MercoPress. South Atlantic News Agency
Argentina imposes new restrictions to slow consumer goods’ imports
Argentina will impose new restrictions on consumer goods’ imports, according to a resolution from the Revenue Office published this week in the Official Gazette and effective next February first. Read full article
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Disclaimer & comment rulesWell, where to start?
Jan 11th, 2012 - 01:14 pm - Link - Report abuse 0It seems panic is striking at the heart of what passes for govt in Argentina looking at the latest attempts to balance the books. These books of course do not show the graft and corruption of the govt itself: just how many billions of USD go missing in the black hole?
“Other methods used by the Cristina Fernandez administration to counter imports are simply the ‘non-written’ orders or ‘suggestions’ from Guillermo Moreno, the notorious and dreaded Domestic Trade minister, famous for his bullying tactics” well, that's comforting.
A wannabbee gangster 'suggesting' things to independent commercial enterprises to 'protect' Argentina's home manufacturers. That is sure to help all the bloated Argie companies get ready to compete with the world and boost exports I am sure: but probably not!
Perhaps Guillermo Moreno should run all the ministries whose responsiblity involves commerce. With pratts like this in charge Argentina will soon be completely fcuked.
Many decades ago (1968) Britain ran the 'I'm backing Britain Campaign' suitably endorsed by Wilson, the Labour PM of the day (another lier who could compete with the best of the Argie liers on here). Japan was importing well made, modern cars into the UK against British Leyland (BMC) who made junk cars at inflated prices. Our lack of worldy competiveness almost killed the country and it took years to resolve.
I know how we did it and was one of the protagonists who helped make the recovery happen, but if you think I am telling you lot: forgetit (to coin a tag).
Keep going Morenito and you'll be dead soon.
Jan 11th, 2012 - 01:35 pm - Link - Report abuse 0Cristina, A Bataclana in charge of the Bailongo !
Jan 11th, 2012 - 01:36 pm - Link - Report abuse 0Their balance of trade is reversed for the first time in many years. They don't have the reserves to make up the difference. They are well and truly f'ed.
Jan 11th, 2012 - 01:46 pm - Link - Report abuse 0Fiat had to idle a plant because parts are trapped in customs, pretty hard to build cars with no parts. No work No pay
Cars and Soy are the only 2 worthwhile exports and Soy is 6% below last years price AND their crop is expected to bring in 10 BILLION less this year. That's a lot of imports stopped at the border so how is consumer spending supposed to drive the economy when there is nothing to buy?
BCRA spent 170MM buying U$ yesterday, they don't have much $ to keep supporting the peso this way.
So, why would any country want to be buying US Dollars (or Euros for that matter) to support their currency? The Dollar is in the tank, soon to become less valuable than toilette paper. Soon the Dollar will be at the bottom of the septic tank, and it will take all those countries, who think they need it as a reserve currency, with it.
Jan 11th, 2012 - 02:42 pm - Link - Report abuse 0Seems to me lot of Argentinians prefer holding U$ over the peso otherwise BCRA wouldn't be having these problems.
Jan 11th, 2012 - 03:06 pm - Link - Report abuse 0Does anyone in your country understand simple economics or math? I get really tired trying to explain basic concepts on this board!!
@6 I suggest that the government wishes to keep them ignorant. It is true that every time I visit Argentina I am asked by Argentine owned businesses if I would pay in dollars cash. They offer big discounts as an incentive.
Jan 11th, 2012 - 04:50 pm - Link - Report abuse 01#-you said-
Jan 11th, 2012 - 05:31 pm - Link - Report abuse 0I know how we did it and was one of the protagonists who helped make the recovery happen, but if you think I am telling you lot:
I say you couldn't.It's an after the event“aren't I cleverer than argentines” remark which doesn't say anything of the sort.
Inflation is a result of protectionism.
Jan 11th, 2012 - 05:38 pm - Link - Report abuse 0The higher the rate the more protectionist the country.
If the money stays in the country and not go to Chinese products, then i don't see any problems.
And i believe Argentina is very self-sufficient. so the protectionist model can work. Argentina is not Greece.
You tire very easily yankeeboy.I've never read a post of yours where you explain economics.I thought that the dollar was an international currency,and that holding it gave the holder flexibility especially in the money markets.But you don't make money holding money do you?When you sold all your property in and around Bs A,did you get pesos,dollars or even the books ElaineB looks for.
Jan 11th, 2012 - 06:18 pm - Link - Report abuse 0Elaine is right, this happens quite often. Makes one wonder why???
Jan 11th, 2012 - 07:12 pm - Link - Report abuse 0mind you, they could always consider the pound,
Jan 11th, 2012 - 08:47 pm - Link - Report abuse 0its proberbly not used that much down their, but a strong pound and getting stronger, better than the euro,
Inflation is the result of printing too much money, not protectionism.
Jan 11th, 2012 - 09:19 pm - Link - Report abuse 0The problem for the BCRA is the fact too many Dollars and Euros are being held as a reserve currency. Anyone, who knows anything about economics, knows the Dollar and Euro are both dead. The only reason they aren't being used a toilette paper is, the Gringos are hold a gun to the head of the world.
The best long term solution is for all of Latin America to for a trading block that does not require the Dollar or Euro. I'm not saying to stop trading with the US and Europe, but the Dollar and Euro should not be the foundation of any country's reserves. Multiple competing currencies will keep all the money presses under control.
@laceja, you're not an economist by profession are you?
Jan 11th, 2012 - 10:19 pm - Link - Report abuse 0@13
Jan 11th, 2012 - 11:33 pm - Link - Report abuse 0You are so wrong - Exchange rate manipulation is a protectionist policy: A government may intervene in the foreign exchange market to lower the value of its currency by selling its currency in the foreign exchange market. Doing so will raise the cost of imports and lower the cost of exports, leading to an improvement in its trade balance. However, such a policy is only effective in the short run, as it will most likely lead to inflation in the country, which will in turn raise the cost of exports, and reduce the relative price of imports.
Oh and who was it in december that lowered the value of the peso...Uhmm CFK wasn't it?
13. You are grossly misinformed how a functioning economy and trade works in the modern era. As a trading block SA can not support itself, each country basically exports the similar products, does Brazil want Argentina's Soy? Does Chile want Argentina's fish? After 200 yrs there is still relatively little trade between SA countries. Each country has their own agenda and will NEVER be integrated. What are you going to say Brazil you make refrigerators and Peru you buy them? Because that worked really well for the Soviets?
Jan 12th, 2012 - 11:22 am - Link - Report abuse 0Argentina can not supply everything it needs for its own economy. You have very little manufacturing and absolutely no technology or innovation. This protectionism will limit the products you can buy and quickly drive up prices it is very short sighted and where does it end?
As much as you may not like it I hope for your sake you have your savings in a hard asset or U$ hidden in your house somewhere.
Buy Chinese Yuan,
Jan 15th, 2012 - 05:34 am - Link - Report abuse 06 to the US$, soon will be 3.
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