Spain May Not Be Uganda, But Will America Soon Be Argentina?

Tyler Durden's picture

The last few days have seen some rather concerning central-planning actions by Argentina. Fresh from their nationalization of Spain's YPF, not only did they "forbid individuals from buying dollars for savings" issuing a statement allowing dollars to be used for "travel, mortgages, and to send family members traveling abroad if they they run out of money"; but now we hear of the forced action on Argentina's banks to lend out 5% of deposits at rates well below inflation estimates in the next six months (or else). As Reuters notes, "The move... marks an escalation in [President Christina Fernandez] war on private enterprise which may spread further." It should be noted just how far central banks are willing to go (strong-arming banks into subsidized loans to businesses) and it would absolutely not surprise us if this is precisely where the US is heading as command economies become the new normal globally.


Via Reuters:

NEW YORK, July 6 (Reuters Breakingviews) - Fresh from nationalizing YPF, President Cristina Fernandez now wants to strong-arm banks into subsidizing loans to businesses. The move shouldn't have too big an impact on bank profits, but it marks an escalation in her war on private enterprise which may spread further.


CONTEXT NEWS- The administration of Argentina's President Cristina Fernandez ordered banks on July 5 to lend companies 15 billion pesos ($3.3 billion) by the end of the year at rates well below private inflation estimates. The regulation would force the banks to lend 5 percent of the financial sector's $67.6 billion in private sector deposits.


- The central bank announced the new regulation following Fernandez's public statements that banks would have to lend cheaply to businesses to help bolster a flagging economy.


- The decision comes shortly after the government nationalized the country's largest oil company, YPF, claiming that it wasn't investing enough in producing oil.


- Latin America's third-largest economy grew 8.9 percent in 2011 but growth is slowing sharply due to sluggish global conditions and surging costs at home.


- Shares in financial institutions fell following the announcement. BBVA Banco Frances shares lost 4.9 percent, while Grupo Financiero Galicia's dropped 5.5 percent. These contributed to the country's MerVal index of leading stocks closing down 1.87 percent on July 5.


- Reuters: Argentina gives banks 6 months to grant new loans

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
francis_sawyer's picture

Chicago style politics...

Clayton Bigsby's picture

They are so fucked.  I got a c-note sez they will move on the Falklands soon...

francis_sawyer's picture

Shit ~ that was one of the last remaining places to go to survive the 'Zombie Apocalypse'...

NewThor's picture

As long as I am still standing, America has a super hero. 

All it takes to bring down this growing Roman Empire 3rd Reich

is a good team, a great plan and a little divine intervention.




Buckaroo Banzai's picture

"We reward our friends, and punish our enemies" -- The Chicago Way

bank guy in Brussels's picture

That 'A-Team' of the classic TV show in the clip there, was 'wanted by the government' ...

Soon to be applicable to every genuine hero inside America

Clashfan's picture

Or maybe this is what's "soon to be applicable to every genuine hero inside America." Or maybe, ahem, "inside every genuine hero...", or maybe this isn't even what it seems? But it sure looks like Bloomberg reporter Sarah Eisen getting caught by the camera while she's playing with that huge, black strapon under her dress.

No foolin'. I wouldn't lie about something like this. If I am confused, please correct me. Another ZH poster on another thread said that Bloomberg or somebody said this was a microphone. Sorry, but it's not a microphone. No way.

Seriously, what is the mainstream, financial media doing? How does something like this happen? Any explanations? Seriously?

Clashfan's picture

Of course, every "conspiracy" needs an "official explanation." Here it is:

First, the other reporter's mic was malfunctioning, not Sarah's. Second, do they really believe that readers would think that she would have a microphone between her legs or have to hike up her skirt to fix it? Third, the piece mentions nothing about a strapon, which this image clearly represents. Of course, the piece offers no image.

It's important why? Because it shows how blatantly the mm lies. Can you not see it? The chick got caught playing with a strapon, and the spin is utterly ridiculous.

Jay Gould Esq.'s picture


The exemplar of Banana Republic.

Hi Ho Silver's picture

We are all swinging dicks now.


And true to the mainstream media credo, an important quote was conveniently left out of the report.  To paraphrase "The banks were happy to take a bail-out paid for by the people. Now they can return the favor."


The Gooch's picture

"For he is truely his brother's keeper" -

Divine intervention...

