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Argentina moves to control prices of a basket of 300 basic products

Tuesday, October 2nd 2012 - 06:07 UTC
Full article 54 comments

Argentina's federal government has ordered supermarkets to offer a basket of 300 basic products at low prices amid a backdrop of what many economists say is one of the highest rates of inflation in the Americas. Read full article

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  • Idlehands

    The command economy has arrived. The only question is whether this is to ensure Argentines can afford to eat or whether it is designed to further fiddle the inflation figures. Either way history has shown that such a policy always ends in a shambles.

    Oct 02nd, 2012 - 06:26 am - Link - Report abuse 0
  • Usurping Pirate

    I remember the KK's trying this before . Mate anyone ?
    All they do is create shortages of basic necessities and foodstuffs followed by a price explosion .

    Oct 02nd, 2012 - 07:28 am - Link - Report abuse 0
  • The Chilean perspective

    The worst thing to do. Just wait a little while and these 300 items will be missing from the shelves.

    Oct 02nd, 2012 - 09:52 am - Link - Report abuse 0
  • yankeeboy

    My gosh don't these people read any history or have ever taken an economics class? Are they even offered in Argentina? It would seem not.

    Want to bet Axel et al will think it a brilliant move...

    Oct 02nd, 2012 - 10:19 am - Link - Report abuse 0
  • Idlehands

    You're a farmer who has always grown wheat. Now the government insists that you sell your wheat below production costs. Strawberries are not considered an essential product so is not only a high yield cash crop but also not covered by the government restrictions. Do you carry on producing wheat and selling it at a loss for the good of the nation and the president - or do you grow strawberries and laugh all the way to the bank (until you find it collapsed)?

    Oct 02nd, 2012 - 10:53 am - Link - Report abuse 0
  • yankeeboy

    5. That is why the farmers are planting Barley this year instead of Wheat. They may not have enough wheat for internal consumption next year. Unimaginable in a country with this amount of farmland!
    Shades of Zimbabwe
    Kirchner-Mugabe
    Pretty soon they'll start adding a couple zeros to the Peso notes.

    Oct 02nd, 2012 - 11:04 am - Link - Report abuse 0
  • DanyBerger

    Well done Mr. Moreno, jail for the crocks that inflate prices artificially.

    You should press even more on “Terrones” boys that want to get rich by planting a tomato.

    You should list them as public enemies, I don’t like farmers because they are greedy and exploiters of the human race.

    Oct 02nd, 2012 - 11:16 am - Link - Report abuse 0
  • yankeeboy

    Dany, You just won the title for the stupidest poster on this site! Yea for you! You beat out Axel which I thought was impossible but you did it! Good for you Congratulations!

    Oct 02nd, 2012 - 11:25 am - Link - Report abuse 0
  • Idlehands

    They are “exploiters of the human race” when they feed everybody? I suggest you get out in the garden with a pair of marigolds and plant some potatoes. See how you get on.

    Argentina is enormous with massive mineral wealth, vast swathes of arable land and yet..................

    Oct 02nd, 2012 - 12:14 pm - Link - Report abuse 0
  • Sergio Vega

    7@ Dany, just read about the Chilean history from 1970 to 1973 and you can know your future.....near future.
    Well done, Economy Minister...you are opening the food black market in Argentina...

    Oct 02nd, 2012 - 12:17 pm - Link - Report abuse 0
  • Condorito

    Do they plan to subsidise the supermarkets for the difference in market price and controlled price? Or does the supermarket just have to take a hit on the difference between what they pay for the goods and what they are allowed to sell them at?

    3 TCP Yep, on the money bro.

    7 Dany
    I understand your need to support ideas just because they are Argentine, but come on, level with me here, do you really think this is a good idea?

    Farmers and shop owners are just like every other working person, they work to make money. If you don’t let them make money they won’t work. Then there will be less food and less distribution channels, i.e. more expensive food. History has shown this over and over again.

    Where do you live that you can’t see the damage being done? I live in the province of Elqui. Here the supermarkets are overflowing with goods and food. There are so many supermarkets it is hard to believe they can all stay in business. You never see and empty shelf. Prices are stable, in fact the strength of the Chilean peso has kept down the price of imported food. A couple of months ago I was in San Juan, just over the border from here. It is a different world: empty shelves and minimal selection. Open your eyes. Why defend an absurd policy just because it is Argentine?

    Oct 02nd, 2012 - 12:35 pm - Link - Report abuse 0
  • Idlehands

    I wonder if botox and polyfilla are considered essential basic products in Argentina?

