MercoPress. South Atlantic News Agency
UK, France, Germany join forces to freeze EU budget until end of the decade
British Prime Minister David Cameron has joined forces with France and Germany to demand a real-terms freeze in the European Union budget until the end of the decade. Read full article
Comments
Disclaimer & comment rulesAnother great con, by a not so great conman ?
Dec 18th, 2010 - 11:14 am - Link - Report abuse 0lol, Europe has no future, decades of stagnation
Dec 18th, 2010 - 12:33 pm - Link - Report abuse 0Lol, all aboard the Argie boom and bust rollacoaster
Dec 18th, 2010 - 02:48 pm - Link - Report abuse 0http://www.meattradenewsdaily.co.uk/news/040610/argentina___boom_or_bust_cycle_.aspx
freeze it, freeze it guys, or it will be too hot to handle, and you will be roasted haha
Dec 18th, 2010 - 06:08 pm - Link - Report abuse 0Funny how some Argentines think they are able to offer financial advice.
Dec 18th, 2010 - 09:02 pm - Link - Report abuse 0Let us look at some data compering the emerging markets.
Which country of the emerging markets has the lowest five year average dividend yield
A = Argentina with 1.3% (The average for the emerging markets is 2.4% with Brazil and Peru both at 3.8%). Argentinas data is so poor that a 2011 forcast is yet to be accuratly calculated.
Let us also look at EPS (Earnings Per Share). Argentina comes in second lowest if the emerging markets with a 2011 EPS forcast of 5.8%. The average for the emerging markets is 16.4%. Even Europe is predicted 16.4%. In South America the big winners for 2011 look like Brazil with an EPS forcast of 23.3% and Peru with 25.7%.
Conclusion. Argentina is uninvestable and if you want to make money then by all means invest in South America but keep it as far away from Argentina as possible.
@stick: Your article's quite biased. Just see how it paints Argentina's move to lift capital controls to its stock market: ”Argentina's stock market (...) [was] downgraded to “frontier” status by the equity index provider MSCI because of restrictions on capital flows.“ Capital controls are portrayed as a bad thing. What is the reason for that, the author doesn't say. I myself don't know what it is, for capital controls are a wise way to preclude hot money from flooding a country's capital market. Too much of such money engenders many sorts of problems: e.g. financial asset bubbles and currency overvaluation. And overvaluation, as everybody knows, causes the current account deficit to widen, something that can be highly damaging in the mid-term due to vulnerability to speculative attacks. And it doesn't take much for speculative attacks to evolve into a balance of payment crisis. And THAT was the cause of the 2001-02 crisis in Argentina. Recent history's taught Argentina the way to avoid such crisis to happen again: to keep its currency competitive. This is something the most vigorous economies of the world, those of East Asia, also strive to do, and for the same purpose as the one Argentina has in mind. What's more important for a country, any country: to avoid a new crisis, or to please an ”equity index provider” and the global press jornalists who are not only biased - they write under the perspective of an orthodox dogma - but also are almost invariably poor in analytical prowess.
Dec 19th, 2010 - 12:58 am - Link - Report abuse 0The following quote's quite interesting. It illustrates well the author's lack of real knowledge of South American economic policy:
Dec 19th, 2010 - 01:27 am - Link - Report abuse 0“Argentines have watched enviously as Brazil, its giant northern neighbor and for many here a political and economic measuring stick, has become one of the world's most attractive emerging market economies.”
The truth: in 2003-06 Argentina had an average annual GDP growth of 8.9%. During that period GDP growth for Brazil averaged 3.5% , and its unemployment rate oscillated from 10 to 13%. So Brazil could hardly have been considered a “political and economic measuring stick” by the broader South America, as the author says. Growth and job creation only started to pick up in Brazil by 2007. This was when the ultra-orthodox Finance Minister Antonio Palocci got replaced by the more Keynesian Guido Mantega. Shortly after taking office Mantega criticized the previous model and tried to implement a new one. This is from a very recent article on a Brazilian economics newspaper on economic policy during the Lula years.
“Surreptitiously the reunion participants [all new members of the Finance Ministry] suggested to the president a change in economic policy. The model mentioned [to replace the older one] was Argentina's, which at the time was growing in a fast manner with negative interest rates and a pegged, undervalued exchange rate, in spite of high inflation.”
That is, much of Brazil's current high growth results from policies that Argentina had previously adopted: a more prominent state role - specially for state banks - in the economy; more public spending; and a less severe stance - though not as laxed as Argentina's stance - on inflation. Last year Brazil again emulated Argentina in inserting capital controls to its stock market. And the next administration is already talking about manipulating the exchange rate.
@stick up your junta
Dec 19th, 2010 - 02:56 am - Link - Report abuse 0Argentina’s economy still is booming at 9% growth rate.
