Argentine Economy

[QUOTE=DavieW;441715]Hear, hear!

Having just taken my son from the (so called) Argentinian education system to the British education system, the difference is an embarrassment. He's in year two, but has had to be grouped with the pre-schoolers for reading and writing. He's not dumb - they just hadn't started on reading and writing yet at his school in Argentina![/QUOTE]If we keep "Dumbing Down" in the USA schools, it will not be too long before we are just like Argentina, and other Latin countries.

Tres3.

On dumbing down in the US (slightly off topic but hey): I had three separate teaching stints separated by gaps of 7-8 years. I taught one particular upper division course during all three stints, using succeeding editions of the leading text in the field. The first stint, the material was similar to what I studied in undergrad, which was not too surprising since not much time had passed. Then in stint two, I noticed that a lot of the more challenging material had been moved to appendices. By the third stint, that material was gone completely.

I also taught at the college I graduated from, about twenty years later. By then, in the business school they had removed the calculus requirement, the foreign language requirement, the keyboarding test, and lord knows what else. The day I finally decided my career was over was when I stopped what I was doing and said to my class of business majors, "What's seven times eight?"

The blank looks told me all I needed to know.

I recently took an associate degree from a Jr. College in the US and A. The course work in my high school was much harder back in the days of hairy pussies and Pat Benatar.

I wasnt sure if I should put this in the jokes thread or under Argentine economy.........

"Argentina is not precluded from international credit, it has decided not to take it’.

Economy Minister Axel Kicillof has assured that the government is not seeking international financing despite current economic problems. “Argentina is not precluded from international credit, but it has decided not to take it,’ he stated.

“The government is not against external financing, the problem are its sources, the conditionalities tied to these loans,” Kicillof said in an interview with local Página/12 newspaper.

The minister said that the country has achieved foreign trade surpluses and that it “has the foreign exchange needed to face debt maturities.”.

“Historically, Argentina’s development was subjected to recurrent trade balance crisis,” the official said. “Development processes intensively use foreign currency.”.

Kicillof explained that “the mediocre growth of global economy, trade and of the economies of emerging countries” has affected Argentina since it is not “free from the evolution of Brazil’s, Europe’s and China’s growth rates.”".

[QUOTE=Gandolf50;441728]I wasnt sure if I should put this in the jokes thread or under Argentine economy.........

"Argentina is not precluded from international credit, it has decided not to take it.

Economy Minister Axel Kicillof has assured that the government is not seeking international financing despite current economic problems. Argentina is not precluded from international credit, but it has decided not to take it, he stated.

The government is not against external financing, the problem are its sources, the conditionalities tied to these loans, Kicillof said in an interview with local Pgina/12 newspaper.

The minister said that the country has achieved foreign trade surpluses and that it has the foreign exchange needed to face debt maturities..

Historically, Argentinas development was subjected to recurrent trade balance crisis, the official said. Development processes intensively use foreign currency..

Kicillof explained that the mediocre growth of global economy, trade and of the economies of emerging countries has affected Argentina since it is not free from the evolution of Brazils, Europes and Chinas growth rates.".[/QUOTE]Kicillof has either been smoking weed or is spouting CFK propaganda for the consumption of the LIV Argentine voters, or both. If it were not so serious, I would definitely put it in the jokes thread. An Argentine friend told me that Argentina was ungovernable, and I am beginning to believe him. The people in government are too stupid to govern the country, but not too stupid to steal.

Tres3.

[QUOTE=Gandolf50;441728]I wasnt sure if I should put this in the jokes thread or under Argentine economy.........

"Argentina is not precluded from international credit, it has decided not to take it.

Economy Minister Axel Kicillof has assured that the government is not seeking international financing despite current economic problems. Argentina is not precluded from international credit, but it has decided not to take it, he stated.

The government is not against external financing, the problem are its sources, the conditionalities tied to these loans, Kicillof said in an interview with local Pgina/12 newspaper.

The minister said that the country has achieved foreign trade surpluses and that it has the foreign exchange needed to face debt maturities..

Historically, Argentinas development was subjected to recurrent trade balance crisis, the official said. Development processes intensively use foreign currency..

Kicillof explained that the mediocre growth of global economy, trade and of the economies of emerging countries has affected Argentina since it is not free from the evolution of Brazils, Europes and Chinas growth rates.".[/QUOTE]Does Kicillof look and sound like Baghdad Bob? I always wondered what happened to that guy.

