|Just don’t ask about the real rate of inflation!
Back in April, we saw that merely asking the local economy minister what Argentina’s rate of inflation is, was enough to prematurely terminate any interview and result in a mocking, viral twitter meme. Since then, things for Argentina haven’t exactly worked out too well: a recent Appeals court ruling found in favor of Elliott and the holdout bondholders, resulting in a downgrade of the country to CCC+, and leaving it with the possibility of having to fund billions in deferred obligations. “The lawsuit could result in the interruption of payments on bonds currently under New York jurisdiction, or it could prompt Argentina to undertake a debt exchange that we could view as distressed,” S&P said in the statement. “There is at least a one-in-three chance of either occurring within the coming 12 months.” Of course, to many the fact that Argentina has still not redefaulted is even more surprising. The reason for that is that despite president Fernandez ongoing rose-colored glasses PR campaign, the domestic economy has been deteriorating at an accelerating pace with runaway inflation destroying local purchasing power for years. As a result of the ongoing authoritarian crackdown on not only individual liberties, but economic data, it has gotten to the point that the government is criminally prosecuting anyone who dares to publish independent inflation data.