In some ways it’s much like Canada, a huge one-time colony with a talented population and endless natural resources — arable land, oil and gas and much else.

Except it is not like Canada. It doesn’t work. And the reason it doesn’t work is that it lacks a reliable, careful government, not subject to sudden bouts of hysteria. Argentina has few of the boring politicians who irritate people like Sid.

Public life in Argentina expresses itself through spasms of showmanship, braggadocio, paranoia and demagoguery. It’s the land of the eternal crisis, where a military coup is never unthinkable.

Argentina’s many economic failures, generation after generation, are self-created, politically induced. In all the world there’s no more obvious example of a nation that has squandered, through flawed governance, the riches provided by nature.

This week Cristina Fernández de Kirchner, President of Argentina, and the widow of the last president, announced she’s grabbing YPF, the country’s biggest energy company, taking it from Spain’s Repsol. Cristina, as she’s usually called in Argentina, thinks she can run YPF better than the Spanish. Of course the Spanish are furious and will sue as well as blacken Argentina’s name wherever possible. What Cristina has announced is a brazen, heedless act, with nothing to recommend it but high-handed nationalist fury.

Yet Cristina believes that when you encounter economic trouble, the best course is to strike out against something foreign. At the moment she’s also making anti-British noises, agitating to annex the Falklands Islands, which Argentina seized in 1982 and had to give back when it lost the war with the U.K. Somehow the Falklands (called the Malvinas in Argentina) are linked with the oil-company seizure as nationalist issues. A T-shirt has appeared on Cristina’s supporters: “The Malvinas are Argentine, so is YPF.”

This week, President Cristina Fernandez de Kirchner announced the seizure of Spanish oil company Repsol’s stake in Argentine oil company YPF to give the government 51% control. Spain is outraged and has recalled its ambassador. [...]

Ms Fernandez justified her move on the grounds that YPF has failed to invest sufficiently to prevent Argentina from importing ever greater quantities of fuel. The fact that Argentine oil reserves have been dwindling means the sector needs greater and increasingly sophisticated investment to reach more complex structures, just like in the North Sea. Expropriation isn’t going to attract that kind of high-risk investment.

[. . .]

The YPF seizure continues Argentina’s cavalier attitude towards other people’s money shown back in 2008 when Ms Fernandez grabbed some $24 billion of private pension funds and used central bank reserves to meet debt payments. More recently, the country has been in a spat with the IMF over the quality of its statistics. Argentina claims inflation is running at somewhere between 5% and 11% but private independent estimates put the number at somewhere around 25%. The Economist is refusing to publish official Argentine inflation data.

Update: Well, regardless of the state of the economy, President Fernandez de Kirchner has a friend in the White House! President Obama has indicated his support for the Argentinian claim to … the ¿Maldives?

President Obama erred during a speech at the Summit of the Americas in Cartagena, Colombia, when attempting to call the disputed archipelago by its Spanish name.

Instead of saying Malvinas, however, Mr Obama referred to the islands as the Maldives, a group of 26 atolls off that lie off the South coast of India.

The Maldives were a British protectorate from 1887 to 1965 and the site of a UK airbase for nearly 20 years.

President Obama is heading to Colombia this weekend for a summit, and we’d been hearing stories that US officials had been putting tremendous pressure on Colombian officials to pass new, ridiculously draconian copyright laws ahead of that visit. So that’s exactly what the Colombian government did — using an “emergency procedure” to rush through a bad bill that is quite extreme.

Earlier this year, Colombia tried to pass basically the same bill, which was called LesLleras, after Interior Minister German Vargas Lleras (who proposed it). That bill was so extreme that it resulted in SOPA-like protests, following significant concerns raised by the public as well as copyright and free speech experts. So, this time around, the government just claimed it was an emergency and rushed the bill through, despite all of its problems. They seemed to think that the public wouldn’t notice — but they’re wrong.

As is typical of idiotic trade agreements pushed via the USTR — who only seems to listen to Hollywood on these issues — the copyright bill includes all sorts of draconian enforcement techniques and expansions of existing copyright law, and removal of free speech rights. But what it does not include are any exceptions to copyright law — the very important tools that even the US Supreme Court admits are the “safety valves” that stop copyright law from being abusive, oppressive and contrary to freedom of speech

(Larger version at the original URL)

James Cheshire, of Spatial Analysis, has taken historical records of shipping routes between 1750 and 1800 and plotted them using modern mapping tools.

