MercoPress. South Atlantic News Agency
Argentina admits slower economy; blames global crisis, drought and Brazil’s low growth
Argentina acknowledged the slowing down of the economy as the result of the global crisis, prolonged drought and a lesser growth rate from Brazil, according to a report from the Central Bank released this week. Read full article
Comments
Disclaimer & comment rulesNothing to do with the batshit crazy economic policies of the government then?
Aug 02nd, 2012 - 07:49 am - Link - Report abuse 0Its always the same - it is everyone else's fault
Aug 02nd, 2012 - 11:03 am - Link - Report abuse 0“... blames global crisis, drought and Brazil’s low growth”
Aug 02nd, 2012 - 11:04 am - Link - Report abuse 0It's just possible that it might have something to do with 200 commodities being effectively blocked/high-taxed from import/export with Brasil.
“we're doing fine, it's just the rest of the world can't keep up! Everything would be fine if they would stop dragging us down”
Aug 02nd, 2012 - 11:13 am - Link - Report abuse 0Sry, thought i would get the usual response in there.
Is Argentina meant to be a player in the world economy or not.
Aug 02nd, 2012 - 11:43 am - Link - Report abuse 0What does Greece,Spain, Portugal,Ireland,France ,UK,USA and China blame for a slowed rate of growth not mention recession,( oops I did)
Will the UK blames wet weather for the Olympics not supplying enough growth.They are already saying the benefits are long term after, previously saying,they would take the country out of recession.They didn't even claim they would stimulate growth.Terrible thing the weather.You can predict it but you can't change it in your favor.Thats how far science and technology have taken us so far.
Is it not true that the worlds 5th economy is experiencing slowed growth and are they not a significant trading partner of Argentina.Prejudice is an terrible distorters of human intelligent Geoff.I thought you could rise above it.Surely you don't think the import/export action of Argentina are in gvt control and that there impact on the economy isn't factored into their projections
Perhaps some people don't agree with the gvt economic policy,but blaming it for external factors, which other , which adopt different economic policies,have not predicted is a valid reason for a decline in growth for any country.
Perhaps you think the causes which are claimed to be the causes,are not the real reason.In which case Argentina can boost it growth quite easily.The Yanquis wish they could.
When something goes wrong, blame someone else regardless. Argentina's Dixit.
Aug 02nd, 2012 - 11:53 am - Link - Report abuse 0Makes sense when you try to create an economy based solely on exports......and the exported product is shit.
Aug 02nd, 2012 - 12:12 pm - Link - Report abuse 0It would seem the plan to spend all the countries capital and rely on the ever increasing trade surplus was a stupid plan after all. This plan has now lead to low growth a contracting trade surplus and high inflation, which without the means to service the inflation througth the maintaing of the trade surplus now puts Argentina on course of stagflation and possibly a second financial collapse. This story also comes on the back of one the worlds major credit agencies downgrading the credit rating on the majority of the provinces. Of course the Argentina federal credit rating is zero.
Aug 02nd, 2012 - 12:22 pm - Link - Report abuse 0The reason this has happened is that the Kirchnitte administration has insitetd on making short term populrist decsions (which cost a lot of money) in order to secure there own power base rather than opening themseleves up to the world, encouraging trade and fostering good relations. Instead they have choosen to beat their chest in a nationilist way decleare themselves strong and powerful and that they do not need the help of anyone, of course when it all goes wrong they then blame all the people they have isolated throught their own nationilst rethoric.
When will Argentina get a strong government willing to make deicisons for the long term stability of the nations economy.
When the people of Argentina rid the national of social/populists. They refuse to accecpt the most base concepts of econimics and see the writing on all the walls. For some obscure reason she is convinced she can alter the outcomes that are already set in stone(for the most part).
Aug 02nd, 2012 - 12:35 pm - Link - Report abuse 0When she went to the UN she met and had a lunch meeting with American Oil CEO's. Probably the most greedy and self serving of any industry. When oil is capped at 42 a barrel and market prices around 87-90 and the company can't export............That of Texas saying.......“that dog just won't hunt”. She was literally laughed at and she did not understand why.
@9
Aug 02nd, 2012 - 12:45 pm - Link - Report abuse 0It is because she believes compnaies should invest in Argentina because of a deep love for the nation and its people not because they expect to return a profit on their investment. The Argentine government is supescisous of any compnay making a profit and believes they should give up all thei profit to assit the country. She fails to udnerstand the most basic economic principles of capitilism. Unfortuantly for her this is the most comonly used economic system in the world and to shun it only isolates Argentina from the world. Even China now uses a capitlaist buinsess model.
