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Capital Controls Explained: Argentina Edition

Tyler Durden's picture




 

By Simon Black of Sovereign Man

Capital Controls Explained: Argentina Edition

If there’s one thing I love about Argentina, it’s that no rational person here trusts the government.

They’ve been screwed over so many times before by their politicians (and the banking system), they know it’s all lies.

Curiously it keeps happening.

This place has been enduring some of the worst measures imaginable– capital controls and exchange controls. Price controls. Media controls.

The government controls nearly every aspect of the economy; in fact, Argentine President Cristina Fernandez de Kirchner actually told her nation on Wednesday that without the state there would be no growth.

(Amazingly she followed that up with “No one can teach us how to make the economy grow.”)

Yet despite being admittedly clueless, Cristina campaigns for even more government control, and even more authority.

This is so typical of bankrupt nations.

When governments find themselves in financial trouble because of the stupid decisions that they’ve made, their first response is to award themselves even more power to make even stupider decisions.

And among the stupidest decisions that any government can make is imposing capital controls… something that Argentina has in abundance.

Capital controls are like the Matrix; you can’t really explain what they are. You have to show people. Argentina does not disappoint.

For years now, the government has heavily restricted the flow of funds out of the country.

It’s actually a criminal offense to leave the territory with more than 10,000 USD in cash.

Transferring money out of the country through the banking system requires significant paperwork.

One of the first things they’ll do is bounce your funds transfer request to the tax office so that the government can ensure they’ve taken their fair share of your savings.

Then, whatever funds are allowed to leave must be transferred at the official exchange rate, which is presently about 30% worse than the street rate (what they call the ‘blue rate’).

This means that on top of already soaring inflation, taxes, and tariffs, locals are effectively paying 30% more for goods and services, especially anything that’s imported.

For foreigners who don’t earn their money in pesos, Argentina is an attractive bargain. But for the average guy on the street here, life is painfully expensive. And it gets worse.

That’s what happens with capital controls: you see a rapid decline in your standard of living as the government traps your savings in a bankrupt system.

It’s like lying on the ground with a blindfold on while the government builds a coffin all around you.

Little by little they fasten together all the sides, and then the top, nail by nail.

You can’t see precisely what’s happening. But your senses tell you that something’s going on. And if you wait too long to get out of there, you’ll be trapped.

Capital controls are like a coffin for your savings.

And if you wait too long to at least move a portion of your money somewhere else, everything you’ve ever worked to achieve can be trapped and heavily devalued.

The people here who have done well in Argentina’s never-ending financial crisis are the ones who established accounts abroad and moved money while they still had the chance.

(Coincidentally one of the trending jurisdictions for Argentines to hold their money these days is Hong Kong.)

Argentina is not alone– this is the path that nearly every bankrupt nation ends up following. Greece (and other nations in Europe) are already going down this road.

It would be foolish to think that any government with an unsustainably high (and growing) debt level would fare any better.

Argentina wasn’t always this way. It used to be one of the wealthiest in the world.

But it’s an important reminder that no country– no matter how rich its economy or how large it’s military is today– is immune to the universal law of prosperity.

Just like regular people, governments and nations must produce more than they consume. Those who don’t will run into trouble.

They can delay. They can deceive. But they can never avoid the decline.

 

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Sat, 06/06/2015 - 12:51 | 6169479 junction
junction's picture

We in the USA also have capital control programs.  The civil asset forfeiture program run by our thieving police.

Sat, 06/06/2015 - 13:16 | 6169530 SafelyGraze
SafelyGraze's picture

the problem witb digital currency is that it doesn't burn over an open flame

 

Sat, 06/06/2015 - 15:52 | 6169865 MonetaryApostate
MonetaryApostate's picture

Look, the elite are worldwide, global if you will, and they rule almost every seat of power....

If you can't smell the collusion, you are either ignoring it or clearly ignorant.