    Oct 02nd, 2012 - 01:09 pm - Link - Report abuse 0
  • Conqueror

    @7 Excellent idea. Imprison the people that produce your food. So after your massive fuel imports, you're going to add massive food imports.

    Oct 02nd, 2012 - 01:33 pm - Link - Report abuse 0
  • Captain Poppy

    The margins are razor thin in retail food distribution. Being in the wholesale food distribution business(internationally), I do see how this will not explode in their faces. The government either needs to own the retail business and accept losses which will impact their budget, or the government will need to subsidize the private entites losses which will affect the budget, or accept that those products will vanish from the shelves or worse, push the privately owned business out of business which is the most likely scenario for asslips kirchner.

    Oct 02nd, 2012 - 01:44 pm - Link - Report abuse 0
  • PirateLove

    This controlled move has only been brought on in reaction to the IMFs red card threat, in her deluded attempt to “temporarily” bring the real inflation figures on par with the government run INDECs false estimation, for just enough time to secure more loans in december.

    If The argentine government can order on mass all these low prices overnight INDECs official :) inflation figures for last month (9.9%) must have surely dropped dramatically to give all these bargains? can we expect the next INDEC figures of say....2.5% ??

    and have the supermarket suppliers been ordered to lower their prices, and so on?

    its a domino effect and queing for overpriced basics will be much worse than it is now, Unemployment and food shortage will become devastating,

    however she will have bought herself a different nationality by then.

    Oct 02nd, 2012 - 01:49 pm - Link - Report abuse 0
  • yankeeboy

    14. They will do neither. The Ks made profit illegal a long time ago...well others people's profit that is!
    They also did this during the hyper inflation period...it didn't work then either. People were calling each other when sugar and yerba mate showed up on the shelves!
    Welcome to 1980s Moscow! Or current Caracas.

    Oct 02nd, 2012 - 01:50 pm - Link - Report abuse 0
  • DanyBerger

    @yankeeboy

    Are you a tomato planter o a full “Terrone” from Sicily?

    @For all terrones

    Food can be imported from everywhere and I personally will import food from Africa and poor countries while sell them product with add value.

    Sorry mates but you are not indispensable as you believe I don’t know who have made you thought that.

    If you push too far you will be replaced by an African supplier and none will care...

    Trust me...

    I will open import of sugar from Cuba, I will Import vegetables from Africa, etc, etc.

    You have to understand what will be to compete in a free market.

    In 2 years all of you will be ruined.

    Oct 02nd, 2012 - 02:20 pm - Link - Report abuse 0
  • Conqueror

    @17 Cuckoo!!

    Oct 02nd, 2012 - 02:24 pm - Link - Report abuse 0
  • Idlehands

    I wonder how cheap it is to personally import sugar from Cuba? Let us know how you get on with that.

    Oct 02nd, 2012 - 03:07 pm - Link - Report abuse 0
  • Condorito

    @Dany,
    “Food can be imported from everywhere and I personally will import food from Africa and poor countries while sell them product with add value”

    Yes, but where are all these great Argie value added products?

    Oct 02nd, 2012 - 03:27 pm - Link - Report abuse 0
  • Simon68

    17 DanyBerger (#)
    Oct 02nd, 2012 - 02:20 pm

    Good luck, Dany, with your sugar project, unfortunately Cubas projected production of sugar is about 4 million tons per year which is exactly Cuba's sugar consumption, so I think you'll have to look elsewhere!!!!!!

    Oct 02nd, 2012 - 03:29 pm - Link - Report abuse 0
  • yankeeboy

    Dany should get together with PH and only sell to Rgs that have gold coins. That sounds like a great business plan.

    Oct 02nd, 2012 - 03:31 pm - Link - Report abuse 0
  • Captain Poppy

    Is danyburger ten years old? Maybe he will eport food from Ethiopia. AFter food starts disappearing from the shelves, I am sure the crime rate will even triple.

    http://m24digital.com/en/2012/10/01/oas-argentina-has-the-highest-robbery-rate-in-america/

    Oct 02nd, 2012 - 04:20 pm - Link - Report abuse 0
  • Ayayay

    @Poppy How is Venezuela not on that list?

    Oct 02nd, 2012 - 04:43 pm - Link - Report abuse 0
  • Troy Tempest

    @7 Dunny

    “You should list them as public enemies, I don’t like farmers because they are greedy and exploiters of the human race.”

    You sound as stupid as Alex Vargas, the kid from Canada.
    He wants to nuke everyone!

