The Chile Economy, Social Crisis and Virus Impact

National Crisis, Emergencies, and Natural Disasters in Chile; including the experiences of Chile Forum Members have shared in current and in past crisis, as they have assisted each other and Chile. Things will always go wrong. It is how you deal with it that counts, and that starts with information. When things go wrong, this is the place to come to exchange information about what is going on in Chile.
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41southchile
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by 41southchile » Thu Nov 05, 2020 9:26 am

Support for Piñera at nearly historic lows again, no surprises there.
What is surprising is that not as many have a negative view of their personal circumstances compared to those that think the economy in general is bad.
Less people are personally pessimistic.
The economy is pumping in many parts of the country and suffering in others. Capital is being redeployed to new industries and sectors.
For example Hardware stores businesses are booming as people decide to do little projects at home.
Butchers businesses are booming, less people eating out
Real estate is booming, many reasons.
Construction is booming down south.
Agriculture is doing very well.
Mining looks like it will be picking up with copper at record highs compared to past few years.

Money hasn't disappeared, its just being re allocated which is different to being redistributed, those that already realise this are pivoting and looking for new opportunities.
Of course this is not good for "income inequality" as many here have pointed out.

As one meme said,
"it wasn't a lockdown, it was the middle class and rich people hiding in their houses, while the poor and working class fetched and delivered them stuff"
.
https://www.emol.com/noticias/Nacional/ ... omica.html
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paladin
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by paladin » Thu Nov 05, 2020 8:18 pm

Well put 41 southchile.
It is always true that whenever something bad happens, and some people lose, there are always others that gain. It’s a strange fact of life.

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41southchile
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by 41southchile » Sat Nov 07, 2020 9:36 am

Idiots out in action again last night

https://www.soychile.cl/Santiago/Socied ... sonas.aspx
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41southchile
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by 41southchile » Sat Nov 07, 2020 9:39 am

Meanwhile the makers of Nivea in Chile are packing up and leaving Chile, but of course its absolutely nothing to do with the unrest and constitution change 🤔🤣
Maybe thats true but it surely didn't help.
https://www.emol.com/noticias/Economia/ ... nelia.html
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41southchile
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by 41southchile » Wed Nov 11, 2020 10:09 am

Here comes another 10 percent to be given out, at least it will crank spending up for the end of the year.
https://www.t13.cl/noticia/politica/seg ... 11-11-2020

I personally call bullshit on these experts and their dollar predictions, anothet 10 per cent is the least of their worries.
https://www.emol.com/noticias/Economia/ ... -baja.html

But whats the saying they use here that I have heard those opposed to this say? .
Pan para hoy, hambre para mañana?
Just to be clear this isn't really about helping people out in the pandemic is it?
Its just part of a concentrated effort to bring the AFP system down.
Well Alejandro Navarro wont be there scratching his arse and sniffing his fingers and to celebrate this victory for the pueblo it seems.
https://www.emol.com/noticias/Nacional/ ... encia.html

https://www.futuro.cl/2020/05/finito-se ... 20%251%24s

Anyway, whatever, Ill take it and I'll bet all those sub 30 kids living at home still will take it and throw it into the apartment investment market, sending prices up even more for crappy 50 square metre appartments in Santiago.
https://www.fdi.cl/2020/08/06/la-fiebre ... e-del-pie/
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Wed Nov 11, 2020 10:27 am

The irony is, another 10 or 90 percent from the AFP is just a massive wealth transfer from the poor to the rich.

where do they think the Pueblo is going to spend their money?
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41southchile
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by 41southchile » Wed Nov 11, 2020 11:02 am

admin wrote:
Wed Nov 11, 2020 10:27 am
The irony is, another 10 or 90 percent from the AFP is just a massive wealth transfer from the poor to the rich.

where do they think the Pueblo is going to spend their money?
Exactly. Have a look at how much Luksic controls in the Chilean economy, its quite an eye opener, he will be rubbing his hands together at this news. Then when all the pensions are gone, who will be expected to pick up the pensions tab? Middle class taxpayers.

The whole pandemic is a huge wealth transfer.
Like the meme said , It's not a lockdown, its the middle class and rich people hiding in their houses while the poor bring them stuff they buy online.
“Facts do not cease to exist because they are ignored.”

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tiagoabner
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by tiagoabner » Wed Nov 11, 2020 1:49 pm

I withdrew 1 million pesos from my AFP account, then turned back to Renta4 and invested it all. I also had the option to invest it on an APV and get a tax deduction for doing that, as it would lower my taxable income for the year by one million pesos.

