Buenos Aires is a teeming metropolis, with an urbane, highly educated and highly cultured population. Argentines are delightful, given to an excessive fondness for soccer, but something of an economic basket case. One of our hosts last night from ESEADE told us that during his lifetime, the currency had "lost" 17 zeroes. Martin Krause of ESEADE blames this on the acute South American fixation on populism. The political system, he says, simply can't help itself.

The latest instantiation of this populist folly is the solons in La Casa Rosada have decided to ban beef exports. This is of course a pity for the Argentine economy, and will result in a net reduction in beef production in Argentina. It is also a pity for the world, because in the 24 hours we've been here I have enjoyed the two best steaks of my life.

Entonces, Presidente Kirchner, liberte le carne!

One question we discussed at dinner last night (over one of those exquisite steaks), why aren't beef producers more potent politically in Argentina. If such a trade restraint were tried in the U.S, a majority of both Houses of Congress from cattle-producing states would stop it immediately. Martin replied that the Argentine executive power -- despite nominal separation of powers -- has a very limited congressional check. Furthermore, the population imblance in the country where most of the people live in Buenos Aires -- and a major source of votes for the re-election campaigning President Kirchner -- means that taking from the producers in El Sur and "giving" to consumers in the north is much easier and attractive politically.