    Dany, are you one of the La Campora“12 year-olds on Yahoo” that Patonuzu speaks of ??

    Dumkopf!!

    Oct 02nd, 2012 - 04:49 pm - Link - Report abuse 0
  • Captain Poppy

    They do not track crime Ayayay

    Oct 02nd, 2012 - 05:06 pm - Link - Report abuse 0
  • Xect

    Some more of Dany's comedy genius.....

    Oct 02nd, 2012 - 05:08 pm - Link - Report abuse 0
  • Britninja

    Dany really needs to import a new brain - the sugar can wait.

    Oct 02nd, 2012 - 05:11 pm - Link - Report abuse 0
  • Ayayay

    Noone loves the leader more than in a command economy.

    The orphans sing “We do Not Envy” while ngos come in with red bracelets.
    The width tells how soon they will die, left by parents who couldn't take care of them, in countries that formerly fed themselves.

    This is a good article on how it took two generations for North Korea to go from a fed, unequal country to a country where the 200 grams often doesn't arrive.

    http://www.atimes.com/atimes/Korea/ND25Dg03.html

    Of course the citizens blame themselves being ungrateful at the State's generosity.

    U.S. Impeached Pres Tricky Dick, aka Richard Nixon attempted price controls and quickly abandoned them, so it may be something that happens over time.

    Can someone find me one country where price controls were not followed by people controls?

    Oct 02nd, 2012 - 05:58 pm - Link - Report abuse 0
  • jakesnake

    Dany, are your posts a goof? You're seriously not as stupid as your posts make you seem right? I'll give you the benefit of the doubt and say that “Dany's just having fun pretending to be stupid”.

    Oct 02nd, 2012 - 06:25 pm - Link - Report abuse 0
  • KretinaKK

    A huge “cacerolazo” (pot banging protest) in protest of the Kirchner corrupt governement, is planned for November 8th not only in every single city and town in Argentina, but in front of every Argentine consulate all over the world! Here's the link:
    http://www.facebook.com/events/315644108534028/

    Oct 03rd, 2012 - 03:56 am - Link - Report abuse 0
  • Usurping Pirate

    I can see where this “ policy ” will lead to . If the farmers don't grow what the govt want them to grow , they will attempt some sort of land reform , and as soon as they do that , there will be civil war . This egotistical demagogue , whose handbags cost more than an average Argentine earns in a year and owns half of Patagonia , has the temerity to refer to ordinary farmers , some with as little as 200 hectares , as oligarchs .
    Dany Berger will change sides as soon as the “ plan descansar” cheques stop arriving ( Fijate el presupuesto Dany , te van a abandonar y te vas a morir de hambre )

    Oct 03rd, 2012 - 07:27 am - Link - Report abuse 0
  • Welsh Wizard

    @17 fair enough Danny, you know the deal. Just make sure that you export the equivalent amount of goods otherwise your vegetables will spend a lot of time rotting in customs

    Oct 03rd, 2012 - 08:25 am - Link - Report abuse 0
  • DanyBerger

    @for all socialist food planters...

    I want the “Food Clamp” to be finish and a over value Peso let’s say USD1= 1.75 ARG Pesos because I want to buy food from all over the world like UK does, especially Meat from Africa, Tomatoes from Spain, Wine from Californication, potatoes from Poland, American soy imported from Japan, Milk from China, etc, etc.

    And I Don’t want to forget “Coda di muca” from Rome, “Tiramisu” from Venice and Bottles of “fashion wine” designed by Pier Giorgio Scrimaglio at “Nizza Monferrato”.

    Cacerolazo in Las Cañitas against the “Food Planters” AKA poor “contadini” morti di fame chi te vendeno un pomodoro di merda per 20 pesos and who invade our neighbourhoods with poop cow smell.

    With 2 supporters would be enough sure “ClarinMiente” and la “Destruccion” will bring us a full coverage after to pay them few ads, if they are not scraped first on 7D.

    So hurry up before is too late...

    Question for Harvard also available like “Why Argentine cannot buy food from others countries?”, Why Argentina protects so much “Food Planters”, “Why Argentina does not follow the successful economic case of Island?” more Harvest Question coming soon...

    Oct 03rd, 2012 - 11:35 am - Link - Report abuse 0
  • yankeeboy

    Dany, I am not sure if you are really this stupid or have never been to Argentina?
    You don't import fresh foods because you don't have the infrastructure to support it! It is incredibly expensive and requires HUGE volumes to move/store/distribute fresh fruits and vegetables. Maybe someday it could be set up in BA but not the hinterlands and certainly not if you have a 7/1 ( or more) peso.
    Get into the real world man!
    You are making yourself look like a complete fool.

