MercoPress. South Atlantic News Agency
Argentine organized labour anticipates fierce wage talks despite controversial tax relief
Argentina’s organized labour CGT confederation led by Hugo Moyano came on stage on Tuesday to make clear that Monday’s income tax floor 20% rise announced by President Cristina Fernández “is not enough” and anticipated fierier wage talks with a clear 25% raise demand. Read full article
Comments
Disclaimer & comment rules20% is a HUGE raise if Christina is being honest that inflation is only 9%.
Jan 30th, 2013 - 07:08 am - Link - Report abuse 0So, is she being honest?
The good news is that the money printers will be earning lots of overtime to make up the drop in revenue.
Jan 30th, 2013 - 08:32 am - Link - Report abuse 0The business leaders are saying they want no increase since the economy is in recession and exports are already uncompetitive. For gosh sakes even fruits and vegy exports are too expensive and are dropping like a rock.
Jan 30th, 2013 - 11:25 am - Link - Report abuse 0Looks to me like everyone is pressuring for a HUGE DEVALUATION
And with Argentina's heterodoxy economy they can devalue their way to riches.
This is the trouble with inflation/stagflation. Ultimately, any wage hikes which match the level of inflation are retrospective/historical and are immediately of out date within a month. However, you can't give wage rises which take into account the next 12 months of inflation as this will stoke inflation even more. As a result, the whole thing ends up resembling a poo sandwich without the bread.
Jan 30th, 2013 - 11:45 am - Link - Report abuse 0Yep, wage spiral. I had this chat with many an Rg on this board. They called me every name they could think of and said I was spreading lies because wages will always go up more than inflation.
Jan 30th, 2013 - 11:56 am - Link - Report abuse 0Yes until the $ runs out, which it did last year
Anses is Bankrupt Poof all the $ is gone
BCRA reserves are depleted and finally the financial world is worried
U$ are still leaving the banking system...what little is left
Everyone is waiting on the Devaluation as the economy grinds to a halt
It is all hanging on the SOY crop...again...as usual...which is withering in the fields with no rain and 90f+ week in and week out.
If I was trapped there I would be buying sugar, laundry detergent and toilet paper to trade. This is what happens when you follow Chavez's playbook but don't have oil.
True, unless you have a ready supply a black gold you're going to find it difficult to survive with these economic policies. I have to say that I'm a big fan of Chavez, he's cunning chap. Best friends with Argentina but when they ask him for a loan he duly obliges but punishes then with interest rates way above the market standard (even for Argentina). Venezuela will probably end up owning Argentina and it would surprise me if the next lot of loans from Venezuela come with security over Argentina's shale deposits or at least security over the shares of YPF to be realised on an Defalut/MAC event
Jan 30th, 2013 - 12:13 pm - Link - Report abuse 06. Without Chavez I doubt any new loans will be forthcoming. Venezuela is in pretty bad shape itself and if Chavez doesn't show up alive soon there will be a change in Gov't.
Jan 30th, 2013 - 12:22 pm - Link - Report abuse 0When Chavez dies this cobbled together alliance with the Bolivarian Socialist countries will die with him and probably UNASUR too.
In the end Brazil will have to step up and lead South America but we'll see if they can do it. They have their own problems to deal with and I don't think they are “grown up” enough to take on the responsibility.
I think the USA is going to push the RG collapse on Brazil. I think they'll make sure all Int'l $ is inaccessible and make Brazil fund them . It should be fun to watch if you don't live there.
@7 yankeeboy
Jan 30th, 2013 - 12:38 pm - Link - Report abuse 0But Brazil are in the mire themselves and, it seems to me, do not know how to tackle the problems.
It seems incomprehensible that Dilma will bankroll the biggest crooks on the continent, but there again; she has kept Mantega as finance minister!
The next 12 months is going to be just as interesting with Brazil as it will be with AR.
Chris, That is my point. I think it is a deliberate plan of the USA to saddle Brazil with Argentina's debt and problems. In will thwart their efforts to become a major player in world politics.
Jan 30th, 2013 - 12:53 pm - Link - Report abuse 0Brazil isn't ready anyway. They may never be ready. There are too many poor and uneducated people there to play with the big boys.
Dilma looks completely out of her depth and I think is making some grave economic errors that is going to really hurt them in the end.
I think the saying is still apt, Brazil the country of the future (that will never come)
@9 yankeeboy
Jan 30th, 2013 - 04:00 pm - Link - Report abuse 0Good points well made.
Yankeeboy and ChrisR
Jan 31st, 2013 - 09:38 am - Link - Report abuse 0Good points.
Basically if Brazil wants to be a world leader, it needs to start at home. They need to become the main player in South America, and show leadership to the other countries there, regarding trade, politics, economy, etc.
However, when you have basketcase countries like Argentina and Venezula in your backyard, it makes it difficult.
Brazil needs to step up and take control (metaphorically speaking) of institutions such as Mercosur. Ensure that everyone plays by the rules, and enforce their rules. They have been lacking in that, with the illegal suspension of Paraguay, and the illegal inclusion of Venezula.
Oh well, all the sh!t is in their own backyard, and if they're not willing to clean it up, why should anyone else.
When Argentina goes tits up, the rest of the world is going to shrug and walk away. I mean why should the world help when Argentina refuses to honour its debts? Why should the world throw good money after bad?
Nope you're right. Argentina's continuing failures should be left up to the other countries of South America to sort out. It's their problem now.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!