“La realidad” has finally arrived in Argentina.
My dad and I were having one of those “father-son chats” many years ago. He said one of the most profound things that I’ve ever heard. He told me that reality always has the last word.
My father was not speaking about Argentina but reality is clearly having the last word down there.
It is really tough, and getting worse, according to news reports:
“”When I went to buy it, the price had gone up 25% since when I checked prices last week,” she complained outside the Alto Palermo shopping mall.
“The same thing just happened to me at the pharmacy where I went to buy the medicine my husband takes: the price was up 20%.”
The economic panic leading to price mark-ups of this kind began in mid-January, whenArgentina’s central bank reserves dipped below $30bn, forcing the government of President Cristina Fernández de Kirchner to drop its policy of injecting large quantities of dollars into the exchange market to shore up the overvalued peso.
The sudden dollar scarcity on Argentina’s exchange market sent the peso’s official value crashing to eight pesos to the dollar, while the “blue” illegal rate shot up to nearly 13 pesos.
Retailers immediately marked up their prices to reflect the new reality. In some cases, items were pulled en masse from the shelves, as retailers pondered how much to mark up their goods.”
In the past, President Cristina Fernandez, who replaced her husband Nestor a few years ago, has demonized the opposition and promised more “free stuff” to voters.
That was then and this is now.
Reality does not allow her to play that “tango” anymore.
Argentina is going to enter a very serious crisis and the public is in for a very uncomfortable ride. We will likely see a default of Argentina’s foreign debt, as Fausta Wertz has been saying.
There are two options for Argentina.
First, they can look to Chile, bite the bullet and better days will come. Argentina has the potential for a huge comeback but they need a political class that looks to Chile not Cuba for economic ideas.
Second, they can “double down” on class warfare and implode. Yes implode like “implode”!
“Don’t cry for me Argentina” should be changed to “Don’t vote for such stupid leaders Argentina”.