What one nation does, expect others to follow suit, and that's because the UK rules Most Nation with an iron fist.

Or do you need a history lesson in their conquest wars?

http://en.wikipedia.org/wiki/List_of_wars_involving_the_United_Kingdom

The UK was the first to go off the gold standard, the US followed suit because they were ALLOWED TO by British Elite.

Sat, 06/06/2015 - 16:09 | 6169917 Sudden Debt
Sudden Debt's picture

And you can’t eat it so it’s a barbaric relic from the start!

Sat, 06/06/2015 - 13:10 | 6169518 anachronism
anachronism's picture

First, it should be understood that the writer of this article is a "man without a country" by his own choosing. He goes wherever his money is treated best. So it follows that such a man opposes any and all attempts by national governments to gain some measure of control over the flow of funds into and out of their banking system.

Yet just about every country, which is not marketing itself as a haven for tax dodgers and money launderers, has capital controls. Some are extreme, usually related to severe domestic economic problems. I cannot recall any country, suffereing from either deflation or inflation, from high unemployment, from excess sovereign debt, or from internal political crisis, which has solved its problems by ending its restrictions or regulations regarding capital flows.

Sat, 06/06/2015 - 13:27 | 6169543 Cautionary Tale
Cautionary Tale's picture

First, it should be understood that, policy wise, ZH PUBLISHES this type of content (which hasn't varied one iota over the past 5 tears, but instead is just cut & paste ramblings of a globetrotting gypsy, whom in fact, brags that he was a Navy Seal). & in the same moment, BANS comment section contributers like Trav777, francis_sawer, fonzannoon, Long Soup Line, & slewie (whom were all doing so with ZERO profit motive).

 

People smarter than myself ought to recognize the differences here.

Sat, 06/06/2015 - 14:39 | 6169679 Coke and Hookers
Coke and Hookers's picture

The central planned destruction of western economies hasn't varied one iota either over the past five years. What would you have ZH report on instead?

Sat, 06/06/2015 - 15:19 | 6169786 Augustus
Augustus's picture

How about if ZH tried to publish some profitable ideas?  It might help the gold bug losers pay their rent.

Sat, 06/06/2015 - 16:02 | 6169817 Cautionary Tale
Cautionary Tale's picture

all anyone needs to know is that any 'profitable' ideas are notions that only would tend to accrue to a CHOSEN few... At that point, you're free to make any personal assessments as to the viability (short & long term), of those notions...

 

Good Luck to you... My assessment of the situation is that the track record hasn't been very good thus far (whereby, POSTERS who criticize & identify the VERY CORE of the subterfuge tend to get KICKED OFF of ZH, whilst the controlled opposition opinions remain & thrive)... So, it's hard to identify sometimes...

 

Speaking of 'TRACKS' & profitability... Go ahead and take AMERICAN PHAROAH (even at short odds) in the Belmont Stakes...

 

My gift to you... I gave you all AMERICAN PHAROAH in the Kentucky Derby several weeks ago,, but, ALAS, I've been kicked off of ZH TWICE, since then, because I made unflattering comments about a certain 'race' (which WASN'T blacks, females, Palestinians, Japanese, Arabs, Mexicans, Greeks, Indians, Russians, Limeys, Wops, Pollocks, Frogs, Chinks, or anything else)...

 

You GENIUSES out there (with your 3+ years, non invasive, ZH tenures, can FILL IN THE BLANKS on that one)...

Sat, 06/06/2015 - 19:22 | 6170329 Cautionary Tale
Cautionary Tale's picture

OH ~ & OK... all you motherfucking dipshit motherfucking fucks could have made $3.50 on a $2 dollar ticket on AMERICAN PHAROAH (who I already schooled y'all on to take in the Kentucky Derby & Preakness)...

 

So go ahead & JUNK me all u morons... Bitch about jew FED CHAIRS all u want in a rigged game while you pass up my thoughts...

