MercoPress. South Atlantic News Agency
Massive money easing in rich countries making Latam currencies too strong
Currency strength due to stimulus measures in the developed world is currently Latin America's Achilles' heel, though the region's macroeconomic management is a bright spot, the head of the United Nations' body for the region said on Monday. Read full article
Comments
Disclaimer & comment rulesAhh, the 'rich' countries are now 'conspiring' against LATAM, apparently.
May 21st, 2013 - 07:48 am - Link - Report abuse 0“We're very worried about exports. Last year they fell significantly,” Barcena said. “I think we have to prepare ourselves for more moderate trade, especially given the fall of aggregate demand from Europe and the United States and the deliberate slowdown in China.”
Or is it that the 'rich' countries have problems of their own that they are actually addressing, and quite frankly South America needs to start addressing it's own problems too?
Lep,
May 21st, 2013 - 02:52 pm - Link - Report abuse 0I don’t think she is implying there is a conspiracy, just pointing out that the beggar thy neighbour policy being pursued by the US, UK and now Japan has serious implications for Latin America. It has equally serious implications for the rich countries too.
I don’t blame the rich countries for falling back on this measure as they have their own incentive to do so, but I would not be so sure that by doing so they are addressing their own problems. Addressing their own problems (in the UK/EU) involves biting a bullet that the voting public is not prepared to bite yet.
One thing is sure, Alicia Barcena is NOT talking about Argentina!!!!!!!
May 21st, 2013 - 05:08 pm - Link - Report abuse 0If CFK and her troupe of performing idiots could get their sticky paws on “... these massive capital inflows” it would save their bacon, but unfortunately for them these lashings of dollars and euros are passing us by as they flow into Uruguay, Chile, Paraguay, Bolivia, Brasil, Ecuador, Colombia etc.
Poor old CFK, as usual she cut off her nose to spight her face and we are the ones that suffer!!!!!!
Its all your fault / his fault, their fault ,
May 21st, 2013 - 06:20 pm - Link - Report abuse 0But never latams fault..
@1
May 24th, 2013 - 02:51 pm - Link - Report abuse 0Wow you really are a complete nutjob.
How are the “rich” countries addressing their problems? BY BECOMING POORER and printing their money into toilet paper.
Why haven't your currencies collapsed yet? Simple, you USED TO have trustworthy currencies, so many still give you the benefit of the doubt.
What you and the others fail to grasp is that trust is not like a mountain range, it does not take millions of years to slowly “erode” away... Trust can be there at 23:59 of day A, and GONE at 00:01 of day B.
That will happen, and it is that “trust” that is keeping the US dollar and inflation in check even as the Fed prints hundreds of billions of new pieces of paper, same with the BoE. But when that moment of gone trust arrives, forget it. You won't even know what hit you it will be so quick and devastating.
Same with the Euro. There may be “trust” today, but that trust can vanish tomorrow and the union crumble.
Market psychology does not operate in years or decades to switch paradigms. It may take years or decades to REACH a so-called tipping point... but when that tipping point is reached, everything else happens almost instantaneously.
It's funny is it not how that trust continues to remain in most of Europe and the USA, yet when it comes to some SA countries like Argentina....mmm........not so much....or any. Why is that titti boi? Take a slurp off of mommas nipple before you answer, it will help you think straight.
May 27th, 2013 - 06:49 pm - Link - Report abuse 0Commenting for this story is now closed.
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