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[QUOTE=Dickhead]I don't have any assets or liabilities here (balance sheet accounts) I only have revenue and expenses here (income statement accounts) I don't invest or borrow; I only earn and spend. Think about it.
Another way to state this is, I don't buy or borrow. I only earn and burn.[/QUOTE]Sound economic policy in a place like this if you ask me.
Lets Sidney and I buy some apartments and get "Rich" on the appreciation.
Exon
Looks like the K's are trying to strengthen the peso. They tried to keep it around 3.15p for a long time, now they are bring it up by selling dollars. DOW JONES NEWSWIRES says it's because of the farm strike. Could be, but it might also be a way to bring down inflation, by making the peso stronger. La Nación said on 5-29 that the central bank had spent about 1.4 billion dollars making the peso stronger. Since they had been intervening every market day since then, they are probably around 1.6-1.7 billion now. That should leave the central bank about 48.3 billion in ammunition to strengthen the peso. Don't know how fares the central bank wants to take the peso, but if they start spending too many dollars, someone will eventually take the other side of the trade. Most trader are just watching, and don't want to fight the bank yet. Also if the gov. settles with the farmers, anyone shorting the peso, can get burned big time.
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Of DOW JONES NEWSWIRES.
BUENOS AIRES (Dow Jones)--The Argentine peso continued to gain ground on the U. S. Dollar Monday as the central bank apparently continued to sell dollars in a bid to firm the local currency amid an entrenched farm conflict.
The peso closed at ARS3.0875 against the dollar in interbank trading, from ARS3.10 at Friday's close. It has been a sharp turnaround from the five-year weak-point of ARS3.1825 the peso hit amid farm-crisis worry on April 22. To push the peso, the central bank has sold more than $1.4 billion in reserves over the past few weeks.
For nearly five years, the government has regularly bought dollars to maintain a weak peso that favors exporters. Currency traders think the central bank's decision to deliberately strengthen the peso of late is a way to show cereal exporters just who's in charge.
[url]http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=f6145a7f-bad4-4bed-b305-cb7de6e37009[/url]
Argentine Farmers Extend Halt of Grain Exports Until June 9
By Eliana Raszewski.
June 2 (Bloomberg) -- Argentine farmers prolonged protests over higher taxes on grain and oilseed exports until June 9, Luciano Miguens, president of the country's Rural Society, said.
Farmers will continue halting grain and oilseed exports until next week, while they will resume trade of livestock tomorrow, Miguens said in a televised press conference from the port town of Rosario.
To contact the reporter on this story: Eliana Raszewski in Buenos Aires [email]eraszewski@bloomberg. Net[/email]
Last Updated: June 2, 2008 22:13 EDT
I thought I caught a Bloomberg piece on this forum last Thurs night that indicated the strike was over. Of course, now I cannot find it. Anymore info on this would be greatly appreciated. Thx.
[QUOTE=Rioman]I thought I caught a bloomberg piece on this forum last Thurs night that indicated the strike was over. Of course, now I cannot find it. Anymore info on this would be greatly appreciated. Thx.[/QUOTE]No one said it was over. There was a post my me, from bloomberg that was titled "Soybeans Plunge on Speculation Argentine Farm Strike Will End." Speculation is not fact. It was back 5-19, in a different thread. After that soybeans shot up, after it became clear the gov. was not going to compromise yet.
[url]http://www.argentinaprivate.com/forum/showthread.php?t=4606[/url]
Appreciate reponse, but this is not article that I thought I saw as it was Bloomberg and am almost sure it was dated last thurs night 8pm. Do not think I was seeing things, but maybe was.
Here is article that was referring to - obviously it does not mean that anything changed: By Eliana Raszewski.
May 29 (Bloomberg) -- Argentina's government, bowing to pressure from farmers, said it will impose a cap on variable export taxes for grains and oilseeds to end two months of protests that had disrupted trade and caused food shortages.
The maximum levy, which previously rose as high as 95 percent depending on prices, was reduced for corn, soybeans, wheat and sunflower seed when prices rise to specified ranges, Cabinet Chief Alberto Fernandez said today during a press conference in Buenos Aires. Tax rates will remain in place at prices below those levels, he said.
'We hope this announcement puts an end to the conflict with farmers,'' said Fernandez in a press conference in Buenos Aires. 'We want farmers to keep producing.''
The government sought to end a conflict that led farmers to resume demonstrations yesterday until June 2, the third protest since the new tax system was announced in March. Ricardo Buryaile, vice president of the Argentine Rural Confederation, said announcement won't end the dispute.
'The protests will continue as it was scheduled,'' said Buryaile in an interview with Todo Noticias television channel.
Grain trucks stopped arriving at Argentina's main ports after farmers resumed the blockades yesterday. The Rosario Board of Trade said on its Web site that no trucks arrived at regional ports overnight, compared with an average of 5,532 trucks a year ago. Truck arrivals are down 8 percent so far this year because of the two-month dispute with farmers, the board said.
Tax-Rate Cut.
The government reduced the maximum export tax on soybeans to 51.7 percent from 55.9 percent when prices reach $700 a metric ton, and will be 52.7 percent rather than 58.5 percent when prices reach $750, according to a spreadsheet of the changes provided by the economy ministry. The rate remains unchanged for prices up to $600, when the tax will be 49.3 percent.
Soybean futures closed today on the Chicago Board of Trade at $13.23 a bushel, or $486 a ton, the ministry said. Soybeans reached a record $15.865 a bushel, or $582.93 a ton, on March 3.
The sunflower-seed tax was cut to 51 percent from 54.6 percent when prices are at $800 a ton, and will be 52.7 percent rather than 59.1 percent when prices are at $900, the economy ministry said.
