No Edible iPads Here: Cost Of Argentina Bread Doubles - Wheat/Flour Prices Frozen

Tyler Durden's picture

Over two years ago we highlighted just how out-of-touch with reality our central planners are when we exposed Bill Dudley's infamous inflation comments. Now it seems, Argentina is taking over the mission of totalitarian supreme command (or government gone mad). While not publicly admitting they have a problem, despite the price of bread doubling to 20 Pesos in the last year alone, Bloomberg reports the government plans to apply a 1974 law that forces holders (on penalty of fines and prison) of wheat and flour suitable for bread-making to sell it in the domestic market. This entirely un-free-market response to the dreadful reality in the nation comes on the heels of the freezing of prices on 500 goods at Supermarkets back in February and, unbelievably, suggestions that citizens combat higher prices by "baking bread at home." How long can a country plunge into a hyper-inflationary spiral before the people 'coup-like-an-Egyptian'?


Via Bloomberg,

Argentina plans to apply a law that forces holders of wheat and flour suitable for bread making to sell stock on the domestic market in a bid to contain inflation.


Interior Commerce Secretary Guillermo Moreno announced the measure in the official gazette today. The 1974 law allows authorities to freeze prices and obliges companies to maintain supply. Those in breach are subject to fines and imprisonment.


“If the law on supply is applied, the one who should go to jail is Moreno himself,” former Economy Minister Martin Lousteau said in an interview with Radio Mitre today. “He’s to blame for the lack of wheat in Argentina.”


Argentine wheat production has decreased since 2006, when President Cristina Fernandez de Kirchner’s predecessor and late husband Nestor Kirchner set export quotas. Lousteau was appointed by Fernandez in December 2007 and resigned four months later amid disputes over a bill that sought to increase export duties, a move that led to a four-month farmer protest and failed to move through Congress.


The rising cost of wheat locally has pushed up the price of bread to 20 pesos per kilo ($3.70), double year-ago levels, according to research company.




Moreno closed stores owned by Wal-Mart Stores Inc., Carrefour SA (CA) and Cencosud SA (CENCOSUD) for a few hours yesterday after the government found shortages of some goods. Grocers agreed last month to freeze prices of 500 goods and ensure supply as part of the government’s efforts to stem inflation.

While the national statistics agency said prices rose 10.3 percent in May from a year earlier, private economists estimated prices rose 23.4 percent in the same period.

Last week, the consumer protection agency recommended Argentines combat price increases by baking bread at home, posting recipes on its website under the title, "hot bread, flour at frozen prices."

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yogibear's picture

When will the rest of the world stop accepting the US currency and it's promises?

Expect the US fed to keep devaluing the US dollar and BSing the rest of the world, just like Argentina was doing. 

wee-weed up's picture

Thanks to Bennie and the Inkjets, this is coming to a US city near you before long...

Are you rolling in that dough yet?

Bread dough, of course... according to Argentina, you're gonna have to bake your own!

IndyPat's picture

And how long of a time interval is it between the "Bake your own bread" article in the NYT to the No. 1 "Cannibal Cookbook - Easy recipes for today's hectic lifestyle" in the book review?

spine001's picture

The economic, financial, political, security, safety, environmental situation in Argentina is SO BAD that it makes the USA look like a Beacon of light and purity. Corruption in Argentina is overt, at least in the USA they try to make it covert. In Argentina when the Supreme Court rules against the wishes of the President, the local IRS starts investigating the President of the Supreme Court the next day... And his finances get exposed on National TV. At the same time a friend of the Kirchner family who was a Bank Teller until a few years ago is now a multibillonaire who competes for public tenders with several companies that are all owned by him (and NO other competitors). The bribes are measured by Pounds and not in money amounts due to the difficulty in transporting the bills, they prefer Euros because they have 500 euros bills... It goes on and on...

WmMcK's picture

I prefer 1000 CHF notes because, well you know.

MeelionDollerBogus's picture

I'd be so relieved - after all, I can't eat my dollars.

Harbanger's picture

Argentina is one the wealthiest countries in the world in terms of natural resources.  But when a country is run by skumbag socialist bastards you will starve in a field of plenty.

garypaul's picture

I suppose it would be much better under the "free market" bankster dudes.

