The Economy In Argentina Has Collapsed … Diktat Is Rising To Provide Both Credit And Money In Argentina

1) … Jorge Otaola of Reuters reported on June 8, 2012 in article Jorge Otaola of Reuters Argentina loses a third of its dollar deposits, Argentine banks have seen a third of their U.S. dollar deposits withdrawn since November as savers chase greenbacks in response to stiffening foreign exchange restrictions, local banking sources said on Friday.

U.S. dollar deposits of Argentine banks fell 11.2 percent in the preceding three weeks to $11.5 billion, according to central bank data released on Friday. The run on the greenback has waxed and waned since November, after President Cristina Fernandez won a second term on promises of deepening the state’s role in the economy.

From May 11 until Friday, data compiled by Reuters from private banks showed $1.9 billion in U.S. currency had been withdrawn, or about 15 percent of all greenbacks deposited in the country.

Feisty populist leader Fernandez was re-elected in October vowing to “deepen the model” of the interventionist policies associated with her predecessor, Nestor Kirchner, who is also her late husband.

Since then she has limited imports, imposed capital controls and seized a majority stake in top energy company YPF.

The near-impossibility of buying dollars at the official rate is driving some savers and investors to pay a hefty premium in the black market.

Many are taking what dollars they can get their hands on and stashing them under the mattress or in safety deposit boxes, fearing moves by the government to forcibly “de-dollarize” the economy. Officials have strongly denied any such plan.

The president’s battle to slow capital flight and fatten the central bank reserves needed to pay the public debt has prompted even tighter controls in recent weeks, making it almost impossible to buy dollars at the official rate. The effects have been felt throughout the South American country’s economy.

For example. Argentines, who normally pay for new homes with stacks of dollar bills, have been struggling to get their hands on U.S. currency since Fernandez started imposing stringent controls on dollar buying late last year.

She wants Argentines to end their love affair with the greenback and start saving in pesos despite inflation clocked by private economists at about 25 percent per year..

Jill reports on June 3,2012, A taste of true life in Argentina One night around 8:30pm, I was dutifully doing my Spanish homework in my apartment when I heard a lot of loud noises.  Gradually the noise got louder, so I went out onto my balcony to see what all the fuss was about.  And sure enough dozens of people on surroundings balconies were banging pots and pans together.  The racket went on for about a half hour.  And this continued on several consecutive nights.

Recently the Argentine government has put heavy restrictions on the sale of US dollars, effectively making it illegal to sell pesos for the more favored dollars.  The reasoning behind this is to attempt control the flight of capital and accumulate international reserves.  Because the peso is a very unstable currency (economists estimate that inflation was over 20% last year alone), most people prefer to keep their savings in US dollars (the physical notes, kept in bank safety deposit boxes).  Recently, an Argentine senator made comments in the heat of the moment that he too kept his savings in US dollars, effectively undermining the legitimacy of the Argentine currency when their own lawmakers have no faith in it.

So the people took to their kitchens, literally, and protested.  There is a famous form of protesting in Latin America known as “cacerolazo”.  When people don’t agree with something the government has done (which happens a lot in Argentina), they bang pots and pans making a lot of noise in order to show their disgust.  I’m still baffled by what they expect to have happen by creating a lot of noise at 8:30pm in residential neighborhoods.

2) … Diktat and the diktat money system is rising to rule Argentina.

The charts of Argentina Banks, BFR, BMA, GGAL, and to some degree BBVA, show a rise on the anticipation of QE 2, in the fall of 2010; but loss of market value when money died in April 2011, and then a crash of market value, when credit died in April 2012. 

Argentina, ARGT, like India, INP, and Brazil, EWZ, were leaders in hot money inflow; that is they were destinations for neoliberal finance, and carry trade investing; then they saw hot money out flows, as risk appetite turned to risk avoidance. 

Not only is the growth and failure of the global debt trade seen in Argentina’s bank stocks, it is seen in Electric Utilities, EDN, PAM, Real Estate Developer, IRS, Telecom provider Notel Argetina, NTL,  Oil Company, Argentina, PZE, and Energy Refiner, YPF, whch got nationalized in April when credit collapsed globally, but specifically in Greece and Argentina.   

Inflationism that came with the world central banks’ monetary policies of ZIRP, QE 1, QE2, Operation Twist, LTRO 1, and LTRO 2, has failed on sovereign insolvencies in the PIIGS, as well as on sovereign insolvencies, in ARGT, EWZ, INP. Insolvent sovereigns and insolvent banks, cannot provide for global growth, global trade, and corporate profit that underwrote capitalism and European Socialism.  

Destructionim is underway, in all of its forms, and new sovereigns, specifically sovereign rulers and sovereign bodies, are rising to provide country-wide, and region wide, stability, security and sustainability. Bible prophecy of Revelation 13:1-4, and Daniel 2:30-33, foretell that regionalization will develop ten regional blocs and underwrite regional governance.

The banker regime of neoliberalism is giving way to the beast regime of neoauthoritarianism. The neoauthoritarian diktat money system has already started to replace the Neoliberal fiat money system in Argentina. Diktak will serve as both money in this country just as in Greece. One notable difference between Argentina and Greece is that its banks have virtually no sovereign debt where as Greece does.

3) …Continuing thoughts on virtue

Events in my life, reflect the mercy and graciousness of God. Recently I picked up at a garage sale The Book of Virutes authored William J. Bennet, but assisted by Steven Tigner and John Cribb; I would have never, ever paid retail or even Amazon price for this book as my budget for books is limited to $10/month. On page 263, he cites the CS Lewis book the Abolition of Man and Chapter Men Without Chests where he relates that CS Lewis is one of the greatest modern thinkers about the responsibility of adults in educating  the young. Wikipedia relates on CS Lewis, “Many of the ideas in the Trilogy, particularly the opposition to de-humanization in the third volume, are presented more formally in Lewis’ The Abolition of Man, based on his series of lectures at Durham University in 1943.”

Men Without Chests is important as the purpose of the Beast Regime, is to destroy the world’s economy, so as to turn people to place faith in God, to perceive that the Election of Grace is the  most admirable virtue of God, and to experience what Witness Lee calls, the economy of God.

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