In accordance to our governing administration, USA would be copying the policies of the administration Kirchner. We don't know if Obama has read Peron but it looks that some regional authorities browse an report that printed by me in a newspaper on October 1st of 2008, "USA falls for making use of Argentine methods." There is not doubt that we can enumerate some similarities amongst the economical guidelines of the modern earlier of both nations that justify what is taking place to the country of the north.
Given that it assumed in 2000, the President Bush was devoted to boost the expense phenomenally, accumulating massive fiscal deficits with what collaborated to impel the action level artificially and to gestate the recent disaster. For the duration of the Kirchner administration, also, the development of the economic climate was compelled by increasing the expenditures of the manifeste sector based on the amazing raises of assets coming from the international peacefulness, the recovery of the neighborhood action and the robust increment of the tributary pressure. Everything was saved for the times of "slim cows" and, now, it will be necessary to tolerate an economic adjustment "without anesthesia." Nevertheless, in this position, banzai water slide of course there was a big difference in between both countries as we not have enough credit, the Argentinean governing administration was underneath obligation to have some principal preserving to avoid to drop in a new default.
The ex-president Bush left to the future generations an enormous public credit card debt that now will still be improved to spend the price of the "party" of his period of administration. In the final seven years, the Argentina was devoted to ruin its reliability, that is to say its credit not fulfilling its commitments, producing an massive reduce to the debtors in default and leaving the credit card debt payable to our young children and grandsons. As "cherry of the dessert", the nationalization of the capitalization pension system will let the government to commit far more presently in an electoral yr, the price will be to leave an unpayable pension to the future generations.
Because the starting of the century, the Federal Reserve was devoted to "to inflate" the financial system and the American markets, flooding of liquidity the world. This method, untenable in the time, it is the one particular that took to the recent fiscal debacle and it motivated to the investors and financial institutions to believe any chance to win a cent more. Of training course, in Argentina, the plan of higher actual exchange fee, implied the identical factor essentially given that it intended a robust improve in the money provide to stick to the depreciation of the dollar, buying reserves. Now, the globe adjustment finds to the nearby Central Financial institution with much less instruments to confront the crisis for that the inflation levels that have been currently excessively higher, would be potentialized with a even bigger devaluation.
Till now, some factors in the previous guidelines of each countries looked like each other. Nonetheless, although it is specified that, to experience the crisis in USA, their authorities has become shareholder of a number of firms and banking institutions, it was without having spirit of using the management or of substituting to the non-public sector, but to preserve it. On the other hand, in the Argentina, the administration K took an specific strategy of nationalization in advance or "argentinización" (argentines acquiring) of foreign shareholders' community support industries by means of the breathlessness of frozen costs and the use of the enormous "conviction power" of a State with null institutional limitations.
An additional variation, in USA and the entire world, the governments anxious to consider to sustain their bank systems and their money markets. On the other hand, the administration K cared the intercontinental fiscal disaster with the confiscation of the personal savings for the age from the members of the AFJPs (private pension money). Following to the wrong official dealing with of the crisis with the farmers and to the worsening of the global disaster considering that mid of 2008, this selection caused a powerful richesse flight, bigger to that of the disaster 2001-2002. That is to say, the Argentineans of all the amounts of revenues, worried by the domestic potential, saved (they stopped to take in and to invest) and they took out their deposits of the banking companies to acquire international currencies and to deliver them oversea, to maintain them in a risk-free-deposit box or in the bottom of a placard. Therefore, the internal desire began to slowdown and to descend, impacting the activity stage and employment.
Neither we have listened that in the produced nations around the world was feel about the nationalization of the trade of exports or other ideas like that, I suppose, the governing administration seeks to make "tip" again. For that explanation, besides a potential new conflict with the farmers, another of the primary neighborhood variables of future risk is that our authorities would like to proceed giving "class" and "innovating" with getting resuscitated steps that already failed in the previous and that it deepens the state handle path and recent interventionist. This way, the Argentinean financial system will turn into far more weak and we will pay out a even bigger value, in production conditions, work and well-currently being, in the state of affairs of the existing international turbulences.
In http://www.exante.com.ar/English/editoriales.htm you can browse the advisor firm's posts. In this website page you will uncover a section ¨Chronicle of an declared disaster ¨ where are posted the posts prepared by the Lic. Aldo Abram considering that 2004 asserting that if the financial policies of the FED had been not corrected it would get there to a crisis.