Peter Pan's picture

Wow, what a choice. On the one hand you have a central bank forcing banks to hand out cheap money to business and in the USA you have a government through its Federal Reserve handing out cheap money for banks to speculate with and buy government bonds.

Rest assured, that your currency is safe.

Unless you hold gold and silver you have no money.

Martin W's picture

Maybe, they should ask UK for Malawines to come back?

Bullionaire's picture

That Doug Casey sure knows how to pick 'em!



putaipan's picture

get your pots and pans ready!

Oracle of Kypseli's picture

We are all socialists now.

azzhatter's picture

I haven't given in yet and no plans to.

THX 1178's picture

LAWL @ Socialist Wall St. taking everyone's money. Socialist private banker assholes.

GoinFawr's picture

...too bad we don't seem to be any better at that than we were at 'capitalism', or we might be debt free by now


Dr. Engali's picture

Coming to a facist country near you. It's already starting in California using the basturdization of eminent domain.

El's picture

What I'd like to know is how California expects to pay for property they seize. It isn't like they just take it. They do have to pay for it. Seems to me the banks would love for California to take some of these foreclosures off their hands.

taxpayer102's picture




America for Sale: An Exclusive Excerpt from Matt Taibbi’s New Book on the Economic Meltdown
Our cash-strapped country is auctioning off its highways, ports and even parking meters, finding eager buyers...

Antifaschistische's picture

If Californians refuse to pick up their pitch forks with this latest "eminent domain" crap going on then they're toast.   Someone in that state, like in this country, needs to step forward and be a man.

Dr. Richard Head's picture

All your moneys are belong to us.

Fascist Dictator's picture

Che = Rascist Murderer

TWSceptic's picture

I don't get it why do you call him racist, he's not even white.



W10321303's picture

I feel so so so sorry for those POOR POOR Bankers

GoinFawr's picture

Is that what happened to Trav77777?!

azzhatter's picture

Isn't that what NIRP does

francis_sawyer's picture

No ~ It's what Obummer does...

rsnoble's picture

Considering 2 of Argentina's former dictators are in court right now and facing spending the rest of their lives in jail.......maybe it wouldn't be so bad if that's what it takes to get some fucking justice around here instead of blowjobs and bonuses.

NidStyles's picture

What you are talking about is not Justice, it is revenge. Worse it's revenge that promotes statism even more so than the people whom you would commit this revenge upon. That is part of the problem junior. 

GoinFawr's picture

 'statism'...  the ZH loonies' version of 'Godwin's Law'. Scratch anyone who uses that word to denigrate and underneath you'll find a hypocrite, or a bald-faced liar. Just try it once, you'll see.

Oh don't worry Nidsty, I know that there's not an ounce of irony in your use of the word because you want nothing but the best shure nough real live genuine skittle shitting unicorn anarcho capitalist absolutey nada zero never ever even a monad of government again because that putatively implies nothing but a guaranteed Rothbardian utopia for all eternity Amen (or at least it will be better than anything else that is/ever has been/ever will be possible, for me) as it MUST BE... I was talking about the other guys, you know, the real loopy ones.

ffart's picture

I read this in the voice of a drunken british taverngoer and it kindof put it into context.

Dr. Engali's picture

Didn't they just recover from a hyperinflationary environment? Are they really going to travel down that road again already?

azzhatter's picture

It only effects the unwashed

catacl1sm's picture

Yep. Some people never learn.

nonclaim's picture

On the good side of this crisis, the zombie trade agreement Mercosur is in deep coma with some vultures already descending to check if anything of value is there in the region.

El's picture

This time it's different. /sarc

Bam_Man's picture

"We are only going to drop one zero this time."

john_connor's picture

The Fed can do this by simply not raising the interest paid on excess reserves to follow short term rates rising (when they do).

Banks will forced to lend to keep up or otherwise go bankrupt OR engage in ridiculous CIO gambles to make up the difference

NewThor's picture

How does the old sayin go?

"You can force a elephant to give you a blowjob long before you can force a bank to lend."

The money is going to go into super RISK ON thingys. 

GoinFawr's picture

If this is true then Argentina must have imported a shitload of elephants some time ago.

Tom Green Swedish's picture

If it turns us into Communists. I'll turn into Argentian.

Bam_Man's picture

When you've dumbed the population down to a sufficiently low level, and enough bread & circuses are provided, the cronyism can come right out into the open. Argentina is clearly there and we (the US) will be very soon.

Umh's picture

So that's who is going to get the cheap loans. It sort of sounds like 'Country Wide".