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Argentina and Venezuela with highest (and climbing) inflation in South America
While most of South America is undergoing a deceleration of consumer prices Argentina and Venezuela are the only countries to experience a significant increase in inflation, making it one of the main concerns or public opinion. Read full article
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Disclaimer & comment rulesWow! this sounds interesting, I wonder how this inflation rate compares to the time prior to the first election of Precident Hugo Chavez, is this report showing a fair scrutiny of the data shared ? or is it simply trashing any validity to Venezuela's economic progress, the world economy is droping like a stone, was Venezuela supposed to set the exemple ?
Jul 12th, 2010 - 05:18 am - Link - Report abuse 0Reports on Argentina from this website are definitely biased against the Kirchners and perhaps the whole Argentine nation. Well...
Jul 12th, 2010 - 09:14 am - Link - Report abuse 0avargas,
I've just checked IMF data on Venezuela from 1995-2010 (2010 is a forecast). In 1995 inflation was at 60%. In 2009 at 27%; the average for this year is expected to be at 29%. From 1999 - the year Chávez took office in - until 2001 inflation decreased, but raised again the following year. It seems to have stabilized since them in the 20-30% range.
How on earth anyone can come on here and argue that Chavez's economic policy is progressive and sound is amazing. Ignoring inflation and the fact that Venezuela is in recession for a moment. We have a county that is a major hydrocarbon producer yet is experiencing power shortages. Venezuela was a major coffee producer but since nationalisation of the coffee industry the country has now become a net importer of coffee.
Jul 12th, 2010 - 04:37 pm - Link - Report abuse 0There is no economic progress in Venezuela, only decline caused some outdated and flawed socialist economic models that are driving a potential great country to its knees.
Add into the mix the the restraining of free speech and increasing abuses of human rights and it is clear that Chavez is turning Venezuela into the North Korea and Zimbabwe of South America
“There is no economic progress in Venezuela”
Jul 12th, 2010 - 09:24 pm - Link - Report abuse 0Neither in the Republic of Che idiots, like how many clowns here like to believe and simply ignore the facts like..tadaaa..an economy doesn't thrive by HIGH INFLATION and FUZZY MATH (BOOK KEEPING MANIPULATION)..LAUGH.
No one in the present topic said Venezuelan economy was in progress. My argument was that current inflation in Venezuela is not worse than that of previous years, and is in fact better than in the years that preceded Chávez. Growth figures for the 1995-1998 period point to an average growth of about 2.6%; for the years Chávez has been in power: 2.9%. Problems in Venezuelan economy precede, and probably transcend, the semi-socialist model Chávez has been trying to implement, something that, in my opinion, was clearly demonstrated by the chaotic neoliberal economic policy of the Carlos Andrés Perez administration.
Jul 12th, 2010 - 10:12 pm - Link - Report abuse 0“the Republic of Che idiots” -> I don't really know to which country that term refers to. I presume that is to Argentina. Argentina official government numbers are not trustworthy, that is widely accepted. But private estimates for Argentine growth are good, too.
A comparison:
* Growth figures for 2008:
- Official: 6.83%
- Private: 5%
* Figure for 2007:
- Official: 8.6%
- Private: 7.5%
These private estimates I've picked from CIA website. Real inflation in Argentina - 10% - is about at the same level of that in India, a country of which I don't think one would say is not growing.
What this articule omits, is the fact that all of us have two increases in our salarys everyyear, when the increases are forecasted, they are based on the expectations of private stadistics, for this year it's 25%, in my case i never lost my capacity to consumme, oviously any of us believe in the indec, but we can take into account private stadistic, beside the manipualtions of our indec, is not an issue of preoccupation betwen all of us, it's irrelevant, we are much more preoccupyed for other s issues that are really important.
Jul 12th, 2010 - 11:21 pm - Link - Report abuse 0“increases in our salarys everyyear, when the increases are forecasted, they are based on the expectations of private stadistics, for this year it's 25%”
Jul 13th, 2010 - 03:49 pm - Link - Report abuse 0I think i may have misunderstood. A 25% increase in wages across a nation over one year?
Is that even possible in the real world?
It rather depends upon what you define as the “real world”.
Jul 13th, 2010 - 06:28 pm - Link - Report abuse 0According to Wikipedia, GDP(PPP) per capita for Argentina is $14,560
GDP(PPP) per capita for Venezuela is $12,201
GDP(PPP) per capita for the UK is $34,619
and GDP(PPP) per capita for the USA is $46,381.