 

I swear to fucking fuck this place is for FOOLS... I'm only an UNPAID scribe to tell you how PATHETIC you are (while you listen to CH1 & SMG talk about the vast 'LUCIFERIAN' conspiracy)...

 

It's a fucking den of FOOLS!

Sat, 06/06/2015 - 17:48 | 6170136 GotGalt
GotGalt's picture

You're an idiot Augustus.  Who many times has ZH and Tyler Durden personally said to BTFD!!!!  One can recognize the farce is great with this market yet still participate in it.  Now go shine my shoes!

Sat, 06/06/2015 - 14:49 | 6169708 elegance
elegance's picture

Lol you are funny. Criticising GRU psyops website comments policy....

Sat, 06/06/2015 - 17:49 | 6169822 Cautionary Tale
Cautionary Tale's picture

Bring it on bitch (if that's your fancy, I spent the whole fucking morning pulling weeds ~ YOU won't be any different)...

<== PAID AIPAC weekend junkers who didn't make the VARSITY squad ~ slaving it out, nevertheless, for the almighty  SAT/SUN sheckel

 

I'll have you WASTED by midnight... Ironically though ~ Indoing so ~ I'll get kicked off of ZH...

Sat, 06/06/2015 - 23:35 | 6170797 Balanced Integer
Balanced Integer's picture

I junked you in hopes of getting a sheckel.

Still haven't gotten my sheckel, demmit.

Sun, 06/07/2015 - 09:01 | 6171348 EINSILVERGUY
EINSILVERGUY's picture

Ive been on this board almost 4 years. Can someone tell me why the aforementioned was banned?  Was this the same time as when the "discrimination" boilerplate was added?

Sat, 06/06/2015 - 13:35 | 6169559 Gromit
Gromit's picture

Argentina lost its special trade relationship with Britain in the twenties as Britain concentrated on developing the economies of its colonies whos products competed with Argentina.

Due to its desire to conduct an independent  foreign policy, it has failed to generate successful trade relationships with the USA.

Not an easy problem to resolve - the Margaret Thatcher doctrine is one alternative - but as all major political parties epsouse Peronismo that isn't very likely.

On the bright side - huge agricultural production with very small population and very little external; debt - Argentinians are well protected from what hasppens elsewhere in the World.

Sat, 06/06/2015 - 13:37 | 6169563 DaveA
DaveA's picture

Soviet-style socialism decayed for decades, but held as long as Moscow was willing and able to crush all resistance. Then in 1989 Moscow blinked, and communism flashed out of existence.

So it is with American-style socialism. When no one fears the wrath of Washington anymore, Christina will have a few hours to pack her bags and flee the country. After that, military juntas, hard money, small government, and bullets to the head of anyone who objects.

Sat, 06/06/2015 - 19:07 | 6170304 Village-idiot
Village-idiot's picture

Nicolae Ceausescu is an example of what can happen when the people get rilled up enough.

http://en.wikipedia.org/wiki/Nicolae_Ceau%C8%99escu#Death

Sat, 06/06/2015 - 14:00 | 6169592 Jack Burton
Jack Burton's picture

"The people here who have done well in Argentina’s never-ending financial crisis are the ones who established accounts abroad and moved money while they still had the chance."

A niece of mine, oddly enough, has just come back from a month in Argentina. She was visiting a friend she made on travels in Mexico. The friend is the son of a well of Argentine family. She reports to me that in the wealthy upper middle class neighborhoods, life is very sweet indeed! Large spacious beautiful semi manisons, plenty of cheap hard working domestic staff, who work hard and shut up. Weekends spent on the large sailboats or yachts. European sports cars, a vibrant upper class night life with trendy clubs. I believe the family has both banking connections and professional connects. In any case, she saw how the upper crust live, and it is a good life indeed. Labor is always cheap and easy to find. The poor areas are large, and the wealthy stay out of them. Due to street robbery. The little people, those in the lower middle class are targets of criminals seeking to live by crime. A typical lower middle class, half way decent Argentine home has bared windows, locked gates, and fences or walls around them. Mind you, this is the lower middle class, anyone with enough to own a small but decent little home, all across Argentina, these modest homes look like mini fortresses when you drive down a typical city street. The poor, well she never saw what they live like.

