Uruguay’s fiscal and salaries policies out of control plus heterodox ‘solutions’ rumours

Wednesday, December 12th 2012 - 19:34 UTC

Full article 5 comments

Uruguay has “politicized the management of its economy” with the government letting the “trade unions and its political allies” master the country’s budget and the salaries policy, claimed Ernesto Talvi a conservative economist from the local think-tank CERES who is also a World Bank consultant. Read full article

Comments

Disclaimer & comment rules

ChrisR
If this guy is correct (and is there any reason to doubt it?) it is all beginning to make sense to me now.

I was always firm in the belief that none of the so called 'leaders' had any understanding at all of running a large business which any country with only 3M people could be considered to model.

Put the monkeys be in charge of the zoo jumps to mind.

As an atheist God help us.

Peace and blessings to the monkeys.
Dec 12th, 2012 - 08:03 pm - Link - Report abuse 0
-+
redpoll
I would agree with most of it but dont think the picture is as black as he paints it
Dec 12th, 2012 - 11:26 pm - Link - Report abuse 0
-+
ProRG_American
See, I told you so.

http://www.buenosairesherald.com/article/119310/cfk-argentina-close-to-reaching-automobile-trade-agreement-with-mexico
Dec 13th, 2012 - 11:56 pm - Link - Report abuse 0
-+
BAMF Paraguay
#2 Red, it may take a few years for things to really start taking a turn for the worse, but since populist governments are unwilling to make decisions that go against “their” people, then you can expect it to only get worse. As Chris stated, these politicians don't know how to run a business and in a business you must make many decisions that can be extremely unpopular with your workers, but you do it because it is good for the company and without the company there are no jobs. So in the case of these countries turning to socialism, you can only expect poor decisions to be made and with it the bleak consequences as stated in the article.

Just look at the USA; it has been in a depression for several years now...

http://www.shadowstats.com/alternate_data/gross-domestic-product-charts

We all can expect the government to paint a prettier picture of the economy or of society as a whole, but we must be skeptical. Politicians have an invested interest in feeding us inconsistent information. When I lived in the USA during the 90s, I know it was much richer than it is today. 17 trillion dollars in debt is a poo load. It will only lead to massive inflation...

http://www.shadowstats.com/alternate_data/gross-domestic-product-charts

So yeah, things are bleak. If the USA goes, most of the world goes with it. Sucks but that is the sad truth.
Dec 14th, 2012 - 01:12 am - Link - Report abuse 0
-+
redpoll
Bamf Uou raise some interesting points Talvi was on CX4 this morning amplyfying his comments
Things seem to be unraveling rather quickly for a country to progress business must have confidence in its fiscal policies and the honesty of the politicians in charge This image has been severely damaged by the PLUNA business . Up to now the macro economy has been run on sensible lines and has produced a booming econmy and a vastly increased tax revenue all of which has been spent on bread and circuses rather than infrastructure investments to such an extent that the govt is spanding more than it receives in revenues. The president will say anything one day and flatly contradict himself in a different ambience the next day. There are open splita betwen the two wings of the Frente Amplio with some comments on land expropiation which doest inspire investor confidence
I think the USA is partly responsible for world inflation with its almost unrestricted printing of more paper money. The Us has never been through a crisis such as happened during the Wiemar republic in Germany
We talk of sky high commodity prices. They are not. Its the dollar that has nose dived and being a reserve currency has dragged all others down with it In the 1970 1 troy ounce of gold was “worth” 32 dollars. And today? What did a ton of wheat sell for and whats is its price today? What was your house worth back then and what could you sell it for today. These are the real indices of inflation
But its worse than that as the issue currency paper notes over whose issue the Central Banks have some control has been replaced by plastic debt which they cannot
Dec 14th, 2012 - 01:13 pm - Link - Report abuse 0
-+

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!