Argentina has a new Central Bank president, and by all accounts her appointment puts an end not only to autonomy, but to orthodox monetary policy in the management of the nation’s currency. Ámbito says Mercedes Marcó del Pont describes herself as a “militant developmentalist,” and Página/12 has a really well-done explanation of how her “developmentalism” will effect the way the Central Bank operates.
Basically, if you’re a traditional Central Bank president like Redrado was, you proceed under the assumption that creating more money will cause inflation to rise. Since this is considered to be a bad thing, you think long and hard before lowering interest rates to stimulate the economy in the short term, especially if your inflation rate is already estimated to be the third highest in the world.
Marcó del Pont, however, has in the past proposed running things under a Brazilian model that places the Central Bank in a National Monetary Council along with the Treasury and the Planning Ministry. Thus, any decisions about the currency are made according to how they will help the country “develop.”
I think it goes without saying that different people have different ideas of what “develop” should mean, and that a lot of those people would essentially use their definition as an excuse to lower interest rates and crank the money supply in a show of cheap populism. Not surprisingly, U.S. analysts are predicting doom:
“The new president is very closely aligned with the government and won’t have an independent voice,” (Goldman Sachs analyst Alberto) Ramos said in an interview last night. “The government wants to continue spending at elevated rates to have short-term growth and the central bank won’t raise interest rates, it won’t have its own voice.”
Marcó del Pont has said she does “not think (the Central Bank) can be independent of the nation’s economic policies,” which pretty much says it all.
The Nation has a long, wonky, wonderful article on Mexican maize cultivation, the effects of NAFTA, and the dangers of genetically-modified seeds. Author Peter Canby backs up his excellent writing with piles and piles of meticulous research. Not to be missed. [link, via SM] (Image from Joel Penner.)
Cuban dissident Guillermo Farinas ended his hunger strike yesterday after 134 days. Farinas decided to end his strike after the Cuban government said it would release political prisoners rounded up in the "Black Spring" crackdown of 2003. Get well soon. [link]
The Uruguayan selection, which has made it to the quarter finals of the World Cup, just received a shipment of half a ton of fine cuts of beef for the mother of all asados in preparation for a contest against Ghana on Friday: "450 kilos of lomo, 200 of entrecot, 75 of vacío, 75 of colita de cuadril, 150 of ojo de bife and 50 kg of picaña." [link]
Hitmen have assassinated the PRI candidate for governor of Tamaulipas State, Rodolfo Torre Cantú. Torre was gunned down along with six others at about 10:30 this morning on a highway on the way to a campaign event. Drug mafias are assumed to be responsible. [link]
From the days when coups were something of a regional sport, new documents detail a famous British ballerina's role in a plot to topple the government of Panama. The plan was to use her yacht to gather men and arms, then "land somewhere and collect in the hills." It didn't work. [link]
Mexico's Attorney General's Office has posted on its web site irrefutable evidence that gold-plated AR-15s and diamond-studded pistol grips are not nearly as cool-looking as they sound. The deadly knick-knack collection is said to belong to Valencia Cartel leader El Lobo. [link]
Two Brazilian ranchers were sentenced to 30 years in prison apiece for ordering the killing of an environmentalist nun: "Prosecutors said the pair offered to pay a gunman $25,000 to kill the 73-year-old [Dorothy] Stang because she had prevented them from stealing a piece of land that the government had granted to a group of poor farmers." [link]
This video of a kidnapping and car chase in Mexico is notable mainly for the bad-assitude of the TV journalists who were on this like white on rice. Well done, gentlemen.
