January 11th, 2014
12:00 AM ET

Is Argentina trying out the 5-point economy wrecking plan?

For more What in the World watch Sundays at 10 a.m. & 1 p.m. ET on CNN

By Global Public Square staff

We were struck by a strange proposal this week. A top Argentine leader says his country should move the national capital from Buenos Aires in the east, facing the Atlantic, to a new city up in the north, closer to the Pacific. This would be an immense change – akin to Brazil moving the capital to Brasilia. It would be a shame to see Buenos Aires abandoned. But the idea that Argentina needs some shaking up is exactly right.

A few weeks ago, we ran a report titled “How To Ruin Your Economy.” In five easy steps, it showed how a country could turn itself into a basket case by bad decisions. The segment was about Venezuela…but Argentina is a worthy runner-up.

It starts out much stronger than Venezuela. Remember, Argentina is part of the G-20, the group of 20 big economies. The average Argentine earns more than the average Indian and Chinese combined. But all these facts mask a troubling trend.

Let’s see how it fared on our five-point test.

First, attacking big business. The Argentine government began 2014 by forcing the country's supermarkets to fix prices for 200 products. So basically, the price of milk or flour stays the same for the consumer, even if demand goes up, inflation rises, or if the supplier has to pay more for it. It defies basic economics.

Step two – The official statistics bureau says prices rise by about 10 percent annually. But that’s a total fabrication. In reality, inflation in Argentina runs around 25 percent a year. A basket of goods that cost $100 in January would cost $125 in December. Argentina's blatant fudging of official data has gotten so bad that the International Monetary Fund publicly warned Buenos Aires to start telling the truth – or face expulsion.

Now, what does hyperinflation usually do? It hurts your currency. And that's step three. Argentines have been rushing to buy U.S. dollars as a safer currency to park their money. In response, the government announced limits on the number of dollars you can buy. The result? A rampant black market. While one dollar officially buys you 6.6 Argentine pesos, you can actually get almost double that rate on the street: about 10.8 pesos. The effect is a corrupt economy, suffering businesses, and a loss of foreign investment.

Argentina is ticking off a fourth box from the Venezuelan playbook as well: subsidies. According to Merco Press, a regional news agency, Argentina's total bill on subsidies like energy for the first half of 2013 rose by 62 percent from the previous year. This isn't the only form of government support. According to the World Bank, Argentina is the one of the world's most protectionist countries – meaning that it imposes the most restrictions on global trade, shielding its favored sectors.

Now that brings us to our final category: becoming a dictatorship. Argentina, is of course, a democracy. But President Cristina Fernández de Kirchner has displayed worrying symptoms. Between her and her late husband, the Kirchners have now ruled Argentina for a decade. In recent months, Cristina Fernández has clamped down on the media, floated rumors of amending the constitution to run for a third term. She's building a cult of personality, fashioning herself after Evita, the populist widow of the former president Peron – made famous on stage and screen.

Argentina's attempt to mirror a failed state like Venezuela tells a larger story. There is a great map of Latin America from an article in the Wall Street Journal this week. On the left, in green, you have countries that are facing the Pacific. Mexico, Peru, Chile, and Colombia are among the countries opening up their economies to great success. On the right, in red, you see the opposite. Countries that face the Atlantic – Brazil, Argentina, Venezuela – are closing their economies, and resorting to populism. The countries in green are projected to grow nearly twice as fast in 2014 as the countries in red.

Perhaps changing Argentina's capital to be closer to the countries in green, closer to the Pacific, is not such a bad idea after all.


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soundoff (81 Responses)
  1. chrissy

    The US isnt to far behind in that 5 easy step plan to how to ruin your country either. Watch out when youre in a glass house now.

    January 11, 2014 at 12:09 am | Reply
    • Starx

      Jason Miks your article is so basic and shallow it could be used as reading material for kindergarteners.

      January 16, 2014 at 2:15 pm | Reply
  2. matslats

    I'm not worried for Argentina, we've got our guys in there lining up the next dictator-puppet. Then we can teach them rig markets big time! So the people get poorer but they don't know why! Yes if we've run out markets suck dry, we should return to Argentina. CFR knows it makes sense.

    January 11, 2014 at 12:28 am | Reply
  3. German_Holdout

    Argentina’s nightmare default, this since 2002 ongoing HORROR must finally have an end!

    We, the holdouts, have been suffering for more than a decade!!!

    Since 2002, Argentina has not paid a cent to the holdouts!

