MercoPress. South Atlantic News Agency
Argentine budget numbers ever so red in the seven months of 2012
The Argentine financial deficit soared to 13.5 billion Pesos in the first seven months of the year and could have reached 25.9bn Pesos had it not been for extraordinary resources from Social Security funds and the Central bank, according to the numbers published in the last release from the Central Bank. Read full article
Comments
Disclaimer & comment rulesIt's about time the Argentine government realised that you can't spend your way out of debt.
Sep 10th, 2012 - 06:27 am - Link - Report abuse 0As usual, though, it is the ordinary Argentine taxpayer who will bear the brunt of the economic burden.
She isn't spending her way out...she is thieving her way out... or at least trying to.
Sep 10th, 2012 - 08:52 am - Link - Report abuse 0I don't think she has a plan to spend her way out of debt as such. I'm left with the impression that she simply ricochets from one problem to the next without a great deal of thought beyond how it will affect her popularity. Has she dramatically increased public spending or has she simply failed to reign it in from where it was?
Sep 10th, 2012 - 09:17 am - Link - Report abuse 0But this should be offset or at least helped by the brilliant trade surplus, no?
Sep 10th, 2012 - 12:47 pm - Link - Report abuse 0I don't think the trade surplus belongs to the government....although I am sure they are working on a way to steal it... and its not 'brilliant'
Sep 10th, 2012 - 12:51 pm - Link - Report abuse 0Brilliant brilliant....really BK, are you that economically ignorant. Do you have any clue what they are exporting and to whom? The only reason they had a surplus is because to virtually outlawed imports and the affects are already starting to be felt in the manufacturing sector. Autos don't carry inventory as they use a JIT inventory. Others probably carry a 3 to 6 month inventory and are starting to feel the pinch of nothing coming in. Thus the fear of CFK and begging her to allow imports. Watch BK very closely the months leading up to this calendar year end.
Sep 10th, 2012 - 01:25 pm - Link - Report abuse 0The problem is possibly worse than they admit.
Sep 10th, 2012 - 01:34 pm - Link - Report abuse 0On the 8th September INDEC, the Argentine national statistics agency declared that a family of four should be considered above the poverty line if its monthly food bill exceeds 688 pesos, equal to about six pesos per person per day. But six pesos is only enough to buy an Alfajor, a sweet biscuit nibbled between meals over coffee.
@7
Sep 10th, 2012 - 02:13 pm - Link - Report abuse 0I hadnt read that, but if true it is the biggets load of crap I have ever heard from INDEC. My faimily of spend that in 2 weeks.
A whole chicken is arounf $50 pesos, a kilo of mince in $23, a litre of milk is $7. Welcome to inflation nation!
“extraordinary funds from Social Security”. Is that nicking the pension funds?
Sep 10th, 2012 - 02:13 pm - Link - Report abuse 0“extraordinary funds from the Central bank”. Isn't that where they put the trade “surplus”? Wasn't she supposed to “save” that in order to pay off the debts? Does it not seem as though she has the country's money in lots of separate “pockets” but she can't restrain herself from dipping into all of them. Should we call it an “economy of hope”? Or, in other words, “let's hope this is an economy!” Is this not classic robbing Peter to pay Peter? No spare dosh for Paul! But there's always the bright side! Didn't they recently get first place in a tango compeition? Dare I say it? Dare I?
AAAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAH!
@7 How have they got time to nibble a biscuit? Shouldn't they all be out digging holes in the ground in the hope of finding something useful? Or they could hook up push bikes to electricity generators and pedal for 12 hours a day. With an Alfajor every 6 hours! And they should all be growing as much as possible of their own food. Early to bed to avoid spending money on heating and lighting. And they can give CFK what they save! So that she doesn't go short.
Yet everyone is a happy little camper in RGlanad.