Sat, 06/06/2015 - 17:58 | 6169633 ILLILLILLI
ILLILLILLI's picture

Indeed, Jack, indeed.

For those of you who don't know him, there is an individual who goes by the handle "Ferfal" who was living in Argentina at the time of the collapse. He started posting to his blog about his experiences, and eventually published a book about them.

He writes from the perspective of someone who lived it, not just theorized about what would happen. He writes about how it affected him and his family personally, and how they managed to make it though and finally escape the country.

You can get the book here:

http://www.amazon.com/The-Modern-Survival-Manual-Surviving/dp/9870563457

You can read lengthy excepts here:

https://www.survivalmonkey.com/threads/ferfal-some-first-hand-experience...

He offers a lot of real, practical information on how to avoid mistakes that would otherwise "get you dead". A good book...worth the money.

Sat, 06/06/2015 - 18:19 | 6170205 UselessEater
UselessEater's picture

Ferfal's blog if interested:

http://ferfal.blogspot.com.au/

 

Sat, 06/06/2015 - 18:33 | 6170234 Jack Burton
Jack Burton's picture

Thanks! I will read the book. I am planning a long trip to Argentina within the year. I want to be well prepared when I go, so this book sounds perfect for me to learn what the situation really is. Sad to see all the potential of Argentina always turn to crap. At one time over a century ago, Argentina was one of the worlds centers of wealth and culture. Few people know that, and the sad story of it's decline. The living standard for the majority is awful, though my niece does say that the automobile is everywhere, even the poor houses have a nice car parked next to them.

Sat, 06/06/2015 - 14:41 | 6169684 Coke and Hookers
Coke and Hookers's picture

This sounds like your niece was describing the United States.

Sat, 06/06/2015 - 18:20 | 6170206 kchrisc
kchrisc's picture

Good and enlightening comment.

DC US rapidly headed to Argentina's condition as well.

Liberty is a demand. Tyranny is submission.

Sat, 06/06/2015 - 19:13 | 6170315 10mm
10mm's picture

Hmm. Imagine that scenario in the US. Magnified by 1000.

Sat, 06/06/2015 - 14:09 | 6169608 Moe Howard
Moe Howard's picture

We don't have capital controls in the USA? Of course we do. Can't have the plebs and serfs beating the "system".

 

As for bared windows and fortress homes, nothing new south of the border. As far as I know, it has always been that way. Walled yards with broken glass on top, barred windows, etc. If you got something worth stealing, you fort up.

Sat, 06/06/2015 - 17:46 | 6169611 El Oregonian
El Oregonian's picture

Our Gent's a Tina?

Sat, 06/06/2015 - 14:22 | 6169641 disabledvet
disabledvet's picture

"When the only thing learned and taught is a better way of stealing"....insert ending here.

Society is fragile too and can bankrupt a State far quicker than even the State can.

American divorce and incarceration rates border on the pathological.

Go ahead...."Blame Bo Bergdahl!"...

Sat, 06/06/2015 - 14:31 | 6169661 1033eruth
1033eruth's picture

In the article, "It’s actually a criminal offense to leave the territory with more than 10,000 USD in cash".  

Same for the US.  If you don't declare your funds over $10K when leaving the country, and they find it - its GONE.  This happens to naturalized citizens a lot because they are unfamiliar with the laws and they usually dealt in cash in their home countries.

Sat, 06/06/2015 - 18:27 | 6170223 kchrisc
kchrisc's picture

"If you don't declare your funds over $10K when leaving the country, and they find it - its GONE."

