Right before they had 120% inflation.

Prices in Argentina dipped in late 2001, just months before inflation took off. Before it was over, annualized inflation hit 120%. That’s just one of the many interesting points made by Eric Janzen of iTulip.com in this report. Good charts and discussion too.

While noting that America’s situation is somewhat unique, Janzen’s draws some thought-provoking comparisons:

Argentina’s quarterly fiscal deficit threshold before triggering a crisis: 3% of GDP.

Compared to the U.S. projected fiscal deficit of 12.3% in 2009, Argentina’s government spending in 2001 was austere. In March 2009 we projected a worse case U.S. fiscal deficit of 8% in 2009 and 12% in 2010. As usual, we were optimistic.

This is especially relevant with many pointing to recent US deflation as proof that deflation is the only real concern.