MercoPress. South Atlantic News Agency
Argentina central bank turned into state-financing tool: recession and higher inflation forecasted
Argentina is forecasted to fall into recession next year on the back of super-loose money policy with inflation reaching 24% this year and 30% in 2014 as the government continues to appeal to Central bank resources to meet budget commitments, according to London based Capital Economics. Read full article
Comments
Disclaimer & comment rulesWhat a sorry state of affairs. Great news though!
Aug 08th, 2013 - 03:18 am - Link - Report abuse 0It's all a lie I tell you.
Aug 08th, 2013 - 05:19 am - Link - Report abuse 0Argentina is BOOMING and everyone is spending because they are so affluent and happy. It's the west that is bankrupt not us. We avoided all the mistakes youse made.
INDEC will tell us the real numbers; don't you worry.
And if these forecasts do prove to be true.... well then it is obviously a conspiracy by the imperialistic UK and US who want our land and resources and are jealous of us.
They've past the time of year they can build reserves from the grain exports. The rest of the year will have steady outflows and winter is far from being over. I don't know how they think they're going to pay for fuel or any other critical imports.
Aug 08th, 2013 - 05:39 am - Link - Report abuse 0They had better hope the USA doesn't declare BCRA an arm of the Gov't and I bet that is coming really soon,
Then bye bye to whatever reserves are left in NYC and Switzerland.
@2 I really hope all of that was sarcasm. Otherwise, you're going to be eating out of the garbage in a few years, when CFK runs away like a coward with the nation's stolen money.
Aug 08th, 2013 - 08:15 am - Link - Report abuse 0“limits to printing pesos to lend the government have been substantially relaxed, with the obvious consequences of spurring inflation and further undermining confidence in the Peso.” ...
Aug 08th, 2013 - 09:07 am - Link - Report abuse 0... obvious yes, but not to everyone.
I had read that Argentina is expected to head into an extended period of economic contraction starting as early as this fall, right after the October elections when the government will allow the peso to fall even faster in a way too late fix to try and increase exports other than grains.
Aug 08th, 2013 - 09:55 am - Link - Report abuse 0Soy is approaching $400/ton! At current prices that has a U$5B negative effect on tax revenues next year.
Aug 08th, 2013 - 10:18 am - Link - Report abuse 0My guess is the price will be even lower next year especially in Argentina since it considered an unreliable trade partner.
I just don't see how they buy fuel next winter
Simply fascinating to watch
“... with inflation reaching 24% this year and 30% in 2014 ... ”
Aug 08th, 2013 - 10:18 am - Link - Report abuse 0I'm afraid Capital Economics has erred on the conservatve side with this statement, at this moment the inflation in our part of Patagonia is way above 30% just taking into account such things as food, fuel and utilities!!!!!!!!!
8. Money supply is growing at 60% yoy! Hyperinflation will start any time. My guess is that a HUGE devaluation will come after the elections.
Aug 08th, 2013 - 11:37 am - Link - Report abuse 0Buy laundry detergent, sugar, coffee or some other super market commodity that won't spoil because they're going to be in very short supply and very valuable ( in pesos) soon.
Yes, because the world trust London based financial institutions.
Aug 08th, 2013 - 12:44 pm - Link - Report abuse 0Next joke.
I had to laugh when they said the official rate will be 8 arsewipes to a dollar.
Aug 08th, 2013 - 01:21 pm - Link - Report abuse 0Didn't Pistol Pete Moreno guarantee that would NEVER happen?
More like 12+ arsewipes to a dollar I would have thought as a minimum.
Yes, blow up time by the end of next year and I don’t mean TMBOA giving BJs.
If its 8 or 9 in the “caves” its 10-12 in the hotels, restaurants, bars and retail establishments.
Aug 08th, 2013 - 02:38 pm - Link - Report abuse 0Even the most ideologically K supporter must know a HUGE devaluation is on the horizon.
Buy laundry detergent toby
You'll be able to trade it for food for your family.
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