I agree it's amazing to think that the once largest socialist empire now has billionaires. Market forces are a powerful entity on it's own and no amount of control can change that. But again, that's basic Eco101, something she obviously can't seem to comprehend.
Aug 02nd, 2012 - 12:56 pm - Link - Report abuse 0Ok I get lower sales to Brazil and the Drought bringing on Argentina's recession but Global Crisis is a bit of a stretch even for CFK.
Aug 02nd, 2012 - 01:36 pm - Link - Report abuse 0Can some rabid CFK supporter please tell me how the “Global Crisis” has any bearing on Argentina?
BTW just so you know, it doesn't, but try anyway please I am very curious on how these lies play in the population.
Remember that if Argentina´s growth goes below a certain percent, that CFK is not required to pay about 2 billion dollars in interest paymens due in August of next year. That way, she can have that money to lure voters at the midterm elections.
Aug 02nd, 2012 - 01:39 pm - Link - Report abuse 0Jerry, The only $ CKF has now is what she prints. I wonder what the $/vote is now, It was $20 when I lived there and $100 last election...
Aug 02nd, 2012 - 01:48 pm - Link - Report abuse 0If Paraguay can expect growth of 14% next year, regardless of what happens in Argieland and Brazil, I think it says it all; socialism doesn't work and freedom does. Freedom from tyranny, and freedom to invest and spend in any currency, freedom from high taxes. Socialists are screwing up the world as we can see in the USA (Bush and the Republicans are also socialists, hell they started the bailouts), Argieland, most of Europe. You don't create wealth by taking it from the rich and giving it to the poor, it just doesn't work. Money flows to places were it can provide the highest return to their owners, with Argieland's horrible politics over regulating everything, and taxing anything that may have value, or worse, nationalizing private industries, no investor will ever go there. They are guaranteed to loose money.
Aug 02nd, 2012 - 02:21 pm - Link - Report abuse 0Ladies and Gentlemen,
Aug 02nd, 2012 - 03:29 pm - Link - Report abuse 0You've all got it wrong, CFK knows exactly what she's doing, she's robbing the country blind and when she finally has to cut and run she will be taking US$ 380 million with her.
She may not understand the basics of economics, but she knows how to make a crooked buck!!!!!
Why is Brazilian growth down?
Aug 02nd, 2012 - 05:16 pm - Link - Report abuse 0What is USA s growth rate and how has freedom delivered it
Did freedom contribute to the situation in Spain.
What economic system existed before capitalism.
Did the dictatorship increase freedom and improve the economy
#16 how do you know it's $360m
Growth rates always fluctuate.What is the motor behind paraquay's growth and how dependant is it on Brasil
Questions that have answers I think
Yuleno
Aug 02nd, 2012 - 05:32 pm - Link - Report abuse 0Argentina is a massive country with an abundance of resources and opportunity.... more than most countries in the world.... but still its a 3rd world country! Who is to blame? America? Capitalism? So while Argentina has made no real relative gains in 70 years for the majority of the population and there still exist millions of very poor people living in vast villas without adequate sanitation or food - in a country that has it all- your precious 'socialist' politicians are richer than the politicians in my capitalist country. How can you justify that? Do you have the ability to think for yourself or are you just a product of the system repeating the their nationalistic rhetoric ?
Yuleon is typical of the 'thinking man's Argie'!
Aug 02nd, 2012 - 05:52 pm - Link - Report abuse 0That's why the country is fcuked, TMBOA is just doing what she does best, screwing the electorate.
No answers there.
Aug 02nd, 2012 - 06:41 pm - Link - Report abuse 0Argentina is not a 3rd world country.That is a category that Mao invented.The people could be wealthier but there is history there.That doesn't explain slower growth rates in the current context.
I am aware of Argentina's failures and of some of the causes.But it is not in decline at present,it is growing.
But it is not in decline at present,it is growing. Show me one link that says Argentina is economy is growing this year....one...just one...
Aug 02nd, 2012 - 06:53 pm - Link - Report abuse 0Money supply, debt and inflation don't count in case you are wondering.
Europe is blaming the crisis too? Or are their blaims legit? :)
Aug 02nd, 2012 - 07:26 pm - Link - Report abuse 0“blames global crisis, drought and Brazil’s low growth”
Aug 02nd, 2012 - 07:29 pm - Link - Report abuse 0Not Britain's fault then? damn, we really must try harder.
Europe is blaming the crisis too?
