Inflation is back again in Latin America

[Starving Steve]

Inflation is back in Latin America and accelerating. It would seem that the central bankers don't really want to end the inflation problem anywhere in the world.

www.azstarnet.com/business/212193 (http://www.azstarnet.com/business/212193)

So, with no fiat currency anywhere in the world tied to gold, no central bank is compelled by gold (through a drain on its gold reserves) to raise interest rates above the rate of inflation. Instead, rates are kept artificially low and nearly always below the rate of inflation, everywhere in the world.

If Latin America doesn't prove the complete failure of modern central banking, what does?

[Starving Steve]

Just in case that you may be having trouble accessing the posted link, the newspaper article writes that inflation has reached 7%/yr in Chile, 9%/yr in Uruguay, 11%/yr in Bolivia, 20%/yr in Argentina and Venezuela, both. Food prices for staples have risen 11% in the first two weeks of November in Argentina, just before the article was published. And inflation rates are higher than the nominal GDP growth rate in every country in South America. So, the entire continent is back into stagflation with economic decline in real terms.