    Oct 03rd, 2012 - 01:49 pm - Link - Report abuse 0
  • agent999

    DanyBerger is on the same kindergarten shift as malen, ProRG_American and pgerman.

    Oct 03rd, 2012 - 03:58 pm - Link - Report abuse 0
  • reality check

    Can there be anything worse than agovernment telling you what food you should buy and where you should buy it. I am trying to come up with another country does the same and to be honest, the only one I can think of is North Korea.

    Oct 03rd, 2012 - 04:06 pm - Link - Report abuse 0
  • Captain Poppy

    They are telling them everything else....why not food.

    Oct 03rd, 2012 - 04:21 pm - Link - Report abuse 0
  • reality check

    Aye, but where is their sense of self respect! Would you let your government (loaded question) walk all over you the way they do, I know I would not and any government trying it here would be shown the door PDQ as I suspect they would with you.

    Oct 03rd, 2012 - 04:29 pm - Link - Report abuse 0
  • Usurping Pirate

    Whats the difference between Argentina and North Korea ?
    North Korea isn't full of ignorant trolls talking bollocks all day .

    Oct 03rd, 2012 - 05:40 pm - Link - Report abuse 0
  • yankeeboy

    40. North Korea has a military.

    Oct 03rd, 2012 - 08:24 pm - Link - Report abuse 0
  • Joe Bloggs

    40 UP

    One is run by an out-of-control raving lunatic and the other is a dictatorship.

    Oct 03rd, 2012 - 09:10 pm - Link - Report abuse 0
  • Pheel

    I enjoy the idea that Dany will be ruined before than us.
    Long life to barley and strawberries

    Oct 03rd, 2012 - 10:15 pm - Link - Report abuse 0
  • DanyBerger

    @yankeeboy

    Ha ha YankeeBoy you are so funny...

    “Hunts Point Cooperative Market wholesale food market located on 60 acres (243,000 m²) in New York City's South Bronx district, is the largest food distribution center in the world.” Ha ha
    http://en.wikipedia.org/wiki/Hunts_Point_Cooperative_Market

    Corporacion Mercado Central de Buenos Aires. CMCBA

    Built over 510 Hectares (Close to 1300 Acres or 5,1millions Square meters), and with 210 hectares used for sale of just fruit and vegetables and supplies around 11m inhabitants.
    Employs more than 15.000 workers.

    Close to the Buenos Aires port and in its doors has a highway direct to the port.
    http://en.wikipedia.org/wiki/Hunts_Point_Cooperative_Market
    http://en.wikipedia.org/wiki/Hunts_Point_Cooperative_Market
    http://en.wikipedia.org/wiki/Hunts_Point_Cooperative_Market
    http://en.wikipedia.org/wiki/Hunts_Point_Cooperative_Market
    http://en.wikipedia.org/wiki/Hunts_Point_Cooperative_Market

    Big retailers chains like Cotto, Carrefour, etc, have their own distribution centre also equipped with cold-storage systems, etc.

    Also BA is full of companies dedicated to bring cold-storage service.

    Oct 04th, 2012 - 07:11 am - Link - Report abuse 0
  • Usurping Pirate

    DB : A few posts back you were demanding the removal of tax concessions granted by Menem for the big food retailers in Argentina .
    I thought you hated big businesses like Coto and Carrefour ?

    Plus .... Cold storage runs on electricity . They couldn't even run the lights for Argentina v Brazil for chrissake .

    Oct 04th, 2012 - 08:29 am - Link - Report abuse 0
  • DanyBerger

    @Usurping Pirate

    I don’t hate anyone just fair competition.

    Providing tax exception to promote big corps in detriment of medium size and little retailers is so stupid.

    1000 little retailers selling the same amount of items than a big mall produce more revenue, jobs and tax collection.

    The suppliers of the big chains after years of trading with big retailer chains call now that sector “the business of the stupid” the big chains now has the power to impose them the buying price, they pay when they want and with the money’s supplier they buy troubling factories to produce they own products with own brands.

    They started to recreate the old business with the little retailers but as all have already collapse would be very difficult.

    So the big chain in the future like Walmart does in US can import even milk from China.