Popo's picture

Please tell me you're not ignorant enough to believe that bankers are free market capitalists, or that our current crisis is a crisis of capitalism.

We have a crisis of a fascist government kleptocracy which services the corporate oligarchy.

Socialism is what's happening in Argentina right now and it will absolutely destroy them. There's a reason the shelves were bare in Soviet supermarkets. If you put price controls on food, the profit margin vanishes and the producers stop going to work. Productivity collapses and famine ensues. That's socialism and it works the same way every single time. Millions starve. Tens of thousands die. Suffering goes exponential.

Free market capitalism works, but it must be defended against oligarchs, monopolists and corrupt politicians who turn it into oppressive regimes like we have now. The answer is most certainly not the nightmares of socialism.

SWRichmond's picture

+1.  Price controls on food lead directly to mass starvation.  This is well known.  Then, from the ensuing panic and chaos, government will grab still more power.  This is how it works, how it always has worked.

Why don't they just be honest about it and fly a plane into a building?

Seize Mars's picture

You know one would think that the data points are easy enough to read, even for the great unwashed masses. But there are still those who believe that Socialism, "for the people."

Ignore the mountains of corpses over there. It's "for the children."

MeelionDollerBogus's picture

A well organized socialism of able people can work just as well as capitalism. Not the same but beneficial. The problem is if you let stupid people take part & you use force to keep smart people joined against their will. Socialism doesn't need to operate that way any more than capitalism needs to legalize fraud as just another "part of the market" to be respected.

TheFourthStooge-ing's picture


And how long of a time interval is it between the "Bake your own bread" article in the NYT to the No. 1 "Cannibal Cookbook - Easy recipes for today's hectic lifestyle" in the book review?

Former NYPD cop Gilberto Valle is just a misunderstood trendsetter.

IndyPat's picture

Well, there you go. Something to do with his time in Rikers...outside of his bitch duties, which will be legion, considering his résumé.

Theosebes Goodfellow's picture

About the same amount of time it takes them to convince the public that household pets are "nutritious and delicious".

Never One Roach's picture

True, but luckily for Argentinians, their "core inflation" is listed officially as much less, right?


Whew! I got worried there for a moment.

Stockmonger's picture

All hail Krugmantina!

IndyPat's picture


Pure Tyler awesomeness!
Imma have to borrow that one.

spine001's picture

No coup in Argentina, the Argentinean president just changes the leaders of the military, with previously groomed friends that own mansions that could have never afforded with military salaries. Those friends have infiltrated all three armed forces. There won't be any coup in Argentina. And rebellion? No way, the "barra bravas" are "crazy" soccer fans that profit selling everything there is to sell around soccer matches, most of then consume drugs and work for the politicians doing the dirty work. They infiltrate any protest they get hired to inflitrate and do whatever they are asked with no barriers.

wee-weed up's picture

Sad, but isn't that the same as it is here under the banana-republic Obama regime?...

He has put his hand-picked perfumed generals in all the high-ranking positions of leadership.

And thus, when commanded to fire on their fellow citizens, would not hesitate one second to do so for their Dear Leader!



And I say that as one who served 8 years (long ago) in the US military, and am very proud of my service...

but I'm disgusted by what I see now as the "kiss-ass" to get ahead motives I see in today's military leadership.

One word for them... shame!

otto skorzeny's picture

a slip of the tongue and they could lose that fat fucking pension- or be released into the big bad world of the shitty US economy- which all .gov workers know is fucked up.

TBT or not TBT's picture

Like an Egyptian army that is to say. Note Venezuela exports wheat, right there in the article. Net exporter, it is to be assumed. Egypt cannot under any circumstances likely to exist in the next decade, provide enough calories from its own agriculture to prevent mass starvation. It has to buy them. This is the reason the people were in the streets. Egypt ran out of reserves with which to pay for food and fuel, after rationing it pretty hard to begin with. Tourist income got zeroed. Thanks islamists! Venezuela is way less backwards, having ten times more clits per woman than Egypt, and a similarly giant advantage in literacy among its poor. In Egypt, the hunger has gone on so long that almost half of its adults are physically and neurologically stunted.

otto skorzeny's picture

10 clits per woman? my tongue would be worn down to a bloody stump.