Assuming that there is some comparison between salary and GDP, and that is essential unless employees are to be paid for doing nothing, it is easier to countenance an increase of 25% of $12,000 or $14,000 than a 25% increase of $34,000 or $46,000. Inflation, naturally, has a role. It represents a negative. Thus, if one assumes 0% inflation in year 1, salary/wages represents baseline income. In year 2, if inflation is 5%, an increase of salary/wages of 25% is a REAL increase of only 20%.
Excessive increases of salary/wages is, actually, a prime fuel for inflation as suppliers judge that consumers can afford to pay higher prices for commodities. The process can be self-perpetuating as consumers attempt to “catch up” with their perception of the cost of living, and attain their ambitions, whilst suppliers raise prices to increase profits.
Inflation is out of control in Argentina and will only get worse. They are on Valenzuela's path but just don't realize it yet.
Jul 13th, 2010 - 07:23 pm - Link - Report abuse 0Axel, this reply is for one from another note you made. You obviously don't understand economics or politics and I feel very sorry for your students because they are going to be just as naive/ignorant as you are.
FREDBDC.
Jul 13th, 2010 - 10:20 pm - Link - Report abuse 0As usuall you only understand what you want, i have allways recognized that our inflation level is high, i am not ignorant, anyway i am not economist, i hear the opinion of many economists, even those that are against the government, and they affirm that our inflation is a problem that must be solved, but they also say that our situation is not going to finish in a hiperinflation, or in a higher level, because we have a record level of reserves that could paralize any increase of the prize of the dollar, beside our salarys increase twice a year, and it's for everyone, even for the retired people, actually you and your moron compatriot nicholas, have a desperate wish of a new bancarroupty for my country, so, be honest with your assertions, and recognize your miserys, only some one like you, who never recognize not even one achievement to my country, can have that kind of opinions, i dont mean that you have to be obsequent with argentina, you have right to reject all the aspects that you want from our society, but it's very extrange that you never see unless one positive aspect.
On the other hand, regarding to the inflation level. we all complain for it, because the prizes increase everyyear, but any of us loss it's capacity to consumme, and it's thanks to increases that we have, anyway the problem must be solved.
“for this year it's 25%, in my case i never lost my capacity to consumme”
Jul 14th, 2010 - 02:06 pm - Link - Report abuse 0Wow! Is that not the same as saying “It's okay that the artery of my leg has been severed and I am gushing blood. It is constantly being replaced by a blood transfusion. In my case I never lost the capacity of living.”
Venezuelans have to grow a set of balls and throw out Chavez. Use Honduras as an example, they not only stood up to the communist threat and expelled their president but also stood up against the condemnation of the current (what I perceives as) socialist agenda of the US government.
And no, I am not an ignorant bystander. I am married into a Venezuelan family and for the last two decades have been visiting the country multiple times a year giving me an incredible perspective of the country's slide into economic and social chaos; I can honestly say that it gets worse every year and has worsen under Chavez's rule.
Axel, like all Argentinians you think your country is run well because you don't know any other system. You continue to blame outside influences for your corrupt politicians mismanaging and stealing from your people. Until you rout out the corruption Argentina will continue to slide into oblivion. Since you are already 4th world I don't know how much farther you can go though.
Jul 14th, 2010 - 02:46 pm - Link - Report abuse 0Inflation is like a cancer if left un-treated it will spread out of control. When I was living there the wage increases were 5%, then 9%, now they are 25-35%/year depending on how powerful the union is. Can you see the trend? 5x in 8 years is unsustainable. Enjoy it while it lasts but why don't you look at Zimbabwe and to a lesser extent Venezuela to see what your future holds. 50B may seem like a lot to someone who earns U$ 750/mo and it's more than you ever had but it is just temporary. You owe 10-12B to Paris Club (looks like they won't refinance and want a lump sum payment), 10B in past due interest on the inflation linked bonds so you see you really don't have that much and will use it up pretty quickly trying to support the peso if it goes into freefall.
You need to take some on-line economic classes that are taught by conservatives outside of Argentina ( try Chile) then you will understand what we are talking about.
Right now it is like debating a child who keeps expecting increasing allowances without doing additional chores.
