Argentina economy set to go BOOM!

Anything at all (keep it clean) goes here that does not fit in to any of the other forums.

Moderator: eeuunikkeiexpat

Post Reply
User avatar
admin
Site Admin
Posts: 21062
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Argentina economy set to go BOOM!

Post by admin » Fri Mar 23, 2012 7:13 pm

Don't cry for me Argentina. You just gave me a raise.

They are giving control of the central bank reserves to our favorite botox loving president, Cristina Kirchner. Can we start placing bets now on how long until the full implosion?

http://www.businessweek.com/news/2012-0 ... nk-charter
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
eeuunikkeiexpat
Rank: Chile Forum Citizen
Posts: 8063
Joined: Fri Sep 01, 2006 1:38 am
Location: Megalith of unknown origin near my digs, south V Region coast

Re: Argentina economy set to go BOOM!

Post by eeuunikkeiexpat » Fri Mar 23, 2012 7:19 pm

I believe those reserves include a nice chunk of gold.

Should be interesting to watch.
There are two ways to be fooled.

One is to believe what isn't true;

the other is to refuse to believe what is true.

- Søren Kierkegaard

User avatar
nwdiver
Rank: Chile Forum Citizen
Posts: 3076
Joined: Tue Mar 17, 2009 8:45 pm
Location: Vancouver, BC and Chile where ever it's Summer
Contact:

Re: Argentina economy set to go BOOM!

Post by nwdiver » Fri Mar 23, 2012 7:49 pm

admin wrote:Don't cry for me Argentina. You just gave me a raise.

They are giving control of the central bank reserves to our favorite botox loving president, Cristina Kirchner. Can we start placing bets now on how long until the full implosion?

http://www.businessweek.com/news/2012-0 ... nk-charter


With this ability she will bankrupt the country within 2 years, and they are still delinquent on payments from the last crash. I have said it before the IMF and Worldbank have real countries with real upside to support not this basket case. I know several in the wine industry setting up their cash flight paths for when the cash restrictions start. They will be selling wine at production cost to new distributors (themselves) in several other countries, a skill one learned well in South Africa 30 years ago.
It's all about the wine.

Andres
Rank: Chile Forum Citizen
Posts: 2706
Joined: Mon May 30, 2011 3:09 am
Location: Ex Chile; returned to Oz

Re: Argentina economy set to go BOOM!

Post by Andres » Fri Mar 23, 2012 9:16 pm

nwdiver wrote:They will be selling wine at production cost to new distributors (themselves) in several other countries, a skill one learned well in South Africa 30 years ago.
"Transfer pricing" is an old practice, not done solely when there are capital or foreign exchange restrictions. It is a common practice to shift profits out of high-tax jursidictions to lower-tax jurisdictions.
Wikipedia has an article on it.
Chile: My expectations are low. Very low.
I accept chaos. I'm not sure whether it accepts me.

User avatar
nwdiver
Rank: Chile Forum Citizen
Posts: 3076
Joined: Tue Mar 17, 2009 8:45 pm
Location: Vancouver, BC and Chile where ever it's Summer
Contact:

Re: Argentina economy set to go BOOM!

Post by nwdiver » Fri Mar 23, 2012 10:25 pm

Andres wrote:
nwdiver wrote:They will be selling wine at production cost to new distributors (themselves) in several other countries, a skill one learned well in South Africa 30 years ago.
"Transfer pricing" is an old practice, not done solely when there are capital or foreign exchange restrictions. It is a common practice to shift profits out of high-tax jursidictions to lower-tax jurisdictions.
Wikipedia has an article on it.


Yes but get caught doing it in a civilized county and go directly to jail.
It's all about the wine.

Andres
Rank: Chile Forum Citizen
Posts: 2706
Joined: Mon May 30, 2011 3:09 am
Location: Ex Chile; returned to Oz

Re: Argentina economy set to go BOOM!

Post by Andres » Fri Mar 23, 2012 11:15 pm

nwdiver wrote:Yes but get caught doing it in a civilized county and go directly to jail.
That depends upon who your friends and enemies are . . . assuming you can find a "civilized" country on this planet.
Sometimes the penalty is just a fine. Sometimes the "penalty" is a new "partner" and a large contract to do it even more.
Chile: My expectations are low. Very low.
I accept chaos. I'm not sure whether it accepts me.

