No Edible iPads Here: Cost Of Argentina Bread Doubles - Wheat/Flour Prices Frozen

Zerohedge ^ | 07/05/2013 | Tyler Durden

[Rusty0604]

Over two years ago we highlighted just how out-of-touch with reality our central planners are when we exposed Bill Dudley's infamous inflation comments. Now it seems, Argentina is taking over the mission of totalitarian supreme command (or government gone mad). While not publicly admitting they have a problem, despite the price of bread doubling to 20 Pesos in the last year alone, Bloomberg reports the government plans to apply a 1974 law that forces holders (on penalty of fines and prison) of wheat and flour suitable for bread-making to sell it in the domestic market. This entirely un-free-market response to the dreadful reality in the nation comes on the heels of the freezing of prices on 500 goods at Supermarkets back in February and, unbelievably, suggestions that citizens combat higher prices by "baking bread at home." How long can a country plunge into a hyper-inflationary spiral before the people 'coup-like-an-Egyptian'?

[Rusty0604]

"For over 10 minutes the president of Argentina boasted about the K Media Law, criticized what’s left of the free Argentine press and complimented Chavez on his newly won election. “The problem of the media is widespread” she said “in the region and the rest of the world”. She said that the elections in Venezuela felt like an “international” election and made reference to how Chavez won in spite of opposing press. To that, several Chavez militants present in the room chanted in support.

She also mentioned similarities between herself and Obama regarding how they both suffer unfair negative press. Ms. Kirchner mentioned the unfair criticism to Obama of how the unemployment rate isn’t accurate, how social welfare plans are used to buy votes and political support and how Obamacare is branded as socialist. “They criticize when unemployment is high and call it conspiracy when its doing better”, said Cristina Kirchner."

http://ferfal.blogspot.com/2012/10/cristina-kirchner-praises-chavez-and.html

[Black Agnes]

http://www.freerepublic.com/focus/f-chat/3039779/posts

[AndrewB]

Just curious: bread doubled to 20 pesos per kilo per the article. Do all brands and forms of bread cost the same in Argentina?

[The Great RJ]

It is basic economics...price ceilings inevitably produce shortages. Argentina will just become another example of a socialist country where central economic planning utterly fails.

[Rusty0604]

I don’t know, since the socialist gov’t is controlling everything instead of the free market. Depends on what the bureaucrats dictate.

[Cuttnhorse]

Last time I was in Buenos Aires the dumpster divers were everywhere. Quite the little economy they have...in a country that was in the top six in the world in the 1930’s. Argentina has everything...ocean, minerals, agriculture, tourism, did I mention great wine?

In spite of the riches, they just can’t get beyond their incompetent, corrupt, worthless government.

[GeronL]

price freezes cause shortages

[Rusty0604]

“Moreno closed stores owned by Wal-Mart Stores Inc., Carrefour SA (CA) and Cencosud SA (CENCOSUD) for a few hours yesterday after the government found shortages of some goods. Grocers agreed last month to freeze prices of 500 goods and ensure supply as part of the government’s efforts to stem inflation.”
Socialists think they can legislate different outcomes. They have no concept of basic economics.

[tbw2]

I can’t remember the quote exactly, but it was something about how socialism fails the fastest in nice climates like Greece and California because it is so easy to lounge on the beach.

[Cuttnhorse]

That would be Argentina.

I was doing management on large construction projects and would rater build a project in Africa than Argentina.

[bert]

They should do what American bakers did years ago...... increase the water content

American white bread is essentially dough. The batter whipped scam was completely accepted by americans and bakers still rake in the profits on selling water