¡Exprópiese! Let's follow the kleptocracy's takeover of YPF

[Takhisis]

Good.

Since you so like the import restrictions, Mr. innonimatu, auto manufacturer FIAT has suspended a thousand or so labourers according to today's news, as they don't have the parts to actually manufacture cars.

 

[Terxpahseyton]

I think with globalization it is no white and black. Your example illustrates, that to shut one self off of globalization via import restrictions can mean to shut oneself off of streams of economic activity which will be missed. On the other hand, as in every free market, globalization can mean that a competitor, like a nation, gets the short end of the stick. And what makes globalization so dangerous in this regard is that this may effectively force employees to accept worse conditions so a nation remains competitive. And this can constitute a vicious cycle for the whole world.
The unchecked powers of globalization ultimately surely are just as troublesome as profitable. But to go against them as a single nation can cause even more trouble.

 

[Ondskan]

Fixed: ¡Exprópiese! Let's follow the takeover of YPF from the kleptocracy.

 

[Takhisis]

New news: about 8% in the company has shifted from the Petersen group to the Mexican gazillionaire Carlos Slim.

I think with globalization it is no white and black. Your example illustrates, that to shut one self off of globalization via import restrictions can mean to shut oneself off of streams of economic activity which will be missed. On the other hand, as in every free market, globalization can mean that a competitor, like a nation, gets the short end of the stick. And what makes globalization so dangerous in this regard is that this may effectively force employees to accept worse conditions so a nation remains competitive. And this can constitute a vicious cycle for the whole world.
The unchecked powers of globalization ultimately surely are just as troublesome as profitable. But to go against them as a single nation can cause even more trouble.

Yes, all they've managed to cause is fear. And, you know, the shortages of almost everything.

 

[innonimatu]

Good.

Since you so like the import restrictions, Mr. innonimatu, auto manufacturer FIAT has suspended a thousand or so labourers according to today's news, as they don't have the parts to actually manufacture cars.

Looks like a shot in the foot for Argentina, but afaik it can be just a pressure tactic used by Fiat to negotiate better terms for itself. Hard to comment without details...

And I don't like import restrictions. I asked you what better options could you see for a country facing balance of payments problems. Unless you can show that Argentina does not have such problems - meaning that such restrictions are a purely optional policy. I don't know what the present international balance for Argentina is.

A country can always try to borrow (or, more accurately, let the private sector borrow) to cover any shortfall. But wasn't that part of the story of how Argentina ruined its economy in the 1990s?

New news: about 8% in the company has shifted from the Petersen group to the Mexican gazillionaire Carlos Slim.

If you don't want any part of the company shifting, well... the argentinian state will have to nationalize it all.

 

[Takhisis]

I asked you what better options could you see for a country facing balance of payments problems. Unless you can show that Argentina does not have such problems - meaning that such restrictions are a purely optional policy. I don't know what the present international balance for Argentina is.

Nobody does know, as the government routinely fabricates statistics and has done so for the past six years. We do not have inflation but prices are higher by between 20 to 30% but we're having the two-peso bill replaced by/coexisting with a two-peso coin and the government's rolling out plans for 200- and 500-peso bills (we have 2s, 5s, 10s, 20s, 50s and 100s) 'to ease payments'. We live in a Big Borther-esque world here right now.

But a simpler way is to stop the rampant embezzlement and the awarding of contracts to 'friends' who charge twice as much as their competitors but offer a nice payoff under the table to the officials awarding it to them.

A country can always try to borrow (or, more accurately, let the private sector borrow) to cover any shortfall. But wasn't that part of the story of how Argentina ruined its economy in the 1990s?

And how do you think we're coping now? Chávez is the banker, and once upon a time he offered worse terms than other creditors but he was still preferred.

 

[Takhisis]

Since the government wanted to stop prices from rising and to keep prices accessible we've had a 7% increase this week.

Furthermore, the government's answer to criticism over a lack of any plans or proposals on what to do with the company after they're done with the speeches appears to be issuing documentaries on state TV about how everyone else is evil and they're good and patriotic.

 

[BornInCantaloup]

Very interesting read.
We don't know much about Argentinian politics here in Cantaloupe Island but we gathered that Piel de Pueblo was still weeping...



Link to video.