Why The FOMC Should Cry For Argentina

Argentina was perhaps the biggest success story of “reflation.” Left for dead in global markets as the hammer of the “rising dollar” pounded down on everyone, the country elected new leadership and began taking the right steps toward modern economic integration. That’s the story, anyway.

What really happened was a bit different. The country that had been funding itself at the mercy of global eurodollar banks switched to funding itself at the mercy of global eurobonds. Good choice in 2016. 2018? Bit of a different story. Argentina’s currency is now getting nearly as much attention as Hong Kong’s. Both are mystifying to conventional, mainstream expectations…