Quotulatiousness

August 15, 2013

Argentinian primary results may signal the end of Cristina Kirchner’s presidency

Filed under: Americas, Politics — Tags: , — Nicholas @ 09:26

In The Beacon, Alvaro Vargas Llosa explains why the odd primary system in Argentina may have created an impossible situation for President Cristina Kirchner:

Argentina held open primaries last Sunday whose ostensible purpose was to pick the candidates that will compete in October’s midterm elections. But Argentineans saw them as a major test of Cristina Kirchner’s increasingly corrupt, authoritarian presidency — and she was badly humiliated.

The rules make these primary elections a foretaste of the real race, which means that the president will be roundly defeated in October. More importantly, this spells the end of Cristina’s attempt to change the constitution so she can run for a third consecutive term. (Since she succeeded her own husband, who was president between 2003 and 2007, it would actually amount to a fourth Kirchner term.)

The beauty of Argentina’s political underdevelopment, if one can put it that way, is that, unlike what happens in Venezuela, where the competing factions of the dictatorship have been able to keep their differences from bringing the government down, Peronismo has a kind of built-in system of checks and balances that ensures no autocrat can rule forever. As soon as one Peronista smells electoral blood, he goes after the governing Peronista with gusto, with the result that the president is eventually brought down in large part due to internecine fighting.

This is what happened in Sunday’s primary election. A former Chief of the Cabinet of Ministers who used to be a loyal Kirchner underling, Sergio Massa, turned on her at the last moment and ran against her chosen candidate in the province of Buenos Aires, which accounts for a bit less than 40 percent of the national vote. Not to speak of several Peronista dissidents who have been in opposition for a while and also ran against her candidates in several other districts. Over all, seventy percent of the country voted for anti-Kirchner candidates, while only twenty-six percent voted for the government. Kirchner, who was reelected with 54 percent of the ballots just two years ago, has lost half of her supporters.

August 7, 2013

Gibraltar as this year’s “shark story” filler

Filed under: Britain, Europe, Media — Tags: , , , , , — Nicholas @ 11:28

Sir Humphrey thinks there’s rather less than meets the eye in the media’s coverage of the Spanish government’s recent series of escalations over Gibraltar:

Its August, the sun is shining, the politicians are on holiday and the media are desperately searching around for some kind of story to fill the news. Suddenly, the perfect story has emerged — those dreadful Spanish are doing all manner of dubious things to threaten Gibraltar and simultaneously the Falkland Islands. Is there reason for panic, or is it a case of just summer bluster in order to distract attention from other problems? The UK has always had a challenging relationship with the Spanish over Gibraltar — no matter how much the UK wishes to move the relationship forward (and in many areas it remains an extremely strong and positive relationship), this feels as if it is an issue which cannot easily be resolved.

The current situation owes much to the Spanish ratcheting up tensions after claims that Gibraltar was laying concrete blocks into local waters, in turn threatening traditional fishing grounds. It is hard to work out whether this is a genuine grievance, or merely a convenient pretext in order to gain some traction on putting pressure on the territory. Following a previous weekend where long traffic jams occurred with checks on all cars transiting the border, the Spanish are now reportedly considering imposing an entrance / exit tax of 50 Euros on anyone transiting their side of the border. While such taxes may be deeply unpleasant, they are perhaps not necessarily new (many countries impose similar entrance taxes around the world). The question is to what extent would this damage the local economy? It is worth considering that many Gibraltarians work in southern Spain, so any tax would probably make it difficult to get to work and damage the livelihood of many small businesses – perhaps appealing in a nation where youth unemployment is ever higher, but in the interim it could easily cause more long term economic damage to both the Spanish and Gibraltarian economies.

So what is the tie-in to the Falkland Islands? A media report on Spain selling Mirage fighter jets to Argentina:

It is not clear whether this is actually news, or whether it’s the case that the Tabloid press have been looking on Wikipedia and turned what is a one line entry on future Spanish Mirage jet prospects into an article designed to raise tensions. In reality this site has long made the point that the Argentine Armed Forces are in a parlous state, and that they are desperately short of spares, training and operational experience.

