Goodbye To The Cepo

[thorsten]

I think ben makes the most important point: lack of alternatives. The K system worked because they just milked the assets of the country. Now it's gone so even if Scioli would have won, he couldn't continue the same old strategy. It will be painful, but the pain is not caused by lifting restrictions; it is cause by years of mismanagement and a non-sustainable policies.

 

[Noesdeayer]

bem and thorsten:
Right you are.As the Argentine "refran criollo" says," Cuando la hierba no crece,hasta la vaca se muere"- When the grass stops growing,even the cow dies".Too bad Kristina wasn't a country girl or she might have remembered that.

 

[EJLarson]

bem and thorsten:
Right you are.As the Argentine "refran criollo" says," Cuando la hierba no crece,hasta la vaca se muere"- When the grass stops growing,even the cow dies".Too bad Kristina wasn't a country girl or she might have remembered that.

Oh, she was a country girl all right. She owned one.

 

[ben]

The problem, as I said, is one of PR. Cristina has Macri right where she wants him.

Anybody with half a brain understands that you run out of other people's money, shit gets nasty. The problem is that half a brain part. Huge amounts of Argentines are expecting the government to give them what they are entitled to, whichever way. CFK delivered that - she managed to not have things collapse spectacularly on her watch. Everything that ensues is the next guy's problem.

Once CFK understood she won't be getting her third term, she decided to turn that to her advantage. Everything has been timed to implode on Dec. 11th, and it'll all be the evil Macri's fault. Hard to come up with something more evil and selfish - to knowingly and deliberately inflict substantial damage on the Argentine people for political gain.

And the most defenseless will feel the pain the most: anybody who can afford to is buying dollars, commodities, anything to escape inflation.

As to this forum's internal politics, I doubt bajo will weigh in on this topic, as there is little legalistic defense to put forth. Evil is not illegal, and the illegal seems to bother him far more than the evil. Particularly when the evil (or illegal?) Macri is concerned.

 

[Rich One]

MAcri can issue 30 year Bonds in Dollars.... with an 8 % yield

 

[Gringoboy]

CFK delivered that - she managed to not have things collapse spectacularly on her watch. Everything that ensues is the next guy's problem.
Once CFK understood she won't be getting her third term, she decided to turn that to her advantage. Everything has been timed to implode on Dec. 11th, and it'll all be the evil Macri's fault.

Pretty chilling stuff if you think about it long enough.

 

[Redbeanz]

And the most defenseless will feel the pain the most: anybody who can afford to is buying dollars, commodities, anything to escape inflation.

And yet, with all these people rushing to buy dollars, the dollar continues its steady decline against the peso?

 

[EJLarson]

And yet, with all these people rushing to buy dollars, the dollar continues its steady decline against the peso?

Would we expect the laws of economics to be valid here? I'm astonished that gravity still works!

 

[gpop]

The thing that Macri has that the Kult does not is a new spring of dialogue with nations that have since dismissed Argentina as unreliable and not credible.
This could turn the tables on whatever contingency that the Kult may have... if he can swing the funding.

 

[Churchill]

I was quoted 120 pesos for a pack of 20 ordinary balloons yesterday in Mataderos. I almost foamed at the mouth before politely telling the old buzzard behind the counter that the price was too high for my liking. I can't make head nor tails of it all. This place is already seriously expensive and yet as the peso dollar rate continues to slide, prices (i guess in anticipation of the cepo being lifted) continue to rise. I wonder how many everyday products will suddenly rise alongside the official dollar as the cepo is lifted.