Best country to move to when life in Argentina becomes intolerable

[Ceviche]

I am here to stay. Come hell or high water.

Me too

 

[Ceviche]

The dolar blue is dead but Contado con Liqui was 70 on Friday.

what is Contado con liqui

 

[Ries]

Venezuela was a perfect storm- a combination of a single resource extraction industry country, with a military coup.
If you look, worldwide, at the countries that rely on oil, and only oil, they are all a mess- either corrupt and poor, like Nigeria, or dictatorial and restrictive, like the Arabian countries.
Concentrated wealth makes for no democracy, and a constant power struggle in all of those countries.

Luckily, Argentina doesnt have enough oil to end up like Venezuela.

 

[deadOA]

what is Contado con liqui

Trade shares listed in both $US and $peso. For example buy YPF listed in peso here and sell the same in US. Pocket the difference.

 

[deadOA]

Concentrated wealth makes for no democracy,

Concentration of wealth and inequality increase crime and social unrest and undermines education healthcare opportunities for the bottom masses, lowering social mobility and hampering skills development. That makes them less productive employees, which means lower wages, lower overall participation in the economy. Less pie for everyone, even the 1%.

Henry Ford offered his workers high wages not out of any altruistic impulse but because he wanted them to buy his cars. A great example of a responsible true "Capitalist". Not the false greedy ones sticking it to the bottom masses. They are self-destructive in the long run.

 

[lunar]

Concentrated wealth makes for no democracy, and a constant power struggle in all of those countries.

Here are countries with highest inequality in wealth distribution

Namibia 0.847
Zimbabwe 0.845
Denmark 0.808
Switzerland 0.803
United States 0.801
Gabon 0.784
Central African Republic 0.782

I guess, according to your logic USA, Denmark and Switzerland are not democratic countries, and live in a constant power struggle.

 

[Rich One]

Venezuela was a perfect storm- a combination of a single resource extraction industry country, with a military coup.
If you look, worldwide, at the countries that rely on oil, and only oil, they are all a mess- either corrupt and poor, like Nigeria, or dictatorial and restrictive, like the Arabian countries.
Concentrated wealth makes for no democracy, and a constant power struggle in all of those countries.

Luckily, Argentina doesnt have enough oil to end up like Venezuela.

Concentrated Wealth meant dependance on a single product for export ...?

 

[Ries]

Concentrated Wealth meant dependance on a single product for export ...?

no, you have it backwards. in countries where the entire economy depends on ONE product, usually a natural resource like diamonds or oil, the wealth is always concentrated, usually in the hands of the most ruthless, and the ones with the guns- the military- ie, Congo, Nigeria, Saudi Arabia, Venezuela, and so on.
If there is just one small industry to take over, and you then own all the cash flow, its a lot more tempting.

 

[TheDonald]

Countries are like companies: diversification of revenue streams is desirable. Overeliance on one product line, in a country and in a business, is a risky and unstable endeavor. As we speak, Saudi Arabia seeks to diversify its domestic industry and export capability because the Saudis are aware that reliance exclusively on petroleum exports is a flawed strategy going forward.

For countries to successfully export, they must have some "comparative advantage." This means that within the market area for the product/service, the country must be able to provide greater value than it's neighboring export competitors. This can broadly come from three sources: lower cost, niche/differentiation or higher quality. For a few reasons (currency included) Brazil is currently producing arabica coffee beans far cheaper than Colombia. The former is decimating the latter in coffee export markets. For niche differentiation, think of Starbucks. It's not the lowest cost, it's not the highest quality. It appeals to a certain segment of the market. For higher quality, think of Argentine beef. It's better than all competitors.

Argentina has done a very, very poor job developing its export capabilities the last 50 years. This is a direct result of socialism and the lack of profit incentive. When your main export products are corn, wheat and soybeans, which are commodities that all your neighbors are selling too, then you have no comparative advantage. Argentina's exceptional exports include only tango, soccer players and beef. I say that jokingly, but it's true. And that ain't much.