Aug 02nd, 2012 - 08:14 pm - Link - Report abuse 0EU is the crisis retard.
What products from Argentina is EU buying less quantity of in the last 6 -12 months? None Argentina is using this as a canard.
The EU crisis has had little to no effect on RG exports. In a round about way maybe this is effecting car sales to Brazil but that is stretching it a bit too much to be believable.
16 & 17 - Either 360 or 380 million? I think that it is closer to 860 million. Do not forget the 500 million Nestor sent abroad while Menem was president. With interest over 20 years, it should be a BIG sum by now.
Aug 02nd, 2012 - 11:08 pm - Link - Report abuse 0Its always someone elses fault!!! Once again the RG's show no grace in accepting and admitting that ultimately they are responsible for their own short comings!
Aug 03rd, 2012 - 04:13 am - Link - Report abuse 0The economy has lost momentum in recent months, hurt by fears of higher taxes and sharp government spending cuts next year and ongoing debt problems in Europe. Factory activity has cooled and job growth has braked sharply.
Aug 03rd, 2012 - 12:00 pm - Link - Report abuse 0Reuters wrap on USA economy
Question
Whose fault?
Analysts say this change probably reflects the government's intention to report 2012 economic growth below the 3.26 percent threshold that would trigger a roughly $4 billion payout on GDP warrants in December 2013.
Reuters on Argentinas economic reporting
Question
Is that an economy that's growing?
Yes it is and growing slower than in 2011
Yul, Keep thinking that, I'll bet you that you'll be eating barely soup and barely bread in a year because it is the only think you can afford.
Aug 03rd, 2012 - 12:25 pm - Link - Report abuse 0In a socialist country a drop to 3.26 is the start of shit hitting the fan. In a free market economy, 3.26 is respectible growth. If you graphed 30 years in a free market economy, the growth as a %, it would look like small bumps, realatively even, save for a extraordinary event. If you did that with a socialist economy, it would look like the roller coaster ride Bizzaro at Six Flaggs. Stability versus wild swings.
Aug 03rd, 2012 - 02:20 pm - Link - Report abuse 0Argentina, Europe, USA, and a huge chunk of the rest of the world are socialist. USA took the big plunge with the socialized healthcare. Socialism doesn't work people. You can't create wealth by taking it from the rich and giving it to the poor. Socialism is great until the money runs out, and that is what is happening, the money is running out, or better yet moving to another country, one that is more free with less taxes and less burocracy. I love the USA, but it is going to go through another FDR revolution with stagnant growth for about another decade. Only because the USA has a good constitution does it have a chance of coming back. But as for countries like Argentina and much of the EU (Greece, Spain, Portugal, France), either they will remain in this stagnant growth for decades to come or they will have to have a radical change in their politics, meaning move away from socialism.
Aug 03rd, 2012 - 03:32 pm - Link - Report abuse 0I understand that the ideal sustained growth rate for an ideal economy is between 3 and 5%. This means growth with stability as opposed to swinging from crisis to crisis as the Argentine economy has for the past 70 years.
Aug 03rd, 2012 - 03:34 pm - Link - Report abuse 0How is the economy in Europe and USA or even Afghanistan, Iraq, Libya, egypt, Syria and all those nations being helped by the West?? Maybe Argentina should sell weapons and theft resources as well and blame everything on everyone else as USA and Europe white trash does.
Aug 03rd, 2012 - 04:30 pm - Link - Report abuse 032 Pirat-Hunter (#)
Aug 03rd, 2012 - 04:45 pm - Link - Report abuse 0You seem to have a sort of topological dislexia, you talk as though you don't live in the West, whether you live in Canada or Argentina, you cannot get much more West without reaching the far East!!!!!
Apparently some people do not know what socialism is. The USA is not socialized medicine even with Obamacare. It's the mandating of people to purchase health insurance and not the govenrment owning healthcare companies. Until my ex wife is paid by the government of the united states and directed by the government of the united states, it is not socialized medicine. Even Medicare is not socialized medicine, it's only paid by the government from the taxes the individuals paid in.
Aug 03rd, 2012 - 04:55 pm - Link - Report abuse 0And America is going through a period of political change.....polarization, extreme left and extreme right and no one ever willing to compromise because it appears weak.
