Latin America

Venezuelan devaluation sparks panic buying

"Panic buyers thronged Venezuelan shops over the carnival weekend after the government of Hugo Chavez announced a surprise devaluation. Domestic appliances such as fridges and cookers were in particularly high demand as Venezuelans snapped up goods imported at the now-defunct exchange rate of 4.3 bolívars per dollar. From now on they will be imported at 6.3 bolívars per dollar. Opposition politicians seized on what is Venezuela's fifth devaluation since strict currency controls were introduced in 2003, criticising the socialist government for quietly announcing it on Friday while people headed for the beach over the holiday." Continue reading →

Continue ReadingVenezuelan devaluation sparks panic buying

Paul Krugman’s Great Forecasting Failure: Argentina

"This is what Krugman wrote in May sandwiched in between my April and June warnings: 'Matt Yglesias, who just spent time in Argentina, writes about the lessons of that country’s recovery following its exit from the one-peso-one-dollar 'convertibility law'. As he says, it’s a remarkable success story, one that arguably holds lessons for the euro zone.' Some success story: out of control inflation. It will happen in the United States next, if the Federal Reserve continues to follow the mad dog printing advice of Krugman." Continue reading →

Continue ReadingPaul Krugman’s Great Forecasting Failure: Argentina

Argentina Is First Nation Censured by IMF for Economic Data

"Argentina became the first country to be censured by the International Monetary Fund for not providing accurate data on inflation and economic growth under a procedure that can end in expulsion. The declaration of censure was adopted yesterday by the IMF’s 24-member board, the Washington-based fund said in a statement. While it doesn’t have immediate effects, the decision takes the country a step closer to sanctions that include being barred from access to IMF loans." Continue reading →

Continue ReadingArgentina Is First Nation Censured by IMF for Economic Data

Absent Chavez devalues Venezuelan currency to aid gov’t finances

"Venezuela devalued its bolivar currency on Friday by 32 percent in a widely expected move that will shore up government finances after ailing President Hugo Chavez's blowout election-year spending in 2012 but will also spur galloping inflation. The move slashes the official bolivar exchange rate to 6.3 per dollar from 4.3 under currency controls Chavez created in 2003 that require importers and travelers to apply for hard currency through a state agency. Dollars on the illegal black market had for weeks been fetching nearly four times the official exchange, which economists cited as a sign an exchange rate adjustment was imminent." Continue reading →

Continue ReadingAbsent Chavez devalues Venezuelan currency to aid gov’t finances

Argentina Bans All Advertising

"Supermarkets and electronics retailers say Argentina's government has ordered them to stop advertising in the country's top newspapers, in a bid to weaken independent media companies as President Cristina Kirchner turns to increasingly unorthodox policies to prevent inflation from derailing an ailing economy. The order, confirmed by retailers and newspapers but denied by government officials, comes after retail executives say price-control czar Guillermo Moreno pressured them earlier this week to agree to freeze prices for two months. Executives say Moreno then told them to pull all newspaper sales ads in hopes this would somehow curb inflation." Continue reading →

Continue ReadingArgentina Bans All Advertising

Argentina Bans All Advertising

"Supermarkets and electronics retailers say Argentina's government has ordered them to stop advertising in the country's top newspapers, in a bid to weaken independent media companies as President Cristina Kirchner turns to increasingly unorthodox policies to prevent inflation from derailing an ailing economy. The order, confirmed by retailers and newspapers but denied by government officials, comes after retail executives say price-control czar Guillermo Moreno pressured them earlier this week to agree to freeze prices for two months. Executives say Moreno then told them to pull all newspaper sales ads in hopes this would somehow curb inflation." Continue reading →

Continue ReadingArgentina Bans All Advertising

Bus Station Erupts With Heckling At Argentine Finance Minister And His Family

"Things are looking bad for Argentina's economy — central bank reserves are at 2007 lows due to capital flight, inflation is heading up, and the IMF is ready to punish the country for manipulating economic statistics. This is not the time when, as a Minister of the Economy, you want to get caught coming back from vacation in Uruguay with your family. But that's just what happened to Vice Finance Minister Axel Kicillof, a young father, and his wife as they were taking the Buquebus shuttle home from beach spot Colonia del Sacramento in Uruguay, La Nacion reports." Continue reading →

Continue ReadingBus Station Erupts With Heckling At Argentine Finance Minister And His Family

Argentine ‘superhero’ facing weapons charges

"A self-styled Buenos Aires superhero who fought crime armed only with a costume, mask and pepper spray, is now himself up on weapons charges. Thanks to an alleged shootout with muggers the superhero has been charged with carrying an unlicensed gun, police said Wednesday. The man who called himself Menganno — Spanish for Joe Blow — and became famous in Argentine media is actually one Oscar Lefosse, 43, a former cop who served from 1986 to 1996. It turns out his gun license expired a year ago." Continue reading →

Continue ReadingArgentine ‘superhero’ facing weapons charges

Chileans will be able to incorporate companies in one day

"Chileans will now be able to create and register a new company in one day, Start-Up Chile reports on its blog. This is the result of a new law voted this week by the Chilean Senate, and which should come into effect by May. It’s not just about speed, but also about convenience and affordability, with the implementation of a free one-stop online incorporation system. Company creation aside, it also covers structural changes, mergers and closures." Continue reading →

Continue ReadingChileans will be able to incorporate companies in one day

Honduras police seize $50,000 gold-plated AK-47 rifle

"The authorities in Honduras have seized a gold-plated, jewel-encrusted AK-47 assault rifle, complete with two silver magazines. The gun, estimated to be worth more than $50,000 (£30,000), is believed to belong to drug traffickers. Following a tip-off, police also found a number of weapons, along with other military equipment and passports." Continue reading →

Continue ReadingHonduras police seize $50,000 gold-plated AK-47 rifle