Price controls.....................from Rico

Price controls.
- Argentina now. You next.

In a useless and futile effort to halt inflation, Argentina's Kirchner has just implemented price controls...a two month food price freeze.
- Remember President Ford? He believed in price controls, too. Until they did not work. These won't either.

But hey, Argentina's stock market (SRG) is soaring. They probably didn't listen to Kyle Bass's brilliant explanation (in the context of the US DJIA having just breached 14,000) that Zimbabwe's stock market was the best performing in the world for a while, the only problem being your 'nominal gains' would not buy you three 'real' eggs at the end of the day.
- So, in peso terms while the ARG has climbed 360%, priced in USD terms it has tanked <9%>. So far.

Lucky thing the Keynesians, the general public, and the FED, do not 'grasp' the difference between 'nominal' and 'real.'

Let's cut to the chase. The 'unexpected' consequences of this for Argentina:
- Expect empty shelves.
- Expect many outlets to close.
- Expect inflation to return 'on steroids' in two months.

For everyone else? The sequence of events is this:
- Capital controls. Currency crisis. Sovereign default. Just like Argentina.

Learn it. Love it. You WILL be living it!
- Don't cry for Argentina's leftist government...cry for yourselves!!!