The Economist takes a peak at the Mockus phenomenon in Colombia: "His moustacheless beard gives him the air of a Baltic pastor... He is financing his campaign with a bank overdraft. His supporters rely on Facebook and make their own posters; street vendors sell unofficial campaign T-shirts." [link]
Some cruise lines will cease traveling to Antarctica after this cruise season, as a ban on the use and carriage of heavy fuel oil goes into effect next year. The ban came after a 2007 incident when a Gap Adventures ship got punctured by ice and sank, causing a mess. [link]
The Nation has a long, wonky, wonderful article on Mexican maize cultivation, the effects of NAFTA, and the dangers of genetically-modified seeds. Author Peter Canby backs up his excellent writing with piles and piles of meticulous research. Not to be missed. [link, via SM] (Image from Joel Penner.)
Cuban dissident Guillermo Farinas ended his hunger strike yesterday after 134 days. Farinas decided to end his strike after the Cuban government said it would release political prisoners rounded up in the "Black Spring" crackdown of 2003. Get well soon. [link]
The Uruguayan selection, which has made it to the quarter finals of the World Cup, just received a shipment of half a ton of fine cuts of beef for the mother of all asados in preparation for a contest against Ghana on Friday: "450 kilos of lomo, 200 of entrecot, 75 of vacío, 75 of colita de cuadril, 150 of ojo de bife and 50 kg of picaña." [link]
Hitmen have assassinated the PRI candidate for governor of Tamaulipas State, Rodolfo Torre Cantú. Torre was gunned down along with six others at about 10:30 this morning on a highway on the way to a campaign event. Drug mafias are assumed to be responsible. [link]
From the days when coups were something of a regional sport, new documents detail a famous British ballerina's role in a plot to topple the government of Panama. The plan was to use her yacht to gather men and arms, then "land somewhere and collect in the hills." It didn't work. [link]
Mexico's Attorney General's Office has posted on its web site irrefutable evidence that gold-plated AR-15s and diamond-studded pistol grips are not nearly as cool-looking as they sound. The deadly knick-knack collection is said to belong to Valencia Cartel leader El Lobo. [link]
Two Brazilian ranchers were sentenced to 30 years in prison apiece for ordering the killing of an environmentalist nun: "Prosecutors said the pair offered to pay a gunman $25,000 to kill the 73-year-old [Dorothy] Stang because she had prevented them from stealing a piece of land that the government had granted to a group of poor farmers." [link]
The Economist takes a peak at the Mockus phenomenon in Colombia: "His moustacheless beard gives him the air of a Baltic pastor... He is financing his campaign with a bank overdraft. His supporters rely on Facebook and make their own posters; street vendors sell unofficial campaign T-shirts." [link]
Some cruise lines will cease traveling to Antarctica after this cruise season, as a ban on the use and carriage of heavy fuel oil goes into effect next year. The ban came after a 2007 incident when a Gap Adventures ship got punctured by ice and sank, causing a mess. [link]
Loose money
Source: Ámbito
Argentina has a new Central Bank president, and by all accounts her appointment puts an end not only to autonomy, but to orthodox monetary policy in the management of the nation’s currency. Ámbito says Mercedes Marcó del Pont describes herself as a “militant developmentalist,” and Página/12 has a really well-done explanation of how her “developmentalism” will effect the way the Central Bank operates.
Basically, if you’re a traditional Central Bank president like Redrado was, you proceed under the assumption that creating more money will cause inflation to rise. Since this is considered to be a bad thing, you think long and hard before lowering interest rates to stimulate the economy in the short term, especially if your inflation rate is already estimated to be the third highest in the world.
Marcó del Pont, however, has in the past proposed running things under a Brazilian model that places the Central Bank in a National Monetary Council along with the Treasury and the Planning Ministry. Thus, any decisions about the currency are made according to how they will help the country “develop.”
I think it goes without saying that different people have different ideas of what “develop” should mean, and that a lot of those people would essentially use their definition as an excuse to lower interest rates and crank the money supply in a show of cheap populism. Not surprisingly, U.S. analysts are predicting doom:
Marcó del Pont has said she does “not think (the Central Bank) can be independent of the nation’s economic policies,” which pretty much says it all.
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