Axel. While you are taking your lessons in economics, take the opportunity to really think about wider aspects. Like it or not, the thing that Argentina is best known in the world for is its stance on the Falkland Islands. You have already agreed that your government is not amongst the best. Now consider what subjects appear each time that your government seems to be facing a difficult domestic situation. If you can get that, you may begin to understand how you are manipulated.
Jul 15th, 2010 - 10:52 am - Link - Report abuse 0axel - Everyone gets two pay rises per year, even retired people? What have you been smoking? The government may have announced such stupid figures, but I know some retired people who are now in their second year of waiting for their first retirement pay. And recently it was announced that several banks in Argentina have been paying retired people with counterfeit pesos. Warms your heart, doesn´t it!
Jul 15th, 2010 - 10:17 pm - Link - Report abuse 0FREDBDC. HARRIER. JERRY.
Jul 16th, 2010 - 04:06 pm - Link - Report abuse 0FRED: It seems it will allways be a good strategy for you to play the victim, or keep on understanding just what you want, i never blame outside influences for our problems, i recognized the serious problems of my country one million times, and i will keep on doing it , read all my comments again, and you'll see that what i say is the truth.
I only refute what idiot s like you say all the time, who never see any positive achievements about my country, however you are ignoring many important facts, you only know just one part of our reality, and dont have not even one line of objetivity, i know much more than you about how inflation prejudices us, because i live here, i recognize that it's problem that must be solved, but in spite of that, most us dont loss our capacity to consumme, thanks to the increases that we have, meantime if it makes you happy, keep on parroting all the crap that you want, and keep your dreams too, because only in the minds of fundamentalist morons like you can exist the poibility that my country become into zinbawe, that's actually your wish, only you know why, be honest.
HARRIER: Another idiot who understands just what he wants, read the commenst that i left for fred, and you'll see that what you say is just crap, if i would be manipulated, i would see everything right, but that's not my point of view in absolut, meantime, keep on parroting and understanding just what you want, being injudicious could be a choice to live.
JERRY: Thse is evident that you know just one side of our reality, inform your self correctly, and after we can debate, read the comments that i left for fred and harrier, and you'll know my point of view.
OK axel. You have your view of reality. That's fine. Hang on to it very tight.
Jul 16th, 2010 - 05:15 pm - Link - Report abuse 0http://en.mercopress.com/2010/07/16/cold-wave-in-argentina-forces-shutdowns-in-gas-powered-industries
http://en.mercopress.com/2010/07/16/cold-wave-in-argentina-forces-shutdowns-in-gas-powered-industries
http://en.mercopress.com/2010/07/16/cold-wave-in-argentina-forces-shutdowns-in-gas-powered-industries
http://en.mercopress.com/2010/07/16/cold-wave-in-argentina-forces-shutdowns-in-gas-powered-industries
http://en.mercopress.com/2010/07/16/cold-wave-in-argentina-forces-shutdowns-in-gas-powered-industries
http://en.mercopress.com/2010/07/16/cold-wave-in-argentina-forces-shutdowns-in-gas-powered-industries
What a wonderful reality you live in!!
Now, I'm going to give you abit of advice about your postings. Would you like every single one to be the subject of a complaint? I see no reason why proper people, i.e. those capable of using proper English, do not have to insert epithets into every other sentence and debate sensibly, should have to put up with your childishness.
HARRIER.
Jul 16th, 2010 - 05:56 pm - Link - Report abuse 0I can't believe how clown you are, you inform your self about the reality of my county only reading mercopress?, do you think you can have a deep knowleadge about our reality if you read just mercopress?, please, you make me laugh so much, dont you think that i can know much more than you about our reality because i live here, i inform my self with those chanels that are against the gov., and those that support it, after i get my conclutions, i dont believe in any of them, because all of them omit information, they are only funtional to the economic interests of their corporations, and that's all, but they dont form my point of view, what forms my point of view, is what i can prouve in the reality, thats' why in many aspect i dont like the government, but i recognize too that we had many achievements since 2003, if your mind is prepared to accept, or unless respect diferent points of view, if you dont adjudge for your self to be the owner of the truth, maybe you can have a plural opinion, i can't say so much about the reality of the usa, or the u.k., because i only know what the media says, you are the one who really can give an opinion about it, because you live there, i would take your words, and after i would compare with what i hear from the media, and finally i would get my conclutuions, that's why it's allways absolutly necesary to hear diferent points of view, not just one.
