International Man: Earlier this year, it became apparent a socialist would win Argentina's presidential election.
The Argentine peso lost 30% of its value in a single day. The same day, in US dollar terms, the value of the Argentine stock market was cut in half.
Doug, you spend a lot of time in Argentina and the Southern Cone. What's your take on the situation? Is Argentina headed for another currency collapse?
Doug Casey: Cristina Fernández de Kirchner was elected vice president and Alberto Fernández was elected president in the October 27 election. They basically destroyed the incumbent Mauricio Macri.
It's a real pity because Macri is a decent human being whose heart was is in the right place politically and economically. But he was too timid. He did too little too late. Typical of "conservatives" everywhere, he didn't make a moral argument to the populace. He made no effort to pull the corrupt fascist welfare state out by its roots, explaining why it's destructive and why the state is the cause, not the cure, of the country's problems. Instead, he just made some marginal improvements around the edges, and made things more comfortable for the Peronists now that they're back in office.
And—since he's associated with the free market—he actually discredited the free market.
In any event, Argentina is going back into the toilet. Who knows what kind of new stupidities, in addition to the usual old stupidities, the two Fernándezes are going to impose upon the country?
On the bright side—but only for tourists—Argentina is one of the cheapest countries in the world right now. That's because the currency has collapsed. Good news for tourists and foreign speculators but a disaster for Argentines, most of whom have all their savings and earn their salaries in the increasingly worthless peso.