Argentina Has Made Every Economic Mistake Possible

There are three types of economies, say local economists. There are the developed economies. There are the undeveloped economies. And there is Argentina.

It’s spring…south of the equator. Flowers and cherry trees are in bloom along the Avenida 9 de Julio. This morning, we got up at 5 AM and stood out on the balcony…as the great city was just beginning to stir. What a joy to see it…

We’re here for several reasons:

First, there are few places in the world where you can learn so much about economics. If there is any mistake the Argentines haven’t made yet, you can bet they are working on it.

Second, we have a feeling that America is on the road to the Pampas too. The masses clamoring for relief…the central bank offering unlimited cash and credit…the government reacting with one foolish initiative after another – welcome to the future of the USA., dear reader. (About which…more to come…)

Third, we’re here because we invested in property down here. Everything takes follow-up…everything takes follow-through. Everything takes more time and money than you ever thought possible. We bought land because it was very cheap – but we quickly remedied that situation!

Cometh this note from the farm manager, in Spanish, of course:

“Señor Bonner, I hate to bother you, but the peóns are getting very unhappy. They haven’t been paid for three months…”

“But don’t you get the checks every month from the accountant in Buenos Aires?” we wanted to know.

“Yes, but something happened…the government stopped the banks from transferring money because it was coming from overseas and they thought we were laundering or something…”

“Well, what about that extra 75,000 pesos we sent in July? Why didn’t you use that?” we asked.

“Oh…we had to use that to buy hay. You know, there was a severe drought down here. I told you. We had to feed the cattle…”

Bill Bonner
Markets and Money

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.
Bill Bonner

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