    Beyond the U.S. Hedge Funds there are still tens of thousands retail Holdouts worldwide, most of them from Italy and Germany.

    Most of the Holdouts are "before default buyer", who have bought their bonds at an average of 100% or even higher.

    President Kirchner (by the way a beautiful women) should solve the holdout problem!

    President Obama and the IMF should help and talk to President Kirchner to end Argentina’s Horror-Default.

    A reconciliation with the holdouts would improve Argentina’s ratings, initiate a firework of investments and also cheaper credits for argentine companies.

    Argentina clearly has the capacity to repay the debt to the holdouts after more than a decade! The outstanding debt is only approximately 12 Billion. (incl. accrued interest) It is not much for the 3. largest economy in South America.

    If Argentina and the holdouts made NOW A BINDING AGREEMENT with respect to the “time after” (end of the “Rights Upon Future Offers (RUFO) clause in December 2014), seizure risks and a technical Default would be immediately averted. Argentina could immediately return to the capital market and thus Argentina could refinance the payments to the holdouts, without using reserves.

    Holdouts want a simple, clear, secure and an ACCEPTABLE solution.

    Holdouts DO NOT want such exotic financial constructs, as they were the swap conditions in 2005 and 2010, with an exorbitant Haircut, with many new bonds, with only Discount bonds above $50000, GDP Warrants etc.,and with maturities in the eternity. Such “shares like” financial constructs are inacceptable.

    A swap from the defaulted old bonds to new bonds are unacceptable also for tax reasons. In Germany, for example, we would have to pay for new bonds 30% tax separately. That would mean an additionally haircut of ca. 30%.

    Following simple conditions might be acceptable for the Holdouts on the basis of the old bonds . (without swapping from old to new bonds, also because of tax reason)

    – at the latest, on 01/01/2015 (end of RUFO clause) Argentina should repay in CASH 100% of the nominal value of the defaulted bonds, which became due before 2015.

    – for the accrued interest between 2002-2015´Argentina should emit new bonds with 50% discount, and with a maturity of 5 years.

    January 11, 2014 at 5:59 pm | Reply
  4. Gus

    Yeah sure, give a good note to liberalist, open market countries like Chile and Colombia. Give a bad note to countries that are trying to grow a strong, internal economy and industrialisation. How those insolent are willing to decide their own fate, how dare they!

    January 12, 2014 at 2:37 am | Reply
    • Alex33

      No brain, no pain.
      You Gus must be one of those younger generation fellows who didn't study history.
      (Or studied "Social Science" instead of history.)
      In fact in all ages of long time ago (the famous silk roads) or in modern days free trade is the first or second most important factor to prosperity.

      January 14, 2014 at 2:01 pm | Reply
      • Ezeq

        Not really. In fact, the USA became the greatest industrial power by creating something called "protectionism".

        January 17, 2014 at 5:57 pm |
      • Pablo

        What hypocrites these Yankees, they were the largest protectionist at the time as it was england previously. After creating a strong economy and a developed industry, they preach open market as the best policy for everyone.
        Pathetic

        January 24, 2014 at 2:18 pm |
      • Gus

        Alex33 i did study history and i am not young. The problem is that you studied only one part of the history, and think it is the only truth. You prejudged me, so who is the one with no brains?

        January 24, 2014 at 9:12 pm |
    • Ted Dubin

      Countries that trade have stronger internal economies and more industrialization.

      January 15, 2014 at 5:58 pm | Reply
      • Ezeq

        Like China? or India?

        January 17, 2014 at 5:57 pm |
  5. j. von hettlingen

    Christina Fernandez got re-elected to a second term in 2011 because of a booming economy. But when economic problems re-emerged in the following year, she struggled to get Argentina back on track. Her party suffered setbacks in mid-term congressional elections in late 2013. She has been shifting economic policy towards more state intervention in an attempt to kick-start growth.
    Fernanzdez, like her late husband Nestor Kirchner is a Peronist. It will be unwise of her to follow the self-preoccupied Evita Peron's footstep, whose biography was entertaining, but her person had no sense of history.

    January 12, 2014 at 9:59 am | Reply
    • Gi

      Chistina Fernandez got reelected because the people has no better candidates to choose and because she promisse to keep the type of goverment that her hosband has (it was really good and save the country).

      January 17, 2014 at 3:19 am | Reply
  6. Sebastien Loeb

    It is sad to realize that a show like FZ GPS cant get basic geography correct and completly ignore a country of 15 million people like Ecuador your producers showd go back to school or get their money back ignorance is leathal as stated in your show.

