It's The Economics, Stupid!
Features:
11. Minieconomic Policies for Argentina
- Minieconomics gives the ammunition for the 3rd world to fight back
- Why Argentina is so good
- Not the most corrupt country
- Natural resources now more important than technology
- The historic growth of high economic multiplier countries
- Now technology is a commodity that can be produced anywhere
- Low economic multiplier better than a high economic demultiplier
- Let’s start at the top – the importance of having State Banks
- The importance of contra-cyclical lending
- Aggressive capitalist bank lending has been wonderful for public sector finances
- The inconsistency of reducing interest rates in a growth recession
- Not just inconsistent but dangerous
- Economic dissipation
- Currency is the key
- Look at Norway and China
- The importance of an undervalued currency during an economic crisis
- The dual currency a disaster for Argentina
- State Bank can reduce the cost of capital to acceptable levels
- Reactivation of the economy
- State Pension Fund
- What is meant by investment?
- Investing overseas
- Investment in equities
- 1st World Countries
- Providers of finance
- The situation in Argentina
- Inflation enemy number 1 but can it be controlled?
- Taxation is the key; interest rates can only be an assist
- 1st World Pension Fund Investment
- The real risk of equity investment is not understood
- Equity and companies’ profits in virtual cycle – upwards and downwards
- Equity investment only interesting when the banking system is expanding
- 1st World Pension Fund Overseas Investment
- Argentina left out in the cold
- State pension Fund Investment Policy
- Higher the economic multiplier, the higher the risk
- Low economic multiplier sectors ideal for State involvement
- Joint ventures
- Low interest rate loans
- Construction Projects
- State Pension Fund Bank
- State Pension Fund Investment Conclusion
- Problem with developing countries
- Developing countries need to develop at their natural pace
- Higher volatility at the margin
- Free markets need free flows of technology and information
- The Bankruptcy of Argentina
- Correct economic forecast
- How?
- Bankruptcy through lack of income not assets
- A financial solution for Argentina
- IMF wrong again?
- Convert debt into equity
- There has not been any inflation in Argentina since devaluation!!!
- A Minieconomics forecast
- No hyperinflation, peso undervalued
- Increase money in circulation then multiply it
- Argentina - The Treatment of existing Private Sector Debt
- Argentina - The Treatment of Public Sector Debt in dollars
- Firstly sue the IMF
- Secondly reduce the coupon
- The Treatment of Public Sector Debt in pesos
- Central Bank
- Reduction of bank reserves
- Difference with the 1st world
- Central Bank more flexible
- Theory and importance of balanced budgets misunderstood
- Printing money is the most efficient, universal and fair form of taxation
- The importance of profit margins and confidence
- Attract employees out of public sector into private sector
- Necessary to protect existing companies
- Ask the IMF to explain the difference – if they can!!!
- Anticipation of change is speculative -you never know when it will happen or by how much-the longer it takes the more pressure you are under.
- First reactivate and then sort out inflation – if it happens
- Foreign ownership of property should be beneficial to the economy
- Foreign ownership of companies can also be beneficial
- Returning to Adam Smith
- Provincial money an interesting concept
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