@Beef
You are right
The fact that foreigner speculators cannot make money doesn’t mean we don’t. Argentina doesn’t want speculative fly capital (hot money) to enter into the economy. So if you want to make money you have to make a real long term investment FDI. So I recommend you to invest in Desire Petroleum. Hahaha
About Cameron
“he had secured a “clear and unanimous agreement” that Britain would not be “dragged into bailing out the Euro zone” haha
Cameron secured a clear and unanimous agreement??? Germans since the start of the crisis criticized UK for the bailouts and its policy of QE (Printing money like monkeys) and called for austerity.
“German Finance Minister Peer Steinbrück has launched a highly unusual attack on Britain's economic stimulus package, saying it will not fend off recession but will leave the next generation saddled with debt.”
http://www.thelocal.de/money/20081211-16053.html
Germans call for austerity
http://www.thelocal.de/money/20081211-16053.html
http://www.thelocal.de/money/20081211-16053.html
http://www.thelocal.de/money/20081211-16053.html
Cameron has not leadership at home and less in the EU he is weak and has a lot of pressure at home, typical twist of reality of English propaganda to be consumed domestically for BOBOs.
So the German criteria was imposed what shows really who rules in Europe.
UK just follows like and old dog. Well the same as always does even with US, called in English “Special relationship” haha
Argentina’s economy still is booming at 9% growth rate.
Dec 19th, 2010 - 09:23 am - Link - Report abuse 0And your inflation?
you #5 ! for all I understand ,you are very away from Real Economy,
Dec 19th, 2010 - 10:28 am - Link - Report abuse 0however you are very interested in Stock Market Bulletins ..
&&&&&&&&&&&&
#8 ! I'm from Germany...
UK wants and insist on to has permanent connections with her own Commonwealth Periphery not with EU !..covered double standart !
Nico - I know I am right and usually am. I am invested in DES, RKH and FOGL and am in profit in all of them ££££.
Dec 19th, 2010 - 11:33 am - Link - Report abuse 0Regarding your suggestionn about making a long term investment in Argentina. This shows how much of an economic numpty you really are. Let us return to the data above. Argentinas 5 yr average dividend value of 1.3%. Then take tax off these earnings and then caluclate inflation and then it is clear that you would have lost money over that period.
In other words Argentina is univestable in the medium to long term. The only way to mke money in Argentina is short term speculation which is a risky business as such investments with have a large bid/offer spread and have liquidity problems.
Nico, if you are going to try and bulls**t then at least try to make it plausable. Although I would suggest simply giving up beacuse you just make it clear to everyone that you know nothing!
Nico aka nitwit,you no nothing :-)
Dec 19th, 2010 - 04:41 pm - Link - Report abuse 0http://www.youtube.com/watch?v=s6EaoPMANQM
@Beef
Dec 20th, 2010 - 04:58 am - Link - Report abuse 0Please you know very little about real economy, you are just what we call a speculator.
I said long term FDI what doesn’t include buy shares, equity, etc or any kind of gambling game.
If you don’t know what its a FDI here a rough definition http://economics.about.com/cs/economicsglossary/g/fdi.htm
So As I say before Argentina it is not a place to make money on the fly with “hot money” real business make a lot of money.
Another point some companies families owned keep a policy of low dividends just to reinvest this capital and to minimizes the payment of taxes, etc.
After all they are the shareholders, controllers and real owners of the company.
So keep doing what you know best, lets say to buy shares of a company that has not sell a drop of oil, has not make any real profit and provides you a easy way to make money gambling and selling shares to morons like in the virtual casino.
And you say that Argentina its risky????
Haha
Nico - I have no problem with risk and win more than I lose. This is the difference between those who know about real economic potential and those that don't. It is about probability and monitoring the market.
Dec 20th, 2010 - 09:53 am - Link - Report abuse 0BTW - Argentina needs inward investment and to get this you have to raise your dividend average. Simple strategy really, one that you don't get.
@Beef
Dec 21st, 2010 - 12:26 am - Link - Report abuse 0Again beef dividends has nothing to do with FDI we are receiving billions in investment in energy, car industry, food industry, property development, etc. Real investment not flying gamblers “hot money”.
So as I said you before don’t waste your time with Argentina trying to make money speculating at least you plan to setup a real business.
You have a lot of places to do that buy shares in US or SIVs in London or trade Desire petroleum shares may be if you are lucky you will become rich or loose everything you got.
You also can try to become rich in Las Vegas if you are a good gambler.
Here a business idea:
You have to rise 2m dollars I create a company Ebay style for Sud America with branches in all Americans countries mean while you sell the shares to new investors to rise more capital 10m and in 10 years we will sell this company to ebay in 40 m dollars.
This is far less risky that any investment in oil in South Atlantic and far profitable.
Let me know when you want to start just 2m dollares
: )
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!