They’ve also taken various fleets of aircraft out of service in recent years, so its entirely reasonable to expect some form of replacement at some point. In the case of the Mirage jets, they entered service in 1975 and are extremely old and not necessarily front line fast jet material any longer. Acquisition of a small number of 1970s vintage jets which have been worked hard for nearly 40 years is not really going to change the balance of power in the South Atlantic. Indeed, its worth noting that right now (if you believe Wikipedia) the entire Argentine Mirage fleet is grounded anyway due to spares and safety issues. At best this acquisition may try and restore some limited capability. So, its fair to say that the Falkland Islands are hardly at risk of collapse — if the acquisition of a small number of ancient fighter aircraft materially changes the balance of power, then something has gone very badly wrong in UK defence planning circles.

July 4, 2013

“Buenos Aires […] is the headquarters for the central planning bad idea bus”

Filed under: Americas, Economics, Government — Tags: , , , , , — Nicholas @ 08:32

At the Sovereign Man blog, Simon Black discusses Argentina’s sad history of central planning failures:

The more interesting part about Buenos Aires, though, is that this place is the headquarters for the central planning bad idea bus.

Argentina’s President, Cristina Fernandez, continues to tighten her stranglehold over the nation’s economy and society.

This country is so abundant with natural resources, it should be immensely wealthy. And it was. At the turn of the 20th century, Argentina was one of the richest countries in the world.

Yet rather than adopting the market-oriented approaches taken by, say, Colombia and Chile, Argentina is following the model of Venezuela.

Cristina rules by decree here; there is very little legislative power. She may as well start wearing a crown.

Just in the last few years, she’s imposed capital controls. Media controls. Price controls. Export controls.

She’s seized pension funds. She fired a central banker who didn’t bend to her ‘print more money’ directives. She even filed criminal charges against economists who publish credible inflation figures, as opposed to the lies that her government releases.

Inflation here is completely out of control. The government figures say 10%, but the street level is several times that.

[. . .]

Being here in this laboratory of central planning makes a few things abundantly clear:

1) Printing money does not create wealth. If it did, Argentina would be one of the richest places in the world again.

2) All of these policies that are ‘for the benefit of the people’ almost universally and up screwing the people they claim to help.

Printing money creates nasty inflation. If you’re wealthy, it leads to asset bubbles, which can make you even wealthier. If you’re poor, you just get crushed by rising prices. Or worse – shortages (remember the recent Venezuelan toilet paper crisis?)

3) Desperation leads to even more desperation. The worse things get, the tighter government controls become… which makes things even worse. It’s a classic negative feedback loop.

Both the United States and pan-European governments are varying degrees of this model, with only a flimsy layer of international credibility separating them from the regime of Cristina.

So Argentina is really a perfect case study in things to come.

April 2, 2013

Reporting on “Maggie’s War”

Filed under: Americas, Britain, History, Military — Tags: , , , — Nicholas @ 09:02

In History Today, Patrick Bishop recounts his experiences as a war correspondent during the Falklands War, 31 years ago:

For me, a young reporter attached to 3 Commando Brigade aboard the requisitioned cruise ship Canberra, covering ‘Maggie’s war’ was a process of constant revelation. The soldiers, the sea and landscapes, the actuality of combat — everything was surprising and collided with expectations.

I arrived in the war, like Britain itself, bemused at the suddenness of events. One minute I was a home news hack on the Observer, the next I was an official war correspondent, with a red cloth-covered Second World War-issue booklet of regulations and the rank of honorary captain.

We left from Southampton on a drizzly Good Friday evening. Two or three hundred wives, girlfriends and children had gathered on the quayside to say goodbye and good luck to their menfolk, while onboard a band played ‘A Life On The Ocean Wave’ and ‘Land Of Hope And Glory’. The crowd was cheerfully patriotic. Some waved union flags. Two buxom girls, soon the object of close attention by the TV cameras, were wearing T-shirts with the legend ‘Give The Argies Some Bargie’.

Who were these people? To my metropolitan eyes they appeared somewhat alien. Indeed they were. The era of Callaghan’s Labour government, which was replaced by Margaret Thatcher’s Conservative administration in 1979, had forced patriotism underground. Mrs T. was untried and not yet confident enough to encourage its resurrection.

March 13, 2013

Argentinian president derides Falkland Islanders as “squatters”

Filed under: Americas, Britain — Tags: , , — Nicholas @ 08:24

I figured the Argentine government would brush off the overwhelming result of the Falkland Islands referendum once it became clear that the result would not flatter Argentinian egos:

In her first public comment on the referendum, the outspoken president dismissed the vote as a “parody” and thanked Argentinians for their “monolithic opposition”.

