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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


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Fri, 07/06/2012 - 14:54 | Link to Comment francis_sawyer
francis_sawyer's picture

Chicago style politics...

Fri, 07/06/2012 - 14:58 | Link to Comment Clayton Bigsby
Clayton Bigsby's picture

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

Fri, 07/06/2012 - 15:01 | Link to Comment francis_sawyer
francis_sawyer's picture

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

Fri, 07/06/2012 - 15:20 | Link to Comment NewThor
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.




Fri, 07/06/2012 - 15:31 | Link to Comment WhiskeyTangoFoxtrot
Fri, 07/06/2012 - 16:23 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

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

Fri, 07/06/2012 - 18:57 | Link to Comment Rahm
Rahm's picture

Cry Me A Fuckin' River

Fri, 07/06/2012 - 16:53 | Link to Comment bank guy in Brussels
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

Fri, 07/06/2012 - 17:41 | Link to Comment Clashfan
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?

Fri, 07/06/2012 - 18:55 | Link to Comment Clashfan
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.

Fri, 07/06/2012 - 18:57 | Link to Comment Jay Gould Esq.
Jay Gould Esq.'s picture


The exemplar of Banana Republic.

Fri, 07/06/2012 - 18:51 | Link to Comment Hi Ho Silver
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."


Fri, 07/06/2012 - 17:19 | Link to Comment The Gooch
The Gooch's picture

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

Divine intervention...

Fri, 07/06/2012 - 19:56 | Link to Comment Peter Pan
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.

Fri, 07/06/2012 - 14:54 | Link to Comment Martin W
Martin W's picture

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

Fri, 07/06/2012 - 16:16 | Link to Comment Bullionaire
Bullionaire's picture

That Doug Casey sure knows how to pick 'em!



Fri, 07/06/2012 - 14:54 | Link to Comment putaipan
putaipan's picture

get your pots and pans ready!

Fri, 07/06/2012 - 14:55 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

We are all socialists now.

Fri, 07/06/2012 - 15:00 | Link to Comment azzhatter
azzhatter's picture

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

Fri, 07/06/2012 - 15:01 | Link to Comment THX 1178
THX 1178's picture

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

Fri, 07/06/2012 - 23:07 | Link to Comment GoinFawr
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


Fri, 07/06/2012 - 14:57 | Link to Comment Dr. Engali
Dr. Engali's picture

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

Fri, 07/06/2012 - 15:25 | Link to Comment El
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.

Fri, 07/06/2012 - 18:51 | Link to Comment taxpayer102
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...

Fri, 07/06/2012 - 19:37 | Link to Comment Broomer
Broomer's picture


Fri, 07/06/2012 - 17:38 | Link to Comment Antifaschistische
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.

Fri, 07/06/2012 - 14:57 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

All your moneys are belong to us.

Fri, 07/06/2012 - 14:58 | Link to Comment Fascist Dictator
Fascist Dictator's picture

Che = Rascist Murderer

Fri, 07/06/2012 - 15:15 | Link to Comment TWSceptic
TWSceptic's picture

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



Fri, 07/06/2012 - 15:37 | Link to Comment W10321303
W10321303's picture

I feel so so so sorry for those POOR POOR Bankers

Fri, 07/06/2012 - 23:10 | Link to Comment GoinFawr
GoinFawr's picture

Is that what happened to Trav77777?!

Fri, 07/06/2012 - 14:59 | Link to Comment azzhatter
azzhatter's picture

Isn't that what NIRP does

Fri, 07/06/2012 - 15:02 | Link to Comment francis_sawyer
francis_sawyer's picture

No ~ It's what Obummer does...

Fri, 07/06/2012 - 14:59 | Link to Comment rsnoble
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.

Fri, 07/06/2012 - 16:39 | Link to Comment NidStyles
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. 

Sat, 07/07/2012 - 00:10 | Link to Comment GoinFawr
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.

Sat, 07/07/2012 - 15:47 | Link to Comment ffart
ffart's picture

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

Fri, 07/06/2012 - 15:00 | Link to Comment Dr. Engali
Dr. Engali's picture

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

Fri, 07/06/2012 - 15:02 | Link to Comment azzhatter
azzhatter's picture

It only effects the unwashed

Fri, 07/06/2012 - 15:06 | Link to Comment catacl1sm
catacl1sm's picture

Yep. Some people never learn.

Fri, 07/06/2012 - 15:19 | Link to Comment nonclaim
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.

