Is President Kirchner Improving The Lives Of Argentinos?

[JamJam]

The UK no longer makes a huge amount but is able to sustain its quality of life through the majority of people working in the service sectors.

True in comparison to before but the country is still 6th biggest manufacture in the world. Shame a lot of it is foreign owned.
Also the finance industry makes up for the drop in manufacturing. It would be good to see the country make more things rather than depend on its huge financial sector.

 

[LucreBorgia]

change my mind about posting! sorry

 

[Bajo_cero2]

K policy about paying off the IMF and to pay the external debt under reasonable conditions makes a huge difference in ARs lives because this is the only solution in long terms.
To take dollars and give nationals the local currency is what all the other countries actually do.
To invest in stocks instead of having dollars under the mattress is what people do in the US for example and it is what makes the economy works.
So, Yes, I think that they are the only ones since Peron who are taking long term decision that improves the lives of the Ars.

 

[TrevorCito]

Is President Kirchner Improving The Lives Of Argentinos?


I think the average Argentine is financially worse off.

- Inflation at 25%+ makes it impossible to save money as the value of savings is eaten away if not spent
- High interest rates on home purchases makes money expensive and reduces investment
- The government gets in the way of a liquid and free market making it impossible to plan investments
- The currency doesn't float like other currencies which means its true value is being manipulated creating a black and blue market for dollars.
- The government is highly socialist and thinks that it's role is as the 'mother of the nation' rather than to just govern. This means that they value 'huge government' over smaller and efficient government so the average Argentine pays huge direct and indirect taxes to keep the machine running. IVA + Income Tax + Undervalued peso + corruption = a very bad situation for citizens
- The government is not honest about debt levels, reserves and inflation levels which means that the average investor has no idea whether their investment will return a profit... the history of default and expropriation means that investors, needed to improve the lives of citizens, are unwilling to invest serious money in the country.

Here's an example of how the average Argentine is financially misled:

YPF junk bonds are on sale for the gullible investor. See the full page spread in LA Nacion today.

18% (approx) return on investment. Before you sell your house and children to buy YPF bonds, here are the simple facts:

Inflation is running at 25%+
Return on investment 18% for peso YPF bonds 18% - 25% = -7% return on investment, possibly 100% if YPF projects don't work out.

You will lose at least 7% on your investment if you buy them... even more as inflation increases.

The thing is that the K camp are aware of this... sadly, the average Argentine doesn't have a chance.

 

[ajoknoblauch]

Discouraging foreign investment is hardly the route to prosperity.

 

[TrevorCito]

Discouraging foreign investment is hardly the route to prosperity.

The problem Argentina faces is that foreign investment requires, at some point, the repatriation of funds and profits to the investors homeland... for example, investors may wish to take their money back or may wish to spend the dividends on shares in another country. A strange concept I know (joke) but a difficult one for the government to manage as they closely control capital inflows and outflows. They even consider foreign invested money as the property of Argentina.

They don't want foreign investors to rip them off either and take over their country which is fair enough but they struggle to find a balance between attracting investment and honouring agreements they make with international investors. They don't want to become slaves to debt like IMF supplied funds (who would gladly lend to Argentina if asked at super high interest rates) which I can understand but they make it very hard for individuals to trust them. This means that foreign money is very expensive for Argentina as the risk of default is always high (government and corporate bonds). As governments change, the attitude towards investors radically changes and this scares foreign investment as no investor likes an unstable economic environment.

To make lives better for the average Argentine, here's how Argentina can help itself:
1. The government needs to be seen to be less radical and more predictable. This will make Argentina a more attractive investment destination
2. Take steps to eliminate corruption at all levels with strict penalties for corrupt government officials
3. Ensure greater separation between the executive, legislative and administrative arms of government. The executive control over the legal system must be reduced
4. The legal system needs to be made more efficient. Commercial law here is a mess and takes forever to resolve issues.
5. Government department expenditure must be transparent - all contracts and expenses must be made public for citizens to examine
6. Stop manipulating the INDEC, specifically inflation figures and currency exchange rates - floating the peso is a good start
7. Improve the electoral system so that buying votes for $$ is banned. Introduce a registry of political donations so that the average Argentine can see who is financially 'supporting' the government and any political party, member, senator and minister.

I could go on but this would be a good start. The trickle down benefits would soon help the average citizen to live better lives.

 

[ajoknoblauch]

The problem Argentina faces is that foreign investment requires, at some point, the repatriation of funds and profits to the investors homeland... for example, investors may wish to take their money back or may wish to spend the dividends on shares in another country. A strange concept I know (joke) but a difficult one for the government to manage as they closely control capital inflows and outflows. They even consider foreign invested money as the property of Argentina.

They don't want foreign investors to rip them off either and take over their country which is fair enough but they struggle to find a balance between attracting investment and honouring agreements they make with international investors. They don't want to become slaves to debt like IMF supplied funds (who would gladly lend to Argentina if asked at super high interest rates) which I can understand but they make it very hard for individuals to trust them. This means that foreign money is very expensive for Argentina as the risk of default is always high (government and corporate bonds). As governments change, the attitude towards investors radically changes and this scares foreign investment as no investor likes an unstable economic environment.

To make lives better for the average Argentine, here's how Argentina can help itself:
1. The government needs to be seen to be less radical and more predictable. This will make Argentina a more attractive investment destination
2. Take steps to eliminate corruption at all levels with strict penalties for corrupt government officials
3. Ensure greater separation between the executive, legislative and administrative arms of government. The executive control over the legal system must be reduced
4. The legal system needs to be made more efficient. Commercial law here is a mess and takes forever to resolve issues.
5. Government department expenditure must be transparent - all contracts and expenses must be made public for citizens to examine
6. Stop manipulating the INDEC and currency exchange rates - floating the peso is a good start
7. Improve the electoral system so that buying votes for $$ is banned. Introduce a registry of political donations so that the average Argentine can see who is financially 'supporting' the government and any political party, member, senator and minister.

I could go on but this would be a good start. The trickle down benefits would soon help the average citizen to live better lives.

As long as the investment climate depends on personal whims, from Cristina, Moreno or anyone else, rather than institutional stability, Argentina will continue to experience these boom-and-bust cycles.

 

[camberiu]

Based on the latest video and the current dolar blue rate, does anyone feel like recasting their vote?

 

[Bajo_cero2]

Well, there are still 100 pesos bill instead of 1.000.000 pesos bill like it happend when i was a child.
With the background of the international economy crisis, the inflacion we have is a bliss.

 

[PhilipDT]

With the background of the international economy crisis, the inflacion we have is a bliss.

Uhh ....hmmmm.... er....¿EN SER-

....Me quiero ir.