Argentine export policy is self-destructive. Take beef. In Argentina, cheap meat is seen as a birthright. When socialists reign, there is a lot of pressure to keep beef prices down and exports low. This damages the Argentine economy. Colombia, in contrast has no such restrictions on coffee exports. The joke among Colombians is that the domestic coffee sucks because the best stuff gets exported. This may be true, but foreigners are willing and able to pay more for Colombian coffee than Colombians are. So the profit incentive is intact and Colombia is a wealthier, healthier country for it.

The US, because it is a capitalist country where socialism has been resisted, is the world's most lucrative exporter. The US exports software, internet technology, pharmaceuticals, advanced medical devices, and cultural products like movies and music. This is the ideal export situation.These are all highly-differentiated, high margin, low asset goods/services.

The problem with export capability is that once a country falls behind, it becomes almost impossible to catch up. As far as export capability is concerned, there is no light at the end of any tunnel for Argentina, for at least 50 years - as best I can see. There are no domestic Argentine industries that are lower cost, niche/differentiation or higher quality than their neighbors (at least of any meaningful size). With nothing in development, no results can be expected.

 

[sts7049]

Countries are like companies: diversification of revenue streams is desirable. Overeliance on one product line, in a country and in a business, is a risky and unstable endeavor. As we speak, Saudi Arabia seeks to diversify its domestic industry and export capability because the Saudis are aware that reliance exclusively on petroleum exports is a flawed strategy going forward.

For countries to successfully export, they must have some "comparative advantage." This means that within the market area for the product/service, the country must be able to provide greater value than it's neighboring export competitors. This can broadly come from three sources: lower cost, niche/differentiation or higher quality. For a few reasons (currency included) Brazil is currently producing arabica coffee beans far cheaper than Colombia. The former is decimating the latter in coffee export markets. For niche differentiation, think of Starbucks. It's not the lowest cost, it's not the highest quality. It appeals to a certain segment of the market. For higher quality, think of Argentine beef. It's better than all competitors.

Argentina has done a very, very poor job developing its export capabilities the last 50 years. This is a direct result of socialism and the lack of profit incentive. When your main export products are corn, wheat and soybeans, which are commodities that all your neighbors are selling too, then you have no comparative advantage. Argentina's exceptional exports include only tango, soccer players and beef. I say that jokingly, but it's true. And that ain't much.

Argentine export policy is self-destructive. Take beef. In Argentina, cheap meat is seen as a birthright. When socialists reign, there is a lot of pressure to keep beef prices down and exports low. This damages the Argentine economy. Colombia, in contrast has no such restrictions on coffee exports. The joke among Colombians is that the domestic coffee sucks because the best stuff gets exported. This may be true, but foreigners are willing and able to pay more for Colombian coffee than Colombians are. So the profit incentive is intact and Colombia is a wealthier, healthier country for it.

The US, because it is a capitalist country where socialism has been resisted, is the world's most lucrative exporter. The US exports software, internet technology, pharmaceuticals, advanced medical devices, and cultural products like movies and music. This is the ideal export situation.These are all highly-differentiated, high margin, low asset goods/services.

The problem with export capability is that once a country falls behind, it becomes almost impossible to catch up. As far as export capability is concerned, there is no light at the end of any tunnel for Argentina, for at least 50 years - as best I can see. There are no domestic Argentine industries that are lower cost, niche/differentiation or higher quality than their neighbors (at least of any meaningful size). With nothing in development, no results can be expected.

reminds me of a post i saw the other day on FB. someone in the US had made this delicious dinner of "argentine shrimp" and posted this great picture. i thought to myself, i have NEVER seen shrimp that look like that here in any restaurant or grocery - giant, fat, juicy looking shrimp. assuming they were truly argentine sourced shrimp, that goes to your point about the best stuff getting exported. but at the same time, there is no chance anyone on the gulf coast would start looking for shrimp elsewhere either, because that industry dominates with a far superior product.

now i want some shrimp.