So while Hugo Chávez devalues the currency in Venezuela at the other end of South America, Argentine President Cristina Kirchner fired that country’s central bank president because he wouldn’t hand over $6.6 billion in bank reserves to her.
Source link: http://blog.mises.org/11441/latin-america-crisis-brewing/
Latin America crisis brewing?
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A case for central bank independence.
to scineram,
independence is already part of the central bank of argentina’s charter.
actually, the move to sack the bank president has been provisionally blocked by court injunction. redrado isn’t resigning; only congress has the authority to remove him.
Latin American brewing crisis?
http://www.businessweek.com/news/2010-01-12/heineken-to-gain-share-in-mexico-after-acquisition-ceo-says.html
The thing is presently all-socialism in Venezuela, not just a central bank problem.
And in Brazil the problem is, perhaps, bigger, ’cause the country is bigger. Nobody seems to see that Brazil is going through large steps to socialism, but it’s going, all under a courtain of legality (false legality) and hypocrite “progressism”.
The non-binding advice from Congress is a requisite to fire Central Bank President. Anyway, Redrado’s never been an example of an independente president, he was, until a couple of weeks ago, Kirchner’s puppet, and this was the only reason why while in 2007 Argentina was having a 25% inflation/year, no one pointed Redrado as responsible.
Socialism In The Americas Is In Shambles.
The simplest way to undo socialism is to get rid of the central banks since they are just counterfeit rings propping up socialist leaders like Venezuelan President Hugo Chávez, Argentine President Cristina Kirchner, and U.S. President Barack Obama.
Without these counterfeit operations Keynesianism will come to a halt, and then in the search for an alternative, people will discover classical liberalism here and there and everywhere.
At that point civilization will advance and peace and prosperity and justice will be its hallmark.
As far as I know there are some political parties in Latin America, recently created, who are advocating for classical liberalism:
Brazil’s Libertarios (Libertarians, http://www.libertarios.com.br)
and Argentina’s Partido Liberal Libertario (Liberal Libertarian Party, http://www.partidoliberal.org.ar/)
http://www.partidoliberal.org.ar/home/
the above-mentioned Partido Liberal Libertario has abolition of the central bank as one of its key policy measures. i don’t think their time has come, sadly.
I look at the bright side. With the meltdown of South America and the loosening of our borders, I should have no problem finding a housekeeper with a PhD. All is well.
A PhD from Brazil is the same as nothing.
Based on my reading of “This Time is Different: Eight Centuries of Financial Folly,” I expect a round of defaults on government debt throughout Latin America and elsewhere over the next decade. Of course, they will blame the US and capitalism, giving them more excuses for implementing socialism.
“A PhD from Brazil is the same as nothing.”
I’d take a PhD from Brazil, in Math or Physics, over a Ph.D. in Economics from Harvard, MIT or Yale any day.
Now, a Master’s from Brazil is worth nothing indeed
Wonderful article!!
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