User avatar
JHyre
Rank: Chile Forum Citizen
Posts: 1991
Joined: Tue Jan 08, 2008 12:08 am
Location: Columbus, Ohio

Re: Argentina economy set to go BOOM!

Post by JHyre » Sat Mar 24, 2012 10:43 am

Transfer pricing is very hard to police. It requires significant government resources, including high-powered economists. As such, the odds of getting caught strike me as quite low, at least in a law-driven society, where things such as "evidence" are not mere niceties. Those types of audits tend to be highly concentrated where the use of recourses will pay off - with large companies. In societies where "law" has less meaning, "bribery" tends to have more. As such, I would see Argentines "playing the game", at least until our Latin Hillary cuts the Gordian Knot by directly seizing things sans the fig leaf of tax laws.

John Hyre

Andres
Rank: Chile Forum Citizen
Posts: 2706
Joined: Mon May 30, 2011 3:09 am
Location: Ex Chile; returned to Oz

Re: Argentina economy set to go BOOM!

Post by Andres » Sat Mar 24, 2012 11:23 am

And let's not forget the "US model", which some say encourages large US corporations to not pay tax to the US govt so the US tax burden falls disproportionately on US citizens and small businesses. If the US, allegedly a "civilized country" does it, it is no surprise other governments might facilitate similar policies.
Chile: My expectations are low. Very low.
I accept chaos. I'm not sure whether it accepts me.

User avatar
nwdiver
Rank: Chile Forum Citizen
Posts: 3076
Joined: Tue Mar 17, 2009 8:45 pm
Location: Vancouver, BC and Chile where ever it's Summer
Contact:

Re: Argentina economy set to go BOOM!

Post by nwdiver » Sat Mar 24, 2012 1:34 pm

JHyre wrote:Transfer pricing is very hard to police. It requires significant government resources, including high-powered economists. As such, the odds of getting caught strike me as quite low, at least in a law-driven society, where things such as "evidence" are not mere niceties. Those types of audits tend to be highly concentrated where the use of recourses will pay off - with large companies. In societies where "law" has less meaning, "bribery" tends to have more. As such, I would see Argentines "playing the game", at least until our Latin Hillary cuts the Gordian Knot by directly seizing things sans the fig leaf of tax laws.

John Hyre


Any Canadian company that “appears” to be playing the game (never any profit on exports) gets red flagged and audited, especially those playing with Hong Kong, from my experience. If you are selling consistently below the market, they give you a break a couple of time as being a bad businessman, and then if the pattern continues they can get nasty.
It's all about the wine.

User avatar
JHyre
Rank: Chile Forum Citizen
Posts: 1991
Joined: Tue Jan 08, 2008 12:08 am
Location: Columbus, Ohio

Re: Argentina economy set to go BOOM!

Post by JHyre » Sat Mar 24, 2012 2:55 pm

NWD,

Interesting. I am rather surprised that Revenue Canada has the resources to do that. Perhaps they paint with a broader brush than the US, allowing auditors to accomplish more.

John Hyre

Andres
Rank: Chile Forum Citizen
Posts: 2706
Joined: Mon May 30, 2011 3:09 am
Location: Ex Chile; returned to Oz

Re: Argentina economy set to go BOOM!

Post by Andres » Sat Mar 24, 2012 7:35 pm

JHyre wrote:I am rather surprised that Revenue Canada has the resources to do that.
Or perhaps the government of Canada still realises that its constituents are Canadian citizens and therefore attempts to satisfy their wishes rather than catering primarily to the wishes of large business. (Unlike some other governments.)
Chile: My expectations are low. Very low.
I accept chaos. I'm not sure whether it accepts me.

fahrvergnugen
Rank: Chile Forum Citizen
Posts: 130
Joined: Fri Dec 09, 2011 9:06 pm

Re: Argentina economy set to go BOOM!

Post by fahrvergnugen » Sun Mar 25, 2012 1:46 pm

Great pertinent article you guys may enjoy:

http://soberlook.com/2012/03/cracks-for ... nomic.html

Post Reply