Is President Kirchner Improving The Lives Of Argentinos?

[Dublin2BuenosAires]

Sir, Argentina does not have a crude oil production problem. Argentina has a refining issue: 40% increase in vehicles on the road and not one new refinery constructed to meet demand. Argentina imports REFINED products, not crude. Furthermore, 150 days of wildcat strikes had nothing to do with with Repsol not meeting its targets???
When will people like yourself quit blaming every damn foreign company for problems the Argentine Government created.

Not to memtion the ubiquitous price restrictions for the internal market. The clumsy hand of the state is everywhere in the oil problems this country incredibly has.

 

[dennisr]

Well, repsol didn t invest in looking for new oil sources. That's why today we have an energy deficit and we have to import a lot of it.
Stupid us to be happy that now there is a policy of investing in looking for new sources of oil.

One thing simply baffles myself concerning the nationalization of YPF and its desperate search for investors.
It is estimated 150 billion us dollars has been withdrawn from AR banks since dollar controls were implemented and now sits under an argentine mattress or in a safe deposit box somewhere. Basically $150 billion of dead money. What baffles me is YPF (government) is willing to pay the evil foreigners 15% to borrow money to hold on to their dollar restriction policy: pessification. All dividends, interest money will go to a foreign entity. Billions of Argentine reserve dollars will be exported. If the Government had the interest of the Argentine people at heart, they would cut a deal to attract Argentine investors with us dollars in an effort to keep the money that is readily available in Argentina. No such investment opportunity exists for the Argentines. Ridiculous! Government would rather hold on to pessification and give their dollars to foreigners than their own citizens to keep pessification. Absolutely insane.

 

[trennod]

Bajo thats not accurate, about 1/3 of the copper industry is still private in Chile. In fact, one of my clients (BHP) has a 60% interest in Minera Escondida which is still the worlds largest copper mine.

Re the IMF, there are many, many countries that follows IMF policy advice. Obviously, it is only advice and we know how difficult it is to manage economies so the IMF can not be correct 100% all of the time. But, it certainly provides plenty of good advice. I have lived in both Canada and Australia, both have good economies and follow advice of the IMF. In fact, they are resource and agriculture based economies, similar to Chile and Argentina one might say.

One of the successes of a state owned economy is China. But the difference is, they actually know how to manage their companies. Aerolineas Argentina is an absolute basket case. I have said it before, USD 2 million a day it loses.

Its not perfect, but its such a shame Chile has overtaken Argentina in the last 10 years thanks to a good, solid government that has promoted foreign investment through open market policies, and obviously the resources it holds. But, Argentina also has significant resources - oil, salts and not to mention being one of the largest soy and grain exporters in the world. By the way, economic growth is forecasted at 4.5% in Chile this year. Inflation 3%. Here in the land of the Ks we have 30% inflation and 0 growth.

 

[cbonanni]

One thing simply baffles myself concerning the nationalization of YPF and its desperate search for investors.
It is estimated 150 billion us dollars has been withdrawn from AR banks since dollar controls were implemented and now sits under an argentine mattress or in a safe deposit box somewhere. Basically $150 billion of dead money. What baffles me is YPF (government) is willing to pay the evil foreigners 15% to borrow money to hold on to their dollar restriction policy: pessification. All dividends, interest money will go to a foreign entity. Billions of Argentine reserve dollars will be exported. If the Government had the interest of the Argentine people at heart, they would cut a deal to attract Argentine investors with us dollars in an effort to keep the money that is readily available in Argentina. No such investment opportunity exists for the Argentines. Ridiculous! Government would rather hold on to pessification and give their dollars to foreigners than their own citizens to keep pessification. Absolutely insane.

YPF announced today a bond sale geared towards Argentine investors. Denominations starting at 1000 pesos , maximum 250,000 pesos. Maturity is 365 days @ 19% interest. bond sales ends 9 May 2013. It will be interesting to see how much they sell. Capital flight is a huge problem here. But who would trust this government to allow investments here that would be safe from , well , the government.

 

[dennisr]

YPF announced today a bond sale geared towards Argentine investors. Denominations starting at 1000 pesos , maximum 250,000 pesos. Maturity is 365 days @ 19% interest. bond sales ends 9 May 2013. It will be interesting to see how much they sell. Capital flight is a huge problem here. But who would trust this government to allow investments here that would be safe from , well , the government.

They sold out last time: peso bond. Is about the only game in town for pesos. Plus, the powers were holding a gun to investment institutions last go around. Invest or the wrath of God will be upon you. Still a loosing proposition. With 25% inflation and 10% devaluation, you loose. I give up trying to make any sense out of it.

 

[Dublin2BuenosAires]

YPF announced today a bond sale geared towards Argentine investors. Denominations starting at 1000 pesos , maximum 250,000 pesos. Maturity is 365 days @ 19% interest. bond sales ends 9 May 2013. It will be interesting to see how much they sell. Capital flight is a huge problem here. But who would trust this government to allow investments here that would be safe from , well , the government.

Essential betting that inflation will be lower than 19% in one year, it is a very poor short term investment.

 

[cbonanni]

Essential betting that inflation will be lower than 19% in one year, it is a very poor short term investment.

Agree. I am not rushing out to buy any YPF bonds !! just passing on the information.

 

[citygirl]

Sir, Argentina does not have a crude oil production problem. Argentina has a refining issue: 40% increase in vehicles on the road and not one new refinery constructed to meet demand. Argentina imports REFINED products, not crude. Furthermore, 150 days of wildcat strikes had nothing to do with with Repsol not meeting its targets???
When will people like yourself quit blaming every damn foreign company for problems the Argentine Government created.

Sadly, probably never. It's ALWAYS easier and more popular to deflect and blame someone else/shift the discussion (see the ubiquitous "y vos?!") than confront the problems that exist here and were created by a succession of governments here in Argentina.

 

[GS_Dirtboy]

Its not perfect, but its such a shame Chile has overtaken Argentina in the last 10 years thanks to a good, solid government that has promoted foreign investment through open market policies, and obviously the resources it holds. But, Argentina also has significant resources - oil, salts and not to mention being one of the largest soy and grain exporters in the world. By the way, economic growth is forecasted at 4.5% in Chile this year. Inflation 3%. Here in the land of the Ks we have 30% inflation and 0 growth.

I would say that Chile's success goes back to Pinochet. Yes, he was a %&$@ing #@@!*& murderer but he changed the culture of Chile. You didn't work? You didn't eat. Period.

That was the part missing from Cristina's Day of the Worker speech about labor being the social engine. The social engine in Argentina is corruption - in many forms. You can't escape it and you become part of the system. How many people on this list buy and sell Blue Dollars? It's the oxygen here.

 

[Bajo_cero2]

There were never so few people without work.

We can not say the same in Europe...

Argentina has many problems, a government that pay debt instead of taking debt for selling cheap dollars is a government that face problems.