Walter Russell Mead posts on the logical (?) result of Cristina Fernandez’s ruinous economic policy and her brand of radical peronista nepotism as described dy Douglas Farrah,
Argentina to Drug Lords: Money Wanted, No Questions Asked
If Farah is right that the economic fate of ordinary people in Argentina is largely in the hands of a few radical thirty-somethings nostalgic for Perón, it would go a long way toward explaining the country’s current state of affairs. Argentina is now well into the capital shortage phase of its latest, repetitive cycle of failure. The government has stolen all the money that wasn’t nailed down, and neither foreigners nor rich Argentines will voluntarily lend it any more.
The temporary answer is to go bottom fishing in world capital markets: to welcome dirty drug and arms money into the country in an era when bank secrecy in more respectable places is beginning to erode. This is what the Kirchner government is doing with its recent passage of a tax amnesty that would allow drug dealers and terrorists to put their money in Argentina without the usual formalities and queries. But we wouldn’t advise any international drug lords to trust Argentine politicians; precisely because their money is illegitimate, it will be easy for the authorities to confiscate the money through some clever trick.
This is the kind of desperate decision one might expect from a Peronist youth group that finds itself at the helm of a failing state; it’s unlikely to end better than any of the other gimmicks and dodges tried at similar stages of the Argentine failure process over the decades.
Meanwhile, the government continues to turn the screws on retailers, by freezing prices on several different brands of wine and liquor, six ice-cream desserts and 12 types of olives — as well as 22 deodorants. But that’s not the disquieting part,
When President Cristina Fernández de Kirchner announced the general outlines of the freeze late last month, she also said that under the “Mirar Para Cuidar” (Watch to Protect) program, young political activists would fan out across the country to ensure that supermarkets hold prices down as agreed.
Unemployed young people, with an anti-business agenda in a corrupt country welcoming criminals – what could possibly go wrong?