Sorry Harry, Argentina went into the clutches of the IMF/WB long before 5,000% inflation. It was their idea to tie the peso to the dollar. Try to at least get your chrono in order. I know we could legitimately debate causes til peron resurrects, but lets get order straight.
Bruce Leier > -----Original Message----- > From: Harry Pollard [mailto:[EMAIL PROTECTED]] > Sent: Thursday, August 15, 2002 8:49 PM > To: Bruce Leier; 'Keith Hudson'; [EMAIL PROTECTED] > Subject: RE: Cry for Argentina > > 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 > *******************************
