When Will She Ever Learn?

[cruizes]

http://www.miamiherald.com/2013/10/02/3665942/andres-oppenheimer-miami-officials.html

 

[camberiu]

The problem is not her. She is just the symptom. The problem is that most Argentinians, but specially the ones who attend UBA, are thought that there is such thing as "free lunch".

And you are now inhabiting the ultimate outcome of that philosophy.

 

[ghost]

In some way she may be some kind of a symptom. But she and the K..Kronies look a hell of allot like pathogens to me. The mayor of Miami sends thanks.

 

[EdRooney]

Then again, if you want an economist's point of view instead of that of a washed up law student:

http://www.huffingtonpost.com/mark-weisbrot/argentina-and-the-magic-s_b_1500489.html

 

[camberiu]

Then again, if you want an economist's point of view instead of that of a washed up law student:

http://www.huffingto..._b_1500489.html

From the article:
"But the reality is that the economic expansion has been led by domestic consumption and investment."

Really? Investment? By whom? I'd love to know who are these entities that are investing in Argentina. I see money going out. Going to Miami. But the newest Daimler factory in Latin America is not going to Argentina. It is going to Brazil.
The Google data center is going to Chile.
Maybe some of the 7.5 billion dollar investment that FIAT is making in the region is going to Argentina? Nope, it is pretty much all going to Brazil too.
So, I'd love to learn more about this "investment driven growth" the author is talking about.

 

[Rich One]

Government says foreign Investment is at all time records....!!

 

[ajoknoblauch]

There are times when government stimulus is appropriate, and 2002 was one of those. Cristina's greatest shortcoming is her failure to realize that it can't go on forever.

 

[ghost]

Cristina's greatest shortcoming is her failure to realize.

 

[EdRooney]

From the article:
"But the reality is that the economic expansion has been led by domestic consumption and investment."

Really? Investment? By whom? I'd love to know who are these entities that are investing in Argentina. I see money going out. Going to Miami. But the newest Daimler factory in Latin America is not going to Argentina. It is going to Brazil.
The Google data center is going to Chile.
Maybe some of the 7.5 billion dollar investment that FIAT is making in the region is going to Argentina? Nope, it is pretty much all going to Brazil too.
So, I'd love to learn more about this "investment driven growth" the author is talking about.

Camberiu,

The paragraph you quoted has a link to a paper by the Center for Economic Policy Research that shows that the recovery has been due to internal consumption and investment. Of course, anyone can name a gazillion companies that have not invested in Argentina, but that does nothing to refute the statistics based on IMF reports which clearly refute Oppenheimer's point that it is a 'commodity boom'.

More importantly, the Weisbrot paper, backed up by work by others such as Steiglitz and Krugman, has shown the importance of internal consumption (45% of growth) both in Argentina's recovery. While I do value alot of your points in many of your posts, I sometimes get the feeling that you completely rule out the demand side of the basic supply and demand needed for an economy.

Lastly, just because this is BAExpats, it bears emphasising again that this is just basic economics and its success or failure should not be attributed to whichever goofballs are in the Casa Rosada.

 

[camberiu]

Of course, anyone can name a gazillion companies that have not invested in Argentina,

Indeed. Named many that don't invest in Argentina is easy. The hard part is to name ONE that does. I am yet to see them named.
The "consumption based growth" that I see is through massive wealth redistribution done mostly through taxation and inflation. That is all fine and dandy until you run out of other people's money, which is what I think will happen sooner or later. Remember that Cuba, Mao's China and even USSR experienced a limited ran of incredible growth while the redistribution takes place. The problem is when you have nothing left to re-distribute.
If the Chinese levels of consumption driven growth is so real, CFK would have no problem attacking dollars as international businesses would be parachuting into Argentina. Where are they?
Finally, I question the integrity of both Krugman and Steiglitz, but that is me.