Argentina says to eke out growth in 2014; economists skeptical

[Zorro]

Argentina's economy will eke out growth of 0.5 percent this year and inflation will hit 21.3 percent, the government forecast in its 2015 budget bill on Monday, but private economists branded even these bleak estimates as "optimistic".

Latin America's third-largest economy slid into recession at the start of the year on declines in industrial output and private consumption after a decade of mostly stellar growth. Meanwhile, a sovereign bond default in July has heightened uncertainty.

Independent economists were unimpressed by the forecasts released by President Cristina Fernandez's government in the budget bill, saying they are highly politicized. The economists say the economy will contract by between 2 and 3 percent this year and inflation will rise above 30 percent.

"The government estimates look unlikely. We had a contraction of 1 percent in the first half, and the second half is looking worse," said Fausto Spotorno, an economist at local consultancy Orlando Ferreres and Associates.

http://finance.yahoo.com/news/argentine-economy-grow-just-0-200843607.html

[Bacchus4.0]

1. I've previously said here that nobody is following the Venezuela model, I was wrong

Argentina joins the Venezuela School of Economics

http://www.washingtonpost.com/blogs/worldviews/wp/2014/09/18/argentina-joins-the-venezuela-school-of-economics/

One of South America's largest countries has passed new measures to cap consumer prices of goods, set profit margins for private businesses and levy fines on companies found to be making "artificial or unjustified" profits.

If that sounds like something they would do in Venezuela, well, that's because they already have.

Now it's Argentina that wants to use the heavy hand of the state to grip the invisible hand of the market.

After an all-night debate, legislators in Argentina's lower house voted 130-105 early Thursday for a new "supply law" pushed by President Cristina Fernandez de Kirchner, who is battling inflation, product shortages and a debt crisis her government blames on "vulture" bondholders.

[Zorro]

2. It won't be long now before they're fingerprinting grocery shoppers