According to the ofﬁcial exchange rate, which is subject to capital controls, 4.4 pesos buys you a dollar. But on the street people are happy to pay up to 6.7. Inﬂation runs at 25%. The purchasing power of an Argentine’s peso savings is going down by one-quarter each year.Don't think it can happen here? How exactly do you think government borrowing 40 cents of every dollar it spends plays out when we get beyond the ability of the current Fed/Treasury jiggery-pokery to conceal it?
The government claims inﬂation is 9.9% and has outlawed calculating or quoting any other inﬂation rate. Forty percent of dollar deposits have been withdrawn from Argentina since last October. Now there are capital controls. You need special permission to move your dollars overseas.
To take a foreign vacation, Argentines have to apply to a bureaucrat for permission and explain where they got the money for the trip. And there are rumors that it will be made illegal to talk about the existence of the shadow market exchange rate for dollars.
And remember, Senator Chuck Schumer has already proposed, and Speaker Boehner has indicated approval, of a Reich Flight Tax to confiscate assets of Americans fleeing the Obama regime.