Argentina/GDP (2)

[Brad DeLong <delong@xxxxxxxxxxxxxxxxx>]

> En relación a [PEN-L:1448] Re: Re: Re: Re: RE: Re: Argentina/GD,
> el 7 Sep 00, a las 22:12, Brad DeLong dijo:
>
> >  >The first
> >  >hyperinflation was a coup d'etat. It was provoked intentionally
> >  >(there are proofs and declarations in this sense, as well as there
> >  >are others on the milder hyperinflation provoked in 1975 to generate
> >  >the chaos that led to the 1976 coup) and ended with the downfall of
> >  >Alfonsín.
> >
> >  Provoked intentionally by whom? The central bank? The Alfonsin
> >  government?
>
> Ah, Brad, you are forcing me to break my votes. Not a way to get to
> Paradise. Will answer this but next time, please refer to bibliography.
>
> By the Argentinian ruling class, a very compact "rosca" ("lobby")
> which has the advantage of being the ONLY class in Argentina with
> clear consciousness of their class goals. In 1989 it was very easy
> for a gang of bankers and foreign trade speculators to forge a
> scarcity of foreign currency, for example. And they did it.


Ummm...

Bankers and foreign exchange speculators engage in capital flight
either because they think current government policy is unsustainable
and they have a chance to make a fortune (or avoid bankruptcy) by
doing so, or because they are irrationally panicked. They are not
good at all at collectively carrying out unprofitable (and
unpanicked) market actions that are nevertheless in their collective
political interest. As Lenin said apropos of this point, "the
bourgeoisie will sell us the rope we will use to hang them."

This is a simple point, but unless it is grasped a lot of one's
writings will be *grossly* in error.

Brad DeLong