Crisynomics At Work: Argentina Is Low Debt Superstar

[sesamosinsal]

If Argentina could only model itself off of China instead of failures like Venezuela and Cuba there could be a bright future...

Yeah, especially when it comes to the massive government expenditures, corruption and the housing bubble. Argentine ghost cities? Yes!

 

[Matiasba]

Indeed. But no one is increasing their investments here. All car manufacturing investment is going to Brazil. Also, once Brazil gets fed up with Argentina's protectionist policies, which will happen sooner or later, and tell you guys to go you know where, the car exporting party here is over.

Really, I dont think that will happen. Unlike you, I believe in Mercosur, Unasur, etc, there are some policies of integration, that are not turning back. You can see that you dont have anymore isolated countries but blocks (Europe, Nafta, etc) so I dont see Brazil breaking commercial relationships with Argentina.

 

[camberiu]

Really, I dont think that will happen. Unlike you, I believe in Mercosur, Unasur, etc, there are some policies of integration, that are not turning back. You can see that you dont have anymore isolated countries but blocks (Europe, Nafta, etc) so I dont see Brazil breaking commercial relationships with Argentina.

I believe in economic integration too. But apparently it is YOUR government that it does not, as it continue to block and tax Brazilians products, in CLEAR VIOLATION of the MERCOSUR terms. It is Argentina that its it turning its back on MERCOSUR, not the other way around. So if this trend continues, it is not unlikely that Brazil will send you a big FYOU and go find real commercial partners elsewhere.

 

[Joe]

Yeah, especially when it comes to the massive government expenditures, corruption and the housing bubble. Argentine ghost cities? Yes!

China has doubled its people's income in 10 years. But they gave up on their "Socialist Dream" - you need to consider the same.

To paraphrase Mike Tyson, "Everyone has a plan for a Socialist Utopia - until they run out of toilet paper."

 

[sesamosinsal]

China has doubled its people's income in 10 years. But they gave up on their "Socialist Dream" - you need to consider the same.

To paraphrase Mike Tyson, "Everyone has a plan for a Socialist Utopia - until they run out of toilet paper."

Actually, The PRC is a communist country, not a socialist country—at least officially. Most countries are socialist. National health plans, public libraries, federally-funded highways, public universities, etc. Do you even understand the difference?

 

[syngirl]

but those social plans are money into the economy, are new consumers. That explains the inflation, because there is a big demand!!

I think something was lost in translation here, because otherwise to me this sentence shows a real misunderstanding of inflation and demand... how do new consumers with big demand fit with inflation for you?

 

[sleslie23]

Actually, The PRC is a communist country, not a socialist country—at least officially. Most countries are socialist. National health plans, public libraries, federally-funded highways, public universities, etc. Do you even understand the difference?

While there are definitely elements of the communist party still alive in well in the political structure of the PRC, it doesn't make sense to call it a "communist" country anymore. There are some industries and companies controlled or majority controlled by the state, but it's also full entrenched in capitalism/free-market.

 

[dennisr]

.....so I dont see Brazil breaking commercial relationships with Argentina.

Think you may have to eat those words. One thing for sure, you do not want to piss the Brazilians off. They have a very good memory.

 

[sesamosinsal]

While there are definitely elements of the communist party still alive in well in the political structure of the PRC, it doesn't make sense to call it a "communist" country anymore. There are some industries and companies controlled or majority controlled by the state, but it's also full entrenched in capitalism/free-market.

Whether it makes sense or not, that's officially what it is. I'd have to dispute your statement that China is "fully-entrenched" in capitalism and free markets. After all, it has a fixed exchange rate, among other anti-free market policies in place. From previous threads on this forum, it would seem that a floating exchange rate was the be all and end all of a truly free market. Now, China—with its one child policy, one apartment policy, fixed exchange rate, state-owned banks, etc, etc.—sets the example as a capitalist, neoliberal economy.

This forum is nuts.

 

[Joe]

Anyone that thinks the PRC is communist hasn't read much and has definitely NOT been there. They don't have a fixed exchange rate - it trades within a band. And there is no black market for currency that would exist in a fixed rate system. China doesn't have a significant social safety net - and that is why the personal savings rate is so high. No social security. In many ways the PRC is LESS socialist than the USA.

Bradley things have changed there. You might think you could go there in your Mao Suit and Little Red Book and be a superstar but people would just laugh at you. The old communist dogma is a joke to the average city dweller.

Bradley enjoying the Fruits of Communism in his Fantasy World.