Cry for Agentina

Once upon a time, Argentina was a very successful nation. One hundred years ago, it looked a lot like the United States in terms of growth, wealth creation and natural resources. It’s small population, huge landmass, agricultural potential, minerals, fisheries and oil reserves should have made it a world power. Today it is on the verge of collapse.

Fitch Ratings on Tuesday downgraded Argentina’s sovereign credit rating to CC from B, a five-step cut reflecting its view of a “probable” default after a U.S. judge ordered payment to holdout investors from its historic 2002 default.

Decades of fascist socialism, however, has rendered it a basket case deep in dept and unable to pay its bills. The Argentinian political class, under the cover of slogans that sound a lot like “hope and change” have ruined a prosperous economy and impoverished its people. In the process, it has picked fights with previously supportive nations around the world.

Utter incompetence has destroyed the Argentinian economy. A country blessed with vast natural resources and a highly skilled work force has been led down the path of ruin by failed socialist ideals, class warfare and cronyism.

In the midst of the collapse, the political class is cultivating a personality cult. This is evidenced above in the huge banner image of President Cristina Fernandez. The more desperate the situation, the more the political class will call the people to unite around the head of state. It is as predictable as the sun rise.

Cowards and fools, lured by a promised utopia that never materializes will comply and support the dear leader and the downfall will accelerate. It is eminently predictable.

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5 Responses to Cry for Agentina

  1. James says:

    There was tremendous corruption at the top, and it was done through the banking system. Third world countries have been stripped, now predators are working on the US.

    Stupid people don’t understand that concentrating power results in being taken advantage of. The masses do it because they believe promises that they will get something for nothing.

  2. Matt says:

    I do quite a bit of business in Argentina, and it’s an absolute shame to see what has happened there, even within the last three years. One only needs to look next door to Chile, which has been steadfastly committed to the free market for the past three decades, to see what might have been.

    Argentina’s protectionist economy, populist policies, resource nationalization, etc., have caused a rapid flight of capital–financial and human. We have two hard-working and highly-educated families just on our small neighborhood block, who have recently emigrated from Argentina. Their presence in our neighborhood is a net loss to Argentina, and a net benefit to the US. Some of my company’s best workers in Latin America are Argentines who have left Argentina. The good ones that have not left already, want to. Our customers in Argentina–primarily foreign companies–are rushing for the exits.

    Meanwhile, next door in Chile, which has less arable land and none of Argentina’s energy resources, business is booming. Laws are fair, predictable, and enforced, the police force is highly respected, and companies feel comfortable investing there. Human capital continues to be developed there, because people feel confident that an investment in their own capabilities will generate a positive return. In short, people WANT to be there.

    What happened in Argentina vs. what happened in Chile is both simple and stark. Socialism vs. Capitalism. Take your pick.

  3. Frank in Texas says:

    Comin soon to the USA courtesy of “our lord and savior Obama”/ sarc off.

  4. notamobster says:

    Geez, RD. You act like history is just chock-a-block full of examples where this didn’t work. What a buzzkill.

  5. pateriot says:

    Well, it’s worked so successfully everywhere else in the World it has been tried…

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