Is It Time To Close The Blue Market?

[Dublin2BuenosAires]

OK so cut government spending by 40% and you get a 10-15% increase in unemployment. Is that really what you want?

Where did you pull that number from?

Tackling inflation correctly, i.e stepping back money creation would allow for a balanced economy, you are proposing more control and more imbalance, doomed to fail. Your making up numbers based on scare tactics.

Obviously credit market funding would breach the gap in funding for infrastructure and educational spending which would crate employment. If you are ideologically opposed to that and would stay isolated from those markets, fine, but your only solution to meet the demand for money is to print your own put of thin air and kill any small business creation and personal lending, not to mention the housing market. The housing stock is ageing badly, new developments and incentives for new industry and housing outside of gaba would be a great engine for the economy.

Your suggesting throttling supply of cash into the economy whilst continuing to print and devalue thus drastically increasing supply.

Doesn't make any sense.

 

[camberiu]

A solution could be the government to make its own milk company, you know, as Carrefour, Coto, Dia, etc have their own brands, with its prices, without inflation or speculation. They surely win by far in price and people would chose them, but the political cost, being called Comunist at least, is important I think.

Interesting idea. I wonder if one of the neighboring countries might have tried something like that in the past.

Oh yeah, Brazil did, back in the 70s and 80s. The military government created a company exactly for that purpose. It was called COBAL - Companhia Brasileira de Alimentos. The idea was that they, unlike the evil capitalists, would charge the "fair" market price for consumer goods. So, did it work? Well, let's just say it was as well run as Aerolineas Argentinas, and you guys can figure out the rest.

 

[EdRooney]

Dude, not to be presumptive, but isn't that pretty much what happened in Ireland? Budget cut 30% and an 11% hike in unemployment? Maybe you have a better perspective on that one than me, but it's by far not the only case. Greece now, Russia in the 90s, Mexico in the 80s...

2. As to printing, I didn't make any suggestions in my plan about printing more money. I did make suggestions for a financial transaction tax, so guilty there.

3. I never said I was in any way opposed to debt for infrastructure improvements. As long as it doesnt have the usuaristic terms of Argentina's previous debt, I think it can be a good tool.

4. I agree about your point about housing, and called for public investment for it in my plan.

5. Devaluation is the best way to keep exports high, and thus keep Argentines working, but it has to be gradual; no corralitos.

Seriously, I don't see how all this is so radical. Look at South Korea (very sim. to Arg in size); they put programmes much stricter than these into place in the late 70s/80s (not only the regulatory stuff and savings initiatives, but stricter capital controls, gov't control of major enterprises...), and they are considered a bastion of capitalism.

Either way, the only counter suggestion I've seen from you so far is just cut spending. Not very comprehensive that.

 

[John.St]

OK so cut government spending by 40% and you get a 10-15% increase in unemployment. Is that really what you want?

Let's go the full hog and cut government spending by 100%, sell all pretty young men and women to brothels in Asia and cut up the asphalt on the long roads and sell it to neighbouring countries. The unemployed will die from starvation and everybody is happy. B) (The above text not guaranteed to be free of sarcasm)

Would it be possible, do you think, to cut a little less than 40%? like 39 ... or 20 ... or perhaps 5% now, 5% more next year, etc.?

 

[EdRooney]

Sure you can cut as much as you want, and expect unemployment to increase accordingly.

 

[Dublin2BuenosAires]

Dude, not to be presumptive, but isn't that pretty much what happened in Ireland? Budget cut 30% and an 11% hike in unemployment? Maybe you have a better perspective on that one than me, but it's by far not the only case. Greece now, Russia in the 90s, Mexico in the 80s...

2. As to printing, I didn't make any suggestions in my plan about printing more money. I did make suggestions for a financial transaction tax, so guilty there.

3. I never said I was in any way opposed to debt for infrastructure improvements. As long as it doesnt have the usuaristic terms of Argentina's previous debt, I think it can be a good tool.

4. I agree about your point about housing, and called for public investment for it in my plan.

5. Devaluation is the best way to keep exports high, and thus keep Argentines working, but it has to be gradual; no corralitos.

Seriously, I don't see how all this is so radical. Look at South Korea (very sim. to Arg in size); they put programmes much stricter than these into place in the late 70s/80s (not only the regulatory stuff and savings initiatives, but stricter capital controls, gov't control of major enterprises...), and they are considered a bastion of capitalism.

Either way, the only counter suggestion I've seen from you so far is just cut spending. Not very comprehensive that.

Its beer time, but no...thats not what happened in ireland, in that govt cuts did not affect employment, the private sector made the cuts where the public sector signed a croke park agreement and another recently to protect jobs and reduce funding at the same time. Construction took the biggest hit.

But yeah...hot, time for a beer. Have a good weekend...everyone.

Ps...i said stop the money printing, replace funding with intl credit and stimulate economy with redirected spend. No more marketing for the govt, no more football on tv..etc, build roads and schools...etc.

Ps, i did say to make the bcra independent and sort out the dairy industry. Selfishly, because i like cheese and hate the crap jumbo sell. Much nicer out there that deserves a bigger market. I guess and independent ctrl bank is more important.

Beer.

 

[Gaucho_ec]

close arbolitos, take 35% off. And then you have a deal. Basically, lets go back 2 years and pretend like it never happened. Heck K's might get 54% again if so.

 

[John.St]

Great idea.

While we are at it, let's also forbid illegal drugs. I am convinced prohibition will stop abuse.
:lol: :lol:

 

[Rich One]

Si drugs and prostitution! Joe should endorse the new Law under study in Congress to penalize with jail not only the sellers but also the buyers of prostitution services.

 

[jp]

11.65 today no ceiling on sight until March....

Where are you getting this rate?