Argentina And Venezuela: Chronicles Of Devaluations Foretold
Monica Showalter has an excellent article on a cautionary tale:
Argentina And Venezuela: Chronicles Of Devaluations Foretold And they inevitably lead to inflation. For 2012, Venezuela’s inflation surged to 56.1%, its central bank said. In Argentina, the rate was 28%, according to a watchdog.
These man-made disasters are due to governments spending more than they have to buy votes. In Argentina, spending rose 50% in the past decade, and in Venezuela it surged 60% in just the past year.
The numbers are so hard, and crisp and predictable, it’s astonishing anyone could be surprised by them.
Read the whole thing – the US M2 money supply is up 34% since President Obama took office.