Goldtent TA Paradise

Argentine election surprise triggers crash in peso and bond sell-off

1. Karl says:

   August 12, 2019 - 10:43 am at 10:43 am

   While I used to know a bit about Argentina on my own, I follow it now mainly via IKN. “Otto” apparently used to work in Argentina–loved the country but feels the country is condemned to a nearly perpetual poor governance. The current gov’t was touted in the US/Canadian/European press but standard of living turned out if anything to worsen, inflation went up, and they took out big IMF loans. The controversial prior leftish-peronist prez (wife of another leftish peronist prez) apparently pulled the clever move of announcing that she would only run for VP and annointed as her prez a lower profile less controversial figure from a different party. Presumably no matter what the country will be mismanaged.

   From IKN around midnight US EDT last night, typical “Otto” — https://incakolanews.blogspot.com/2019/08/repeat-post-argentina-flowchart-on.html
   Has to do also with politics having to do with anti-mining sentiment, not just things like inflation, fees, taxes, general (in)stability–but all of the above. Have never been there but wish I could go though.

2. Karl says:

   August 12, 2019 - 2:35 pm at 2:35 pm

   For those who tend to see things in black/white — I don’t think it works that way in any country, but maybe less in Argentina than elsewhere. They may have invented new colors there. The current “conservative” government is neo-liberal, pro-globalist. The somewhat leftish former prez and now VP candidate (will the prez candidate be her puppet if he/she win????) is Cristina Fernández de Kirchner, who apparently as prez was a tooth-and-nail an anti-globalist anti-IMF nationalist on behalf of the non-super-rich (while allegedly taking the routine corrupt bites here and there and not exactly totally spurning the life of comfort even maybe ostentatiously). She and her supporters were not too fond of the hedge fund types I think, and the anti-love was reciprocal, as the market action today shows. In general probably not averse to pleasing the crowds by Making Argentina Great Again etc by targeting any foreign company. Though IMF and foreign financiers or anything having to do w/ foreign hedge funds would probably be favorite targets, according to “Otto” depending on where you go there can be heated anti-mining environmentalism in Argentina, both reasonable and less so.

   It’s an interesting country, interesting election. Hard to follow in the “Western” press, which has seemed to overlook the incumbent’s weaknesses.

   • Karl says:

     August 12, 2019 - 3:40 pm at 3:40 pm

     Though don’t rely on my comments–hip-shooting. With Northstar’s comments as an example at one extreme I think you get endlessly more than what you pay for. With mine probably far less.

     BTW Otto subscribers get his opinions on which areas of Argentina are particularly anti- or pro-mining. I have no personal way of knowing whether correct but I try to avoid Argentina altogether.