One big difference: In the DC US, to seize these funds outside of "due process of law" is Unconstitutional, and "levying war" an Article 3, Section 3, treason, offense. The thug(s) seizing the funds are not only risk being held accountable for their treason, but also for oath violations as well.

"It's the law--the Law of the Land."

Liberty is a demand. Tyranny is submission..

 

And for those that scoff at the Constitution as the "Law of the Land," I ask, what standard would you hold them to?

Sat, 06/06/2015 - 14:33 | 6169664 NoWayJose
NoWayJose's picture

In addition to a well worn currency that is quickly losing its appeal - their President is starting to show her age too !

Sat, 06/06/2015 - 14:48 | 6169707 Bill of Rights
Bill of Rights's picture

They can't control what they can't get at... Keeping money in a bank at your own risk , you deserve to have it taken.

Sat, 06/06/2015 - 18:47 | 6170263 Village-idiot
Village-idiot's picture

Maybe they can't control what they can't get at, but that doesn't they won't try.

If they get desperate enough they'll treaten jail or murder if necessary.

Sat, 06/06/2015 - 14:54 | 6169730 poldark
poldark's picture

How many industrialised countries in the world produce more than they spend?

Sat, 06/06/2015 - 14:59 | 6169737 Amish Hacker
Amish Hacker's picture

Whatever your opinion of Simon Black, the lessons of Argentina should not be ignored. When governments fail, they would rather burn down the store than admit that their greed and stupidity have bankrupted the business.

Don't expect to see a lot of coverage of Argentina's final spasms in the American MSM, but a very similar process looks set to occur in Europe quite soon, where it will be much harder to ignore. And don't think that we in the US are immune. Argentina was once one of the wealthiest countries in the world--- "As rich as an Argentine" was a common expression. Stupendous mismanagement has run the place into the ground.

Sat, 06/06/2015 - 16:28 | 6169957 delacroix
delacroix's picture

mismanagement with a purpose

Sat, 06/06/2015 - 18:44 | 6170255 Village-idiot
Village-idiot's picture

The idiots voted for Juan Peron in 1946 leading to constant socialism and the bankrupting of the country. The whole system has to collapse before they'll learn.

The problem is the socialists control the media and will continually lie to the voters. They'll just blame someone else like all socialists do. (or start another Falklands War)

Sat, 06/06/2015 - 15:34 | 6169812 steelrules
steelrules's picture

Well the first 4 things I read off that list are already happening here in Canada, we've had wage and price controls in the past, and now with the war on cash who knows how bad it will get?

Banks in Canada pay 1.5 to 2% / yr. on your savings which the claw back with service charges. When you send money out of the country you don't get the posted rate they give you a 2-3% hit and pocket that along with another service charge. Don't try to take "your money" out of the country in your sock, they will confiscate it, and if your lucky you'll get it back minus a heavy fine, 30% I believe.

The government here has already made it clear with the federal budgets, that if one of the big banks gets in trouble they will take your money and give it to the bank, and you get some kind of an IOU.

To me this is the sign of the collapsing global monitary system, add to that the the push to start WW3 and you should need no further proof, the system is finished.

 

Sat, 06/06/2015 - 15:42 | 6169842 cigarEngineer
cigarEngineer's picture

Buenos Aires is the playground of bankers and hedge funders. Very cost-effective to play like an emperor there.

Sat, 06/06/2015 - 16:14 | 6169908 MEFOBILLS
MEFOBILLS's picture

Quote from the article

“But it’s an important reminder that no country– no matter how rich its economy or how large it’s military is today– is immune to the universal law of prosperity.

Just like regular people, governments and nations must produce more than they consume. Those who don’t will run into trouble.

They can delay. They can deceive. But they can never avoid the decline.”

 While this quote is true, it is very simpleminded.  If one lives in a rich country, and said countries economy is balanced, then the ability of labor+machines will be able to extract wealth in much greater abundance than can be consumed.