Well, axel. Finally. A post without epithets. Only took you 41 minutes. By the way, I had to stop monitoring because of the need to get out and water all my gardens. Can't do it during the day as the heat on the water on the leaves makes them shrivel. Have to do it in the cool of the evening.
Jul 16th, 2010 - 06:20 pm - Link - Report abuse 0Now, you suggest that I take my views only from MercoPress. Not so. And the assertion only goes to where the epither “clown” should be attributed. By the same token, it would be wise for you to avoid “experts” located in Argentina. Not exactly a credible source!
Your posts suggest that you are a student. That means that you are still learning. You have an opportunity to learn from sources outside Argentina. A real intellectual would welcome such an opportunity.
HARRIER.
Jul 16th, 2010 - 06:44 pm - Link - Report abuse 0I read about my country in the international media, that's why i visit mercopress, and others like el pais from spain, i confirm after i read those newspapers that they omit many relevant facts, that's why it's allways important to get information from diferent sources, after we must get our conclutions, and it's necesary too to talk to a located person from the country that you are talking about.
No one is the owner of the truth, we can have diferent points of view, but what i dont like is when people understimate the opinions of the others, and adjudge for their selve to be the owners of the truth, the worst, is that they omit many facts, and reject what everyone else says, i think you can have a better opinion about the reality of the u.s.a, because you live there, you know much more than me, and i respect it, maybe i can agree or not, but you know many facts that ignore, in the same way that ignore many facts of our reality and thats' why i can have a better knowleadge about argentina, because i live here.
I hope this marks a beginning for you, axel. Now compare your country's length of experience, a couple of hundred years, and that of mine, a couple of thousand.
Jul 17th, 2010 - 11:13 am - Link - Report abuse 0Opinions must be guided by experience or they are just wishes. Now, we know your domestic energy prices are subsidised, we know that many of your prices are kept low by trade restrictions, we know that your educational system is completely government-funded, we know you still have considerable debts and require credit from China. Your reality, axel, is that you are living in a bubble. And when the bubble bursts, you will find that you have few, if any, friends outside your borders.
Axel, my guess is that you have never traveled outside of Latin America. Your command of the English Language is a bit tenuous so when reading international news you are probably only understanding about 50% of what is being reported.
Jul 17th, 2010 - 12:02 pm - Link - Report abuse 0In the US and UK we are instructed from an early age about economy, history and self reliance. From what I understand in your curriculum you don't even talk about world history until secondary school and that is based on the Spanish version of history. We are taught the US/English version. You are also taught Peronism is the best solution for a Society, we are taught it is a Fascist/Socialist system which we abhor in the US.
You see that we have fundamental differences in our belief systems. Since both the US and ARG were founded about the same time you can see why we believe our system is far superior to yours. But what I don't understand is why you don't believe it is also?
Your country continues to get poorer and less relevant every year and Argentinians don't care. The middle class was destroyed in the last 10 years and you are moving towards Bolivia instead of the 1st world yet your countrymen sit back and let it happen.
I moved to Argentina in 2001 because I fell in love and I thought I could have a good life there. I was wrong, it is much harder to live there than in the US. You are not rewarded to playing by the rules you are punished for not being corruptible.
It is a sad state of affairs there and I feel sorry for you because you seem like a generally decent guy just really ignorant.
Axel, I'm slightly inclined to agree with fredbdc and so I don't want to direct some words at or to you but I want you note a comment I made to someone else who quoted “principle uti possidetis juris” at me. The comment I made was “And just when will Argentina be handing the land back to its native people? Argentines are not native. They are colonists. Implanted by the Spanish Empire. Don't forget your heritage. Unlike most of countries that were within the British Empire, who were granted independence by the colonial power, you rebelled. So you are doubly thieves. First you stole from the natives and then you stole from the Spanish Empire. And you have the gall to quote legal principle. Your whole history is one of thievery and attempted thievery.” This is the sort of perception OF Argentina that exists OUTSIDE Argentina. Is that how you want to be viewed?
Jul 17th, 2010 - 07:17 pm - Link - Report abuse 0“keep on parroting all the crap that you want, and keep your dreams too, because only in the minds of fundamentalist morons like you can exist the poibility that my country become into zinbawe”
Jul 17th, 2010 - 09:48 pm - Link - Report abuse 0Axel Arg che idiot, your country already is on the road to become a zimbabwe. You just haven't realised that, or you can't because you're to stupid (che idiot) or you just don't want, because you're to stupid and prefer keep the pro kirchner sunglasses on. Keep drinking their kool aid and smoking paco...LAUGH.
