IKN

Every why hath a wherefore

More on the pisspoor coverage of Argentina’s financial situation by the English language media

Here’s how IKN246, dated January 26th, opened its analysis of the Argentina Peso devaluation just days previously (and when the howls of doom were reaching crescendo):

“The move by Argentina’s official currency rate last week, from slightly under ArgP$7 to ArgP$8.01 at the close Friday, was the big economic news out of the region last week. Please note the word ‘official’ is underlined there, because the “street rate” (known as the “dollar blue” by those who ply the trade in Buenos Aires) is hovering around ArgP$12 to the dollar and it’s going to be very interesting to see whether that gap between official and black market rates maintains, widens or reduces. For the record, I expect the breach to reduce in the medium-term but it’s anyone’s guess what it will do in the next five days.”

Here’s how that breach between the Official Peso rate and the Dolar Blue rate has evolved:
please note the cut-down Y-axis, done not to trick but to help the eye see the differences
As you can see, the breach was at ArgP$4.68 to the dollar before the deval, a dangerously high level. Days after when the nerves hit their peak (driven in no small measure by the death-rattling reports from the bullshit artists in the press) it got to 5.1, but since then the breach between official and street rates has dropped quickly and today stands at 3.68. And isn’t that what you’d expect from a policy decision that’s working? But of course, you won’t hear anything of the sort from the Engligh language coverage of the issue because it doesn’t fit with the laid-down narrative of how Argentina’s going straight to hell. Guess what folks, that narrative is pure bullshit. 
And by the way, here’s how the Dolar Blue has progressed since the deval and much to the surprise of anyone who thought the bizmedia’s coverage of the subject was accurate at the time, it’s now down to 11.50, which is lower than the pre-deval day.
please note the cut-down Y-axis, done not to trick but to help the eye see the differences

It’s not that the mediocrity known as EngLang journos in LatAm don’t have a clue, it’s that they only care about promoting their own biased and ultimately false agenda. When that agenda agrees with facts and reality you can’t stop them from filing and filling your bizscreen, but when facts disagree with their stance, these so-called reporters suddenly STFU.

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