MercoPress. South Atlantic News Agency
Argentine economy suffering from a mix of stagnation and strong inflation
The stagnation of the Argentine economy at the end of the first half of the year is “palpable” and so is tension in the money exchange market because of the restrictions on the purchase of US dollars imposed by the government of President Cristina Fernandez, according to a report from economic advisors Ecolatina from Buenos Aires. Read full article
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Disclaimer & comment rulesA lack of confidence and investment? That usually happens when you steal foreign companies from your so called 'friends' and fail to pay your debts to powerful neighbours.
Jul 12th, 2012 - 09:17 am - Link - Report abuse 0“A lack of confidence and investment? That usually happens when you steal foreign companies from your so called 'friends' and fail to pay your debts to powerful neighbours.”
Jul 12th, 2012 - 09:56 am - Link - Report abuse 0Etc etc etc....
@1 - Britworker
Jul 12th, 2012 - 10:36 am - Link - Report abuse 0Agreed. Here we see Cristina's economic model in action. If they made this into a film, it would be classed as a disaster movie.
State sponsored stagflation...
Jul 12th, 2012 - 10:52 am - Link - Report abuse 0The model is a melted Airfix.Sad but enjoyable to watch it all go wrong.CFK and her cronies blaming everyone but themselves,running out of options rapidly.
Jul 12th, 2012 - 11:20 am - Link - Report abuse 0As everyone else has said this is the true outcome of CFKs economical model. There are many people on this board who have been predicting this for 8 months now.
Jul 12th, 2012 - 12:03 pm - Link - Report abuse 0The answer is she needs to accept and sort out inflation now! Agenda item number 1: Employ a fing economist not a peronist boot licker.
I wonder, who wast the first person on this board to predict STAGFLATION? Hmm who was it again about 6 months ago?? Hmm
Jul 12th, 2012 - 12:53 pm - Link - Report abuse 0Next is hyperinflation as they devalue the peso to make their products “more competitive” of course that won't work it will only increase all the production costs and salaries. Vicious loop and it is only going ot get worse since CFK understand economics as much as Axel or Guzz.
Getting exciting.
@7
Jul 12th, 2012 - 12:57 pm - Link - Report abuse 0Sorry its in Spanish but I think it would be hard for others to argue with your prediction after this annoucment,
http://www.cronista.com/finanzasmercados/El-Central-avala-expectativas-de-devaluacion-del-20-en-los-proximos-doce-meses-20120712-0049.html
Very very scary news about Argentina signing a military cooperation agreement with Venezuela, these people are looking to start a war.
Jul 12th, 2012 - 01:22 pm - Link - Report abuse 0www.buenosairesherald.com/article/105945/argentina-venezuela-to-sign-military-agreement
Did you hear about the new “militant” movement that Kirchners are starting that will make “La Cámpora” look like a group of kids in nursery school? It's called “Vatayon”, it's a Kirchner backed group that goes into the prisons of Argentina to recruit supporters for their political movement. This is frightening!
www.facebook.com/#!/vatayonmilitante
Remember there will continue to be a huge differential between the real and gov't rate. I think 7/1 for gov't rate is soon but who knows what that will do to the real rate but for sure isn't going to be lower!
Jul 12th, 2012 - 01:26 pm - Link - Report abuse 0I think Toby laughed at me when I said 10-14/1 shortly. I still think I am right. I may be off by a few months but the graph never lies.
Their only hope is to buy sugar and laundry detergent...it will be worth more than silly pieces of paper in the very near future.
Lavagna's policies under Menem and de la Rua (who were meant to be of opposing parties!) led to 2001, so he's really on to talk!
Jul 12th, 2012 - 01:32 pm - Link - Report abuse 0@11 well I would argue he therefore has the experiance to see the danger. wouldnt you? If an experianced fisherman tells you that the area you are fishing in is polluted do you a) Keep fishing regardless or b) posisbly investigate wether he is right and then chnage your stradegy.
Jul 12th, 2012 - 01:43 pm - Link - Report abuse 0Everything with the Argentine economy is currently poiting towatds stagflation, hyper inflation and collapse. If you stopped reading your government santioned crap and looked at what independent anaylst are saying you would see the problem. Argentines problems is that it has grown to large to quick (9% growth a year is not sustanaibily in the long term,) this has led to the inflation problems which underpin the entire economic situation.
MeLtDoWnnnn
Jul 12th, 2012 - 03:18 pm - Link - Report abuse 011 British_Kirchnerist (#):
Jul 12th, 2012 - 04:07 pm - Link - Report abuse 0Roberto Lavagna was Nestor's Economy Minister, the architect of the deafault and the “Chinese” growth, until 2005. He resigned because Kirchner would not change the “model” to put a break on the growth which was averaging in 2005 9.6%.
Lavagna said it was too high and would lead to galloping inflation, he was right, he left and Fester sacked all the statiticians in INDEC, and sterted the lies about inflation, GDP etc.
@7 you were yankeeboy, shame these numptys dont listen to you, they are too brainwashed and deluded I think
Jul 12th, 2012 - 08:25 pm - Link - Report abuse 02001 will look like a dream after you live through what is coming.
Jul 12th, 2012 - 09:13 pm - Link - Report abuse 0#12 ”Argentines problems is that it has grown to large to quick (9% growth a year is not sustanaibily in the long term,) this has led to the inflation problems which underpin the entire economic situation”
Jul 12th, 2012 - 10:50 pm - Link - Report abuse 0In other words the problems of success. Nice to see you recognise the success =)
if only Argentina had a female president the caliber of Chile ex president Bachelet,
Jul 13th, 2012 - 12:12 am - Link - Report abuse 0she did not run and hide when,the junta came,she resisted was captured and tortured,(her father died under torture) helping the poor,while in office,she started a sovereign wealth fund from Chile,s copper mining,encouraging investment from abroad(instead of scaring it away)did not dissipate her country,s wealth on useless populist subsidy's .Here,s figure you can really admire,British kirchnerist,I suggest .May she return next year.
If we divide the real inflation index today (base 2007 January = 100) with the real inflation index (2010 August) when the USD was 4 pesos, and multiply with those 4, we get:
Jul 13th, 2012 - 04:22 am - Link - Report abuse 0275/171 * 4 = 6.43 which ought to be the exchange rate now, if Argentina were to stay competitive, that is.
#14 My bad, i thought he was the guy who worked for Menem then de la Rua that was quoted knocking the model on here a few weeks back. The kind of embarassing mistake that shows I'm really not from Argentina! Anyway I think Nestor was right to sackif he was against growth
Jul 13th, 2012 - 09:57 am - Link - Report abuse 0#18 I do admire Bachelet, and hope she comes back (unlike the rightwingers on here who are terrified of that prospect!) Cristina and Michelle were allies and friends of course...
Bachelet is everything CFKC is not and much admired around the world, unlike CFKC. I had never heard of her being friends with CFKC, where did you dream that one up? Like all Chilean leaders, she worked to keep her excitable neighbour calm but their politics are polar opposites.
Jul 13th, 2012 - 01:36 pm - Link - Report abuse 0Michelle Bachelet is a true socialist, unlike Kretina, but she is firstly a Chilean.
Jul 13th, 2012 - 02:09 pm - Link - Report abuse 0The big difference between these two women is that Bachelet puts her country before her politics and Kretina puts her own pocket before everything.
They have the same politics, its just that in the less constrained conditions of Argentina Cristina has achieved more. She's also a bit more glamorous and exuberant, which I like =)
Jul 13th, 2012 - 04:57 pm - Link - Report abuse 0Commenting for this story is now closed.
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