tag:blogger.com,1999:blog-7336074036024146405.post8607475415800872282..comments2024-03-22T06:21:53.678-03:00Comments on argen-times: It’s not inflation, it’s just a sensationSimon Kofoedhttp://www.blogger.com/profile/14139467302491777434noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-7336074036024146405.post-55155422716402459352011-02-21T10:59:40.715-03:002011-02-21T10:59:40.715-03:00In the papers today, presidential hopeful Elisa Ca...In the papers today, presidential hopeful Elisa Carrió has claimed that inflation is part of the government’s plan. She said that the policy is to “to keep inflation on the rise in order to increase tax revenues and to expand the economy before the October elections.” <br />“This irresponsible inflation policy will be a huge problem for everyone,” she concluded, “We’ve already lived this and we shouldn’t let history repeat itself.”Simon Kofoedhttps://www.blogger.com/profile/14139467302491777434noreply@blogger.comtag:blogger.com,1999:blog-7336074036024146405.post-84094651202134007822011-02-21T10:51:34.036-03:002011-02-21T10:51:34.036-03:00You are correct that the unions (like the two big ...You are correct that the unions (like the two big ones you mentioned) and their extremely close relationship with the Kirchner government are another contributing factor to the country’s inflation. <br />The illegal cash flow and the deep-seated corruption among many influential figures is an embarrassment for the country, which as you rightly stated is well equipped to support perhaps 10 times its actual population. I think many Argentines can feel frustrated that the economy is not a hell of a lot bigger than it is, given all the natural resources here.<br />As for Domestic Trade Secretary Guillermo Moreno; well not only did he play a part in the Kirchners’ replacement of the former head of INDEC, but as you said, he is often accused of extremely authoritarian behaviour and is not a generally well respected politician. (Like too many his idea of politics is not public service, but personal wealth and power). He definitely has too much power already and on top of his threats to fine the private consultancies over their inflation estimates, last month he applied the Supply Law to freeze petrol price increases and this month has sued Cablevision over its decision to raise its prices. A dodgy bloke quite frankly.Simon Kofoedhttps://www.blogger.com/profile/14139467302491777434noreply@blogger.comtag:blogger.com,1999:blog-7336074036024146405.post-25680083550642003052011-02-20T19:08:14.418-03:002011-02-20T19:08:14.418-03:00The article and the comments give a good impressio...The article and the comments give a good impression of the situation in Argentina. <br />What I am missing however is the position of the syndicates. They are playing a key role in all this, because the government supports the biggest, the CGT and CTA, as much as it can, although their demands are irrational. <br />I would appreciate an analysis going a bit deeper into this intriguing game government, syndicates, RC church, farmers and business people play. <br />Also one would like to see more about the personal networks which steer the legal and illegal cash flow in the pockets of a small group of influential people, where at the same moment children die from hunger in a country, able to support app. 400 million people. <br />Why is there no outcry when G.Moreno fines private organizations, who deliver there information about inflation (evenif thatwould be erratic information). No judge has been engaged by G.Moreno here. He is truly acting above the law, like a mafiosi. <br />If he dislikes information or people he'll act on his own behalf, no legal base is needed. His word seems to be an order for all people working in the harbor, syndicates, customs etc. even if his order is quite obvious against the law and or international contracts (e.g. prohibiting importation of 200 goods, like luxury cars).Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7336074036024146405.post-14807907750907668852011-02-17T14:16:33.134-03:002011-02-17T14:16:33.134-03:00I was reading a Buenos Aires real estate blog whe...I was reading a <a href="http://www.buenosairesrealestate.org" rel="nofollow"> Buenos Aires real estate</a> blog when I came across an article with the real numbers of their inflation acordind to the most reputable Co. Impressive :(Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7336074036024146405.post-56568971838355068822011-02-17T12:16:43.545-03:002011-02-17T12:16:43.545-03:00could well be. The other news here is that interes...could well be. The other news here is that interest rates are likely to rise by up to 1% by the end of 2011. The theory is that this will help to curb inflation, but the spectre of 1970's style 'stagflation', with a moribund economy and spiralling prices is looming. Something to look forward to eh!Terryhttps://www.blogger.com/profile/06043036954068459833noreply@blogger.comtag:blogger.com,1999:blog-7336074036024146405.post-21641663040500206722011-02-17T12:03:10.486-03:002011-02-17T12:03:10.486-03:00Hi Terry, good to hear that the British government...Hi Terry, good to hear that the British government is also shameless enough to talk such political 'f***wittery', as you so nicely put it.<br /><br />QE indeed contributed to the financial crises in 1989 and 2001 in Argentina. And because this country's economy is so US$ orientated, it can also suffer harsh consequences of any US QE.<br /><br />Argentina is currently suffering a shortage of banknotes. At the end of January the government said it was awaiting the delivery of 10billion pesos from the mint. It could be a deliberate delay.Simon Kofoedhttps://www.blogger.com/profile/14139467302491777434noreply@blogger.comtag:blogger.com,1999:blog-7336074036024146405.post-64725860472351714542011-02-17T11:28:16.694-03:002011-02-17T11:28:16.694-03:00Excellent stuff again. One of the reasons that the...Excellent stuff again. One of the reasons that the UK inflation rate is rising is due to last year's Bank of England policy of 'quantitative easing' (i.e. printing money) to try to free up the financial system and try to get the banks lending. Most commentators here don't seem to have made the connection for some reason (most warned about it at the time, but I haven't seen much mention recently) and the government has come out with some nonsense about "cyclical commodity price spikes" or some such f***wittery. Was there any QE in Argentina?Terryhttps://www.blogger.com/profile/06043036954068459833noreply@blogger.comtag:blogger.com,1999:blog-7336074036024146405.post-44873565509781604702011-02-17T11:17:57.854-03:002011-02-17T11:17:57.854-03:00Kari you're right, rising international food p...Kari you're right, rising international food prices should theoretically be good for Argentine exporters. The only problem is the government. The beef example is a good one. Two years ago when cattle farmers were enjoying high prices on global markets, the government introduced exaggerated levies on beef exports. That persuaded many to convert to soy production, where high international prices and demand (principally from China) provided good profits for Argentine farmers. When the government attempted to raise export taxes on soy too, strikes, protests and blockades caused havoc in cities; in particular the capital.Simon Kofoedhttps://www.blogger.com/profile/14139467302491777434noreply@blogger.comtag:blogger.com,1999:blog-7336074036024146405.post-49553144239201403132011-02-17T11:01:17.647-03:002011-02-17T11:01:17.647-03:00Truly insightful article!
It seems that the Arge...Truly insightful article! <br /><br />It seems that the Argentine government is in denial of a major problem: however that will not make it fade away.<br /><br />Rising food prices on global markets should be good news for Argentina, but obviously the truth is not quite as simple as that.Karihttps://www.blogger.com/profile/09443558922531659070noreply@blogger.comtag:blogger.com,1999:blog-7336074036024146405.post-65114244531658910682011-02-17T10:34:27.687-03:002011-02-17T10:34:27.687-03:00Yesterday I walked past a secondhand furniture sto...Yesterday I walked past a secondhand furniture store near my home, where the owner has a bathroom sink for sale. The sink has been on sale for nearly six months; and yet this week, rather than respond to the lack of demand and reduce the price, the owner raised it from AR$250 to AR$280....Inflation mentality.Simon Kofoedhttps://www.blogger.com/profile/14139467302491777434noreply@blogger.com