Argentina has always had a problem with their government, central banking and corruption. When you run a government and a central bank, it is almost impossible not to misuse your powers. Argentina through the last 100 years is probably one of the worst examples of how not to run a fiat currency system. With many hyperinflation and devaluations. Argentina back in the day used to be a very prosperous nation, but of course, when you corrupt the money, you corrupt the nation.
Argentina just recently had their former president Cristina Fernandez de Kirchner had been indicted for treason. http://www.businessinsider.com/former-argentina-president-kirchner-charged-with-treason-2017-12
Before I get into the historical facts, let me get you up to speed what is currently happening!
As you can see the Argentinian Peso since it was reissued after the Hyperinflation of the 80's-90's has already had inflation of 2125% and have lost 95.50% of its value. It is less than the US Dollar, but the Peso has been around only for about 26 years. It is getting close to the average timespan of a fiat currency the Peso has been plagued with failures but I will get back to that soon and some recent stories from Argentina and people that trusted the system only to be screwed!
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As you can see the inflation since the creation of the new Peso in 1992 where it traded one to one with the Peso has already reached 2125% and almost lost all of its value again! Look at the blip that the devaluations are vs the late 80's hyperinflation.
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Now, of course with that bad policy, it's hard to have anyone wanting to buy your bonds, or it's hard for you to borrow any money. It's like having a Fico score of 10 :D The current interest rate for borrowing in Argentina is 40%+ as they are trying to repair their mismanaged currency. Not that I am for fiat currency as it always over time gets mismanaged, but Argentina has such a terrible history of misuse of their currency. The Central Bank of Argentina unexpectedly lifted its benchmark interest rate by 675 bps to 40 percent during a surprise meeting on May 4th, 2018 to try to save the failed system yet again. Who wants to buy a 40% yielding Bond? Sounds tempting doesn't it, but read my book before you jump into it. It is, of course, my opinion and not financial advice. It is more common sense than nothing :)
Their policy has always been bad, and a US Hedge Fund tried to hold an Argentinian navy ship as collateral to try to get payments on it's failed. Why? Because Argentina is in a long legal battle with the hedge fund Elliott Capital Management, which has been trying for years and years to get Argentina to pay a 2001 bond it owes in full. Because recently won a court judgment saying that Argentina owes it money, it was able to get an injunction from the government of Ghana saying it's entitled to take the ship. http://www.businessinsider.com/hedge-fund-elliott-capital-management-seizes-ara-libertad-ship-owned-by-argentina-2012-10
I'm going to give you some crazy stats of the Argentinian peso and its many failures. I'm going to use numbers from my book where I have a whole chapter on the Argentinian Peso and the lessons learned from its devaluations. But first, let me tell you a quick story from a friend that left Argentina in 2001 to get out of the failing economy. He told me the story of his dad surviving a devaluation in the 80's where he lost almost 75% of his life savings overnight as the banks closed and reopened having reissued a new version of the Peso and think about it. If you had 100,000 Peso in a bank account and then one day you looked at your account, and now you only had 25,000 left. That is how that devaluation happened. And it is widespread. When countries went from their local currencies in Europe to the Euro. Mass devaluations occurred. My boss and good friend from Portugal told me how when they switched from the Euro they lost almost 50% of their purchasing power when changing over.
Okay, back to my story about Argentina! So my friend now told me that he thought he had outsmarted the Peso devaluation scheme by moving his funds into USD in Citibank in Argentina he had his life savings safe in Dollars, well that is up for discussion, but it's way more reliable than the Peso at the time. Then one day like clockwork the devaluation came, and he thought he was safe. Well, he was not. Citibank is under Argentinian regulation, and they took his hard earned money exchanged his USD into Peso and then devalued the Peso 75% again. The lesson here would have been moving your money held in currency abroad to a foreign-owned bank, but today the risks of having any money in your bank are way to high. He should have owned physical metals like gold and silver and today cryptocurrency that is off the financial and monetary grid.
![imagen10[1].jpg](https://images.hive.blog/768x0/https://steemitimages.com/DQmUDEQC7GED8ntFuciqW2btgU1AZ1EcSnhNz6P4NWhP4nW/imagen10%5B1%5D.jpg)
Let me quickly show you the devaluations and hyperinflations that had plagued Argentinas monetary history you can find this information and more in my book The End Of Freedom: How Our Monetary System Enslaves Us on Amazon: https://www.amazon.com/End-Freedom-Monetary-prepperss-surviving/dp/0994863705/ref=pd_sim_14_2?_encoding=UTF8&pd_rd_i=0994863705&pd_rd_r=KWWZ1QMJ4900WYKQM7ZJ&pd_rd_w=Z63Sk&pd_rd_wg=lDZWo&psc=1&refRID=KWWZ1QMJ4900WYKQM7ZJ
1914-1948
88.13% Inflation
2.44% Average Yearly Inflation
Still high but nothing like whats to come
1948-1969
7833.55% Inflation
373.02% Average Yearly Inflation
December 1969-January 1970
98.92% Devaluation of Currency
1970-1983
2,822,249.57% Inflation
122,706.50% Average Yearly Inflation
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May 1983-June 1983
99.98% Devaluation of Currency
1983-1985
5752.17% Inflation
2876.08% Average Yearly Inflation
May 1985-June 1985
99.87% Devaluation
1985-1991
1,172,765.49% Inflation
195,460.91% Average Yearly Inflation
December 1991-January 1992
99.99% Devaluation
1992-2002
288.88% Inflation
28.88% Average Yearly Inflation
December 2001-August 2002
70.38% Devaluation
2002-Current May 2018
502.98% Inflation
31.43% Average Yearly Inflation
Looking at these numbers, it becomes quite clear whats ahead again for the Peso. Either a default and hyperinflation which is most likely and a devaluation of their currency yet still. In Argentina, history repeats itself quite, and over the last hundred years, they have had four hyperinflations and five devaluations.
The lesson is to protect your money and have precious metal wealth insurance, cryptocurrency to be off the monetary grid and have food and water to get you through the coming bad times of yet again mismanagement of a fiat currency system. When will we learn? I never think so we are best of just leaving this continually failing system!!!
Peace, Love and Voluntaryism,
John
man, I didn't know you're on steemit :)
I am :) Who is this by the way?
Trader, blogger, truth-seeker, teacher, tourist....and among other things, your long time fan :) I watch your reports on YT every few days. Good stuff.
This comment has received a 0.79 % upvote from @booster thanks to: @worldfinances.
Love this post.
Similar thing happened in Cyprus in 2013 during the banking crisis.
I'm surprised most Argentinians haven't completely abandoned their worthless fiat for crypto by now.
Thanks :)
Como argentino lloré en cuan real es este post, no lo leí todo porque las partes demasiado técnicas de economía me superan, pero creo que es todo muy acertadaso T_T
nice post dear... nation have success when crupted people have crashed, other wise the nation will be ending.
Another VASSAL state of the ROTHSCHILD mafia .
Why you don't talk about the decisions of this new goverment?