In other words, human productivity, multiplied by machines and energy (oil) is astounding.  When one sees an economy clunking along and continually misfiring, and if one digs, one can always find predators trying to take rents via finance system.  Financial acts of parasitism in turn acts as a brake on economic outputs.  If a thief strips copper from a productive enterprise, then profits to thief is tiny compared to “opportunity cost” or lost economic productivity of the enterprise.  Lack of copper means no electricity or motors to power the enterprise.

Many writers conflate “finance” with government.  In other words, they blame government, but don’t look deeper and understand parasitism.   Globalist money powers are very interested in parasitizing Argentina.  Argentina is THE canary in the coal mine.  We should all pay high attention to Argentina.

Argentina is highly important to Zionists, second only to Israel.  Herzyl himself has claimed Argentina as the “practical country” for Zionism.  Israel is the bride, but Argentina is practical in that she is sparsely populated, and has large amounts of natural resources, including energy.  Israeli soldiers routinely patrol Patagonia, as if marking their territory.

Below is a podcast by Argentinian economist Adrian Salbuchi, explaining how Argentina’s many destructive economic cycles are fomented by “international” money means (Zion and criminal banking cartels).  Exchange rate manipulation is but one of the “tools” used by international credit masters, as part of full spectrum warfare against target populations.  As an aside, Weimar’s hyperinflation was induced by exchange rate collapse.

http://iamthewitness.com/audio/Salbuchi/audioSalbuchi2014-09-11%20time%2016_05_00%20Outgoing%20Peer-to-Peer%20Call%20adrian.salbuchi.mp3.mp3

 There are many Salbuchi articles here, written in English; subject matters include important warnings to U.S. citizens, as the U.S. is also hosted in a similar way to Argentina.

http://www.asalbuchi.com.ar/category/english/

As I’ve pointed out many times to ZH readers, there should be no exchange rate.  Money should not trade for money.  Therefore, there would be no need for capital controls.  All countries should have their own sovereign money, which circulates only within their country, and under their law.  NO INTERNATIONAL LAW to govern INTERNATIONAL MONEY.   Exchange goods using Bancors. An exchange rate relative to a bancor is not money to money.  The bancor relates to volume of international GOODS exchanged.  Therefore the bancor is fixed relative to volume of goods/services in flux amongst many trading countries.  The value of Goods, especially a large basket of commodities, is reasonably consistent year to year.  (This is the closest thing to a standard that has been devised, and is the real “gold standard” not a fake one based on metal money or debts.)

 

An analogy would be blood system vs cerebrospinal system.  The two systems should not contaminate each other; they have to be separate.  Money within borders would be analogous to the blood system of a body, and it should not be tainted, otherwise the body becomes sick.

For foreign trade, Bancor system would be enough, and would be analogous to cerebrospinal fluid.   Blood and Cerebrospinal fluid are not to mix.  Man needs to learn and fix his mistakes.

 Bancor’s are an accounting system which marks international trade.  If a country is in export/import balance they have as many Bancor’s leaving their ledger as are coming in.  All international goods exchange is ONLY BARTER.

Never let your money extend past your law. 

International “banksters” want an international CREDIT money system with them in charge of it.  The idea is to exchange this financial type of money for REAL PROPERTY.  In the end, a few of these psychopaths end up owning the world.  Real property is part of the real world economy of real people, not something that is part of a fake financial world of debt instruments.  The international credit system is a pyramid scheme, where debt means end up creating a few oligarchs who then control governments via mind control (the press and propaganda) money power (bribes) or outright force including murder and war. 

Argentina is one of their favorite places to test out theories to then be tried on the world.  Argentina is primed to fall into Zion’s hands in case a mass exodus from the Middle East, London, and elsewhere is needed.