[QUOTE=Dccpa;441740]Does Kicillof look and sound like Baghdad Bob? I always wondered what happened to that guy.[/QUOTE]According to WIKI : Although questioned by American authorities, al-Sahhaf was released, and there has been no suggestion of charging or detaining him for his role in the Saddam Hussein government. He is now living in the United Arab Emirates with his family.

The Argentine government needs to get its act together if CFK's party is to stand a chance in the 2015 elections.

[URL]http://www.bloomberg.com/news/2014-09-04/argentine-bean-hoarding-epidemic-building-after-default.html[/URL]

Tres3.

Anyone, including an Argentine, who touches this offer with a ten foot pole ought to have his head examined.

[URL]http://www.bloomberg.com/news/2014-10-20/argentina-planning-1-billion-dollar-linked-bond-sale.html?cmpid=yhoo[/URL]

Tres3.

[QUOTE=Tres3;441858]Anyone, including an Argentine, who touches this offer with a ten foot pole ought to have his head examined.

[URL]http://www.bloomberg.com/news/2014-10-20/argentina-planning-1-billion-dollar-linked-bond-sale.html?cmpid=yhoo[/URL]

Tres3.[/QUOTE]The want to sell the bonds in dollars and repay them in pesos at the official rate? Are you fucking kidding me? The article does say they promise not to devalue the peso, so I'm sure that will work out fine.

I've got to get into the Sovereign Debt business.

No I think that they are Peso Bonds with a return of capital based on change in the Official Dollar Exchange rate.

So if/when Argentina devalues, this will enhance the return on the bonds.

Both the article Tres3 posted from Bloomberg and the article in the Buenos Aires Herald clearly stated:

The bonds are to be denominated in US Dollars.

The bonds are to be paid in Argentine Pesos at the OFFICAL EXCHANGE RATE, there was no guarantee in the Herald article on the official rate not being changed either up or down.

The bonds are to pay a whopping 1.75%.

The bonds will be governed by Argentine Law.

What could possibly go wrong?

If I understood this right, they are going to re-calibrate the amount on which the 1.75% is paid by the change in the official exchange rate. Example for a $1,000 bond: Official rate starts out at say 8 to 1 so the $1,000 bond is worth 8,000 pesos and the interest is (8,000 x .0175) = 140 pesos. Now after a year the rate is 10 to 1. The bond is worth 10,000 pesos and the interest will be (1,000 x .0175) = 175 pesos. That's why that Argie politician says the holders will "benefit" if the currency is devalued. They will get more pesos. But hello, the devaluation was because of inflation and 175 devalued pesos aren't any better than 140 undevalued pesos. Plus they get screwed the whole time period between the adjustments because the coupon is based on the beginning of the period calculation.

So it's hard to see anyone buying these bonds. Yet, people buy lottery tickets. In my state, lottery tickets say right on the front: "Prizes equal 50% of sales." I say to my friends who buy lottery tickets, "Just give me a dime and I will give you a nickel and you will be better off." Why better off and not just the same? Because gambling is heads you lose, tails you win and pay taxes. Winnings are taxable and losses can't be deducted unless you are a professional gambler and even then you have to already be itemizing AND the loss has to exceed 2% of income. So really if you buy a lottery ticket in my state your return on a dollar is fifty cents minus the tax on fifty cents.

I guess you could win if the devaluation was way more than the inflation during the holding period. That could happen if the devaluation was long overdue, which it is, so maybe that is the potential appeal. Buy the bonds, eat some inflation, dump right after the devaluation and hope to come out ahead.

Christ, what do you invest in if you're an Argie? Real estate is so illiquid because of the lack of financing. The banks aren't safe. The bonds aren't safe. Their stock market is all fucked up. I guess you hold precious metals. Then your apartment gets broken into and your insurance won't pay off and you jump out a window.

Do Argie insurance companies ever even pay off?

[QUOTE=Dickhead;441862]

Christ, what do you invest in if you're an Argie? [/QUOTE]If you are a smart Argie (I think that is an oxymoron), you invest in dollars, and pray that they are not stolen.

Tres3.

[QUOTE=Dickhead;441862]Christ, what do you invest in if you're an Argie?[/QUOTE]You don't invest as such, you make money in the same way as the political elite - you steal it.