#10 Sure China uses the market, but the state still plays a role (including in owning companies) specifically because no international corporation would respect the country's national interest, so it follows that some other body should. Yes capitalism is still dominant worldwide, but in South America some real pockets of socialist freedom are developing, which will hopefully spread to other countries as the workers and the poor realise that their interests can never be served by a failing capitalist system
Aug 03rd, 2012 - 05:16 pm - Link - Report abuse 0#15 If the Francoist position is “Bush and the Republicans are also socialists”, no wonder Paraguay is such a backward reactionary backwater; hopefully the alliance between Paraguay's progressive neighbours and the poor majority of its own people will soon remove the golpista leaders you support and elect a left government in April
Capitalism has been around since man created fire.....then sold it! I suggest you read a book by your follow scotsman, Adam Smith....The wealth of Nations”. Russian created socialism, became the USSR and because of socialism are back to being Russia.
Aug 03rd, 2012 - 05:31 pm - Link - Report abuse 0Go to SOuth America for 6 moths....then talk of the wonders of socialism. Oh wait can't afford a ticket beecause you're a socialist.
Yankeeboy whose fault is it that unemployment for the 16-24 year olds stands at 18.1% in the glorious USA.Simon68,who sounds to be going thru a mid-life crisis, will probably blame O'Bhama.How are these youths eating at present.Is it cheap poor quality food they are being forced to consume?That surely is not part of the American dream
Aug 03rd, 2012 - 05:34 pm - Link - Report abuse 0Poppy is a wonderful exponent on what is and what is not socialism.And USA,UK,Spain Ireland and other do not have growth rates that would enable them to be socialist.If anyone believes Poppy.Personally I don't.
Still no answer on the cause of the USA economic situation or any comments on its impact in the EU?
Yuli
Aug 03rd, 2012 - 06:12 pm - Link - Report abuse 0You do realize that in the USA 16 to 19 is school age kids and they do not need to work.....20 to 24 is school again we call it college. Talk about adults over 25. When you remove SCHOOL age people the unemployment is at 7.2%, albeit still high for the USA. ANd you a latino, I would not expect you to beleive facts.
http://bls.gov/web/empsit/cpseea10.htm
Greed and corporate fear is the cause. Corporate funds are at all time highs because of the fear of where to and when to invest. In free countries , we do not make them invest or steal from them, we try to provide incentives. And the rapid expansion of globalized markets played a role. Capitalism has faults and I blindly belief nothing as a South American does from their “beloved leaders”. And when we tire of them, we toss them on there ass out of office. Do you even know what defines the American dream? have you ever been here? ANd what ARE you talking about in food? Good Grief Charlie Brown!!!
I do realise the school age but unfortunately for you,it seem your gvt statistics office doesn't.Or so it would appear to you but I don't think you know better than your gvt statistics office.
Aug 03rd, 2012 - 06:44 pm - Link - Report abuse 0You are also suffering from that superioty problem that Yanquis have.I don't have to go to USA to work out that if your not working someone has to keep you.The state or your family or something.But you certainly won't be living the good life that you Yanquis want everyone to think.Does it not even occur to you that these youths are not in a good place.How is greed and corporate fear to blame.Doesnt greed and corporate fear deliver the wealth you so like flaunting.You want it both ways?
#34 Regardless of how you spin it, the USA has socialized medicine. If you don't have money then you can get government insurance for free. Yes the companies that provide that insurance are private but are so intertwined with the government that they are one in the same. It is what we call crony capitalism; true capitalism creates competition, forces companies to lower their prices or risk being overtaken by another company. Shit like the auto bailouts is the classic face of a socialist government.
Aug 03rd, 2012 - 06:51 pm - Link - Report abuse 0#35 Most likely Paraguay will be the fastest growing country in the world for 2013. Very impressive when it reached #2 in 2011. The backwaters as you stated are very nice.
We are not pure capitalists, who ever said that? MArket based economies.....did I ever state “pure capitalism” in any staement I made? Thats a lot of takes on the auto bailout have of the country agreed and the other half disagreed, unlike in RGland, where the people always agree what the leader does.
Aug 03rd, 2012 - 07:55 pm - Link - Report abuse 0I lived in Argentina and speak from experience, not internet news. ANd I also speak from my in laws that still live there. Psssst, medicine insurance is not medicine!
#39 not worth another font.
You lived in Argentina,Poppy.Memories you have,experience is something different.No doubt your in-laws are of a similar political outlook,otherwise you wouldn't value their takes on events.
Aug 03rd, 2012 - 09:10 pm - Link - Report abuse 0yes they are not socialist who believe in taking from those who work and give to those who do not. I still go there several times a year
Aug 03rd, 2012 - 11:18 pm - Link - Report abuse 0Commenting for this story is now closed.
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