Argentine budget numbers ever so red in the seven months of 2012
The Argentine financial deficit soared to 13.5 billion Pesos in the first seven months of the year and could have reached 25.9bn Pesos had it not been for extraordinary resources from Social Security funds and the Central bank, according to the numbers published in the last release from the Central Bank.
Although in July the primary surplus (before servicing debts) was 529 million Pesos, thus totalling 5.4bn Pesos since the beginning of the year, it is only half what it was during the same period last year.
Following the servicing of bond issues, the Argentine budget continued to show negative stats, with a deficit of 2.284bn Pesos which adds up to 13.5bn in the seven months of the year and climbs to 25.9bn if the extraordinary funds from Social Security and the Central bank are not included.
The release indicates that primary expenditure in the period expanded 24.9% which is below the 32% of the same period a year ago, although not an effective moderation but rather a “comparison syndrome”, since outlays soared in the second half of last year because of the presidential election.
What stood out in the central bank stats for July is the record deficit from the public utilities companies which was 1.03 billion Pesos in July, accumulating in the seven month period 3.04bn Pesos, which is double the same period in 2011.
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As usual, though, it is the ordinary Argentine taxpayer who will bear the brunt of the economic burden.
On the 8th September INDEC, the Argentine national statistics agency declared that a family of four should be considered above the poverty line if its monthly food bill exceeds 688 pesos, equal to about six pesos per person per day. But six pesos is only enough to buy an Alfajor, a sweet biscuit nibbled between meals over coffee.
I hadnt read that, but if true it is the biggets load of crap I have ever heard from INDEC. My faimily of spend that in 2 weeks.
A whole chicken is arounf $50 pesos, a kilo of mince in $23, a litre of milk is $7. Welcome to inflation nation!
“extraordinary funds from the Central bank”. Isn't that where they put the trade “surplus”? Wasn't she supposed to “save” that in order to pay off the debts? Does it not seem as though she has the country's money in lots of separate “pockets” but she can't restrain herself from dipping into all of them. Should we call it an “economy of hope”? Or, in other words, “let's hope this is an economy!” Is this not classic robbing Peter to pay Peter? No spare dosh for Paul! But there's always the bright side! Didn't they recently get first place in a tango compeition? Dare I say it? Dare I?
AAAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAH!
@7 How have they got time to nibble a biscuit? Shouldn't they all be out digging holes in the ground in the hope of finding something useful? Or they could hook up push bikes to electricity generators and pedal for 12 hours a day. With an Alfajor every 6 hours! And they should all be growing as much as possible of their own food. Early to bed to avoid spending money on heating and lighting. And they can give CFK what they save! So that she doesn't go short.
A family of 4 only needs for 1 day:
1 liter of milk $ 7
1 kg bread .... $ 9
1 kg tomatoes . $ 8
1 kg of meat .. $ 40
------------------------
Total = $ 24
But INDEC says that 6 pesos a day keeps a family of 4 above the poverty line?
I actually believe that most people in Argentina don't believe this either.
But why not...let them eat cake?
When I travelled around Argentina, Cordoba was the place where people seemed to long to break away from the federal government. Maybe they will.
Big protest on the 13th. In BA city anyway
You said you are leaving the country...can you explain why you keep posting?
@ 9 and @10
Conqueror and Captain Poppy......buaaaaaaaaaaaaaaaaaa
the UK men, the rubbish bloody english men critizing my country!
blow your head off Conqueror/Captain Poppy, the sooner, the better!
He thinks God is taking his picture
THE TRAIN RIDE
In a train there were an old lady, a very pretty young woman, an Argentine man and a Brazilian man.
The train entered a very dark tunnel. A kiss was heard and after that the sound of a slap.
The old lady thought:
- I am proud of this young woman. One of the two youngsters kissed her and she slapped him hard.
The young woman thought:
- One of the two guys tried to kiss me, but ended up kissing the old lady and got slapped.
The Argentine thought:
- What bad luck! The Brazilian kissed the girl, and the one that got slapped was me.