    January 12, 2014 at 1:45 pm | Reply
  7. George McDuffee

    Why this animus against Argentina?

    Is it because Nestor Kirchner thwarted W's drive to impose the FTAA, because Crista Fernandez is showing how a country can re-industrialize and lift the quality of life and living standards of the majority, because the FVP and their allies were able to bring a transnational corporation to heel (Repsol/YPF), because they refuse to repay odious and illegal sovereign debts, or is it because they are able to make their version of ACA work?

    The U.S. government, via the School of the Americas and Operation Condor, aided and abetted at least two military coups overthrowing democratically elected Argentinian governments, the last being the murderous NRP regime that disappeared 30,000 citizens in a nation of only 30 million.

    January 12, 2014 at 2:39 pm | Reply
    • Argentine

      you have no idea what you are talking about. I dont see anyone raising their standards, my salary (or its value in US dollars) is less than what I used to earn 8 years ago (I started working at a call center, yes like the ones in India... and I am now working with a huge international Outsourcing company)
      my dad works at a local company, where is trashed every day and mistreated by his boss and younger people, and he does not even disserve it, he has been working there for 20 years now. His Salary has not even been matched to the inflation during the past 5 years, being adjusted only 5% every year, when this article is correctly mentioning that we have a 25% inflation. go do the maths. Im 26, he is 58. My salary is around 2/3 of his. Something is not right.
      Industries in ARgentina are completely stopped because most of the materials used to produce goods cannot be imported because of Cristina's importing policies, so work in industries is stopped too. The reason why the government has to put limits to the amount of dollars you can buy (which by the way, that number literally equals 0, and only allows you to get 100 USD per every day you go out of the country, and only twice a year). The reason why this is done is because there are no dollars to backup the Arg Peso. Therefore our peso's value drops more and more. Then if we want to buy something abroad and have it shipped (because given the fake change 1 USD 6.6 ARG makes it cheaper to buy things abroad), we have to pay a tax of 35% of the purchase. Additionally paying 50% in the customs, and that is if you are even allowed to get your good because in some cases not even by paying taxes to the government you would be able to get what you bought. Same thing if you go abroad and buy thingswhere you visit. by the way, this 35% I am talking about is in fact labeled as another tax that is placed to our salary (yes, we have a tax that is a percentage of our salary just because our salary might be too high! like 1500 USD you will get this tax deducted). so that would mean that you could only get this 35% charged if you actually have a larger salary than 1500USD? well no, if you earn less than that you get the 35% tax, and then have to ask for the government to give that money back, but there is no system that allows you to do that. so basically they steal from us.
      we are standing on thin ice.... and its getting hotter...
      and to be honest, historically Argentina is well known for things not working, people being selfish and corrupt, and the typical Buenos Aires person is not to be trusted because we would take advantage the moment we can anyway we can.
      well im out of strenght.. being stuck in this place makes me depressed.....

      January 13, 2014 at 2:57 pm | Reply
      • Tony

        OK there's corruption in the markets you mention..but in Venezuela and Argentina the leaders have decided on their own brand of raiding the middle class and ruining every aspect of society. Just be patient. Kiciloff and Cristina go to the same church and they are planning a famine. The math, the move towards a soy and nothing else country spells famine. Pure. Simple. Fact. Deal with it. She even stole the electricity and water.

        January 13, 2014 at 3:44 pm |
      • Gi

        (TONY) You really dont know what you are talking about! This its not getting better, tis getting worts! I live in Argentina to, and if you are a middle class worker this country showes that we have not allowed to grow or develop here anyting but misery and insecurity. Politics are just making things to keep more money for themselves and mantain the low classes happy with subsidies so they can vote them in the next elections. (it wont be a third CFK goverment but she will have a puppet as a candidate!)

        January 17, 2014 at 3:27 am |
    • Marco

      I've been living in Argentina for the last 3 years and I can say in those three years I have seen the economy go from shaky to downright chaotic. The government here BLATANTLY lies to their citizens about almost everything concerning the health of the economy. This government is the worst thing that happened to Argentina and sadly it will get worse.

      January 15, 2014 at 12:37 am | Reply
      • Ezeq

        Clearly, as you spent 3 years, you have NO idea about how Argentina was before the Kirchners. Get a book, they don't bite.

