News In The Usa Is Argentina Might Default Again

[camberiu]

When a country produce something, it gives a competitive advantage: lower prices. It makes no sense to pay everything like we live in japan where they have to import almost everything.

To sell the oil cheaper in Argentina was the price for exporting and getting the international price in the international market.

Remember that they didn t own the oil according to the argentine law, only the facilities for extracting and refine it.

How well did this policy of forcing a domestic price lower than an international price worked with the Argentinian beef industry?

 

[Bajo_cero2]

How well did this policy worked with beef?

The problem with Beef is soy.

How did that other policie worked out for Repsol, they lost YPF and Vaca Muerta.

 

[John.St]

This is exactly the point why such resources, which belong to all of us, should be nationalised. Repsol was living up to its corporate purpose of seeking profit. Nothing wrong with that; it's the nature of the beast. Yet since it belongs to all of us it should be managed for our collective interests, not for those of a limited group of shareholders. (Whether the K's will manage it for Argentina's interest is quite debatable, but the principle remains the same, since they will soon be gone.)

I absolutely agree, resources, which belong to all of us, should be nationalised or we may not be able to enjoy these huge losses.

You have undoubtedly companies like Aerolíneas in mind. A great and successfull nationalised company running an average annual loss of half a billion dollars, at times slightly more, e.g. almost twice that.

"En este 2012 la aerolínea estatal alcanzó un nuevo récord negativo, debido a que lleva perdidos 976 millones de dólares, el déficit más grande registrado en los últimos 21 años. En promedio, la empresa aérea tiene perdidas cercanas a los 2,7 millones de dólares por día." [1]

- or perhaps the happily nationalised YPF?
November 20013. "Argentina's oil and gas production to August compared to last year's eight months continues to decline although at a slower rate: 2.76% and 6.57% respectively, according to the latest figures released by the Energy Secretary.

Crude production is down to 20.77 million cubic meters, but the volume also hides another problem: the so called Medanito oil is the type that has bottomed most and it is the best blend for the country's refineries. This means Argentina will have to import Nigeria's Bony oil, a blend that will improve local output of petrol and diesel, which are dearer to import.

However when it comes to gas the situation is worse according to official stats. Production volume is down 29.680 million cubic meters in the first eight months of 2013, equivalent to a loss of 6.57% compared to the same period a year ago." [2]

[1] http://www.unoticias...cit_millonario/
[2] http://en.mercopress...ter-performance

 

[camberiu]

So we don't just pick on Argentina, Petrobras, often cited as a role model for Argentina, is another complete disaster.

Petrobras woes makes Brazil dependent on US, India for fuel

In October 2007, Brazilian President Dilma Rousseff, then chairwoman of state-run petroleum company Petrobras, proudly predicted that giant new offshore oil fields would usher in an age of Brazilian energy independence.
Six years on, the opposite has occurred.....

 

[John.St]

When a country produce something, it gives a competitive advantage: lower prices. It makes no sense to pay everything like we live in japan where they have to import almost everything.

To sell the oil cheaper in Argentina was the price for exporting and getting the international price in the international market.

Remember that they didn t own the oil according to the argentine law, only the facilities for extracting and refine it.

You somehow "forgot" to answer the question:

Are you willing to do business at a similar loss?

You are a lawyer. How about reducing your prices to less than 55% of the present?

 

[John.St]

The problem with Beef is soy.
How did that other policie worked out for Repsol, they lost YPF and Vaca Muerta.

Precisely as camberiu hinted: The problem with beef is that the domestic price was forced to a lower level than the international market price.
Not until then did it become more profitable to grow soy.

 

[Bajo_cero2]

You somehow "forgot" to answer the question:

Are you willing to do business at a similar loss?

You are a lawyer. How about reducing your prices to less than 55% of the present?
C

When i change from monotributo to responsable inscripto, i started paying 56% of my income in taxes.

However, the situation is different, i own my work. It means that i provide a service while they produced an strategic good.

Repsol, instead, didn t own the oil. The payment for the oil they exported was to supply the internal market at a reduced profit and to invest in developing new sources of oil and gas.

They over exported oil but they didn t full fit their part of the contract.

 

[John.St]

But to get back to my point: Argentine importation of energy is a drag on its economy, and the nationalisation of YPF was a good step toward alleviating it, regardless of the reason why Repsol was not fulfilling its contractual obligations.

You did notice, didn't you, that the nationalised YPF produces less gas and less oil, even oil of an inferior quality than when it was run by the evil capitalistic Repsol.

 

[Bajo_cero2]

You did notice, didn't you, that the nationalised YPF produces less gas and less oil, even oil of an inferior quality than when it was run by the evil capitalistic Repsol.

Wait and see.

 

[John.St]

Wait and see.

The world has been waiting for 50 years to see whatever - which never showed up.