| Submit your comments on this article |
| Caribbean-Latin America |
| Argentine Growth Halts as Fernandez Tightens Controls |
| 2012-09-22 |
| Argentine President Cristina Fernandez de Kirchner's efforts to stem capital outflows and extend her control over South America's second-largest economy has brought growth to a standstill. good job, Evita Gross domestic product was unchanged in the second quarter from a year earlier and shrank 0.8 percent from the first quarter, the national statistics agency reported today. Economists had forecast year-on-year growth of 0.5 percent, according to the median estimate of 10 economists surveyed by Bloomberg. This was the first time GDP hasn't grown annually since a 0.3 percent contraction in the third quarter of 2009. based on fake inflated data "The government's policies have halted growth because they led to lack of confidence and of investments," said Walter Molano, head of sovereign research for emerging markets at BCP Securities in Greenwich, Connecticut, an investment bank that focuses on developing nations. "Argentina could have easily continued growing 7 percent or 8 percent for years." but then she wouldn't have had control Since her re-election in October, Fernandez, 59, has banned most purchases of foreign currency, restricted imports and nationalized YPF SA (YPF), the country's biggest oil producer. While those policies have eroded business confidence and investment, a drought in the U.S. that has pushed up soybean prices may provide some relief for the world's third-largest producer of the oilseed. Argentine President Cristina Fernandez de Kirchner's efforts to stem capital outflows and extend her control over South America's second-largest economy has brought growth to a standstill. Gross domestic product was unchanged in the second quarter from a year earlier and shrank 0.8 percent from the first quarter, the national statistics agency reported today. Economists had forecast year-on-year growth of 0.5 percent, according to the median estimate of 10 economists surveyed by Bloomberg. This was the first time GDP hasn't grown annually since a 0.3 percent contraction in the third quarter of 2009. Enlarge image Argentine Growth Slumps as Fernandez Tightens Controls: Economy "The government's policies have halted growth because they led to lack of confidence and of investments," said Walter Molano, head of sovereign research for emerging markets at BCP Securities in Greenwich, Connecticut, an investment bank that focuses on developing nations. "Argentina could have easily continued growing 7 percent or 8 percent for years." Since her re-election in October, Fernandez, 59, has banned most purchases of foreign currency, restricted imports and nationalized YPF SA (YPF), the country's biggest oil producer. While those policies have eroded business confidence and investment, a drought in the U.S. that has pushed up soybean prices may provide some relief for the world's third-largest producer of the oilseed. Budget Forecasts Argentina, which has expanded an average 7.8 percent a year since 2003, will grow 2.5 percent in 2012 and as much as 5 percent next year, Molano said. Fernandez's government forecasts growth will accelerate to 4.4 percent in 2013 from 3.4 percent in 2012, according to the 2013 budget. and pigs will fly The Argentine government has defended its record and says growth will rebound. Argentina's Fernandez tightened import restrictions in February to boost the country's narrowing trade surplus and bolster central bank reserves. With Argentina locked out of global credit markets since its $95 billion default in 2001, Fernandez has tapped the bank's holdings since 2010 to help pay the nation's foreign debt. She plans to use $8 billion of reserves for the same purpose next year. The import restrictions led to shortages of foreign-made parts, forcing manufacturers such as Fiat Spa (F)'s local unit to trim production. Fernandez also tightened controls on dollar purchases in a bid to slow capital outflows, which accelerated to $21.5 billion in 2011 from $11.4 billion the previous year. In April, Fernandez, who succeeded her late husband Nestor Kirchner in December 2007, seized control of YPF from Spain's Repsol SA, blaming lack of investment by her country's biggest oil company for a doubling of fuel imports in 2011. During her first term, she expropriated $24 billion of private pension savings and nationalized Aerolineas Argentinas SA, the nation's flagship airline. Obama and the democrats will likely try and tap teh cash in 401Ks in exchange for future "promises", expecially now that they are making squat in interest |
| Posted by:Frank G |
| #14 I assume the boys and girls at RAF Mt. Pleasant are even more than usually alert. |
| Posted by: Shipman 2012-09-22 15:13 |
| #13 Executive summary of comments so far: Feds expropriating 401Ks in stealth maneuvers and talk on US streets is about how much Honey Boo Boo should be paid per episode. |
| Posted by: Anguper Hupomosing9418 2012-09-22 13:55 |
| #12 > Champ takes the 401K's away from the American public They're being inflated away by that moron bernanke. |
| Posted by: Bright Pebbles 2012-09-22 12:36 |
| #11 I wonder about the price of cookies |
| Posted by: badanov 2012-09-22 11:21 |
| #10 thx Pappy |
| Posted by: Frank G 2012-09-22 10:54 |
| #9 Champ takes the 401K's away from the American public and there will be blood on the streets. |
| Posted by: Steve White 2012-09-22 10:47 |
| #8 Fausta's Blog on Argentina - a great resource on Latin America |
| Posted by: Frank G 2012-09-22 10:28 |
| #7 private economists that speculate about the real (not Gov't-quoted) interest rates are routinely harassed and arrested |
| Posted by: Frank G 2012-09-22 10:19 |
| #6 Capital on strike? |
| Posted by: Pappy 2012-09-22 10:18 |
| #5 ...its about power and control. Tis better to rule in Hell than serve in Heaven. Ask any one running Cuba, North Korea, Zimbabwe, Venezuela, etc |
| Posted by: Procopius2k 2012-09-22 10:16 |
| #4 Of course, get enough prosperity and most of the solutions in search of problems that politicians like to peddle would be spotted as unnecessary. Can't have that... |
| Posted by: M. Murcek 2012-09-22 10:16 |
| #3 You would think crooked politicians at all levels would want us all to be working like mad in an overheated economy so there would be more to steal, but they're a short sighted lot, they are... |
| Posted by: M. Murcek 2012-09-22 10:14 |
| #2 It's already started in Europe last year. Amd we know how Obama and a lot of Democrats want to be more like Europe... |
| Posted by: Raj 2012-09-22 09:58 |
| #1 thought I posted to Seedy Pols. Mods? please move, thx Moved to Non-WoT. |
| Posted by: Frank G 2012-09-22 08:55 |