Re: Chile's Place in Latin America
And that is not working.
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Going from bad to worse, it seems it was only 25 I think when I looked last week, now it's 28 . And hung around 17 when we were there last November. Does that mean it's better value for foreigners or have they just put all their prices up to compensate ?
They are claiming 25% inflation, but every time I have seen these inflation spikes in Argentina they are normally much, much higher on the ground. The government stats can not be trusted. As a friend that spends a lot of time in Argentina described it, everyone jacks their prices a month in advance, in anticipation of more inflation, which just causes more inflation. No one wants to put their money in the banks or in to pesos, because they have all seen this show before where the government just seizes or devalues everything as they implode. So, a stack of dollars under the rose bush becomes the bank.41southchile wrote: ↑Thu Jun 14, 2018 5:10 pmGoing from bad to worse, it seems it was only 25 I think when I looked last week, now it's 28 . And hung around 17 when we were there last November. Does that mean it's better value for foreigners or have they just put all their prices up to compensate ?
Yeah that is really dumb, taxing the foreign investors is one sure fire way to bring any transormation plans and growing the economy to a screaming stop. I have claimed before the time Chile has done most well economically in recent decades is under Lagos (I believe it was Lagos, piñera to a certain extent)when huge ammounts of foreign capital flowed into the country. On a smaller scale as an example of no fresh money entering an economy, its like the folks selling second hand clothes and dodgy presciption medicines or smuggled cigarettes to each other in the streets (the ferias). They are only at best, ever going to maintain their situation, its not going to lift all their standards of living thats for sure. Thats fine, if they dont want growth and are happy with their lot, but dont turn around then and complain and moan about everything (some can see opportunities, those are the ones that need encouraging), but most havent got a clue and all they do is seeth with resentment and jelously.admin wrote: ↑Thu Jun 14, 2018 8:00 pmChristina really buggered them this time. By cutting off the ability to import foreign goods for so many years, when they took the leash off the demand skyrocked. So, imports flowed in with imports, dollars flowed out, all far faster than exports flowing out.
They also are doing a bunch of bonehead things like raising taxes on foreigner investors, right when they need the foreign investment money. This whole crisis started almost exactly when they implemented that tax on foreign investment just a month or two ago. They tried to screw over their foreign investors too early in the cycle. Typically Argentina has been better at waiting until late in the cycle to burn their foreign investors.
They still have a bunch other things like the tax system on argentinans buying dollars, restrictions on this and that. There is just a pile of distortions in the economy, that are all self-inflicted by the goverment, but the corruption is so entrenched around something like that they will never be able to get rid of it now.
Argies buy allot of cheap gas from Bolivia, last time they stopped exporting to Chile was when Bolivia said 1 molecule of our gas goes to Chile, we cut you off......so no Argie gas to Chile, and you are right the lines to Argentina were built to supply 2 large gas fired power plants that then needed to setup structure to run on marine supplies of LNG, which they then sold into Argentina cutting off some of the need for Bolivian gas.......those smart Canadians, Opps I mean Chileans41southchile wrote: ↑Fri Jun 15, 2018 9:46 amArgentina to start gas exports to Chile (again) last time they tried to do this, didnt they switch off the tap, when they needed it themselves, after Chile had invested in the infrastructure to get it to Chile, back in the early 2000s. Recently Chile has been using the pipeline to send gas they import over to Argentina. This is a good deal for Chile, .......if they can trust the Argentinians that is to provide a reliable supply
https://uk.reuters.com/article/argentin ... KL1N1TG1OD
Yeah but that 7%+ growth went to politicians pockets. A la same in Brazil, all progress and still doesn't have anything to show.admin wrote: ↑Fri Jun 15, 2018 8:38 pmWell i see peru came in with a 7+% growth last month. Good for them. Nice to have a few neighbors around that are not complete socio-economic basket cases. Granted peru has a lot of catching up to do, but at least they seem to be mostly moving in the right direction in recent years.
Give this new guy a chance he has only been in there a couple of months, maybe thats why the economy had such strong growth, got rid of the other corrupt pedro pablo. This new guy sounds ok from what I have read but he has an uphill battle. As for Brazil, blame the socialists for that and the unsustainable social welfare benefits and subsidies for the poor and working class the country, they are finding difficult to wind back and get rid of them now that they cant afford them, again another uphill battle, they have elections this year and the fron runner is a right wing bad ass by the sounds of, its going to be interesting.HybridAmbassador wrote: ↑Sat Jun 16, 2018 5:15 pmYeah but that 7%+ growth went to politicians pockets. A la same in Brazil, all progress and still doesn't have anything to show.admin wrote: ↑Fri Jun 15, 2018 8:38 pmWell i see peru came in with a 7+% growth last month. Good for them. Nice to have a few neighbors around that are not complete socio-economic basket cases. Granted peru has a lot of catching up to do, but at least they seem to be mostly moving in the right direction in recent years.