Time Magazine and the Economist Magazine  report that Argentinians smell a rat. When interest rates at at 20%, if no “Austerity,” then what?  Things have taken a rather dramatic turn for the worst over the past two weeks. After the central bank hiked rates three times in the space of a week for a total of 1,275 basis points in an effort to arrest the slide in the peso. But that wasn’t enough as the Argentinean Peso (ARS) careened to a new all-time low ahead of another CB rate decision.Bloomberg noted, the bid/offer was “very wide with almost no real trades executed.” This crisis goes back to a poorly communicated December CB decision to up the inflation target along with a couple of rate cuts in January. Now the chickens have come home to roost and it’s a bloodbath, both for the currency and for the bonds, which are plunging:Needless to say, it doesn’t help that U.S. interest rates are rising. Standard results from a Mundell Fleming Monetary Policy expansion…