    Oct 04th, 2012 - 09:31 am - Link - Report abuse 0
  • Usurping Pirate

    Dany Boy , The government you are paid to troll for has spent the last 10 years attacking and destroying the middle class and small businesses , through high taxes , archaic employment laws and allowing crime to spiral out of control .
    The only businesses that have been able to prosper are the big conglomerates , through coimas ( thats bribes ) to your employers and the unions.
    The world is a giant market , and Argentina needs to be supplying the market , not sulking like some spoilt child .
    That doesn't mean just taxing agriculture and giving some money to the poor , paying trolling twats like you to lie all day and stealing the rest , it means spending the money on infrastructure and education , lowering taxes , encouraging foreign investment ( not driving it away like the Repsol fiasco), cracking down on graft and corruption in a big way and most of all , Argentines realizing they are competing with other developing economies and rolling up their sleeves and doing some work , instead of simply feeling sorry for themselves and blaming all their screw ups on others.
    It will never happen , though.

    Oct 04th, 2012 - 04:53 pm - Link - Report abuse 0
  • MaxAue

    Join in

    http://www.facebook.com/TruthTellingTroll?ref=ts&fref=ts

    Oct 04th, 2012 - 04:59 pm - Link - Report abuse 0
  • DanyBerger

    @Usurping Pirate

    Farming is poor taxed in Argentina should be taxed even more to compensate the environmental damage coursed by agrochemical, deforestation, soil pollution, excessive use of water, etc.

    I agree that this govt. have made some tings wrong like to protect the farmers to pay the royalties to Monsanto.

    But slowly this will be fixed and Monsanto will collect all royalties like in US.

    “Monsanto has a patent for the new seeds in Argentina, but under current local
    law, farmers aren't required to pay royalties on the seeds they”
    http://www.seedtoday.com/articles/Argentina_s_New_Biotechnology_Law_to_Tempt_Monsanto-125901.html

    I also would like open borders policy for food only, so I will be able to buy tomatoes from Spain, Italy, etc. Wine from France and Italy, American soy processed in Japan, potatoes from Poland, etc.

    Oct 05th, 2012 - 05:48 am - Link - Report abuse 0
  • Usurping Pirate

    DB : The reason farmers are tearing down every last forest and planting soja on every last inch of the country is to meet the already excessive land taxes imposed by the K govt .
    The only way to meet the growing tax bill is to carry on raping the environment .
    Pagina12 is for wiping your arse with , not for reading and being taken seriously . Read a free newspaper instead .
    Argentina is the 5th largest wine producer in the world , and you want to import it from France .
    Pendejo boludo

    Oct 05th, 2012 - 08:17 am - Link - Report abuse 0
  • DanyBerger

    @Usurping Pirate

    Yes I want imported wine from France, Italy and all over the world much better than the shitty wine produced in Argentina. And also food.

    What is the problem? Don’t you like free market?

    If I used to buy wine from all over the world in London why I cannot do the same in BA?

    Why I have to support incompetent producers in Argentina with my $$$$?

    Have you turned into a protectionist socialist suddenly?

    May be if this govt. falls and comes some liberal to power and put 1 dollar 1 peso I will setup an importer wine and food company in BA. I only need to make a phone call to Scrimaglio and some producers from La regione della Lombardia to start with...

    Do you think than then will you sell your shitty wine?

    Pronto, Scrimaglio chi parla?
    Sonno io ragazzi DB il Tedesco ti ricordi?

    Come stai...

    Molto bene ti ringrazio, sai vorrei mettere a posto un magazzino di vostri vini in Argentina, Ce qualche problema?

    Nessuno DB Nessuno... quanto voi?

    Oct 05th, 2012 - 10:16 am - Link - Report abuse 0
  • Usurping Pirate

    Ce qualche problema?

    God built Argentina in 5 days

    On day one he created fertile lands as far as the eye can
    On day two he put huge navegable rivers and the Andes for water
    On day three he put in massive mineral wealth
    On day four he gave the place perfect weather
    On day five he realized he had gone too far in his generosity , so he populated the place with italians .

    Oct 05th, 2012 - 10:49 am - Link - Report abuse 0
  • DanyBerger

    @Usurping Pirate

    The Italians, The Spanish, The French, The German and some molester Mohammeds from littles islands.

    Bloody 'ell mate

    Oct 05th, 2012 - 12:37 pm - Link - Report abuse 0
  • Usurping Pirate

    And you forgot to mention that all these Europeans killed the natives and stole their lands , and continue to do so to this day .
    One of the reasons for sending northern regiments from Formosa, Misiones and Corrientes to the Falklands in 1982 was to send Guarani conscripts in order to spare the loss of ( Argentine) European blood .

    Oct 06th, 2012 - 09:08 am - Link - Report abuse 0

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