The first map, above, shows journeys made by British ships. Cross-Atlantic shipping lanes were among the busiest, but the number of vessels traveling to what was than called the East Indies — now India and South-East Asia — also stands out when compared to Dutch and Spanish records.

I was surprised to see how many trading voyages there were to and from the Hudson Strait — fur trade traffic, I assume.

(Larger version at the original URL)

This second map shows the same data for Dutch boats. The routes are closely matched to the British ones, although the number of journeys is noticeably smaller.

You can also see the scattering of journeys made by Dutch ships to Svalbard, off the North coast of the Norwegian mainland

Obama’s neglect of our nearest neighbors and biggest trade partners has created deteriorating relations, a sign of a president who’s out of touch with reality. Problems are emerging that aren’t being reported.

Fortunately, the Canadian and Mexican press told the real story. Canada’s National Post quoted former Canadian diplomat Colin Robertson as saying the North American Free Trade Agreement and the three-nation alliance it has fostered since 1994 have been so neglected they’re “on life support.”

Energy has become a searing rift between the U.S. and Canada and threatens to leave the U.S. without its top energy supplier.

The Winnipeg Free Press reported that Canadian Prime Minister Stephen Harper warned Obama the U.S. will have to pay market prices for its Canadian oil after Obama’s de facto veto of the Keystone XL pipeline. Canada is preparing to sell its oil to China.

Until now, NAFTA had shielded the U.S. from having to pay global prices for Canadian oil. That’s about to change.

Canada has also all but gone public about something trade watchers have known for a long time: that the U.S. has blocked Canada’s entry to the eight-way free trade agreement known as the Trans-Pacific Partnership, an alliance of the U.S., Australia, New Zealand, Vietnam, Malaysia, Peru, Chile, and Singapore. Both Canada and Mexico want to join and would benefit immensely.

So much for Canadian whingeing, right? Those snowback hosers are never happy. Relations with Mexico must be in better shape, yes? Uh, no:

Things were even worse, if you read the Mexican press accounts of the meeting.

Excelsior of Mexico City reported that President Felipe Calderon bitterly brought up Operation Fast and Furious, a U.S. government operation that permitted Mexican drug cartels to smuggle thousands of weapons into drug-war-torn Mexico. This blunder has wrought mayhem on Mexico and cost thousands of lives.

It’s fortunate for President Obama that the press is generally careful in their reporting … careful, that is, to avoid blaming Obama wherever possible.

Update: Ace has more on the unusually assertive Canadian position.

HMS Dauntless, a Type 45 Destroyer, sailed from Portsmouth and was seen off by crowds of flag-waving well-wishers.

It will relieve HMS Montrose and carry out operations off the coast of west Africa and the wider South Atlantic, with planned port visits in both west and South Africa.

BBC defence correspondent Jonathan Beale said it was unlikely that there would be any visits to Argentina’s ports.

The Royal Navy said it was the first operational deployment for HMS Dauntless since it was commissioned in 2010.

In a sidebar, Jonathan Beale discusses the balance between provocation and bad planning:

Argentina has already accused Britain of behaving like a colonial power, by sending warships and royalty to the islands.

Though the MoD insists the timing is just “coincidence”, Argentina will view it as calculated. But it is probably more cock-up than conspiracy. The plans have been in the pipeline for some time. The Royal Navy always has a warship in the South Atlantic on a six-month rotation.

As discussed in a post back in 2010, the Type 45 class are very expensive ships with a not-yet-proven military value:

The Royal Navy’s new £1bn+ Type 45 destroyers, which have been in service for several years (the first is already on her second captain), have finally achieved a successful firing of their primary armament.

The Ministry of Defence (MoD) announced yesterday that HMS Dauntless, second of the class, has made the first firing from a Type 45 of the French-made Aster missiles with which the ships are armed. All previous trial shoots were carried out using a test barge at French facilities in the Mediterranean.

[. . .]