Sep 10th, 2012 - 04:20 pm - Link - Report abuse 0Now that TMBOA is a Deity, I am waiting for the new bible, authored by TMBOA herself, setting out how she saved AG and next: The World!
Sep 10th, 2012 - 05:58 pm - Link - Report abuse 0INDEC is right, a person can easily live on 6 pesos a day.
Sep 10th, 2012 - 06:00 pm - Link - Report abuse 0A family of 4 only needs for 1 day:
1 liter of milk $ 7
1 kg bread .... $ 9
1 kg tomatoes . $ 8
1 kg of meat .. $ 40
------------------------
Total = $ 24
Sounds like they will need more of those “extraordinary fund”, before the year is out.
Sep 10th, 2012 - 06:41 pm - Link - Report abuse 0@12 Milk? What's wrong with water? Tomatoes? For what? Meat? Unnecessary luxury. So we're down to $ 9. Half a loaf? And loaf for the rest of the day. Mustn't use up “energy”. And what's wrong with starvation? CFK is still eating well. Surely she must have her five meals a day plus snacks? And her booze. And her sunbathing beside her pool.
Sep 10th, 2012 - 06:41 pm - Link - Report abuse 0@12
Sep 10th, 2012 - 06:50 pm - Link - Report abuse 0But INDEC says that 6 pesos a day keeps a family of 4 above the poverty line?
I actually believe that most people in Argentina don't believe this either.
But why not...let them eat cake?
And so it goes...will we see Patacones (in Cordoba) or 10/1 Peso first? My bet is we see one of them (or maybe both) by Christmas.
Sep 10th, 2012 - 07:59 pm - Link - Report abuse 0The Cordoba dispute is certainly hotting up. CFKC refusing to pay the money Cordoba is entitled to.
Sep 10th, 2012 - 08:09 pm - Link - Report abuse 0When I travelled around Argentina, Cordoba was the place where people seemed to long to break away from the federal government. Maybe they will.
Watch out Yankee Sussie is back as 2012 and another new name. She's a classic head case for study. I have never seen one as disturbed as she is.
Sep 10th, 2012 - 08:18 pm - Link - Report abuse 0Big protest on the 13th. In BA city anyway
@8
Sep 10th, 2012 - 08:24 pm - Link - Report abuse 0You said you are leaving the country...can you explain why you keep posting?
@ 9 and @10
Conqueror and Captain Poppy......buaaaaaaaaaaaaaaaaaa
the UK men, the rubbish bloody english men critizing my country!
blow your head off Conqueror/Captain Poppy, the sooner, the better!
Why does an Argentine stare at the sky and smile when there is lightning?
Sep 10th, 2012 - 09:17 pm - Link - Report abuse 0He thinks God is taking his picture
THE TRAIN RIDE
In a train there were an old lady, a very pretty young woman, an Argentine man and a Brazilian man.
The train entered a very dark tunnel. A kiss was heard and after that the sound of a slap.
The old lady thought:
- I am proud of this young woman. One of the two youngsters kissed her and she slapped him hard.
The young woman thought:
- One of the two guys tried to kiss me, but ended up kissing the old lady and got slapped.
The Argentine thought:
- What bad luck! The Brazilian kissed the girl, and the one that got slapped was me.
The Brazilian:
- Ha ha, great! I kissed the back of my hand and slapped the face of the Argentine.
@ 20
Sep 10th, 2012 - 09:43 pm - Link - Report abuse 0The really funny thing about that joke is that you can imagine the Brazilian doing it! LOL
Close the borders, expel all illegals, send all ex-pats home once their stays expire, close all foreign embassies, end all political contacts with outside nations, only trade/barter for goods.
Sep 10th, 2012 - 09:54 pm - Link - Report abuse 0We need cultural/social/political isolation, and economic isolationism in what we can be self-sufficient, and barder/trade for the rest.
The evil influences of the rest of this squalid planet just make me sick.