The AFP withdrawals are more favorable to those who don't need it, and it's a very populist measure.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

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41southchile
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by 41southchile » Wed Nov 11, 2020 3:07 pm

tiagoabner wrote:
Wed Nov 11, 2020 1:49 pm
I withdrew 1 million pesos from my AFP account, then turned back to Renta4 and invested it all. I also had the option to invest it on an APV and get a tax deduction for doing that, as it would lower my taxable income for the year by one million pesos.

The AFP withdrawals are more favorable to those who don't need it, and it's a very populist measure.
Yeah its interesting, you are absolutely right.
The withdrawals do favor those who don't need it.
Its interesting too that those who had next to nothing in their accounts will now have less than that, I.e nothing.
If 40 percent of population have less than 1 million pesos, who really gives a shit if they spend it now? Its only gonna provide them 4 thousand pesos a month in their retirement anyway. Maybe if they save really hard for the rest of their working lives they might be able to get 10 or 20 thousand a month in retirement.

Ive always found compulsory pension schemes (introduced by free market disciples in many case) kind of contradictory to the supposed free market ideals and individual choice etc.

Why are people forced to save for their retirement in the first place? Can't they make their own choices on how to prepare for retirement ? The neo libs and other politicians obviously think the public are incapable of that and people can't make their own decisions.
Which of course many can't and are financially illiterate , but don't bs about individual choice blah blah, when you are forcing many to do things they don't want to.

Anyway, yeah I'm looking forward to another million pesos or so to spend as I please.
“Facts do not cease to exist because they are ignored.”

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Re: The Chile Economy, Social Crisis and Virus Impact

Post by Jamers41 » Thu Nov 12, 2020 12:39 am

41southchile wrote:
Wed Nov 11, 2020 3:07 pm
tiagoabner wrote:
Wed Nov 11, 2020 1:49 pm
I withdrew 1 million pesos from my AFP account, then turned back to Renta4 and invested it all. I also had the option to invest it on an APV and get a tax deduction for doing that, as it would lower my taxable income for the year by one million pesos.

The AFP withdrawals are more favorable to those who don't need it, and it's a very populist measure.
Yeah its interesting, you are absolutely right.
The withdrawals do favor those who don't need it.
Its interesting too that those who had next to nothing in their accounts will now have less than that, I.e nothing.
If 40 percent of population have less than 1 million pesos, who really gives a shit if they spend it now? Its only gonna provide them 4 thousand pesos a month in their retirement anyway. Maybe if they save really hard for the rest of their working lives they might be able to get 10 or 20 thousand a month in retirement.

Ive always found compulsory pension schemes (introduced by free market disciples in many case) kind of contradictory to the supposed free market ideals and individual choice etc.

Why are people forced to save for their retirement in the first place? Can't they make their own choices on how to prepare for retirement ? The neo libs and other politicians obviously think the public are incapable of that and people can't make their own decisions.
Which of course many can't and are financially illiterate , but don't bs about individual choice blah blah, when you are forcing many to do things they don't want to.

Anyway, yeah I'm looking forward to another million pesos or so to spend as I please.
I've always been a proponent here of allowing (or even mandating that) people who only accumulate less than a certain amount to just automatically cash out when they reach retirement age. It would be better for them to have a few million pesos in hand in lieu of $20.000 a month deserving to be called a "pension".

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41southchile
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by 41southchile » Mon Nov 16, 2020 7:28 am

Preferred president candidates and Piñatas rating , just look at the popularity of the leftist populists, yeah this is all going to end well, 🙄🤔.
https://www.emol.com/noticias/Nacional/ ... luada.html

And this from FT about the continual withdrawals on the AFP (lets face it there will be a 3rd 10 percent, and a forth.....,) Way to shit in your own nest Chile, well I guess that's the national pastime now. Or Cutting your nose off to spite your face as my dad used to say. Ah well, what will be will be I guess.

“Chile is a country in Latin America but it is not a Latin American country because there [have been] no attacks on investors or crazy economic policies. This is exactly what is at risk now,” said a senior pensions industry executive familiar with the Chilean market.

https://www.ft.com/content/3c25b7e0-b31 ... 14af2970a3
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Mon Nov 16, 2020 8:10 am

well at least communist big mouth Daniel Jadue is being kept in check at 7%.

I had a friend a few months ago, that could best be described as formally very pro-communist, say, "that idiot Jadue gets elected president, and I am leaving the country". :lol:
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