        January 17, 2014 at 5:54 pm |
      • andyg

        Ezeq, you dont have a clue on what youre saying. Before Kirchners we had 90s decade with stability and a strong currency. Argentina had a crisis like every economy, but it could be solved and the story would be very different now. Instead, ex president Duhalde converted our dollarized savings into devaluated argentinian peso and that was the worst theft ever ... i think you also need to read some books ...

        January 19, 2014 at 2:17 pm |
  8. DS

    While Argentina is definitely not making all the soundest economic moves, this article is hyperventilating and almost comical in its presentation. Next step dictatorship? Please. You also act as though many of these policies are new, which many aren't. They still managed to grow 4% last year, and are predicted to do another 3+% this year, and those aren't their numbers. The economy there needs an overhaul and better leadership, and the current president won't solve it, but this article is pretty aburdist. Take that from someone who has been there and knows others who live there.

    January 12, 2014 at 10:04 pm | Reply
    • Argentine

      man... we have been talking among ourselves (like with my pals and stuff) that we are turning into dictatorship, freedom of speech is banned. Two years ago the UN had to come because there was a law being launched that would destroy some news papers because they did not agree with the government. Suddenly the launching of the law was "canceled" and UN left. Now this year the law was launched without any previous notice... therefore some media companies are closing down. ironically there news papers that hyperventilate every day all the time! and there are other channels and news that have been bought by the government and say ridiculous lies to blame others for the government mistakes. Example: we have blackouts because the government has not estimated that during summer the city's energy demand raises (summer happens every year....). These channels say that Air Conditioning devices had been used during the dictatorship 30 years ago! so if you have an Air Conditioning Device at home, you are attempting to attack the government. I TELL NO LIES! watch this:
      https://www.google.com.ar/search?q=aire+acondicionado+golpista&oq=aire+acondicionado+golpista&aqs=chrome..69i57.3755j0j7&sourceid=chrome&espv=210&es_sm=93&ie=UTF-8

      not to mention that people who are against the government are insulted and called "gorilla", making reference to how peronists called the "stupid people" who understood nothing about their politics, like we are animals and have no cognitive thought. Here I am, a gorilla speaking and writing English, while my mother tongue is Spanish. and I am not brutally hitting anybody, nor being violent.

      January 13, 2014 at 3:14 pm | Reply
      • Ezeq

        Freedom of speech is banned? HOW? I live in Argentina and I had NEVER seen any thing even remotely alike to a speech restriction. Want to have an arguement, good, bring it on. But don't start with a lie if you want to be taken seriously.

        January 17, 2014 at 5:51 pm |
    • Tony

      Take this from someone that lives 6 hours away. She's not a dictator but people let her do what dictators do. She's all into clamping down on dollars, exerting extreme financial control on anyone with a savings. But if you want to spray pesticides, ruin the soil for soy, go right ahead. In fact, why produce any corn or beef? Cristina needs more profit from the soy in her pockets. They've created a famine. She screwed the spanish because she has the right to live in israel..after her and kiciloff load the millions of euros and gold onto the jet.

      January 13, 2014 at 4:23 pm | Reply
      • Ezeq

        What? please make some sense.

        January 17, 2014 at 5:53 pm |
  9. MJ

    This is a shame.
    Those are the 5 points to crash your econ? really?! according to who? to en imperialist neoliberalist bussiness person for sure.

    I´m an argentinean, i don´t support this government entirely, but it´s faaaar away from a communist dictatorship.
    it´s a shame how this media postulates its voice as the voice of truth, and actually only influence creating fear and unstability.
    It doesn´t cease to amaze me how big monopoly media groups keep trying to take down progressive governments.
    No one is gonna move our capital city, no president will be elected for third term.
    so, i´d reccomend you check your info, before you publish these propostrous lies.
    Cheers!

    January 13, 2014 at 10:08 am | Reply
    • Tina

      well said!

      January 13, 2014 at 2:51 pm | Reply
      • Argentine

        whish were that true.. now people who are 16 years old are able to vote, so that they can be convinced easierly

        January 13, 2014 at 3:31 pm |
    • P

      I agree. As the US media finally gave up on trying to control their own territory, they began trying to tell other countries how they should run their economies. CNN is just begging for a piece of attention. Nobody in their right mind should give it to them. No, I ask this simple question, Why should a person listen to network in decay?
      Answer is, they shouldn't. I urge everyone who sees this to stop paying attention to this obvivious piece of 'murican media.