The Brazilian:
- Ha ha, great! I kissed the back of my hand and slapped the face of the Argentine.
The really funny thing about that joke is that you can imagine the Brazilian doing it! LOL
We need cultural/social/political isolation, and economic isolationism in what we can be self-sufficient, and barder/trade for the rest.
The evil influences of the rest of this squalid planet just make me sick.
boring british ARSE!
I am in the states.
But your are not! Conqueror Captain P0ppy
Give up!
No ones cares what you said ....british arse!
Stop making such comments about my country!
seekingalpha.com/article/477871-argentina-on-the-brink-what-is-the-real-investment-risk
Come up to Boston sussie, I'll take your for a swim out in Nauset ......lol it's feeding time
Myanmar or North Korea wonder which path TMBOA is choosing...
Whats the uptake on Dannyberger? Another kid of la campora?
Well now the $ is gone and the good times are coming to an end, they've lost what little support they had from the USA, Spain, Italy, Germany and whomever else is currently suing them and they are panicked. Wait until all of those countries shut off Arg Imports in retaliation it is gonna get ugly!
I am betting the upper middle class will get the ball rolling to get her out soon. That is their only hope.
“biting the hand that feeds them maybe.....”
But not on 6 pesos a day! LOL
Stop pretending you are an USA citizen...you are Isolda, la sueca, posting under several different names.
BMI’s assessment of Argentina’s economy has become more bearish, prompting us recently to downgrade our real GDP growth forecasts for 2012 from 4.0% to 3.0% and for 2013 from 3.7% to 0.9%.
For years, the government of President Cristina Fernández de Kirchner has had the twin goals of delivering robust GDP growth and servicing the country’s debt.
However, inflationary monetary and fiscal policies intended to stoke growth have created significant downward pressure on the exchange rate. The implied rate is around ARS6.53/US$, but the official rate is at ARS4.65/US$. The government has kept an artificially high exchange rate because of the adverse impact a devaluation would have on its ability to service its foreign debt.
What Has Changed Our Views?
A slowing of the Argentine economy, coupled with weakening global demand, has required even more drastic measures to ensure growth and keep the currency stable, such as import restrictions and severe capital controls. These policies are exacerbating economic stagnation and leading to political unrest. We view them as unsustainable in the medium term.
We now believe that the Argentine government is rapidly running out of policy options and will have to devalue its currency, which we expect to happen in 2013. The result will be:
•Higher inflation (averaging 25% over the year)
•Almost no real GDP growth (0.9% in 2013)
After this devaluation, however, economic growth should steadily increase (to between 2.6% and 4.7%) in 2014-2016, by our forecasts. Counting in the economy’s favour, export competitiveness should improve, and the economy is abundant in natural resources (oil and gas, shale discoveries). Argentina’s human capital – Where We Stand Versus Consensus
We are slightly above Bloomberg consensus for 2012 GDP growth (2.4%), but well below Bloomberg consensus for GDP growth in 2013 (3
The devaluation will drive INFLATION like they had in the 90s. You immediately see prices spike then wages then prices until a complete crash.
I think hyperinflation is right around the corner and there is no way to avoid it now.
@Conqueror Captain Poppy Craig R Zhivago same arse
You are not americans, I can tell you that!
The 'argentine wife” don't exist.
jeeeeeeeeeeeeeejeeeeeeeeeeeeeeeeejeeeeeeeeeeeeeeeeeeeeeyou gay guys
need UK Prince Harry bare rossy arse!
www.bloomberg.com/news/2012-09-12/petrobras-argentina-to-fall-on-bearish-sign-technical-analysis.html
3% growth and 9% inflation projected from the government....just imagine what the reality is?
www.nasdaq.com/article/argentina-2013-budget-to-forecast-46-growth-89-inflation---report-20120911-00635
blogs.ft.com/beyond-brics/2012/07/16/argentina-not-quite-as-planned/
www.thestate.com/2012/09/09/2433416/tiny-uruguay-outshines-neighbor.html
Wait for the crap from the usual suspects!
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