22. I vote for all of that and maybe add in cut all internet traffic with the outside world. BTW Toby why don't you move to North Korea? It sounds like the paradise you are looking for...
Sep 10th, 2012 - 10:03 pm - Link - Report abuse 0@ 20 Conqueror Captain Poppy
Sep 10th, 2012 - 10:21 pm - Link - Report abuse 0boring british ARSE!
I keep asking Toby to visit the states but think he is either afraid, or they will not grant him permission. Notice how he wants to barter for trade.......low funds projected.
Sep 10th, 2012 - 11:07 pm - Link - Report abuse 0@25
Sep 10th, 2012 - 11:14 pm - Link - Report abuse 0I am in the states.
But your are not! Conqueror Captain P0ppy
Give up!
No ones cares what you said ....british arse!
Stop making such comments about my country!
Argentina On The Brink: What Is The Real Investment Risk?
Sep 10th, 2012 - 11:23 pm - Link - Report abuse 0seekingalpha.com/article/477871-argentina-on-the-brink-what-is-the-real-investment-risk
Come up to Boston sussie, I'll take your for a swim out in Nauset ......lol it's feeding time
Toby makes $300/mo...or less he can't afford to go anywhere. Anyway my friends was talking to his Aunt in BA today and she was complaining that they won't let anyone leave the country because they won't let them exchange the U$.
Sep 11th, 2012 - 01:29 am - Link - Report abuse 0Myanmar or North Korea wonder which path TMBOA is choosing...
Nauset Beach has become the new Great White Shark capital of Cape Cod......I do a lot of offshore sport fishing through that area and would love to take a few of them fishing .......(grin)
Sep 11th, 2012 - 10:26 am - Link - Report abuse 0Whats the uptake on Dannyberger? Another kid of la campora?
Dany has been around a long time. I am seeing a pattern emerge that is pretty frightening, the Rgs supporting posters are becoming increasingly un-hinged! So something is up, for years the proK supporters were crowing about how great it was in Arg as compared to X, they are leading the way, blah blah blah, every time I pointed out that The Ks have solved nothing and it was easy to pump up a small economy with lots of fiat money they disagreed, called me a liar, whatever.
Sep 11th, 2012 - 11:52 am - Link - Report abuse 0Well now the $ is gone and the good times are coming to an end, they've lost what little support they had from the USA, Spain, Italy, Germany and whomever else is currently suing them and they are panicked. Wait until all of those countries shut off Arg Imports in retaliation it is gonna get ugly!
I am betting the upper middle class will get the ball rolling to get her out soon. That is their only hope.
Quite a few of the malvinistas are showing decided anti-K tendencies of late..... biting the hand that feeds them maybe.....
Sep 11th, 2012 - 12:03 pm - Link - Report abuse 031 Frank
Sep 11th, 2012 - 04:13 pm - Link - Report abuse 0“biting the hand that feeds them maybe.....”
But not on 6 pesos a day! LOL
That's the new thing......Heard of the Hollywood diet? Well.....the is the Argentine diet.
Sep 11th, 2012 - 04:40 pm - Link - Report abuse 0@ yankeeNobody
Sep 11th, 2012 - 05:51 pm - Link - Report abuse 0Stop pretending you are an USA citizen...you are Isolda, la sueca, posting under several different names.
Most president's devalue their currenct immediately in their term to get it out of the minds of the public........not this imbicile.
Sep 11th, 2012 - 07:56 pm - Link - Report abuse 0BMI’s assessment of Argentina’s economy has become more bearish, prompting us recently to downgrade our real GDP growth forecasts for 2012 from 4.0% to 3.0% and for 2013 from 3.7% to 0.9%.
For years, the government of President Cristina Fernández de Kirchner has had the twin goals of delivering robust GDP growth and servicing the country’s debt.