FREDBDEC. HARRIER. NICHOLAS.
Jul 18th, 2010 - 11:32 pm - Link - Report abuse 0HARRIER: As usall you know just one side of our reality, you keep on ignoring many important facts, that's why i dont agree on some of your assertions, regarding to the principles that you invoke, you are making a fruit salade, when you read my survey, you'll know why i hold that our claim is still legitimate, i have the opinions of diferent experts in international right, from the public and private sector, who know much more than you and i.
FREDBDC: Another ignorant who knows just one side of our relity, firstly you have no idea about the knowleadge that i have, the fact that i didn't right it in my curriculum, it does not mean that i dont have any, beside your resentment against argentina is everyday more evident, you omit many important facts as suall, when you left argentina in 2001, our unemploit level was 22%, our poverty's line was 55%, now our unemploit is 10%, and our poverty's line is 23% (these numbers belong to private stadistic), i dont believe neither in the indec, anyway we are still a very unequal society, but we improved in many aspects, mentime if it makes you happy, keep on believing that we are in decadence, that's actually your wish, regarding peron, i said in many oportunitys what i think about him, what you say does not coincid with what i think about him, so, you have a fragil memory.
NICHOLAS: Like i said before, when an idiot like does not have any solid argument to hold all the crap that you say, when you dont have not even one line of objetivity, the only one thing that a moron like you can do is insulting, i refuted all your arguments, meantime nicky, keep on vomiting your poison, it only makes me laugh for a while.
“you keep on ignoring many important facts”
Jul 19th, 2010 - 12:19 am - Link - Report abuse 0It's because they are irrelevant. The only fact that matters is that the people have the democratic right to choose their own govermnent. They have chosen the UK.
Axel, I cme back to the USA in 2005. The two main reasons I chose to move my family back was the increasing crime and the inflation both are much worse now than when I left.
Jul 19th, 2010 - 01:09 am - Link - Report abuse 0I keep in touch with my friends and family so I know both sides very well. It is you who only knows one side and unfortunately you believe the Ks propaganda rather seeing it for what it is. Your government has stolen Hundreds of Billions of U$ from the Argentinian people and the International community to stay in power. You only think the economy is better, yes the number look better than 2001 but that is not very hard to do. The increase is from pumping stolen $ into the consumers hands. It can't last for much longer. When the next crash comes it will be much worse and longer than the last as each one has been since your country's inception just look at your history since the 1940s. I am not sure how you could refute the evidence but your are Argentinian so I am sure you will try.
FREDBDC:
Jul 20th, 2010 - 02:59 am - Link - Report abuse 0I will refresh one more time your tiny mind, regarding our situation, like i said before, we are still a very unequal society, but no one can deny that we had many achievements since 2003, i dont need the kirchner to tell it to me, i can discern what our fucking politicians say, i have a good memory, and i compare our situation with the 2001, and obviuslly we improved so much, but there is still a lot to do, i dont buy all what the kirchner say, there are many aspects that i dont like from them, but i recognize all the achievements that we had, the inflation is a problem that must be solved, our economy grows since 2003 with a high inflation, however our salarys increase twice a year, on the other hand, during the crisis that started in those countrys that it sopose that are serious, my country got into a resetion, but that crisis for us was nothing if you compare it with others crisis that we had, for much less than this crisis, more of one president anticipated hes out of the power.
Regarding peron, he was demagogue, autoritarian, and hes presidence was almost a dictatorship, in fact, he closed the congress, anyway i must recognize too, that no one made as much as him for the workers, he put in march the fight of a socialist politician called alfredo palacios, beside he industrialized much more the country, and he believed also in the economic independence, the workers during 1946 untill 1974 represented the 50% of the national rent, that process started again slightly since 2003, now the workers represent the 43% (by private stadistics), as you can see, peron didn't share only shoes and candys like many idiot and ignorant people likes to hold all the time.
we have much more serious problems than what you think, i dont live in a bubble, you can accept what i say or reject it, that's your problem, i live here, and i know much more than you about our situation.
Regarding macri, federal camera confirmed hes process in the justice and acused him of spionage.
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