Wednesday, April 4, 2012

Dear Argentine People,

Dear Argentine People,

Long ago in the year 2001, your ancestors took to the streets in riotous protest of your leaders' blatant economic mismanagement.  Having studied these events in great detail we can confidently tell you that excessive leverage and a stalled economy, corrupted from the top, caused these conditions.  In short, your nation became unable to finance its out of balance fiscal condition through continued debt monetization.

What concerns us now can be summed up in the following two images.  First, your central bank is controlled by an agent of private institutions who will not be available to help you once they have finished devouring your nations assets.
Second, and perhaps most troubling, the leader of your central bank is openly telling you that she plans to follow the exact same path that led you to the previous collapse.

Finally, our firm has recently liquidated holdings of mining shares doing business in your beautiful country.  We can no longer be exposed to your government which has begun imposing nebulous taxation policies on productive enterprises; it creates too much uncertainty for us.  We are moving our capital to safer jurisdictions.

Maybe you have dismissed our comments as unwarranted or ill-informed.  We are merely observing your choices from another hemisphere but our firm grasp of economic law gives us this prescient opinion.  How can we be so certain?  Only a leader intent on protecting her own power even if it destroys the society that elected her would respond this way to outraged former shareholders of YPF, the private oil company that she barbarically seized.
This is not the end of our relationship.  Once you have successfully driven out private industry and debased your currency we will return to purchase land and resources which we will sell back to you after you recover.

Farewell but not goodbye.