MercoPress. South Atlantic News Agency
“Devaluation of the Argentine Peso is a fact of the market”, says Lavagna
Former minister and ex-presidential hopeful Roberto Lavagna warned that the Argentine economy is going through “the worst scenario possible” since the market has already adapted to the devaluation of the Peso, but the government of President Cristina Fernandez in its fantasy refuses to acknowledge it. Read full article
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Disclaimer & comment rules“locks itself in its small wonderland out of touch with the real world, and thus can’t find the way out according to their mental scheme”
Aug 21st, 2013 - 12:48 am - Link - Report abuse 0I may just sue for plagiarising. LOL
Lavangna was one of the 2002/2003 KLN gang: - Kirchner, Lavangna, Nielsen - who started the financial crime of the bankruptcy of arg and in the following to steal the money of thousands of private people around the world like it is still the fact for the holdouts.
Aug 21st, 2013 - 03:03 am - Link - Report abuse 0He was one of the helpers of the today´s ck-gang who runs the country to the real bankruptcy and he was too weak to withstand K. So his words are to be seen sceptically.
Perhaps, but he seems to have a better grasp of reality in 2013 than most of the Argentine government.
Aug 21st, 2013 - 04:28 am - Link - Report abuse 0With Brazil sliding too it makes the economic position of Argentina harder as they aren't good value for money
Aug 21st, 2013 - 05:37 am - Link - Report abuse 0Watch car Arg export plummet with the Rial crashing, well any Rg exports to Brazil I guess.
Aug 21st, 2013 - 08:24 am - Link - Report abuse 0The cycle is over and Arg is B R O K E they have not saved ANYTHING during the good times so now what?
2014 is setting itself up to be quite a year at least CFK can blame it on an opposition Congress. I wonder if Rgs are really that dumb?
Anyone want to guess the exchange rate after the elections?
5 yankeeboy
Aug 21st, 2013 - 08:35 am - Link - Report abuse 0“Anyone want to guess the exchange rate after the elections?”
Official rate: 15
Blue rate: 20 and upwards.
You heard it here folks!
Hang on. Where's the argies? Surely there is an “explanation”. The fault is with the UK, US [insert other countries as appropriate]. Or is the fault with the wankers of latam. Let's just consider an appreciation. Uruguay - wanker. Led by a weak coward. Brazil - wanker. Led by a terrorist. Bolivia - wanker. Led by an ignorant. Ecuador - wanker. Led by a profiteering tosser. Argieland - wankess and bender. Led by thieving shit. Should we go on? There should be a mechanism by which incompetent, thieving “governments” can be removed. Perhaps an overwhelming UN force and backup, that no “state” could resist. A UN force 10 times the size of the criminals. 70,000 argie troops? Then a million UN troops. Plus police, investigators, lawyers, executioners. Disarm the “local” troops or kill them. Measure “local”politicians for hemp neck ties. A reasonable compromise. Guilty until proven innocent.
Aug 21st, 2013 - 10:46 am - Link - Report abuse 0LAVAGNA'S OMISSIONS.
Aug 21st, 2013 - 11:39 am - Link - Report abuse 0After reading what this guy said, i think i can realise why he renounced to his charge in 2007.
What lavagna doesn't tell, is that what economists like him propose, is a hight devaluation, which would benefit mostly the most powerful corporations of the country, especially those related to agrarian and metal mechanic bussiness, however, it's necesary to continue with the small devaluations administrated by the central bank, because it does it in order to preserve the competence of our products.
Lavagna doesn't tell either that a hight devaluation is regressive not only in social terms, but in politic terms too, that's the reason why he wants c. f. k's government to implement a hight devaluation of our currency, because he knows that if she does it, her government will fall, however this is evident that he doesn't realise that cristina is not stupid, that's why she won't never take into account the caprices of powerful corporations.
Hight devaluation has always been the solution taken by orthodox economists, who often recur to the following theory: Because of the fact that argentina is a periferic economy, with a process of industrialization, it has what economists call, crisis of growth, because there is an instance where there aren't enough dollars in order to continue with the process, that's the reason why orthodox economists have always implemented hight devaluations, without thinking about other measures which can help to increase the competence of our products.
Axel, There are so many inaccuracies and false premises in your post I am not sure why you even bother posting.