She said the referendum, where residents voted in favour of remaining a British overseas territory, was “as if a group of squatters had voted on whether to continue to occupy a building”.

Speaking at an event at the Presidential Palace in Buenos Aires, she added: “We reaffirm our commitment to dialogue in accordance with the UN.

“To achieve a solution that also included the interests of those who live on our Malvinas islands.”

She quoted British Foreign Office minister Hugo Swire as saying that the referendum result didn’t change the situation “from a legal point of view”.

The vote wasn’t even close, with only three votes for the “No” option out of 1,517 total votes cast.

February 4, 2013

Argentina’s real inflation rate is a state secret

Filed under: Americas, Economics, Government, Media — Tags: , , , , — Nicholas @ 13:19

Argentina has lots of issues, but one of the biggest problems is that their official statistics fall somewhere along the spectrum between “a bout of wishful thinking” and “a tissue of lies”:

Argentina, the only country in the world that threatens private economists with jail terms for disputing the government’s obviously bogus inflation numbers, is now the only country in the world to be censured by the IMF for unacceptably bad economic statistics. In a rare move by the 24 member board of the world’s most prestigious financial institution, Argentina’s government was censured for failing to improve the quality of the numbers it uses to calculate things like GDP and, especially, the inflation rate.

The current president’s husband fired the professional economists in the statistical office in 2007. Ever since, the patent bogosity of Argentina’s statistics has undermined the government’s credibility at home and abroad. Inflation is a deadly sensitive subject in Argentina, where past bouts of hyperinflation have wiped out the savings of whole generations. Currently the government claims inflation is no higher than 11 percent; when the thought police aren’t watching them, private economists whisper that the real rate is more than 25.

This isn’t a new story: The Economist stopped using the official figures in their weekly economic summaries about a year ago. Argentina’s economic policies have become a valuable primer on “what not to do” for other countries. Argentina could be a South American version of Canada, but the political class ensures that will not happen.

January 23, 2013

Retired Argentinian destroyer ARA Santísima Trinidad sinks at naval base

Filed under: Americas, Military — Tags: , , — Nicholas @ 09:34

The Argentinian defence minister was sure to include the possibility that the ARA Santísima Trinidad was sunk by enemy action:

Arturo Puricelli, the defence minister, said the loss of the Holy Trinity was due to “negligence in the best-case scenario, or an attack” aimed at making the government look bad. He did not go into detail.

The destroyer, which was retired from active service in 2004, took on water at the Puerto Belgrano naval base after a six-inch pipe burst, the navy said.

The minister later said, however, that he was surprised that the ship sank quickly while it was moored at the port.

First it started listing, he said. “So the breakdown must have been major, or someone opened a value to sink it,” he said.

The ARA Santísima Trinidad was the warship that landed the first military forces — 84 marines and a team of divers — to start the Falklands War of 1982.

Update: I wonder if Colby is freelancing for the Sun now:

The_Sun_(Gotcha)

January 13, 2013

Britain considering reinforcements for Falkland Islands

Filed under: Americas, Britain, Military — Tags: , , , — Nicholas @ 12:54

If nothing else, the heated rhetoric from Argentina is encouraging the British government to think about sending more military resources to the Falklands:

Britain is prepared to send additional military backup to the South Atlantic as a ‘show of force’ to Argentina over the Falkland Islands.

It is understood an extra warship, another RAF Tycoon [sic] combat aircraft and further troops could be dispatched to the region ahead of the March referendum over whether the islands remain part of the UK.

According to the Sunday Telegraph, the options being proposed by planners at the Permanent Joint Headquarters in Northwood, London, include conducting naval exercises in the region.

Alternatives include sending elements of the Army’s 16 Air Assault Brigade — the airborne task force which includes members of the Parachute Regiment — which has just completed a series of demanding exercises in Spain preparing for ‘general war’.

Islanders will vote on March 11 on whether they wish to remain an overseas territory of the UK.

It is expected there will be a 100 per cent ‘yes’ vote, which intelligence officials have warned the Prime Minister could lead to an aggressive ‘stunt’ by Argentina, such as planting the country’s flag on the island.

