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Argentina Imposes Currency Controls As End Game Beckons
After days spent burning through reserves in an effort to prop up the peso and following a week that
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Aaaaannnd its gone!
Cue the South Park clip, ‘And its gone’!
Where Stan goes to the bank to open a bank account with money he got as gifts. After he deposits the money, the manager starts to type away at his computer telling Stan all the things the bank is doing with his money (swaps, CDOs, CMOs, fx swaps, swaptions, etc) and after about a minute of that says “And its gone!”
Stan is in disbelief and asks, “What is gone”?
Bank Manager: “your money, it did not do too well.”
Stan: “But I have $100 in this bank!”
Bank Manager: “Not anymore, poof.”
So the decapitated chicken landed on the “Capital Control” spot. Other options were “Default” “Autarky” “Expropriation” and “Invade the Falklands”.
Peronistas 1: Argentinians 0.