BUENOS AIRES, Argentina: Argentina's main stockyard says a record number of cattle have arrived to market after farmers and truckers lifted a nationwide strike. Roberto Arancedo is president of the country's main stockyard. He says the arrival of 28,700 head of cattle on Monday is nearly five times that of an average Monday and is the highest number recorded in the past seven years.
"After the strike last week it's logical that there would be a lot of cattle, but this exceeds our expectations," Arancedo said.
Argentina is the fifth-largest exporter of beef worldwide.
12 comments:
Great! I'm glad there will be "bife" available. Do you think Congress can kill this tax increase so all can save face? Congress is Peronista controlled, but those from the Rural areas may be inclined to back the campo...Keep us posted please...
Fred
Scary, scary, scary...
http://www.iht.com/articles/ap/2008/06/25/business/LA-FIN-Argentina-Foreign-Debt.php
We'll keep you on the ball, Freddy! ...at least as much as I can without incurring the rath of the gov. It's anybody's guess as to what Congress will do with the retenciones. Could be interesting.
Hey Anon! Ain't it somethin'? And some of the smartest people I know are always ready with the ol' saw about how Argentina killed its foreign investment with the default. It was always mysterious to me how the RA could grow as fast or faster than China without foreign investment. How much foreign investment do those guys want? I, on the otherhand, always quoted Lenin, "a true capitalist would sell his own hangman a rope."
You're confusing "foreign investment" with government debt; they aren't the same thing. There has been almost no foreign direct investment - foreign private entities building factories, networks, generating plants or the like - or other investments by foreigners in the Argentine private sector since the crisis began, and there isn't likely to be any anytime soon.
The country's growth in the last few years has been possible largely due to productive capacity that wasn't being used when the crisis began and exports of agricultural products (the country unfortunately doesn't export anything else to speak of, which means it doesn't export any high value-added products to speak of). Its productive capacity hasn't increased due to lack of investment, which is one reason you'll soon see the high growth come to an end.
All unfortunately, I might add.
You're wrong about the foreign investment, Anon.
And I suspect that you already know that.
Re-read your own article.
It says clearly that "The increase in combined public and private debt was driven by private companies borrowing money abroad to finance operations"
If you're here to just anonymously start some shit ...you can go away and not come back.
...otherwise, we're glad to have you.
I'm not the same anonymous that posted the link. You're right about the article, but the basic point stands - there hasn't been much foreign investment in Argentina since the default. The other points stand as well, although I may have overstated my case somewhat.
OH! So you're one of those guys I was talking about!
So tell me, how does a country grow 7, 8 (or maybe 9%) per year for 4 or 5 years in a row without sufficient foreign investment?
Esplain this to me: Just how much foriegn investment (ownership!) would satisfy you?
I got the feeling that you are insatiable.
Mike
By starting at a very low GDP base with a large amount of idle productive capacity and having an extraordinarily favorable export market for the products it produces. If you think the country's recent growth is sustainable for very much longer with the government's current policies I'm afraid you're very mistaken, though I hope you're right and I'm wrong.
Not me, pal. "Sustainable" is one from your toolkit, not mine.
Nothing is sustainable... except maybe the belief in sustainability.
Can you give us an example of "sustainability"? For Christ's sake. what in the world do you mean? 8% for... eternity??? Seriously, I don't know what you mean.
And don't try to sidestep your issue of the lack of foreign investment. I won't let you.
You said, "The basic point stands - there hasn't been much foreign investment in Argentina since the default."
Well where in the hell did it come from? Seriously, where did it come from and why do you not think it was enough?
If 8% growth came from not much more than domestic investment ...why are you complaining about it?
I'm no Kircherista... but what on earth would satisfy you.
I'm begining to think that you're simply insatiable. If foreign (ownership) investment isn't at the level you think is sufficient ...then 8, 9, 10, 11, 12% per annum for years on end is not enough.
What on earth would make YOU happy?
I said "sustainable for very much longer", not an open-ended "sustainable" as your not very responsive reply suggests.
By saying the recent growth is not sustainable for very much longer, I mean it's likely to end soon. The political and economic environment isn't such that growth, even at a slower rate, can continue on a consistent basis. Spare productive capacity (which I've mentioned a couple of times and you conveniently ignore) can allow for growth even without investment; there has also been domestic investment, but that's probably exhausted, or nearly so, and as I've said several times foreign investment is low and will likely continue to be.
One thing that would make me happy would be a political and economic environment (including, among other things, a reasonably attractive environment for foreign investment) in Argentina that would allow for the possibility of growth in the low single digits on a relatively consistent basis going forward, but unfortunately it obviously doesn't exist right now and I'm afraid it isn't likely to anytime soon.
I just don't understand. It's not just you, Anon. It's everybody.
There is a mantra of "attractive environment for foreign investment" being chanted everywhere.
Does anyone ever ask why this is so universally considered such a universal good?
Might I pose a question?
If you could grow your economy 8% per year with little or no foreign investment...
...or you could grow your economy 8% per year with LOTS of foreign investment...
Which would you choose?
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