{"id":48333,"date":"2019-09-08T05:59:31","date_gmt":"2019-09-08T10:59:31","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48333"},"modified":"2019-09-08T05:59:37","modified_gmt":"2019-09-08T10:59:37","slug":"suffering-the-profanity-of-plentiful-cheap-money","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48333","title":{"rendered":"Suffering the Profanity of Plentiful Cheap Money"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/economicprism.com\/suffering-the-profanity-of-plentiful-cheap-money\/\">Suffering the Profanity of Plentiful Cheap Money<\/a><\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft\"><a href=\"https:\/\/economicprism.com\/suffering-the-profanity-of-plentiful-cheap-money\/\"><img decoding=\"async\" src=\"https:\/\/economicprism.com\/wp-content\/uploads\/2011\/12\/Inflation.jpg\" alt=\"\" class=\"wp-image-887\"\/><\/a><\/figure><\/div>\n\n\n\n<p>What if the savings in your bank account lost 55 percent of its value over the last 12 months?&nbsp; Would you be somewhat peeved?&nbsp; Would you transfer some of your savings to another currency?<\/p>\n\n\n\n<p>That was the favored approach in Argentina \u2013 where the official inflation rate\u2019s 55 percent.&nbsp; But no more.&nbsp; On September 2, President Mauricio Macri resorted to capital controls to preserve the central bank\u2019s foreign exchange reserves and prop up the peso.&nbsp; What gives?<\/p>\n\n\n\n<p>Just fifteen months ago Macri secured the biggest bailout in the International Monetary Fund\u2019s history.&nbsp; Now Argentina\u2019s delaying payment to its creditors and is rapidly approaching what will be its third sovereign default this century.&nbsp; On top of that, Macri\u2019s Peronist rival Alberto Fern\u00e1ndez will likely take his job come election day in October.<\/p>\n\n\n\n<p>Alas, for Macri and his countrymen, a painful lesson is being exacted.&nbsp; You can\u2019t solve a debt problem with more debt.&nbsp; Eventually the currency buckles and you\u2019re left with two poisons to pick from: inflation or default.&nbsp; With Macri\u2019s latest capital controls scheme he\u2019s choosing to take swigs of both.<\/p>\n\n\n\n<p>Make of Argentina\u2019s woes what you will.&nbsp; Central bankers in the United States are also guilty of programs of mass money debasement.&nbsp; They may have a bigger economy to better mask their malice.&nbsp; But despite what the MMT delusionals say the day of reckoning always arrives \u2013 and always at the worst possible time.<\/p>\n\n\n\n<p>Indeed, the U.S. dollar hasn\u2019t lost 55 percent of its value over the last 12 months.&nbsp; However, according to the Bureau of Labor Statistics\u2019 own&nbsp;<a href=\"https:\/\/www.bls.gov\/data\/inflation_calculator.htm\">inflation calculator<\/a>, the dollar\u2019s lost 55 percent of its value since 1988.&nbsp; In other words, it takes $1 to purchase what $0.45 could buy during President Reagan\u2019s last year in office.<\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Suffering the Profanity of Plentiful Cheap Money What if the savings in your bank account lost 55 percent of its value over the last 12 months?&nbsp; Would you be somewhat peeved?&nbsp; Would you transfer some of your savings to another currency? That was the favored approach in Argentina \u2013 where the official inflation rate\u2019s 55 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1099,12043,536,538],"class_list":["post-48333","post","type-post","status-publish","format-standard","hentry","category-economics","tag-currency-devaluation","tag-economic-prism","tag-money","tag-money-printing"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48333"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48333\/revisions"}],"predecessor-version":[{"id":48334,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48333\/revisions\/48334"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}