December 19, 2012

ARA Libertad finally free to sail home from Ghana

Filed under: Africa, Americas, Government, Military — Tags: , , , , , — Nicholas @ 15:05

If you’ve been following the debt-related travails of the Argentine navy’s flagship, you’ll recall that the ship was impounded on a visit to Ghana back in October. The BBC is now reporting that the ship has been released, and Argentinian sailors will be able to take the frigate home after a UN court decision:

The Libertad set sail from Ghana’s main port of Tema after a United Nations court last week ordered its release.

Argentina sent almost 100 navy personnel to man the three-masted training ship.

It was impounded after a financial fund said it was owed money by Argentina’s government as a result of a debt default a decade ago.

[. . .]

In November, sailors on board the Libertad reportedly pulled guns on Ghanaian officials when they tried to board the vessel to move it to another berth.

The lengthy diplomatic row began when the ship was prevented from leaving Ghana on 2 October, after a local court ruled in favour of financial fund NML Capital. The fund is a subsidiary of US hedge fund Elliot Capital Management which is one of Argentina’s former creditors.

Initial report on the seizure here and here.

December 17, 2012

QotD: Argentina’s little white interest rate lie

Filed under: Americas, Economics, Quotations — Tags: , , , , , — Nicholas @ 09:49

No one gives a toss that Argentina is lying about its inflation rate. Well, except maybe the economists they’ve fined and ruined for calculating the real one. We’ve all put up with Cuba lying about everything for 60 years after all.

Except, except … Argentina has issued index linked bonds as part of the 2001/2 debt restructuring. The interest paid depends on what the inflation rate is. If the government deliberately undercounts inflation then they get away with rooking the holders of those bonds.

That’s what this is about. That’s why anyone cares. It’s not simply that they’re liars it’s that they’re thieves.

Tim Worstall, “I wish people would get it right about Argentina”, Tim Worstall, 2012-12-17

October 25, 2012

Follow-up – Argentine flagship’s crew to fly home after three week delay

Filed under: Africa, Americas, Government, Military — Tags: , , , , , — Nicholas @ 00:01

I originally found this story at the beginning of the month, and after all this time, the bulk of the Argentinian crew finally fly home. BBC News has the update:

Almost 300 sailors left on an Air France plane chartered by the Argentine government.

A skeleton crew is staying on board the three-masted Libertad to maintain it.

The tall ship was prevented from leaving Ghana after a local court ruled in favour of a US fund.

The fund, NML Capital, argued it was owed $370m (£231m) by Argentina’s government as a result of its debt default a decade ago.

[. . .]

An earlier plan for the sailors to fly back on an Argentine plane was scrapped because of fears that the aircraft might itself be impounded as part of the debt dispute.

On Tuesday, Argentine President Cristina Fernandez de Kirchner condemned the Libertad’s seizure and made it clear there would be no negotiations with creditors.


Photo by Martín Otero, 7 April, 2007

October 11, 2012

Venezuela’s man on a white horse

Filed under: Americas, Media — Tags: , , , — Nicholas @ 09:17

In sp!ked, Brendan O’Neill says that the western leftist affection for Venezuela’s Hugo Chavez illustrates its intellectual disarray:

For an insight into the collapsed standards, declining intellectual rigour and desperate opportunism of the modern Western left, look no further than its fawning over Hugo Chavez of Venezuela. In the past, much of the left — both the radical sections and even some of the stuffy Stalinist crowd — was highly critical of the Bonapartist antics of populist Latin American leaders. They critiqued the way these leaders mobilised the masses to give their narrow, bourgeois, largely state-orientated policies a gloss of legitimacy or the appearance of revolutionism. But now, so isolated is the Western left, so bereft is it of a domestic constituency or anything approaching a political plan, that it sees in Chavez’s twenty-first-century Bonapartism something ‘genuinely progressive’.

This week, Chavez won a fourth term as president of Venezuela. He did not repeat his landslide victory of 2006, instead winning a safe but not-especially-astounding 54 per cent of the vote (on a turnout of 81 per cent). His supporters among Western radicals immediately went into hyperbolic hyperdrive, talking about the ‘revolution’ that Chavez has led in Venezuela and commending him for ‘challenging imperial domination’. Chavez’s posturing against US influence in Latin America and his implementation of social-assistance programmes for the Venezuelan poor are variously described as ‘radical’, ‘progressive’ and part of his broader ‘profoundly revolutionary struggle’. He is compared to Simon Bolivar, the nineteenth-century political leader who liberated much of the Latin American continent from Spanish rule, or to Che Guevara, the more recent Argentine radical beloved of t-shirt sellers in hipster communities across the West.