      January 16, 2014 at 11:26 pm | Reply
  10. Gaston Abeleira ( Argentino)

    This article comes from the same way of thinking and economic schools that made the 2 biggest USA economic Crises in the last 20 years! The reporter makes it sound like is bad for the Government to protect its own Market, when The USA and most European markets do the same. IMF was the one that Suggested that Argentina’s Government should pay less to health care and retire founds, in order to pay our debt ( In other words, Don’t think about your people we just want our money) So sorry if you don’t lessen to the Advice of others, who don’t have our best interest at Heart!

    January 13, 2014 at 11:39 am | Reply
    • Tony

      The US, Chile, Australia, Europe are filled with exiles escaping the financial clampdown and expropriations of Maduro and CFK....Cristina is demonic, she raids the central bank to buy louis vuitton when the poor are sprayed by monsanto and eat mashed soybeans. She's taken the place to hell on earth. The cepo dolar was fatal if you understand econ 101...We all get that the IMF and international banks are BS, what you can't prove is that Cristina isn't beholden to them and won't be on a jet with Kiciloff to Israel with all of your money.

      January 13, 2014 at 3:48 pm | Reply
  11. John

    The capital of Brazil is Brasilia, not Rio de Janeiro.

    January 14, 2014 at 11:36 am | Reply
  12. facundo

    Am Argentinian and a firm oppositor to the Kirchners, but still think that they are nothing compared to the US government. It´s easy to talk about economy and how it should be carried out, whilst your country lives and breathes from the blood of war and a military complex. Argentina has medicine and education free for all it´s citizens (and not citizens, since lots of people in the region come to our public schools and hospitals -lots of chileans, country which according to the US, we should take as an example-). LEARN TO LOVE YOUR PAIRS YOU FILTHY AMERICANS. Take care of people, and then talk about other countries policies.
    I rather be argentinian, and poor than bein rich and empty. The world which you hold as a hostage of your decisions laughs at your back. You can bomb and threaten every nation in the world, and still your average citizen watches honey boo boo, is obese, and an embarazement to himself and your country.
    My only wish in this life is to see you fall people, cause whilst you still exist, this world stands no chance.

    January 15, 2014 at 11:26 am | Reply
    • Starx

      Your comment, though harsh and generalizing, has a fair point. Free education and free access to medical care should be taken for granted in developed countries, however that is NOT the case, specially not in the US, instead, you have a faulty health care system and a higher education that, let level aside, is inaccessible for the majority of the population. Not to say a leader that uses the figure of "god" to justify wars.

      January 16, 2014 at 2:02 pm | Reply
    • Porteño

      Your anger is misguided man. I am an Argentine who left Argentina after the early 2000's crisis and emigrated to the USA. I couldn't have made a better choice. I still have family in Argentina and visit often. Every time I go, the state of the country is worse and worse. You should be angry at Cristina, not the United States. Her government is the one bringing Argentina down. A pro argument for the current administration CANNOT be made. You are delusional.

      January 17, 2014 at 2:03 pm | Reply
  13. Gabo

    Uruguay in red like a closed and populist country? seriously?

    January 15, 2014 at 2:07 pm | Reply
    • Starx

      That is because Uruguay has legalized marihuana, and that is ??? Come on students you know the answer…WRONG!

      January 16, 2014 at 1:49 pm | Reply
    • Another argentinian

      I know, right? I asked myself the same question! Uruguay is flying high lately (no pun intended)

      January 16, 2014 at 6:19 pm | Reply
  14. worry not

    Unfortunately my friends Argentina is known as the "Granero del mundo", providing for all the world..

    We have been suffering our crazy president for almost a decade and the worst things are yet to come..

    But as long as the agro keeps providing the president and all her gang will continue to destroy.. but then, as agro keeps providing, things change, till the next jerk getts to the presidency... It´s been happening since ever

    January 15, 2014 at 3:48 pm | Reply
  15. Mike

    This article was ridiculous. How much more biased can a writer get?

    January 15, 2014 at 9:46 pm | Reply
  16. Marie

    I'm worried about the fact that the author of this article claims that Evita was Peron's widow. Please, I get your point but you should make your research before you write something. You made an awful mistake! A journalist should not write unnecessary comments about something he doesn't know about.

    January 16, 2014 at 10:59 am | Reply
  17. Starx

    Opening up their economies to great success??? Well that is a little biased to say the least. Quite a superficial analysis.

    January 16, 2014 at 1:47 pm | Reply
  18. Juan

    mmm I don't think article's author is impartial....it's utterly basic to say that a country not following Washington consensus might be stuck in ruins...opening Argentinian market = allowing northern economies to suck people's money to their own countries in stead.

