from The Wall Street Journal

Argentina’s monetary policy is now subject to the fiscal demands of the government. Citizens can look forward to more inflation.

Argentina’s Franken-state stormed the central bank last month, destroying the last vestiges of independence. Given the hyperinflationary history of that nation, it is worth asking why Argentines have allowed this to happen.

The pathology of a government power grab is not hard to discern. The state creates the conditions for crisis. Crisis strikes. Politicians seize extraordinary powers. Crisis passes. Left behind is a popular perception that complete annihilation was averted due to government genius. Politicians are permitted to expand their power.

Americans have a real-time example of this phenomenon in the subprime meltdown brought on by federal housing policy. We …

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