22 October 2011

ARGENTINA: 12 Economists Dread Cristina's Re-election...And Retribution From Inflation Dispute.

                                          WSJ/ M.MOFFETT

     While many in Buenos Aires are hailing tomorrow's probable landslide re-election of President Cristina Fernandez...there are at least 12 economists who fear her continued persecution and prosecution.
     Why?
     Because of a vague consumer law that forbids and severely punishes their calculations of inflation and fines of 500,000 pesos/$119,000.
    While the government officially has declared an annual inflation rate of 9.9%...those economists calculated a rate 2-3 times more.
    In September...the government claimed just .08 inflation...while outside experts came up with 1.89%.
    It matters to Cristina because Argentina's debt repayment must include inflation.
    Meanwhile...the 12 economists suffer from stress and worry over huge legal bills.