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UK firms accused of trying to destabilize Argentina economy

 
 
 
 
 
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The escalation of the economic crisis in Argentina has forced the government to take drastic actions that had been rejected in the past, due to the impact they could have on the people. This time the Central Bank raised the interest rates by 3%.

While the Argentine economy faces a complicated and serious agenda to solve, The problem is intensified by destabilizing moves of foreign firms, such as the British Oil Company Shell.

Despite an economic crisis and attempts to destabilize the country, the Argentinean government is doing its best to protect the population.

The government in Argentina is trying to fix the worrying economic situation in the country, some multinational companies, including Shell and the HSBC International Bank, are accused of manipulating the economy in a bid to keep their monopolistic, dominant position.

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  • Zharkov

    The president of Argentina should look in the mirror for the source of the economic difficulties in her country. You cannot “protect” the population by forcing them to limit their imports, confiscate their dollars, and meddle with price controls. If the government lacks funds, then it is time for a smaller government, not a larger tax bite.

    What might work is to free the economy from currency controls, cut taxes, allow imports without tax, and unleash the productivity of the people. When people receive rewards for their work instead of more tax expense, they work harder and smarter.

    It was not Britain who did this to Argentina; economic chaos is a self-inflicted wound.

  • luis

    Dude! U seem to have absolutly NO IDEA of what u are talking about.
    Firstly, this report is not refearing to Britain, as a country or it great people. Its talking about some of Britain’s large multinationals.
    These large companies have been accused of trading foren currency at high volumes and at a higher value, so buying foren currency at more expencive value then at the marked price. Forcing an pushing a devaluation of local currency. Thus creating desestabilization of the Argentinean economy.
    by limiting imports to SPECIFIC ITEMS, the goverment protects or estimulate KEY LOCAL INDUSTRY and jobs – the current goverment has created more then 5 million new jobs in the last few years. Tendency that is the oposite in other countries, need same samples?
    Also, another large monopoly, CARREFOUR, has been accused of unproportionaly increasing prises of basic products to simply generate inflation. They control large proportion of the market.
    To increase your knowlodge, the current goverment has NEVER confiscate peoples dollars. What it did – and enoyed large economic groups (hsbc, shell, carrefour, monsanto, cargil etc…) – it denied the purchase of foreign currency with out proofs of that money has payed tax. If the company can prove the money is legitim its allowed to buy foren currency.
    You say correct, “MIGHT WORK”. This free trade trade system so far has only increased unemployment across the country’s worldwide, it HAS NOT reduced poverty, most of the cases it has increased it. Need samples? So at this stage I dont think its worth keep trying this system at its full dimention as you propose.
    Argentina has reduced the poverty from 54% down to 4.7% from 2003 till 2014.
    Forein Interest are trying to desestabilize the southamerican economies. With clear intention, dominate their wealth, their freedom. They have done it in the past MANY TIMES.

  • Zharkov

    Argentina was one of the richest nations in the world because of its former free market system, and now it is a socialist mess, and you think more socialism can solve Argentina’s financial problems?

    Eliminating poverty by destroying the nation’s financial standing is not an accomplishment.

    If Argentina is so weak that a few UK companies can bring it financial ruin, then whose fault is that, the companies – or the Argentine government?

    The problem with Argentina is its government, not the market system. When the Argentine government began to control markets and set up currency controls, it ruined its chances of ever recovering.

    There is only one way to build a solid economy and a strong financial base and that is to free the people to engage in trade without government interference.

    If a government fails to understand how free markets work, it will never be able to pay its debts because its economy will remain a mess.

  • Zharkov

    What Germans discovered after WW2 was that the jewish merchants they persecuted were not responsible for Weimar inflation because inflation resulted from the German government’s printing too much currency – way too much – in order to meet treaty reparations and prevent economic collapse.

    If a company raises its prices, in a normal market economy that will attract other companies to enter its market and sell competing goods or substitute goods. When a government steps in and tells the company to lower its price, the company either goes bankrupt or withdraws its goods from the market and sells them elsewhere.

    Every tax is a confiscation. A government confiscates dollars when it decrees that a tax has not been paid on the money, and the victims cannot prove that particular bundle of money had been fully taxed, so the government takes the money as if the tax was not confiscation, but it is exactly that.

    High tariff rates reduce importation of modern high technology equipment which would, in a normal market economy, enable Argentine companies to produce more, faster, and develop even higher technology for export.

    So if a company wants to import machine tools that cannot be found locally, high tariff rates and dollar controls prevent that from being economical, so they either have to not do it, or raise prices to cover the high tariffs and taxes.

    It seems the Argentine government simply hasn’t a clue about how markets operate and why they cannot be “managed” by government decree.

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