The recent outburst by the Argentinian tennis player David Nalbandian who kicked an official during a match just because he was frustrated resembles what the president of Argentina is doing when it comes to the Falklands, she is using the Falklands as a diversion , in so doing she does not have to speak about the crisis of the economy in Argentina..In any case the islanders do not want to be Argentinian.

If they read the following article they will resist to the end.

In Le Monde of Sunday 24 and Monday 25 June , 2012, there is an article called: The Argentinian miracle was a smokescreen”.

“Is a smell of “deja-vu” hovering over Argentina? Here you have the bangers of cacerolazos (of saucepans) are back. This is how, at the end of 2001, one had called these demonstrators who banged day and night on saucepans in order to protest against the government -accused of having ransacked the country -and the IMF , their backer rebaptised then as the ‘International Misery Fund”(…)

The cause of all this, a two figure inflation, a growth which is slowing down and an unemployment which is progressing. Argentinians have lost all confidence in the peso, the value of which is not ceasing to depreciate, and they prefer to economize in dollars.

In order to stem this outflow of funds (capital) 20 billions $ in 2011, that is to say 15,9 billions euros, president Cristina Fernandez de Kirschner has reestablished, at the beginning of February, a strict control of exchange. In vain: the Argentinian are buying their green banknotes in the “cuevas” (grottos) clandestine houses of exchange in spite of exorbitant charges.

Enough to demystify the “Argentinian miracle”, that certain economists have spoken so well about to the point of making it the example for Greece to follow. Stuck in the mud of overindebtedness, mixed with recession, Athens, one hears here and there, would do well to get oout of the euro zone, go back to the drachma , devalue its currency and renounce its debts.

(…) However the “Argentinian experience should dissuade more than encourage to follow this path” estimate Mario Blejer, ex-governor of the central Argentinian bank, and Guillermo Ortiz, ex-governor of the Mexican central bank in a debate to the British weekly The Economist, in February.

(…) During months, the country has been cut off from the world. And the massive devaluation has ruined savers and enterprises. More than half of the population, 58% have fallen beneath the threshold of poverty, Gustavo Canonero and Gilles Moec remind us, economists with the Deutsche Bank, in a note of the 15 of June entitled: “Argentina’s Phoenix Might Not Fly in Greece.” (…)

In Le Monde, 24-25 June 2012. Claire Gatinois, Christine Legrand.

Translated from the French by M. Prigent on the 24 June 2012.

“Many years ago I appraised World Bank loans to development banks along lines very similar to the Mansion House proposals. Banks will take cheap money because they can use it. But they seldom use it in the way intended. And in cases where the World Bank forced them explicitly to advance credit to the desired categories of borrowers the banks chose borrowers who did not need the money, at rates that gave those borrowers the opportunity to earn risk free profits by disintermediating the funds (into certificates of deposit for example). In several countries funds pumped into the rural sector flowed round into urban property speculation within weeks. It is almost impossible to stop this kind of thing from happening.”

A commentator at the Financial Times blog today, responding to Martin Wolf’s observation on Osborne’s unresolvable dilemma – wanting to lend more money to get out of the crisis, while at the same time cutting back on money to get out of the crisis, here.