Corn, Wheat.
The tax on corn was cut to 45 percent from 53.8 percent when prices reach $400 a ton, the ministry said. They will be unchanged at 40 percent when the price is $300 a ton. Corn futures closed today at $5.8275 a bushel, or $229.42 a ton, down from a record $6.39 a bushel, or $251.56 a ton, on May 9.
The rate for wheat was reduced to 37.9 percent from 39.8 percent when prices reach $500 a ton, and will be unchanged at 35.4 percent for prices at $450, the ministry said. The rate for $600 wheat will be 41.6 percent, down from 46.3 percent. Wheat futures in Chicago closed at $7.415 a bushel, or $273.19 a ton, down from a record $13.495 a bushel, or $495.85 a ton, on Feb. 27.
'The announcement is more of the same we had,'' said Luciano Miguens, president of the Rural Society, the country's biggest farm group. 'It's surprising that they didn't ask us for an opinion.''
To contact the reporter on this story: Eliana Raszewski in Buenos Aires [email]eraszewski@bloomberg. Net[/email]
Last Updated: May 29, 2008 20:14 EDT
The sliding scale tax on farmers, is destroying the Argentine Future market. Farmers are no longer selling contracts to borrow money, since their risk is up, but there reward is way down, since the tax is a sliding scale.
[url]http://www.bloomberg.com/apps/news?pid=20601086&sid=a6MzIy5dpIkU&refer=latin_america[/url]
This seems strange to me. The Truckers are blocking the roads, because they are mad about the Farm Strike. Somehow by blocking the roads they will get the farmers to end there strike? Who do you blame for the food shortages? The farmers or the truckers? The farmers are no longer blocking food coming into the cities, since they want the support of the population. So the Trucker will, so they don't get that support? This is funny Argentine Logic, I think.
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•Reuters.
•, Thursday June 5 2008
By Nicolas Misculin.
BUENOS AIRES, June 5 (Reuters) - Roadblocks manned by hundreds of truckers on Thursday in Argentina's heartland threatened to revive food shortages as a deadlock between protesting farmers and the government dragged on.
Farmers are staging their third strike in nearly three months over higher export taxes on the country's top crop, soybeans. They are withholding grains from market through Sunday, and some truckers frustrated with the halt to commerce have blocked highways to press for a solution.
Fewer products are arriving at the Buenos Aires Central Market, where most of the city's fruits and vegetables are sold.
"There's been a small drop, about 70 percent of goods are arriving," a source at the wholesale market said on condition of anonymity.
Farmers blocked highways during their first, wide-scale strike in March, sparking shortages of such staples as beef and dairy products on supermarket shelves. They have since changed tactics to avoid alienating city dwellers.
"The situation has grown complicated for the truckers. The government should pay more attention. This is the result of not having resolved the farm problem," Eduardo Buzzi, president of the Argentine Agrarian Federation, told reporters.
Television images showed hundreds of trucks parked on rural highways, and dairy sector leaders warned that this new twist to the farm conflict could spoil millions of liters of milk.
"This strike on the highways blocks all economic activity and once again threatens to cause shortages and higher prices. This has become a strike against the Argentine people," Interior Minister Florencio Randazzo told local radio.
The minister later said in a televised press conference that the government would not cede ground on the rate of grains export taxes, but was willing to discuss future farm policy once the strike ended.
Farmers first took to the streets after the government announced a new sliding-scale export tax system for grains and oilseeds, which raised levies on soy and sunseed products.
The government defends the tax hike, saying it helps curb inflation while protecting consumers. But farmers call the rates confiscatory and are venting after several years of heavy state intervention in the grains and livestock markets.
The bitter conflict has caused a former economy minister to resign and dragged President Cristina Fernandez's approval ratings down, just six months after she took office.
It has also pressured the local currency, forcing the central bank to sell its foreign reserves to sustain the peso. (Additional reporting by Lucas Bergman; Writing by Hilary Burke; editing by Jim Marshall)
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Don't think the trucker are on the side of the farmers, since when the farmers where blocking roads earlier, they had conflicts with the truckers. At one point the truckers threaded to break throw the farmer lines, and end the blockade, when the farmers announced they where armed, and would defend themselves. There is some legal stuff going on against one of the farm leader because he said that then, think it was DeAnglio, or something like that. Forget his name now. Being accused of inciting valance. The truckers then said, that if they could not pass, they would block all roads, so no one passes.
By blocking the roads, then or now, do the truckers help the Farmers by putting more pressure on the government to settle? Or help the government by getting the public mad? If the public gets mad, who do the blame? Gov? Truckers? Farmers? I am confused.
I blame greedy consumers for the strike. What right do they have to expect food on the grocery store shelves? If this is a problem, they should take some initiative and grow some food themselves. Granted it could be problematic to have cattle in a one-bedroom apartment in Capital Federal, but why not a few chickens? Even a large pig would fit in a one-bedroom apartment. It is time to stop blaming other people and become more self-reliant. We have avocados and lemons on the trees here so we can at least make guacamole. As far as chips for the guacamole, I am thinking maybe paint chips. Think about all the chipped paint you see everywhere in Buenos Aires. Also we have some quiñotos (kumquats) so we can have freshed-squeezed juice. Of course it takes about 50 kumquats to make a glass of juice but at least we have home-grown alternatives.
There is plenty of room in Palermo and the surrounding parks for cattle. Someone could even sow a few acres of wheat. Breed fish in the Palermo lake. You have all probably seen weeds and even trees growing on roofs. It would just be a question of planting lettuce there.
I prefer a beer and pussy diet of which there is plenty of both in Recoleta