International Zion does not want a proper functioning sovereign government in Argentina.  A real government, working for the betterment of its citizens, has the antibodies and wherewithal to withstand outside parasite attack, and is not itself parasitized.

www.sovereignmoney.eu

Sat, 06/06/2015 - 18:13 | 6170194 kchrisc
kchrisc's picture

Government, all governments, are nothing but a criminal syndicate of theft and violence--A group of people violently living off the sweat, toil, and risk of the people. Imagine cockroaches with guns.

Argentina leaves no questions about that fact.

Liberty is a demand. Tyranny is submission..

 

If you do nothing about the roaches, you can't be surprised to be overrun by them.

Sat, 06/06/2015 - 18:35 | 6170239 Herdee
Herdee's picture

ZeroHedgers,hand in your gold to government thieves!

http://www.reformation.org/roosevelt_confiscates_gold.html

http://en.wikipedia.org/wiki/Executive_Order_6102

http://www.zerohedge.com/news/2013-04-09/day-government-seized-americans...

Ya just never know if the creeps will do it again.There's a lot of idiots out there that'll will just hand it over.

Sat, 06/06/2015 - 20:58 | 6170546 steelrules
steelrules's picture

Oh they'll do it again, count on it.

 

Sun, 06/07/2015 - 12:11 | 6171622 Moe Howard
Moe Howard's picture

Turn in your gold for a Walmart gift card or 2 liter HFCS drink. They will be lining up for blocks.

Sat, 06/06/2015 - 19:26 | 6170338 Bazza McKenzie
Bazza McKenzie's picture

Kirchner, Argentina's Clinton.

Sun, 06/07/2015 - 00:01 | 6170839 Monetas
Monetas's picture

Peron .... is Spanish for a big pear .... pera grande !  

Sun, 06/07/2015 - 08:37 | 6171319 Weirdly
Weirdly's picture

Bitcoin for crossing fences.

Sun, 06/07/2015 - 11:27 | 6171546 Yancey Ward
Yancey Ward's picture

And when you can answer this question- "Why haven't the Argentinians rebelled and started hanging politicians from lampposts?", you will truly understand the motivations of people who advocate gun control.

Sun, 06/07/2015 - 15:21 | 6172148 PermaBug
PermaBug's picture

Argentina, Bolivia, Ecuador and Venezuela are good examples of where democracy is flawed (a proper constitutional republic would work better).

The socialist regimes there survive based on the huge numbers of poor voters who are easily bribed with government largesse, which soon bankrupts the country.

The elites do indeed live well in Argentina, I have lived and done business there for many years. The elites would rather have a more friendly government headed by Macri, but they survive under the socialists because they are smart. They find ways around the bureaucracy, they know who to bribe, and no one obeys any of the idiotic rules anyway.

They don't speak out too much against the regime as that's where it gets very dangerous, just ask the owners of Clarin.

But they live very, very well, and have assets and real estate abroad, and it would be a very easy short boat ride across to uruguay at night if really needed.

There are some benefits to the elites of socialist governments, one of which is that competition is almost non existent. So if you have an established business, you're set. And very, very few foreign companies care to infringe on the local markets, as they don't know how to bribe the right people, or if they do, their strict accounting rules get them caught up in serious trouble in their home country (Siemens).

In the end, as always in these collectivist states, the poor suffer the most, but I find it hard to sympathize too much, as they are so simple minded they continually vote for the same tyrants that promise them a free lunch. You'd think they'd have learned by now, but they don't seem to.

 

Mon, 06/08/2015 - 09:10 | 6173787 Billy Bob101
Billy Bob101's picture

I love Buenos Aires.  You can almost see it from where I live.  I've been there many times and expect to return soon.  It's probably as safe as any American city of comparable size, though crime is a problem.  As is typical of South America, there is little violent crime, though it can happen.  Don't walk at night, don't carry valuables in sight, don't call attention to yourself and be careful in bad areas.  I sympathize with the average Argentine, but it's not my fault and there's nothing I can do.  Lots of shopping, fine dining and sight seeing.  The wealthy and connected are living very well.  

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