Latest Financial Problem: Peso Shortage At Banks

[EdRooney]

Further Kirchner economic mismanagement: since the Central Bank has tightened monetary policy, banks have had to raise wholesale interest rates again to attract more pesos, and they're running short:

http://www.ambito.com/diario/noticia.asp?id=733181

I.e., if you have ARS $1m you can park it in the bank for a month and get a 28.5% return.

To solve this latest problem Cristina needs to learn from her friends at the Fed and start spending more pesos into the economy.* If she doesn't, the peso will increase against the dollar, making Argentine exports less attractive, meaning higher unemployment.

Discuss.

*(oversimplification of Fed policy)

 

[ajoknoblauch]

All Argentine governments know that when money runs short, you just print more of it.

 

[ARbound]

Someone must of forgot to put fresh roses in Recoleta for Evita. That's the only way besides praying with Papa Francisco to keep this "economy" going.

 

[EdRooney]

Rooney: I have this article here saying Argentina isn't printing enough pesos.

Knoblauch: I have a witty statement about printing pesos. [Rummages through box full of bumperstickers] Ah yes, Argentine governments print too many pesos, Ha!

 

[ajoknoblauch]

Rooney: I have this article here saying Argentina isn't printing enough pesos.

Knoblauch: I have a witty statement about printing pesos. [Rummages through box full of bumperstickers] Ah yes, Argentine governments print too many pesos, Ha!

No, the problem is that the government is derelict in its duty to print more pesos. If a Peronist government can't do that, it's the very definition of incompetence.

 

[EdRooney]

The definition of incompetence is a self proclaimed Dodger/Red Sox fan who uses the Evil Empire name Knoblauch. The bum couldn't even throw to first from 45 feet away, and was arrogant to boot.

 

[ajoknoblauch]

The definition of incompetence is a self proclaimed Dodger/Red Sox fan who uses the Evil Empire name Knoblauch. The bum couldn't even throw to first from 45 feet away, and was arrogant to boot.

The definition of incompetence is a self proclaimed Dodger/Red Sox fan who uses the Evil Empire name Knoblauch. The bum couldn't even throw to first from 45 feet away, and was arrogant to boot.

I have never been a Sawx fan, though I respect them and I enjoy visiting Boston (I went to one game there, in 1984, and i do admire the passion of their fans). The Yanquis, however, are undeniably evil.

 

[internationalguy]

Further Kirchner economic mismanagement: since the Central Bank has tightened monetary policy, banks have had to raise wholesale interest rates again to attract more pesos, and they're running short:

http://www.ambito.co...a.asp?id=733181

I.e., if you have ARS $1m you can park it in the bank for a month and get a 28.5% return.

To solve this latest problem Cristina needs to learn from her friends at the Fed and start spending more pesos into the economy.* If she doesn't, the peso will increase against the dollar, making Argentine exports less attractive, meaning higher unemployment.

Discuss.

*(oversimplification of Fed policy)

28.5% yearly rate. Not 28.5% in a month. Plus everyone knows that when the crop season ends the Rocas and Evitas will continue to lose value.

 

[mimyr]

This is the whole problem with social democratic governments. The capitalist sector will never cooperate with the government when they're trying to push a socialist agenda without actually having a socialized economy. Capitalism and socialism are fundamentally incompatible, and Peronism seeks to marry the two. The most you can hope for is so much federal wealth that everyone can be paid and happy (see the Scandinavian welfare states), but Argentina isn't one of those. Maybe Argentina COULD have been a welfare state, but that ship has sailed. The only alternatives to stagnating in a social democratic limbo at this point is either going fullscale capitalism similar to the U.S., or having a socialist revolution and completely changing economic models. All of Latin American seems to be taking a turn to the right at the moment, but now that the U.S. has less incentive to politically interfere with leftist political campaigns, I wouldn't be surprised to see a surge of communism take hold of the continent in the near future.

 

[ARbound]

This is the whole problem with social democratic governments. The capitalist sector will never cooperate with the government when they're trying to push a socialist agenda without actually having a socialized economy. Capitalism and socialism are fundamentally incompatible, and Peronism seeks to marry the two.

So wrong it hurts!

I'm saying this as a socialist and as someone who is working on a Master's in Political Science: PERONISM IS NOT SOCIALISM.

Peronism is Statism/State Capitalism. Socialism tires to makes things accessible to everyone, while admittedly restricting the rights of
businesses, corporations and the rich.

I think you might be trying to say it's mixing aspects of both, which agreed it is, but as I said, Argentina is as socialist as the USSR was
communist and Ike was conservative.