Our Type 45s will have no serious ability to strike targets ashore, and we will continue to have no capabilities against ballistic missiles. Most glaringly of all, the Type 45 will have no weapon other than its guns with which to fight enemy ships — Sea Viper has no surface-to-surface mode.

You might feel that preservation of British high-tech jobs in some way justifies such horrific overspending for such lamentable amounts of capability, but in fact the relatively few Brit workers concerned have now mostly been fired anyway.

A total of 255 British servicemen and about 650 Argentines died after the UK sent a task force following the Argentine invasion on 2 April 1982.

The anniversary comes amid renewed tension, as Argentina has reasserted its claim to the archipelago.

UK Prime Minister David Cameron said the day should be used to remember both the British and Argentine dead.

In a statement, Mr Cameron also said that he remained committed to upholding British sovereignty over the islands.

[. . .]

Argentina’s President Cristina Fernandez de Kirchner is expected to visit the southern port of Ushuaia on Monday to remember the Argentine servicemen who died.

President Fernandez is due to lead rallies to commemorate the Argentine dead and to light an eternal flame devoted to their memory.

[. . .]

Argentina has complained about what it calls British “militarisation” in the south Atlantic.

BBC World affairs editor John Simpson said while a new armed conflict remained unlikely, Argentina was now using diplomatic weapons to push its claim over the Falklands.

The defeat of the Argentine forces led directly to the collapse of the military dictatorship led by Gen Leopoldo Galtieri, who was later jailed in Buenos Aires for “incompetence” during the war.

The British prime minister at the time was Margaret Thatcher, but she is not expected to play a part in the commemoration of the 30th anniversary because of ill-health.

Banks says that “we simply did not have the resources to take prisoners” and “they had started the war and they had not shown much respect for the white flag when they had shot my three mates who went forward to take the surrender at Goose Green.” Neither is an excuse recognised by the Geneva Convention.

To issue an order to take no prisoners is a fundamental violation of the principles of international law and thus a war crime. Section 40 of Additional Protocol I of the Geneva Conventions provides that soldiers who have clearly expressed an intention to surrender (for example by raising their arms or waving a white flag) are considered to be hors de combat and they must be given quarter (i.e. allowed to peacefully surrender). The officer who gave that order is not named but presumably Banks, along with other surviving members of his unit, knows who it was.

[. . .]

Assuming this account is accurate, this was a war crime. The fact that the Paras involved plainly knew that it was a war crime (hence the “brief argument”) exacerbates rather than mitigates their guilt. One soldier killed this boy in cold blood and the others covered up for him. That makes them all guilty, morally and legally. The fact that this took place thirty years ago is no reason why it cannot now be investigated and the perpetrators brought to trial. At the very least Banks should be taken in for questioning.

Tilt shift of the Carnaval party in Rio de Janeiro 2011
Made by Jarbas Agnelli and Keith Loutit
Both Jarbas Agnelli & Keith Loutit were finalists at YouTube play, a Biennial of Creative Video at the Guggenheim.

Imagine a world without statistics. Governments would fumble in the dark, investors would waste money and electorates would struggle to hold their political leaders to account. This is why The Economist publishes more than 1,000 figures each week, on matters such as output, prices and jobs, from a host of countries. We cannot be sure that all these figures are trustworthy. Statistical offices vary in their technical sophistication and ability to resist political pressure. China’s numbers, for example, can be dodgy; Greece underreported its deficit, with disastrous consequences. But on the whole government statisticians arrive at their figures in good faith.

There is one glaring exception. Since 2007 Argentina’s government has published inflation figures that almost nobody believes. These show prices as having risen by between 5% and 11% a year. Independent economists, provincial statistical offices and surveys of inflation expectations have all put the rate at more than double the official number. The government has often granted unions pay rises of that order.

What seems to have started as a desire to avoid bad headlines in a country with a history of hyperinflation has led to the debasement of INDEC, once one of Latin America’s best statistical offices. Its premises are now plastered with posters supporting the president, Cristina Fernández de Kirchner. Independent-minded staff were replaced by self-described “Cristinistas”. In an extraordinary abuse of power by a democratic government, independent economists have been forced to stop publishing their own estimates of inflation by fines and threats of prosecution. Misreported prices have cheated holders of inflation-linked bonds out of billions of dollars.