Saturday, March 31, 2012

Argentine Banker Mercedes Marcó del Pont is a Lunatic

I will be avoiding the Argentine Peso and so should you, not that I ever had any plans to buy it in the first place.  This lady (who has somehow become their bank president) has gone, as they say on ZeroHedge, "full retard".  It figures, since she went to Yale.  At least the Princeton paper-bug crew like Bernanke and Krugman acknowledge that printing money COULD cause inflation (although the proper Austrian definition of inflation is simply an increase in the total supply of money and credit).


Check it out:

Printing Money Does Not Lead To Inflation, Argues Argentine Central Bank President

Excerpt: The banker added that “it is totally false to say that printing more money generates inflation, price increases are generated by other phenomena like supply and external sector’s behaviour”.

Hasn't Argentina already experienced hyper-inflation at least twice? I think three times? I am a small-time merchant of foreign coins and banknotes and have old 1,000,000 Peso notes from there.  In the late 1800s and early 1900s it was a true first world nation and lots of Europeans had a tough decision between the US and Argentina on where to immigrate to. But they threw their wealth away with successive rounds of money-printing, thus wiping out both the middle-class and foreign investment.  It appears as though they are dedicated to repeating history once again.  I think her US education may have taught all the wrong lessons - our central bank only gets away with wild money-printing because we have the world's reserve currency (a privilege that is quickly fading).  Argentina doesn't.

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