IndyPat's picture

"Ten times more clits per woman"
Funny, Simon Black DID FUCKING NOT mention that fact in his spell binding journals.

Fucking hysterical! Calling my travel agent and stashing wonder bread in my luggage as we speak. Viya Con Dios, Bitchez!

duo's picture

bring some yeast and you can do both at the same time.

SDShack's picture

Gives new meaning to the phrase "Let them eat cake!"

garypaul's picture

TBT, your comment "Venezuela is way less backwards, ...having clits..." is absolutely correct. The Eastern countries (including India) are so backward that there is truly no hope at all in the future (except unless there was a total wipeout catastrophe).

Son of Loki's picture

...and in 'Barbaric' Brazil....


Octavio da Silva Catanhede Jordan was reportedly butchered and decapitated by a violent mob last week (Photo:

An amateur soccer match turned outright barbaric, leading to the deaths of a match referee and player in northeastern Brazil.

According to multiple reports from Maranhão, match referee Octavio da Silva Catanhede Jordan allegedly stabbed Josenir dos Santos Abreu to death after an argument with the player during a game on June 30.

The 20-year-old referee reportedly had a knife with him at the match and attacked Santos Abreu. The 31-year-old footballer was pronounced dead on arrival by a local hospital.

What subsequently happened was more appalling.

After witnessing the horrific attack, family and friends of the player reportedly invaded the pitch to lynch the referee, who was gruesomely quartered and decapitated by the mob, which later hung his head on a stake.

New World Chaos's picture

And yet this never happens when cops or judges do something morally equivalent.  Sports = just another lobotomy / rage outlet.

MeelionDollerBogus's picture

I am the Walrus,

Coup Coup Kajoob!

moonstears's picture

Ahh...inflation and price controls...hand in hand, skipping, like always.

CrashisOptimistic's picture

There is nothing they can do.

Their oil fields are way past peak.  Argentina nationalized the Spain oil firm in a petulant fit of temper because they could find no more oil.

Don't delude yourself into thinking anything other than oil matters.

It doesn't.  Geology decides all this.  Not gold.  Not printing money.  Not population.  Not food. 

Oil.  The life bringer to 7 billion and the life taker of 6 of them.

AurorusBorealus's picture

Argentina nationalized YPF for many reasons.  1)  YPF had and has a terrible reputation in Argentina for bad gasoline.  People refuse to buy gas at their stations.  This was long before the government takeover.  This was a result of the buyout of YPF by European banking groups.  2) YPF was bought with funny-money printed by central banks.  The oil is a resource of Argentina.  3)  Europe is in the midst of a crisis, Spain especially.  Why should Argentina allow Spanish banks to plunder their resources to pay off bad-loan housing-bubble debt. 4)  What is Europe going to do about it?  The short answer... nothing. Like it or not... it is a dog-eat-dog world.

CrashisOptimistic's picture

You don't seem to have a good understanding of what happened.

YPF refused to drill for oil in areas that contained fields/bubbles too small to fund the cost of drilling.  Argentina didn't care about their profit.  They cared only about the royalties on output flow.  YPF could not find oil.  Period.  It didn't exist in the right quantity or configuration to earn a profit. 

Argentina's government budget depended heavily on those royalties, which were in sharp decline.  And so they took the desperate act.  There is a similar shortfall in natural gas, derived from the same inability to get it out profitably.

Surf on argentina, ypf, scarcity, decline and the articles make clear that Argentina wanted output, and didn't care if the company doing the production made money.

dunce's picture

If the govt. was right and the oil can be extracted profitably then we will see increased production now that the govt. is running things. The most likely result will be decreased production but they will not have a foreign oil company to blame. It would be funny if there were not so many people that will suffer in the national failure. Socialists never can seem to accept that the laws of economics are inviolable.

Seize Mars's picture

Yeah, it's funny. Let a depleted well sit for a little while. Whoops! Suddenly it produces oil again. It's funny how that happens to that, um, "nonrenewable" commodity.

