorted, "But how much is it".     She obviously didn't realize that she was not supposed to ask questions regarding something as touchy as inflation.  That didn't stop Lorenzino from dancing around like a rookie boxer trying to avoid the jabs of his more skilled opponent.   He indicated that over the last 12 months inflation was 10.2% and the he may be off by a decimal.

The journalist did not stop there.  She pointed out that the IMF threatened sanctions against his country if they did not 'repair' the problem of providing false statistics.  "What will you do about that", she questioned. (The IMF did eventually censure Argentina last February).

This question was the knockout punch.  Lorenzino couldn't handle any more. It was apparent that he was not going to be able to salvage the interview.  In the final moments he said to one of his aides, "I don’t know, I don’t know. Can we turn off the camera a moment? I want to leave."  At that time the camera was put aside but not turned off.  We can still hear him speaking, "Furthermore, to speak about inflation statistics in Argentina is very complex."  He went on to say that he just wanted to leave it with the last statement and be done with the interview.  
 
The rest of the encounter was captured on audio with the camera pointed towards the journalist.  After Lorenzino makes a hasty exit one of his aides is heard explaining to the journalist, "We never speak about inflation, not even with the Argentine media."

Apparently, the interview was conducted sometime in December 2012.  Why the Greek television station waited to air the piece until now is up for debate.


Living in Patagonia is like....


When people ask me what it's like living in Patagonia, I tell them it's like walking in cold molasses.  Everything and everyone moves slow.  It's one of the best places on Earth to live, if you don't "NEED" to get anything done.  The second that something important needs to get done the beauty of Patagonia fades behind bureaucracy and/or laziness...Example:

Knowing the challenges of living in Patagonia I thought I was prepared as I began to change my timing belt and alternator on my truck.  As usual, my expectations were set too high.  Out of 4 replacement parts they sold me 2 of them were "close" but not correct, one of them was correct and the 4th wasn't even for an automobile.  Fortunately, my MacGyver like training while growing up Star, Idaho allowed me to "refine" 2 of the 4 parts (read cut to fit).  The other was the timing belt itself so MacGyvering was not a good option.  In the end and after 3 solid days of head scratching and dremel cutting the truck functions again.  This is normal life in Patagonia.

You see, in most any first world country even an idiot would be able to plug numbers into a piece of computer software and cross reference the correct part.  Here, they are still using the old fashioned books.  Unfortunately, the books can be outdated or have only one option for a particular model or engine.  In this case, you get that option or nothing.  

Friday, April 26, 2013

The Sky Is Falling In Argentina!

Over the last couple of years it has become painfully obvious that the Argentine economy is solidly on the road to ruin.  Since 2001, which ushered in the largest economic crisis since it's independence, Argentina has been a roller coaster of ups, downs and patchwork regulation.  While economists have warned them to slow down domestic growth Argentines have ignored the advice and rolled full steam ahead.  The result is now upon us.


 The above chart was issued by The Economist in June of 2011.  The effects of this overheating are being realized today.


The simple truth is that the Peronists have not learned from history.  They have failed to realize that the last decades breakneck growth needed to be managed and slowed in order for it to be sustained.  Instead, they increased their transportation and energy subsidies and spent even more on social programs.  These were funded by nationalizing private pension funds but as spending continued to grow they ran out of other peoples money to give away.

They fixed this by nationalizing YPF, the nations largest petroleum company.  It's difficult to say which private entity will be stolen next when the YPF coffers run dry.  For now the Central Banks is busy printing money.


The Argentinian economy is losing about $2 billion per month due to subsidies and populist spending increases.  The country either needs to diversify it's exports or learn to get along with other countries.  If they could behave themselves and resist the urge of being arrogant other countries might be willing to increase imports of Argentine commodities and goods enough to catch up with the governments spending.    The only other option is to continue government spending which will increase inflation which is expected to reach 33% over the next 12 months!  In short, Argentina is out of options.  The alligator must get paid and he is knocking at the door.