    How is that CNN let monkeys write articles these days? Oh..yes..CNN...right...

    January 16, 2014 at 4:30 pm | Reply
  19. Roberto

    Just one thing. Evita wasn't Peron's widow, but it was the other way around. Evita died in 1952, and left Peron without her image for the other 3 years of his government period until he was thrown out by the military. Peron died in 1974 leaving his second wife Isabel Martínez de Perón in charge of the government, which didn't last long since it was given to the military in 1976.
    Sources? Read Wikipedia, please.

    January 16, 2014 at 7:17 pm | Reply
  20. Gi

    Ok, this article has so many things!! Firt of all, im form Argentina..
    it is true that the country its going down...not because liabilities or holdouts or making our own way (or at least trying to) in the international market. Just becuse the goverment doesnt care about theri people! They only wants to filled their pockets more and more.
    Education and health are free, but the government doesn give it any founds to make them work, so if you are a middle class woker its probably you have to pay for that (except that you want to wait for a doctor like 2 or 3 months).
    Society its divided in so many sections thats only detrimental to ourselves! The highest class doesnt care anything but themselves, the middle class its divided by pro CFK and against CFK (even both are suffering economically the decisions of the goverment and the pay of their crazy taxes) and the lower class are, in mostly, confortable because they have everything for free (with the middle class payment of taxes the government gives subsidies for living, having babies and have no jobs) so they dont want to grow or do anything else.
    All of this, plus the restriction to buy any coin, plus the restriction to travel, plus the restriction to import and export, plus the constant fight with the media, plus all the lies, plus violence and isecurity on streets, etc etc etc its making this country to fall down hardly...and sadly theres no hope of getting better because theres no even one hones politician for the next presidential elections.

    PS..this is very simmilar to a dictatorship, the capital its not goig anywhere, Evita wasnt Perons widow (Please do the homework before)

    January 17, 2014 at 4:01 am | Reply
  21. Evangelina

    I'm from Argentina too and I'm really impressed by Gi's comments. I totally agree with you, girl!

    January 17, 2014 at 10:45 am | Reply
  22. Argentino

    Macri? sos vos?

    January 17, 2014 at 11:04 am | Reply
    • argentonto

      kaka de mierda, sos vos? hacete dar sorete mal cagado

      January 17, 2014 at 9:49 pm | Reply
  23. Lucas

    Evita died before Peron, It's "Estela", his second wife that survived him and ruled as president. CNN can not make a mistake like that. Ruins its credibility.

    January 17, 2014 at 11:18 am | Reply
  24. Edwin

    The comparison between the Pacific and Atlantic economies is a bit tricky in my opinion.
    Atlantic-facing countries developed their economies earlier and stronger than those facing the Pacific, so I think, that a smaller country finds it relatively easier to experience a greater percentage growth.
    On the other hand, myself as Argentinian, recognize almost every economic measures that are being taken are wrong and can't find a rational explanation to them.

    January 17, 2014 at 9:08 pm | Reply
  25. guillermo verde

    I note that this mediocre note to remove credibility to the author and media outlet that publishes it denotes a deep historical, social and regional ignorance of Argentina, looks like a project of a guy Primary

    January 17, 2014 at 9:49 pm | Reply
  26. Felipe

    The article is very poor but at least it shows some of the truth. Of this 5 points the most important ones are inflation and subsidies. Subsidies make the goverment overspend and therefore they raise inflaition. However, since no effort was made on the past decade to make the companies efficient and the goverment's will is to keep lower clases happy, there's no way they can stop this selfdestructive behaviour. I believe it's not a matter of what will happen, because it's pretty obvious that the result will be a collapse similar to 2001-2002, but the real question is when it will happen. When will the goverment funds fail to mantain these situation? If it wasn't for the soybean, we would have already seen the end of it.

    January 18, 2014 at 10:59 am | Reply
  27. Charlie 2-0

    "This would be an immense change – akin to Brazil moving the capital to Brasilia. "

    SERIOUSLY? ARE YOU KIDDING ME?

    Someone grab a Global atlas, or at least "ye olde" PC Globe. GUESS WHAT: THE CAPITAL CITY OF BRASIL IS BRASILIA!!!!!!!!

    January 18, 2014 at 11:00 am | Reply
    • Dude

      Dude, you know Brasilia hasn't always been the Brazilian capital right? You made a fool out of yourself haha

      January 18, 2014 at 11:48 am | Reply
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