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Argentine Courts Work to Restore Sanity to Country's Failed Economic Policies

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On Monday, Argentina's courts demonstrated how they are the few in power that have a taste of sanity.

"Argentine President Cristina Kirchner's attempt to silence criticism of her economic data hit a setback this week after courts overturned hefty fines the government levied against economists who published their own inflation estimates," is how it was reported in the Wall Street Journal.

The official inflation data has been widely viewed as inaccurate, created by a corrupt government to hide the real cost of inflation and allowing it to underpay it's debts.

Even the International Monetary Fund (IMF) has censured Argentina for questionable growth and inflation statistics and have set a September 29 deadline to correct the inaccuracies or face sanctions.

Until the deadline comes, Argentines will probably continue to operate under the assumption that real inflation is running around 25 percent, more than double what the official government figures say.

The government's agency reported on May 15, that annual inflation for April came to 10.5 percent; roughly the rate which the government has been paying on its bonds.

While investors in the government backed securities have accepted reduced payments, the unions have not and have successfully gotten annual wage concessions of 25 percent or more.

Given the rapidly fading value of the Argentine pesos, those with spare pesos don't try to save them, but put the pesos into cars, real estate and high end appliances because these items hold their value longer; a fact that won't set well with people who are fighting a losing battle in defending Kirchner and her corrupt government.

Argentina: An Economic Chronicle. How one of the richest countries in the world lost its wealth

People who are desperate to buy dollars on Argentina's black market, have to pay about double the official exchange rate. Typically, the official trade rate can only be had by those individuals "who can prove they need that money to travel abroad," as Dow Jones Newswires' Ken Parks put it.