Official inflation statistics in Argentina show prices rising at around 10% but independent assessments have prices rising at 25% and more. The problem that inflation is running higher than official figures is acknowledged by Gabriela Cerruti, an MP from the governing party.
Cerruti said: \”I think the real problem is if you have unemployment, or you\’re losing your home, not the statistics themselves. People always argue over statistics. Prices may be rising up to 20% a year, but people\’s pay is also going up by 20%.\”
No one gives a toss that Argentina is lying about its inflation rate. Well, except maybe the economists they\’ve fined and ruined for calculating the real one. We\’ve all put up with Cuba lying about everything for 60 years after all.
Except, except…..Argentina has issued index linked bonds as part of the 2001/2 debt restructuring. The interest paid depends on what the inflation rate is. If the government deliberately undercounts inflation then they get away with rooking the holders of those bonds.
That\’s what this is about. That\’s why anyone cares. It\’s not simply that they\’re liars it\’s that they\’re thieves.