However, inflationary monetary and fiscal policies intended to stoke growth have created significant downward pressure on the exchange rate. The implied rate is around ARS6.53/US$, but the official rate is at ARS4.65/US$. The government has kept an artificially high exchange rate because of the adverse impact a devaluation would have on its ability to service its foreign debt.
What Has Changed Our Views?
A slowing of the Argentine economy, coupled with weakening global demand, has required even more drastic measures to ensure growth and keep the currency stable, such as import restrictions and severe capital controls. These policies are exacerbating economic stagnation and leading to political unrest. We view them as unsustainable in the medium term.
We now believe that the Argentine government is rapidly running out of policy options and will have to devalue its currency, which we expect to happen in 2013. The result will be:
•Higher inflation (averaging 25% over the year)
•Almost no real GDP growth (0.9% in 2013)
After this devaluation, however, economic growth should steadily increase (to between 2.6% and 4.7%) in 2014-2016, by our forecasts. Counting in the economy’s favour, export competitiveness should improve, and the economy is abundant in natural resources (oil and gas, shale discoveries). Argentina’s human capital – Where We Stand Versus Consensus
We are slightly above Bloomberg consensus for 2012 GDP growth (2.4%), but well below Bloomberg consensus for GDP growth in 2013 (3
Cap, I read that article over the weekend. There are some valid points but I think they are way off on the devaluation. If she devalues it must be above the highest gray market rate ( currently $8.40/1 in Brazil) somewhere far enough above to cancel out the parallel markets but small enough not to spook the population but I am not sure that is possible at this point.
Sep 11th, 2012 - 09:21 pm - Link - Report abuse 0The devaluation will drive INFLATION like they had in the 90s. You immediately see prices spike then wages then prices until a complete crash.
I think hyperinflation is right around the corner and there is no way to avoid it now.
I do to. I just love to give them somethingto read other than their scripts. The pesos drops everyday. Most politicians would do it immediately......she must think she is putting the pain off. Sussie has a new name something like presioca.......she is absolutely nuts. She thinks everyone is a Brit. I think the RGs are paranoid of Brits.
Sep 11th, 2012 - 11:42 pm - Link - Report abuse 0@36 YankeeNobody/Isolda Putisiiiiiiiiiiiiiiima!
Sep 12th, 2012 - 01:47 am - Link - Report abuse 0@Conqueror Captain Poppy Craig R Zhivago same arse
You are not americans, I can tell you that!
Yankee....WSJ has CFK taking another business in the communications industry......when will she get it?
Sep 12th, 2012 - 01:52 am - Link - Report abuse 0@39 Conqueror/Captain Poppy/Craig R/Zhivago=same gay guys all from the UK, I can tell you that!
Sep 12th, 2012 - 02:02 am - Link - Report abuse 0The 'argentine wife” don't exist.
jeeeeeeeeeeeeeejeeeeeeeeeeeeeeeeejeeeeeeeeeeeeeeeeeeeeeyou gay guys
need UK Prince Harry bare rossy arse!
How does an oil company lose money these days? Oh it's in argentina!
Sep 12th, 2012 - 12:37 pm - Link - Report abuse 0http://www.bloomberg.com/news/2012-09-12/petrobras-argentina-to-fall-on-bearish-sign-technical-analysis.html
3% growth and 9% inflation projected from the government....just imagine what the reality is?
http://www.bloomberg.com/news/2012-09-12/petrobras-argentina-to-fall-on-bearish-sign-technical-analysis.html
http://www.bloomberg.com/news/2012-09-12/petrobras-argentina-to-fall-on-bearish-sign-technical-analysis.html
And are investors from America going to invest in Uruguay or Argentina:
Sep 12th, 2012 - 02:54 pm - Link - Report abuse 0http://www.thestate.com/2012/09/09/2433416/tiny-uruguay-outshines-neighbor.html
Wait for the crap from the usual suspects!
With a little help from the big,bad, evil empire.
Sep 12th, 2012 - 03:20 pm - Link - Report abuse 0Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!