What's funnier still is that every peak oil person I meet also argues that money printing and gold are...unimportant.

The cats out of the bag. The scam of all time is that of trying to make oil look like a scarce resource. It isn't.

If oil were scarce, it would be good if you were in the business of printing little green paper coupons to "securitize" it with. Right?

1) Oil is scarce means paper money has value or utility

2) Gold is low priced means paper money has value or utility.

If you know you can't win an argument when you try to argue in favor of fiat finance, then argue that peak oil is real. It's the converse of the same LIE.


LongBallsShortBrains's picture

Seize mars good post

Somebody that can see.

MeelionDollerBogus's picture

WHOOPS! Except they're not - they're staying empty because there's nothing left to fill from.
Oil is not a natural resource that just comes along all by itself. You must shove organic matter into a hole at high pressure and it must sit for thousands to MILLIONS of years to make oil.
When you drain that well it never refills.
The hoaxer stories don't cut it.
That's why those empty wells stay empty.
The zero level is where you can't find anything heavy enough to shove into it, or pumps powerful enough, to lift the dregs.
Like scraping oil clean off a surface you can't reach inside a jar, bottle or pipe you can't get it all but you can certainly drain it to the limit of your technology.
We're there.
Those wells can not and never will refill.

Peak oil is a proven fact over DECADES of evidence of total cost to get a barrel of oil, MEASURED IN OIL and total output of wells, MEASURED IN VOLUME like BARRELS or gallons or liters or anything units prefer.

We've hit the bell curve for the PLANET.

It's all downhill from here. Nothing has changed. Your wells are not refilling.

Make_Mine_A_Double's picture

This has been road tested in Venezuela and the results have been impressive. The next step is the nationalize the growers to close the loop.

What could possibly go wrong with a menopasul plastic surgery disaster and a bunch of facalty lounge Marxists running the economy (I refer to the Argies and not the USSA administration).

Still got the best looking babes in SA though. Can't take that away from them.

IndyPat's picture

"menopasul plastic surgery disaster"
And the hits keep coming!
Fight Club is on fire tonight.

CPL's picture

Zimbabwe comes to mind in that situation.  Expect starvation with a side of revolution.

FieldingMellish's picture

My father received his house insurance bill today... 40% increase. I think I will buy him an iPad to hedonically adjust this down to a negative number. All is well.

yogibear's picture

Tell him Willianm Dudley of the NY Fed said there was no inflation.

otto skorzeny's picture

Tell him to thank that cocksucker Ben Shalom for ZIRP 4EVA for his rate jump.

surf0766's picture

Argentina, the new spring.. When does the MBhood get shipped in for democracy?

Aurora Ex Machina's picture

Sinai military - Wheat Traders. Who made money yet? I'm hoping many of you did. Don't ever say I'm not on a roll telling you the future (within hard boundaries) ~ and there's probably some irony involved. 

Golden Path 

You're all better than this. What you're suffering from here is a failure of imagination. Remember when the USA was all about the future, rocket ships, and no work?


The aide said that guys like me were "in what we call the reality-based community," which he defined as people who "believe that solutions emerge from your judicious study of discernible reality." ... "That's not the way the world really works anymore," he continued. "We're an empire now, and when we act, we create our own reality. And while you're studying that reality—judiciously, as you will—we'll act again, creating other new realities, which you can study too, and that's how things will sort out. We're history's actors…and you, all of you, will be left to just study what we do."


If They can create reality, You can create your own realities. 30-40% of all food produced in 2013 is wasted, and bread was free in Roman times. What does that tell you? Given that Egypt was a core bread producing centre of the Empire.

IndyPat's picture

Are you suggesting that the Muslim Bro's were sacked due to Spice mining operations?
That does take more imagination than I can muster.

Seriously, why don't you just say what you want to say instead of crouching every single word codes and symbols. It's tedious. I truly do not intend to offend, I just can't put it any other way. When I do "get" your posts, they are amazing...but they are amazing in their truth...not the fact that it was so difficult to untie them.
If you obscure because of the Man, I'm not sure how effective that would be. If you are here, your why pull punches? If you do it for literary's ZH. Not quite pearls before swine, but overkill nonetheless.