Yet these accolades for Chavez tell us far more about the state of mind, and deep, existential needs, of the disarrayed left than they do about any revolution taking place in Venezuela. Because in truth, Chavez has far more in common with the populist style of the nationalist leadership pioneered in Latin America by Juan Peron, whom the left castigated for his exploitation of the masses, than he does with yesteryear’s revolutionaries. Juan Peron was an Argentine military leader who, after playing a role in the army’s 1943 seizing of power from the corrupt regime of Ramon Castillo, was elected president of Argentina in 1946, 1951 and briefly again in the 1970s. His rule — which came to be known as Peronism and was influential among populist left-wing leaders in Latin America — consisted of a combination of anti-Western actions, concessions to the working classes and the poor in the form of higher wages and trade union recognition, and populist demagogy. Through this process, Peron was able to build up an impressive mass base of support for his pursuit of nationalist capitalist development in Argentina.

October 7, 2012

Flagship of Argentinian Navy seized for unpaid government debt in Ghana

Filed under: Africa, Americas, Government, Military — Tags: , , , , , — Nicholas @ 09:38

If I were you, I’d avoid investing in any Argentinian business (or businesses which have significant operations in Argentina), as the government is doing everything it can to prevent the flight of capital. Some of the debt holders are getting quite creative about finding ways to put pressure on Argentina to pay its debts:

If pirating didn’t work out, Capt. Jack Sparrow would perhaps have made a savvy hedge fund manager.

A New York hedge fund boss is being dubbed a real pirate of the Caribbean after seizing the flagship of the Argentinian navy in an attempt to settle some of the country’s huge debt.

Billionaire Paul Singer took control of the tall ship the A.R.A. Libertad with a court order in Ghana this week.

The triple-mast frigate, which stopped in the African country as it trained naval cadets, is valued at $10 million and is the ceremonial flagship of the Argentine fleet.


Photo by Martín Otero, 7 April, 2007

July 8, 2012

Argentina to force domestic banks to loan money at a loss

Filed under: Americas, Economics — Tags: , — Nicholas @ 10:21

As the financial situation in Argentina gets more dire, the government is stepping in to make things even worse:

[President Cristina] Fernandez, a center-leftist, is embracing increasingly unorthodox economic policies as she seeks to sustain activity, which analysts say is vulnerable to insufficient credit.

“We’re going to tell the 20 principal banks… they have the obligation to lend for production and for investment,” Fernandez said in a televised speech.

“The central bank’s going to establish the conditions,” she said, adding that state-run banks should not have to shoulder the entire responsibility for business loans.

She said the loans would carry a maximum interest rate of the Badlar reference rate, which was 11.9pc per year for private banks in June, plus 400 basis points. The minimum loan period would be three years.

Officially, inflation in Argentina is running around 25%, so forcing banks to loan money out at half the rate of inflation seems like asking them to dig their own economic graves.

H/T to Tim Worstall for the link.

June 14, 2012

Thirty years after

Filed under: Americas, Britain, History, Military — Tags: , — Nicholas @ 11:08

A ceremony in Port Stanley today, marking the 30th anniversary of the end of occupation during the Falklands War between Britain and Argentina:

The anniversary of the liberation of the islands after 74 days of Argentine occupation was marked at a service of thanksgiving at Christ Church Cathedral in the Falklands capital.

Veterans of the 1982 war then led a military parade to the Liberation Monument for an act of remembrance.

The names of the 255 UK servicemen and three Falklands civilians who died in the war were recited at Liberation Monument. An estimated 650 Argentines were also killed during the conflict.

Wreaths were laid at the monument and the national anthem was played.

The BBC’s defence correspondent Caroline Wyatt, in Port Stanley, said it was a day of high emotion for veterans who had come back to see the battlefields where many of their friends and comrades laid down their lives.

For islanders, it was a vital ceremony to mark their liberation and to express the undying gratitude they felt for the servicemen and women who came 8,000 miles to help them.

In his statement, Mr Cameron said the anniversary was “an opportunity to remember all those who lost their lives in the conflict and to look forward to what the future holds for the Falklands”.

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