Armstrong Economics Blog/Hyperinflation Re-Posted Aug 10, 2022 by Martin Armstrong
Argentina’s government has left its beautiful country in financial ruin. July’s inflation report surpassed 60% with no signs of slowing. The problem with socialism is that they eventually run out of other people’s money. The government was spending $6 million daily on social programs, but the poverty rate continues to rise. Around 57% of the working population cannot find work, and there have been mass strikes since their money will not fund basic goods.
Economy Minister Sergio Massa, the third person to fill this position in the past month, has a new plan – stop printing money. Since they had no way to pay off their debt, the government simply continued to print more and devalued its own currency in the process. “Magic doesn’t exist,” Massa bluntly told reporters in Buenos Aires. “We have to confront inflation with determination.” Massa believes the country will still commit to its deficit goals this year to meet its agreement with the International Monetary Fund after receiving a $44 billion bailout.
Socialism simply does not work.
Their currency is useless, and the people have no incentive to work. The underground barter economy is alive and well, and only a full transformation of government policy could save this nation.