Neilson Nails It...again.

[Matiasba]

It seems fair to me to compare the countrys inflation with other periods. Its even better than comparing it with other countries (which is the argument of 99% of this forum).


Edit: Im not saying its useless, I do look other countries, it just doesnt work every time. When I was working for Macris foundation back in 2004 one thing they did is compare social problems and look for a solution with something called "legislación comparada". They studied the problem and how other countries worked it out. Most of the time ended trying to copy a solution to a similar problem Sweden used to have. They loved how Sweden solved the problem so they just copied a lot from that. Of course didnt work, those social policies doesnt work in a country like Argentina, culturally different, etc.

 

[ajoknoblauch]

The role of a journalist isn't to suggest proposals, but to report and denoounce.

This is an op-ed. Neilson's job is to critique.

 

[Dublin2BuenosAires]

My Quote was a sentence from Lanata....!!

I seem to agree with everything said by Nelson, do I have the right to do so ? A Campora typical argument is .... most countries have the same problems....

You have the right to enjoy whatever you want, is that in dispute?

 

[Gringoboy]

GS, none of the above as far as I know.
I've said before that I'm no economist and therefore steer away from commenting on the state of the economy except in a knee jerk manner common to the proletariat.
I need to take issue with Matiasba in his assertion that inflation is better than it used to be. With this type of advanced thinking, Argentina stands little chance of moving beyond it's current state, particularly if it's culturally acceptable to think that way.
As for my buddy James Neilson, I couldn't give a toss if he's sunning himself in Miami or any other western location. He, along with Robert Cox, has been associated with The Herald since the 70's and have a long history with that newspaper.
I agree that his style of writing is of the 'sound bite' flavour at times and it's clear which side of the bed he sleeps on. He's a commentator, he gives us an encapsulated dose of what he thinks, mostly directed at the dear leader and I for one like his delivery.
What I don't like is the newspaper.
Most of the articles read like they've been run through the Google Translate mangle and as one who appreciates the English language, its construction and usage, I simply can't read any of them.
When will they ever learn that one does not arrive to a place for God's sake?
Whilst some may not like Mr Neilson's style of writing, I find him to be head and shoulders above the quite appalling standard of writing that currently prevails in the English speaking journals and blogs that are bubbling up on the web in recent times.
That's a poor defence of his style, I know.
But if I were to write a commentary on social/ political life in Argentina, it would be in a similar style.
Short, punchy and to the point.

 

[pauper]

Whilst some may not like Mr Neilson's style of writing, I find him to be head and shoulders above the quite appalling standard of writing that currently prevails in the English speaking journals and blogs that are bubbling up on the web in recent times.
That's a poor defence of his style, I know.

So you're also using the Matias defence?

 

[Dublin2BuenosAires]

It's shit, but it use to be shittier

has become

It's shit, but it is shittier elsewhere.

Ambition is critical.

 

[EdRooney]

I also disagree with Matías that inflation is some kind of inherent cultural anomaly that sets Argentina apart from the rest of the world. Call it Argentine Inflationary Exceptionalism. Meh. I'm too numbers based to accept that type of speculation.

But it is interesting that none of you have addressed what seemed to be his most salient point: that Argentina did enjoy a period of low inflation in the 90's but at the cost of 25% unemployment, huge wealth discrepancy, vast poverty and eventually the 2001 crash. You could ostensibly do the same thing now: cut the gov't payroll by 15% and watch inflation take a skydive. Anyone on board for that?

 

[Gringoboy]

You lost me there D2BA.
But this is for you:
http://grammar.about.com/od/grammarfaq/f/butsentencefaq.htm

 

[Gringoboy]

So you're also using the Matias defence?

Well spotted Pauper mate.
But I think not.

 

[Matiasba]

Guys, Its not that I like inflation. Its that I (have to) accept it. I ve studied this country a lot form different points of view. As I said before, history shows us that there wasnt one single government without big inflation. I could talk of the exception of the 90s and a model based on taking debt, and how it ended. But everybody knows.

Inflation is a soooooo complex problem. This is the government with lower inflation since 1930. It started with Peron in the 40s and that huge social inclusion, of the poor, of the marginal, into the internal market. It had to do it since the world context. After that, democratic and military governments had to deal with it, making little to no advances. Even Videla had a bigger inflaation than this one.

I would expect this inflation to grow. I expect hyperinflation in this year or the next one. The value chain has been monopolized and concentrated a lot in the 90s, plus lots of important sectors were sold to american and brazilians.

So, to sum up, inflation has more than 70 years. I dont believe in magical solutions. We have to deal with it. Accept it. It has always been like that. I know Chile Brazil and Uruguay not have this problem as we do. But they have different histories, different economies, different political and economic actors, with different power and capacities of pressure.

Im not trying to justify inflation, but putting thing in perspective. Theres no win-win situation, someone has to loose, and of course thaat would be the poor, the more vulnerable population. This government, with its ups and downs protected them, with subisidios, and huge social programmes, like no government did since Peron. For the first time since the dictatorship we take people out of the poverty and not otherwise. Those people consuming creates inflation. Its a demand inflation. If you activate the recessive cycle, then you will have a cost inflation, after a devaluacion, everything in dollars will cost much more than now. The best attempt to stop inflation and the stop and go cycle was Krieger Vasena in 1966, but Cordobazo ended that dictatorship.

There are lots of very important actors, like banks, that thier worst situation is with inflation (although they still win a lot).