Bruce, old lad, they were already belly up. As I recall they had a 5,000% inflation rate.
However, privatization is no answer. Competition is the way to get a tottering into shape. Mostly, the idiots privatize a monopoly - something they should have learned not to do in Economics 99. Usually, such a situation is the result of spending more than you've got. So, you must cut back - preferably on over-extended public services. Then you have to produce more before you go broke and trade is the obvious direction. Argentina was already a basket case (which is usually the case when the IMF is called in). But, the reason was a completely venal, corrupt, and incompetent, government. Come to think of it - is there any other kind? Incidentally, Ed mentions the idiocy of pegging the peso to the dollar. He is quite right. But this kind of thing has been the policy of government after government. It's a kind of Walt Disney folly - you'll recall "Wishing will make it so!" But, wishing doesn't stand a chance against Gresham. Harry ------------------------------------------------ Bruce wrote: >Keith, > >You have out-done yourself! Argentina did exactly what the IMF told >them to do: privatize, cut back public services and increase trade. >That's why they went belly up! > >Bruce Leier ****************************** Harry Pollard Henry George School of LA Box 655 Tujunga CA 91042 [EMAIL PROTECTED] Tel: (818) 352-4141 Fax: (818) 353-2242 *******************************
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