Wrenching the monkey-wrenchers.

Argentine farmers on Wednesday announced a return to their roadblocks just over a month after a crippling 21-day strike sparked by a rise in export tariffs, causing an immediate spike in international grain prices.

News of another strike in Argentina, the world’s third-biggest exporter of soyabeans and biggest of soya oil, immediately pushed soyabean futures up 2.5 per cent in Chicago to $12.96 a bushel. . .

. . . despite record world prices, Argentine farmers are already cutting back on wheat planting by up to 15 per cent this season because of the impact of tariffs and the government’s decision to periodically close exports in a bid to keep domestic prices low.

The original farm protest, sparked by the government’s imposition of a sliding-scale of export tariffs in March, caused widespread food shortages, a surge in inflation and the biggest political crisis in five years. Farmers said the aim this time was to block grains exports, rather than interrupt supplies of all foodstuffs. . .

The government uses a complex web of subsidies to keep domestic prices for energy and transport low and says export tariffs are vital to stop record commodities prices sending local costs soaring.

However, its policies have failed to rein in inflation and the government’s economic model is looking increasingly frayed.

They aren't alone in this. Governments in many countries pretend that reality isn't real and that they can dictate prices. It always increases hardship and usually ends in collapse. It's a foolish gamble.

Since one foolish gamble deserves another the farmers make it worse by reducing production, putting increased upward pressure on prices already soaring due to under-production of a world commodity.

This all seems really stupid, but perhaps it is better understood as provincialism. Governments and their provincial economists may not yet grasp the nature of the world system in these fast paced times, and think they can make local decisions that contradict realty without facing global repercussions. Pomo economics, so to speak.