Tagged: Inflation

Argentina Freezes Food Prices…

Oh Argentina…the poster-child for incompetent and corrupt government in handling of financial affairs. They just announced they are freezing food prices to “control” inflation. Of course the official inflation rate is reported around 10%, but unofficially it is around 30%: Argentina Freezes Food Prices to Control Inflation Now, this won’t do anything to solve their inflation problems. What it will do is cause food shortages as suppliers cut back on production because they are not able to pay their bills....

Does Fiat Money Always Fail? Usually.

A question came up about whether fiat money systems always fail. Some have made the argument that fiat systems don’t always fail and that something like a gold standard is worse. I think those that make this point need to understand that a fiat money failing usually goes hand in hand with the government failing at the same time. In fact, hyper-inflation is the final gasp of most dying governments. Very few come out of the situation intact because the...

Argentina’s CPI Still Rigged – Brace for Impact

I am fond of using Argentina as the poster-child for incompetent and corrupt government management of an economy. They have destroyed their own economy so many times from inflation and collectivist policies that I’ve lost count. I use their manipulation of their own Consumer Price Index (CPI) as a possible outcome of relying on Treasury Inflation Protected Securities (TIPS) in the U.S. to save you from high inflation: TIPS Are a Bad Idea: Argentina’s CPI As a follow-up to this...