Aug 21st, 2013 - 12:56 pm - Link - Report abuse 0As I have said many times, YOU are the reason Argentina will be poorer next year than it is this year and on and on for generations.
You so stupid I don't even know where to start.
Try getting Economics for Dummies in Spanish.
BTW Lavagna left in 2007 because it was clear to see the Ks were intent on destroying the State by way of the Economy and he didn't want to be associated with it.
BTW it looks like I was right when I told you that you'd be making less than U$250/mo by eoy. It is on track and almost there now!
Axel, like all false progressives, doesn't want anybody to make a profit, thus not being able to employ anyone, thus not creating jobs, thus making it necessary to subsidize the unemployed!!!!!!!!!!!
Aug 21st, 2013 - 01:38 pm - Link - Report abuse 0This is ”progressive logic!!!!!!!
@8 Axel Arg
Aug 21st, 2013 - 01:56 pm - Link - Report abuse 0Axel - why do think your country has a secondary market for U.S. dollars? A devaluation would simply be an acknowledgement of what your currency is actually worth.
If someone like Sergio Massa actually wants to step into the gathering storm then he is a brave fellow indeed. CFK and company have quite successfully laid Argentina's economic woes at the doorstep of the big corporations, like when she was reneging on the contract with Respol and when she was bullying LAN at Ezeiza and Jorge Newberry. That was last week and this is now. She invites in Chevron, which in view of best buddy Rafael Correa's loathing for the polluter in chief of multi-nationals, seems rather inconsistent and odd. It's too little too late to save her bacon. Everyone around the world who follows such matters knows that Argentina is a boom and bust manic depressive society and that it is self inflicted. It's not the fault of Capitalism or of a colonialist Britain occupying those islands. No, I respectfully submit that I've travelled widely in South and Central America and no matter what a Chavez or a Correa might say by way of expressing solidarity, people all over the Americas understand that Argentina is limping owing to the periodic and now erupting inflammation of their very particular Achilles heel; self sabotage. Of even more interest, there are many astute Rg observers who also know it and are willing to tell anyone who will listen. People such as Carlos Pagni and Joaquin Morales Sola' write eloquently and with the most literate and rigorous journalistic credentials about the coming storm. When you have a president who, facing the end of one of those “boom” cycles, doubles down and announces that the order of the day is “vamos por todo”, well I ask you. It won't work; never could work but add “futbol para todos” into the bargain and you shake your head more in sorrow than in contempt. Speaking for myself I love Argentina. Give me my bife with just the right chimichurri and later my yerba mate and I'm set for the day. We want you to prosper.
Aug 21st, 2013 - 03:51 pm - Link - Report abuse 0Dolar blue past the 9 peso mark again!
Aug 22nd, 2013 - 01:30 am - Link - Report abuse 0Time to test another record low?
YANKEEBOY. SIMON68. CASPER.
Aug 22nd, 2013 - 07:53 am - Link - Report abuse 0As i always say, i don't expect people in this forum to think like me, because this is evident that we have deep ideological differences, however, if you don't agree on what i say in my report, then what measures do you think that the government should take in order to avoid a hight devaluation, which would prejudice a lot the middle class and poor people.
14 axel arg (#)
Aug 22nd, 2013 - 12:34 pm - Link - Report abuse 0Aug 22nd, 2013 - 07:53 am
Very simple, weekly devaluations until the official and blue rates coincide, this could take several months and not hurt the people, but would slowly improve the lot of the exporters.
SIMON68:
Aug 23rd, 2013 - 10:54 am - Link - Report abuse 0What you propose, is what the central bank has always done, small devaluations have always existed since kirchnerism is in office, and the central bank implements them, in order to protect the competence of our products, otherwise our industries would suffer what happened during the decade of the 90's, when our national productions were decimated because the dollar quotation was too cheap. Your explanation is what the president from the central bank often argues in relation to the dollar rate.
On the other hand, why should be take into account the illegal market called blue rate, it's just an illegal and speculative market, which doesn't have anything to do with popular economy. I remember many of the lobbist who appear watch on tv, saying that if the so called blue dollar continues increasing it's quotation, it would prejudice economy a lot, however nothing happened.
16 axel arg
Aug 23rd, 2013 - 05:59 pm - Link - Report abuse 0I was going to give you a quick economics lesson as to why the Blue is THE value of the pesos but I realised I was going to be wasting my time yet again.
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