Tonight I was reminded of my first learning experience about how “printing money” and borrowing debt from other nations can cripple a government. How much do you think an Argentina (1,000,000 Pesos) “Banco Central De La Republica Argentina Un Million Pesos” in U.S. dollars? According to prior research and as of today you can’t even give them away on eBay: http://shop.ebay.com/items/__ARGENTINA-1-000-000-PESO (you can see NO bids and NO completed items for this item).
History on Argentina:
http://www.articlearchives.com/economy-economic-indicators/public-debt-external/1569482-1.html
From above link (sound familiar - just remove their leadership and insert Obama/Pelosi/Reid/Dodd/Frank and their puppets): “In Argentina the Supreme Court ruled against the rights of the bondholders to collect in accordance with their original terms, arguing that the existence of an emergency justified limiting property rights.”.
But now let us go back further in history (above is more like the theories we have recently seen “too big to fail” and this is “unusual circumstances, we must act now”).
Back a little bit more in time in history of Argentina:
http://www.rcwhalen.com/_articles/barrons_argentinas_failure_could_be_contagious.asp
Again, sound familiar:
“Brian Wesbury of Griffin, Kubik Stephens & Thompson: “Unfortunately, the IMF forced Argentina to raise taxes in recent years, creating even more problems for the economy. Tax cuts are the answer, not devaluation.” Dominated by socialist Peronistas, the Saa government is unlikely to consider tax cuts to help the economy.”. (voice of Conservative reason vs. Socialist Liberals - sound familiar)
IMF - was Geithner a part of this mess too? That would make TurboTax Tim the best candidate to finish off our economy. We know he did not pay taxes during that time at the IMF.
More from above article:
“Brought to power after a political meltdown, Saa promises to create millions of public-sector jobs. He also claims Argentina will maintain peso parity with the dollar, but the government is rapidly increasing the money supply, issuing a new, nonconvertible currency, the argentino, to circulate alongside convertible pesos and dollars and help add liquidity to the economy. The number of pesos in circulation fell 30% in 2001 as Argentines bought dollars, compelling cities and provinces to print IOUs to pay bills and salaries.”.
(Wow - above sounds like Obama and his “hope” and “change” and “we are going to create or save or preserve 1, 2, 3, 4, 3, 2, 1 million jobs” or whatever # Obama is using these days) and (California - IOU’s).
And just a little more history from above article as it relates to the U.S.A. and Obama and his plans for “change”:
“With the Saa government trying to buy popularity, the immediate prospect for Argentina seems to be hyperinflation and more political turmoil. When the Saa government is eventually forced to let the peso float against the dollar, Argentine banks and companies will be left bankrupt, and the savings of an entire country will disappear, a fate not unlike that facing the shareholders of Enron. Deflation, it seems, respects no national borders.”.
We can look back at what Argentina has been through and see that Saa’s change did not work, hmmm I wonder if Obama’s change will work? NO
I think Cristina Fernandez de Kirchner and Barack Obama could have been separated at birth (read this and see if this sounds familiar:
http://www.investors.com/editorial/editorialcontent.asp?secid=1501&status=article&id=278635168663102
(from above article) “Anyone who looks closely knows that CFK, as the president-elect is known locally, favors intervention in the economy and punishing businesses for raising prices in response to government policies. She didn’t talk about it much during the campaign, however.“. “Instead, Cristina allowed most of the focus to go to her hour-a-day makeup sessions, hair extensions, botox treatments, jangly jewelry and cleavage. That served to obscure her real leftist program or any close examination of it, just enough to win the election.“.
and
“The media exuberantly painted CFK’s victory as a victory for women, but that was irrelevant. They might have done better to look at voter apathy, which was up sharply. If projecting a glamorous image over directly selling socialism was what it took to win most of the vote, what does that say for the power of the idea?“. (again, sound familiar - I guess the Argentinian Press had tingly feelings in their legs too).
Two VERY wise quotes regarding socialism:
The inherent vice of capitalism is the unequal sharing of blessings; the inherent vice of socialism is the equal sharing of miseries.
- Winston Churchill
Capitalism and Communism stand at opposite poles. Their essential difference is this: The communist seeing the rich man and his fine home, says: “No man should have so much.” The capitalist, seeing the same thing says: “All men should have as much.”
- Phelps Adams