Fri, 07/06/2012 - 15:20 | Link to Comment El
El's picture

This time it's different. /sarc

Fri, 07/06/2012 - 15:25 | Link to Comment Bam_Man
Bam_Man's picture

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

Fri, 07/06/2012 - 15:25 | Link to Comment debtor of last ...
debtor of last resort's picture

Yep. Debt cycles evolve.

Fri, 07/06/2012 - 15:06 | Link to Comment john_connor
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

Fri, 07/06/2012 - 15:28 | Link to Comment NewThor
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. 

Fri, 07/06/2012 - 23:34 | Link to Comment GoinFawr
GoinFawr's picture

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

Fri, 07/06/2012 - 15:17 | Link to Comment Tom Green Swedish
Tom Green Swedish's picture

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

Fri, 07/06/2012 - 15:39 | Link to Comment Bam_Man
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.

Sat, 07/07/2012 - 07:59 | Link to Comment Umh
Umh's picture

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

Fri, 07/06/2012 - 15:21 | Link to Comment monopoly
monopoly's picture

Scary, very scary.

Fri, 07/06/2012 - 15:35 | Link to Comment W10321303
W10321303's picture

Gold Bugs - Living in the Twilight ZONE

The first thing that I think of when I think of GOLD Bugs is the The French General Staff post-1918 - Build the Maginot Line to prevent the inevitable consequence of the last catastrophe. (Let' fight the last war!)

The underlying assumption of a GOLD Bug is that there will some 'new' future that will be possible post-catastrophe. It's the same delusional mind-set that invents other fantasies, like 'peak oil' or 'there is a finite supply of gold' (think Peru, Nevada, Indonesia, Boys and Girls) Actually the GOLD Bug mentality is a self-fulfilling vehicle for continued destrution, mayhem, MASS extinction.

I suggest that your future(?) is better summarized in the movie "The Day After" (Jason Robards Jr.'s best role besides "Once Upon A Time In The West") or perhaps you might consider reading HG Wells, "The Time Machine".

Maybe I'm wrong and you will somehow survive the consequences of having genetically inbred MORONS run the Big Board. All of the forest fires will have spared your secret shack in the woods. Silly deluded children, be sure to see Burgess Meredith in what is arguably the BEST episode of The TZ. (you know the one where he has really bad eyes and he loves reading books and he gets to go to the library for the very last time)

Just because you aren't (?)totally dumbed-down consumer/gadget geeks, you still need to GET OVER yourselves. You are still blind to just how effective the instituions of indoctrination are. The genetically inbred are at least capable of producing 'Skinneresque' conformity.

It's a Beautiful HOT and humid day in the neightborhood, Can we say Climate Change, Boys and Girls ....Can we say radiation and FREE-Radicals, Boys and Girls?



Fri, 07/06/2012 - 15:49 | Link to Comment prole
prole's picture

Can we say Have you sought the services of a good mental-health professional? Can we say you are nutty as a June-bug? Can we say you have taken leave of your sanity and launched yourself into Cloud Cuckoo?

Notwithstanding your sheeple like expertise in TV SHOWS and Movies (which most here on ZH have never seen nor heard of), what could possibly be your motive for bashing my precious, gold?

I had more to ask your zaniness, but I have to run and check make sure I still have my precious.....


Wait let me add one more thing Stanley Rubrick: Why don't the Argentines stop worrying about dollars and just keep their wealth in Gold like Indians do? The Indian Rupee is a joke currency which is constantly declining, the Indians don't care because they don't hold any, they keep their wealth in the precious and RE.

Fri, 07/06/2012 - 16:26 | Link to Comment jumbo maverick
jumbo maverick's picture

You actually may want to watch that twilight episode with burgess merideth. Best episode ever. You may Learn something - one is none, two is one etc. watch it and then you will understand. In the right context it is not as crazy as it sounds

Fri, 07/06/2012 - 16:27 | Link to Comment jumbo maverick
jumbo maverick's picture

And make sure you have a god damned can opener

Fri, 07/06/2012 - 15:50 | Link to Comment Poetic injustice
Poetic injustice's picture

W1032, You look too well educated to be Chinese citizen like Ananonymous, are you from bank PR?

Fri, 07/06/2012 - 16:23 | Link to Comment johny2
johny2's picture

many of us have travelled and seen much more than the movies made in Hollywood, so we are not so keen on storing our reserves in paper, however nicely designed.

