Argentina and Money Printing

 It’s simply too tempting for governments to try and win voters by giving out free stuff when they don’t have the money in hand to pay for them.  Their only choice is to borrow and print.  Argentina is the latest nation to be collapse.  One day it will happen in America too.

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Protests have erupted across the country over the last several months, as citizens are demanding that their center-left government reinstate various subsidies, and reconsider cutting more - such as the country's notorious welfare program, which has grown to 22 million Argentinians receiving assistance amid a 43% unemployment rate.

The country's deteriorating economic picture has left it cut off from international capital markets as the Fernández administration has relied on printing money to cover its chronic fiscal debt.

As the Epoch Times noted earlier in the week, the country’s state funded programs extend to nearly every aspect of the economy, from wages to utilities, education, and health care.

Argentina already spends an estimated 800 million pesos per day—a sum of more than US$6 million—on state benefit programs.

Concurrently, inflation in the South American nation hit 58 percent in May and soared above 60 percent in July. By comparison, national inflation was just over 14 percent in 2015.

Harry Lorenzo, chief finance officer of Income Based Research, told The Epoch Times the spending habits of Argentina’s government are at the root of the escalating problem.

“The Argentine government has been grappling with a collapsing economy for some time now. The main reason for this is the government’s unsustainable spending, which has been funded in part by generous welfare programs,” Lorenzo explained 

 

https://www.zerohedge.com/economics/argentina-vows-not-go-full-weimar-will-stop-printing-money-amid-60-inflation