MercoPress. South Atlantic News Agency
Argentina's Peso takes a rest after a hectic week but the country risk shoots to its highest this year
Latin American stocks were flat on Monday, partly subdued by delays in important pension reform in Brazil, while currencies in the region rose against a weak dollar but Argentina's peso hovered around record-low levels on political uncertainty and the highest country risk so far this year. Read full article
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Disclaimer & comment rulesThere are diverse theories about the motivation of president Mauricio Macri to be pushing Argentina to the abyss. Some say it's pure incompetence; others say it all was a mean plan to make as many friendly business operations as it was humanly possible in four years, then take the loot and run.
Apr 10th, 2019 - 03:50 am - Link - Report abuse 0Others say it was but a mix of greed and clumsiness and that may very well be true. Add to that a serious attempt to put the opposition Peronist in disarray through dozens of fake judicial processes and systematic press attacks carried out by friendly media outlets.
Now the whole strategy is about to crumble, as revelations of an extensive network of judges, prosecutors, journalists and intelligence agents continue to surface and involve high-level officials.
Many Argentines are now looking forward to cambiar Cambiemos for something else.
Selling Argentina [+ maybe many South American Countries] - State-by-State - may benefit ALL concerned?
Apr 10th, 2019 - 03:18 pm - Link - Report abuse 0@ Skull
Apr 10th, 2019 - 05:47 pm - Link - Report abuse 0You may not know that a good part of Argentina has already being sold off in more than one way. The government of Mauricio Macri has relaxed controls over foreigners property buying, and as a result a large part of Patagonia and other regions now belong to foreigners.
Additionally, the rumour mill purports that an offensive (the notebook photocopies) against large construction and public works companies may just be trying to allow firms from the US and others to enter the market.
And of course, the largest sell off of all is to go beg the IMF for some currency, which instantly delegates Argentina's economic decisions in a foreign agency, in a duplication of sorts of the Greek experience.
So, no need to advertise -- we have already being sold!
EM
Apr 11th, 2019 - 05:39 pm - Link - Report abuse 0“The government of Mauricio Macri has relaxed controls over foreigners property buying, and as a result a large part of Patagonia and other regions now belong to foreigners”.
And just what do these malicious foreigners have in mind in Patagonia ? putting the land and all its riches under their arm and leaving the country with them ?
And what is wrong with the principle of allowing foreign construction companies to participate in local tenders for public works (presuming the local Cos can't compete /cope?) Unless of course you are thinking they will act as Odebrecht did...(corrupting local politicians......which of course never happened with local companies).
Care to comment ?
@JB
Apr 12th, 2019 - 03:21 am - Link - Report abuse 0“And just what do these malicious foreigners have in mind in Patagonia...and what is wrong with the principle of allowing foreign construction companies to participate in local tenders for public works?”
I take money is king in JB's world...what could go wrong if foreigners show up with piles of money and buy our land, eh? And their companies come out and compete?
Well, my friend: Do you happen to notice what's going on in Argentina's economy today? Precisely because of the blunt application of your philosophy. Markets be kings, let's attract investments therefore let's kill all regulations on incoming (and exiting) capital...the result? Massive gains for speculative funds and its subsequent capital flight...people ask where the money borrowed is...and the answer is, it flew away.
Let's take another one of, no doubt, another free-market JB favourite: Let's competition begin! Let's drop all barriers to imports (at a time when most developed countries close in). The result? Thousands of small and medium-size companies going belly up, thousands of jobs lost...but hey! We now are really connected to “the world.”
And last but not least...no country allows or should allow unlimited amounts of land to go into the hands of foreigners, because of strategic reasons and also because land purchases are often done by money launderers. As for the construction/public works companies, the reasoning is simple. Local companies do (or should) use their profits locally. It's not in the interest of a country to increase companies that send their profits overseas.
EM
Apr 12th, 2019 - 08:30 pm - Link - Report abuse 0No need to go off at a tangent.....I do see what's going on in Argentina's economy, but I don't see how foreigners buying up 10% of Patagonia affects it....they can't take it away with them....or do you think they are buying the land to leave it idle, purely for speculative purposes ? if they put in to work, everyone benefits.
”another free-market JB favourite: Let's competition begin! Let's drop all barriers to imports (at a time when most developed countries close in)”
Don't put words in my mouth....I am in favour of a free market - the backbone of any strong economy....no one said, or is talking about opening the flood gates and letting everything/anything in.... which would definitely kill inefficient business/obsolete industries. But on the other hand, easing up on certain imports, has a salutary effect on local industry, in that it forces it to invest (or bust), increase productivity and reduce prices.....which won't happen if there are barriers imposed to protect their inefficiency. And, I'm am not advocating either 8 or 80....
Your strategic reasons, being what exactly ? If land is being bought with funds from local money-laundering (politicians filling their pockets), that would be prejudicial to Argentina ....if the money is coming from abroad, how does that harm Argentina ? What matters is that the land be put to good use....who owns it, is irrelevant. Imo.
Re local construction companies, the notion that they will (or should) use their profits locally, is relative, and a bit utopic.....they are usually financed by the government (the taxpayer) which they in turn, overcharge (to build in handsome bribes for all).......It is in the country's best interest to let all participate and the government should award the company that offers the best deal...for the country. You can pass laws to restrict remittance of profits abroad, but be careful, it can backfire....less competition, more corruption..
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