Do you fear a crash similar to 2001?

[jeff1234]

I gotta say that Macri seems dead set on crashing straight into something- the two worst things he can do, he is doing- Austerity, which has failed everywhere its been tried, and taxing exports. I can see taxing soya, oil, and other commodity exports, but he should be encouraging manufacturing exports, which bring in foreign exchange, and create jobs and prosperity.
The Argentine textile, footwear, and fashion industries, as well as ag equipment, industrial electrical equipment, and tools, all could be bringing in cash in dollars, if they were promoted. Instead, we may see a replay of the thousands of factories that closed after the corralito.

I've heard that Macri is taxing exports but I can't imagine how he thinks it will benefit Argentina. Can anyone explain his thinking?

 

[Ries]

he needs the income.

 

[PoorSoul]

I've heard that Macri is taxing exports but I can't imagine how he thinks it will benefit Argentina. Can anyone explain his thinking?

Well, how it works is that AR needs dollars to pay off foreign debt. Almost no one is voluntarily exchanging dollars for pesos. In fact, the very few people who are making such an exchange would be immigrants, which Argentina is doing it's best to kick them out of the country.

So, basically the only avenue left for them to get dollars is to export goods. As a result, the economics team decided to disincentive any exporting by placing more taxes on it. I know, you are thinking, that sounds idiotic! But, remember, this is argentina. Rules bend to argentina not the reverse, right.

Well, you see, the taxes will stifle any export industry and exasperate the problem. So, the question comes back again, how will Argentina get those sweet, sweet dollars? If it is not exporting, and it is not people buying up the peso to hold it, then how will they get the financing to get out of this problem?

THE GREAT PLUNDER

The answer is to sell assets! Lots and lots of assets at firesale prices to foreigners and to any argies with money. It's the classic boom bust cycle. Create a bust, buy the assets, stimulate the hell out of the economy to create a boom and sell the assets, rinse and repeat.

That is the plan, so get ready for the eventual cheap assets.

 

[Carlos Danger]

 

[toongeorges]

Germany, all of Scandinavia, the Netherlands certainly have superior education in all respects but I find English much more widely spoken nowadays just about everywhere in Europe, especially among the young. In Argentina the state school system has greatly deteriorated over the years.

English is the lingua franca in Europe, the common language everyone speaks. It is the least well spoken in Italy and Spain and then (the older generation in) France and Germany, people in other countries should speak it well. English is the language I speak most in a work environment, even with people who speak my mother tongue. A Brit actually once told me that the Belgian people at work spoke better English than some British people, because apparently not everyone in England is well educated in English.

 

[perry]

Well, how it works is that AR needs dollars to pay off foreign debt. Almost no one is voluntarily exchanging dollars for pesos. In fact, the very few people who are making such an exchange would be immigrants, which Argentina is doing it's best to kick them out of the country.

So, basically the only avenue left for them to get dollars is to export goods. As a result, the economics team decided to disincentive any exporting by placing more taxes on it. I know, you are thinking, that sounds idiotic! But, remember, this is argentina. Rules bend to argentina not the reverse, right.

Well, you see, the taxes will stifle any export industry and exasperate the problem. So, the question comes back again, how will Argentina get those sweet, sweet dollars? If it is not exporting, and it is not people buying up the peso to hold it, then how will they get the financing to get out of this problem?

THE GREAT PLUNDER

The answer is to sell assets! Lots and lots of assets at firesale prices to foreigners and to any argies with money. It's the classic boom bust cycle. Create a bust, buy the assets, stimulate the hell out of the economy to create a boom and sell the assets, rinse and repeat.

That is the plan, so get ready for the eventual cheap assets.

So Vaca Muerta will be used to pay off our foreign debt?

 

[toongeorges]

You still do not understand him. He is a criminal, so he only cares about to get more and more loans in usd to be able to flight all the money he can, most of it illegal money. He doesn’t give a s....t about the properity of the country.

Yes, he comes straight from Hell and has a cunning plan to screw Argentinians as much as he can because ...?

I can accept he is not clean and has his defects. Yet being bad just to be bad is not what usually drives people. I guess he also tries to do something that is not pure evil.

You appear to only talk bad about Macri, you seem not to acknowledge he may also have some good intentions. If you cannot balance what you say, you lose credibility, even if you would have valid arguments, because people think you can only nag.

Let's assume Macri is bad, he cannot be perfect being bad. Can you tell one thing he is doing good?

 

[Rich One]

It all sounds so bad that Bajo_cero has become a Guru, people read his postings with interest. But the real Guru is the Economist Milei , a presidential Candidate?? He Predicted the crisis in 2017...

 

[Bajo_cero2]

What chances or odds do you give this as heading into default?

All.
The Super Thuesday is in one week (when they hace to pay the Lebacs and there are going to be usd for sale).

 

[Bajo_cero2]

Yes, he comes straight from Hell and has a cunning plan to screw Argentinians as much as he can because ...?

I can accept he is not clean and has his defects. Yet being bad just to be bad is not what usually drives people. I guess he also tries to do something that is not pure evil.

You appear to only talk bad about Macri, you seem not to acknowledge he may also have some good intentions. If you cannot balance what you say, you lose credibility, even if you would have valid arguments, because people think you can only nag.

Let's assume Macri is bad, he cannot be perfect being bad. Can you tell one thing he is doing good?

Let me think. He enacted subsidies for yatching clubs.