Fri, 07/06/2012 - 15:48 | Link to Comment Poetic injustice
Poetic injustice's picture

Obama should learn from Russia, how to work with crowd:

Fri, 07/06/2012 - 16:04 | Link to Comment Joe A
Joe A's picture

In the UK Barclays fiddled with interest rates on, if the rumour is right, behalf of the government. This was to the benefit of banks and other financial institutions but not so good for small businesses and home owener. Who knows how many businesses went belly up or how many people lost their homes. But when the government of Argentina forces the banks to help small businesses, it is called socialism.

Fri, 07/06/2012 - 16:28 | Link to Comment emersonreturn
emersonreturn's picture

Joe A   "But when...Argentina forces..."



Sat, 07/07/2012 - 10:20 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

Banks reporting a LIBOR rate that was too LOW made them a) look more creditworthy as judged by their peers, and b) Punked the buyers of interest rate swaps, of which most of the swaps players are indeed "big boys". Homeowners and small business, what? Who is filling your head with that, and leave it where you got it.

Fri, 07/06/2012 - 15:51 | Link to Comment mark7
mark7's picture

USA won't become Argentina unless you vote for president a bitchy botox MILF.

Fri, 07/06/2012 - 16:02 | Link to Comment El_Puerco
El_Puerco's picture


The velocity of money (also calledvelocity of circulation) is the averagefrequency with which a unit of money is spent on new goods and services produced domestically in a specific period of time



V= nQ/M


V is the velocity for transactions counting towards national or domestic product.
nQ is nominal national or domestic product.

(Analogously with nT, given the classical dichotomy, nQ may be factored into a product P.Q.)



The Better Idea?..jajaja...... 


Fri, 07/06/2012 - 16:08 | Link to Comment Hannibal
Hannibal's picture

Still no "collapse",..... yawn!

Fri, 07/06/2012 - 16:44 | Link to Comment NidStyles
NidStyles's picture

Uhh, the collapse is happening right now as wee speak. This collapse like all real collapses are slow to take place, and since this is the largest collapse to happen in the recorded history of civilization it will likely take several years if not decades.


...Read some history foo. :-)  

Fri, 07/06/2012 - 23:50 | Link to Comment GoinFawr
GoinFawr's picture

"The Great Conjunction is the Ehhhhnd of the Wooooorld, or the beginning." -Ogra

Fri, 07/06/2012 - 16:14 | Link to Comment AchtungAffen
AchtungAffen's picture

Yeah, Crista is a bitch with the FX restrictions. Specially because Gold in Argentina is considered a foreign currency subject to these controls (and also because it's sold in USD).

But I can't help but smile when I see banks being forced to lose money to give to the people. You might say whatever you want, free market and bullshit. But can there be anything better than making the banks suffer? As if they were innocent...

Unless, the final backstop for banker suffering is a state sponsored bailout. That would be the end of Crista, though.

Fri, 07/06/2012 - 16:48 | Link to Comment NidStyles
NidStyles's picture

That makes you no better than the people you cry foul against. 

Fri, 07/06/2012 - 23:54 | Link to Comment GoinFawr
GoinFawr's picture

oh please. Thanks for the platitude, in celebration of it I'll be over nyer worshipping at the old porcelain altar.

Fri, 07/06/2012 - 16:33 | Link to Comment giggler123
giggler123's picture

Argentina asked America for it's gold - who will America ask?

Fri, 07/06/2012 - 16:50 | Link to Comment yogibear
yogibear's picture

Obama, US senate and congress are already using the US constitution as toilet paper.

There are many Che" Guevara's in the background waiting for the right moment when the Bernanke, the Fed and Banksters force an Argentina event.



Fri, 07/06/2012 - 17:00 | Link to Comment Gromit
Gromit's picture

No America will not become Argentina.

Totally different market positioning.


Fri, 07/06/2012 - 17:09 | Link to Comment DosZap
Fri, 07/06/2012 - 18:00 | Link to Comment rustymason
rustymason's picture

Mexico is like it is because it is filled with Mexicans. African and China are like they are because they are filled with Africans and Chinese, et cetera. Of course will be like Argentina/Brazil/Mexico soon.

Fri, 07/06/2012 - 19:35 | Link to Comment SmittyinLA
SmittyinLA's picture

Whatdoyamean SOON?


We're "beyond" Argentina, our government is doing things that the Argentine govt could never get away with.


"we're going to let in 10,20,30 Xmillion illegal aliens, and license them to appropriate your wallet for healthcare, rents, food, schooling"

Ya right like the Argentines would take that kind of cram down.  

Fri, 07/06/2012 - 20:44 | Link to Comment Howard
Howard's picture

I'm living in Argentina right now. There is a big time black market for dollars right now, so if you come to visit bring plenty of cash.

Do NOT follow this link or you will be banned from the site!