MercoPress. South Atlantic News Agency
Argentina's central bank hikes interest rates to combat high inflation
Argentina's central bank hiked interest rates on its short-term securities on Tuesday in its monthly auction, the second such increase in the past three months as it seeks to soak up pesos and rein in stubbornly high inflation. Read full article
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Disclaimer & comment rulesAt least the current government admits it has inflation issues. As opposed to the aggravated mendacity of a certain previous Peronist government.
Jul 19th, 2017 - 01:13 pm - Link - Report abuse +2Greaseball Lorenzino:
https://www.youtube.com/watch?v=EkHGLkCYnMY
The man's talking nonsense, as do most politicians and central bankers -- the truth would put them out of business. Inflation is due to the increase in money and credit precipitated by the central banks facilitating their government's borrowing and spending beyond its means. The solution is a drastic, and permanent, cut in government spending, but the politicians aren't going to do that -- the borrowed money they can never repay buys them their power and positions.
Jul 19th, 2017 - 02:49 pm - Link - Report abuse +1In the news - Argentina still [deficit] spending like a drunken sailor:
Jul 20th, 2017 - 04:09 am - Link - Report abuse +2”Argentina posted a primary fiscal deficit of 144 billion pesos ($8.4 billion), or 1.5 percent of gross domestic product, in the first half of 2017... primary fiscal deficit was 103 billion pesos in the second quarter, compared with 41 billion pesos in the first quarter. .....total financial result, which includes payments on the public debt, was a deficit of 92 billion pesos in June, up 26.5 percent from the same month last year. In the first half of the year, the deficit including interest payments was 256 billion pesos, up 43 percent from the year-ago period. .....”
We all know how this is going to end, and it isn't well.
Maybe they can accelerate that inevitable next default, you know, buy some expensive but obsolete aircraft or something.
Wow. Martillazo is showing us the impressive depth of his economic savvy.
Jul 21st, 2017 - 04:53 pm - Link - Report abuse -2He also manages, in two almost consecutive postings, to:
1. Praise the Macri government for, at least, admit it has inflation.
2. In spite of the former, Marti's next posting predicts that “inevitable next default.”
And guess who our illustrious commentator blames? Would it be the current Macri government? No at all! In this case, it's “Argentina” fault.
Good exhibition of rhetorical gymnastics Marti! Not even Macri's cabinet chief Marcos Peña would have imagined this one. Only, beware of ligament strain!
From Business Insider:
Jul 21st, 2017 - 07:55 pm - Link - Report abuse 0“ Here are the 27 countries with the highest levels of tax”
1. Argentina: 137.3% — Astonishingly, Argentina's total tax rate is judged to be over 100% of corporate profits. The country's turnover tax alone eats up nearly 90% before taxes on salaries and financial transactions are taken into account.
Panampost: “ A case in point is Argentina, which has the highest tax rates in the world — in addition to suffering from shyness to close the fiscal gap inherited from the previous government.”
High tax rates, high inflation, high crime, high rates of insolvency and default.... and didn't we see the over-rated ARS falling in value again today, to 17.6 to the dollar. Make plans now, for after the crash, pieces of Argentina will be had cheaply again for those with dollars. Chubut itself will likely be sold for a song.
ML
Jul 23rd, 2017 - 04:24 pm - Link - Report abuse -1Note to Paul Singer. More fruitful operations just ahead.
Wrong again, Reekie, but then your misunderstanding is fully predictable.
Jul 23rd, 2017 - 07:06 pm - Link - Report abuse +1Singer's strategy was based on Argentine arrogance, in their unfounded and wholly erroneous belief that no collective action clauses would be needed when selling debt under New York law. The option was offered and turned down. The incompetence of Argentine officials created the most perfect opportunity for enforcement of the terms of their debt. That opportunity is greatly reduced since most new (post-2005) loans come with CACs.
As new debt obligations stemming from recent Peronist government incompetence continue to mount, the smart and their money will leave Argentina, and the country will again see itself in the headlines as Defaultina.
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