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Fever Cure: Forcing Down the Mercury in Your Thermometer

Argentina has just announced a two-month price freeze on grocery products in order to fight inflation. (Thanks to Travis Holte.)

Unlearn the Propaganda!

  • Anonymous

    So demand will rise and companies will not be able to answer the call, there will be either shortages, huge losses for the companies or both.
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    Family Survival Course Book
    Create Electricity From Home

  • Anonymous

    Some Argentinian (Austrian) college kid could do a nice research paper comparing a store inventory now and then two months from now.

  • http://twitter.com/Spagaletto C. Rakish Spagaletto

    From Bloomberg in Dec. 2011 – Argentina’s Central Bank to Raise Money Supply by 26% in 2012

  • http://rosarynovice.stblogs.com/ Augustine

    Ah, yes, because it works so well!

    I went through a price freeze in Brazil in 1986. Immediately, the shelves were emptied. For show, some groceries store managers were arrested for whatnot. The federal police would fly helicopters in the great expands in Central Brazil looking for hoarding of cattle and, again, some ranchers were arrested for show.

    I don’t think it lasted even a month and prices were allowed to rise according to the massive monetary inflation by the government. Thankfully, no one stayed more than a couple of days in prison…

  • J Cortez

    Because of these laws, two things will happen:

    Some products will completely disappear and go black market.

    Some products will remain but with absurd but creative work-arounds. Eggs and bacon won’t be sold as grocery products, but “industrial strength lubricants” or something that makes it not a grocery product.
    Of course, as always, what will end up happening is that the government will hurt the people it is supposedly trying to save.

  • Anonymous

    Don’t cry for me empty shelves.

  • http://plenarchist.wordpress.com/ plenarchist

    From back in March, an article on Mercedes Marcó del Pont, president of BCRA (the central bank) http://en.mercopress.com/2012/03/26/printing-money-does-not-lead-to-inflation-argues-argentine-central-bank-president -

    “Under the new charter of the bank the primary and main task of the BCRA will not be only to preserve the value of the currency but must also include inflation, jobs, economic development with social fairness, financial stability and the need to coordinate with government policies.” And four calling birds,three French hens, two turtle doves and a partridge in a pear tree…

    With a mandate like that, what could possibly go wrong?

    “We discard that financing the public sector is inflationary because according to that statement the increase in prices are caused by an excess of demand, something we do not see in Argentina.”

    She must be a graduate of the Alan Greenspan School of WTF.

    “We’re recovering the sovereign capacity to formulate and implement economic policy”, said Marcó del Pont who anticipated some pictures will be coming down from the bank’s hall of fame “beginning with Milton Friedman.”

    Don’t cry for *me* Argentina.

  • Jeremy

    Heh, these people just will NOT learn will they? How many millions of times do we have to go through the fighting-inflation-by installing-price controls before these fools realize that this just doesn’t work? How many?

  • Anonymous

    I’m very sorry, I apologize to all…
    But, I keep getting forced into “mobile mode” when I select TomWoods.com.
    I’m on a laptop. How can I just get the real home page?
    Help, please?
    Tanx,
    C.M.
    P.S. When I slide the selector at the bottom to “Mobile Off”, it ignores me

  • http://www.facebook.com/people/Paul-Sedkowski/100001467305337 Paul Sedkowski

    The Soviet Bloc was one giant price-freeze. As a result, the shelves were empty (while the black market thrived). Economic ruin followed just a few years after introducing these policies.

    But there was an upside to that as well: people developed a wicked sense of humor as a result. Here’s a sample:

    A mile-long queue forms early morning in front of a butcher’s shop. After a couple of hours of waiting, the shop manager comes out and says “sorry folks, there’ll be less meat than we thought so some of you need to go home. Jews, please leave the queue.” Everyone grumbled, but the Jews left. A few hours later, the manager comes out again “sorry folks, there’ll be even less meat delivered than we thought. Because of that, please all of you who are not members of the socialist party, leave!” More grumbling, but now only the party members are lining up. Many hours later, the manager comes out again “sorry folks, sad news, we just found out there will be no meat at all today.” As the queue dispersed, they mumbled “darned Jews, always so lucky!”

    OK. One more:

    Guy walks into the state-owned butcher’s shop. “Can I have some ham please?”
    “Sorry, we don’t have any ham.”
    “What?!” he exclaims, “no ham??!!”
    The shop-keeper replied: “did you ever see anyone here ask for ham? Ever?”
    “No,” replies the man.
    “So,” says the shopkeeper, “you want me to import ham just for YOU?”

    Good luck, Argentina…!

    peace :)

  • http://www.facebook.com/profile.php?id=4941417 Ed O’Donnell

    What browser are you using?

  • Anonymous

    Chrome.
    It only does it sometimes. Maybe ’cause I’m in the Bahamas?

  • Liberty Belle

    It does it to me also, but only occasionally. It’s a bit annoying but I don’t have difficulty browsing the content…

  • Anonymous

    Thanx for the confirmation. It’s not Earth shaking, I just wanted to give a heads up to the web maintenance person. Hasn’t done it today. :)