Opinion

Normally I only public news without personal opinions, but today I wanted to comment on the economic situation in Argentina, especially referring to inflation.

By definition, inflation is the general rise of prices throughout the economy, not what at least I can see.

As for an example, while some retailers up their prices indiscriminately, the more typical case is that of vegetables, other retailers maintain the same price forever.

It is well known that in the case of vegetables, the sale price of a kilo of any product is at least equal to the price of the box.

That is, if a small business, is financially able to maintain selling prices, a few blocks from the large hypermarkets in general who are increasing their prices, means that Hypermarkets, taking advantage of its dominant position, not only reduce their costs by buying in bulk, but also benefit from a price increase without justification relying exclusively on inflation expectations.

For clarity, I can assure you all, but most of the price increases have only support in inflationary expectations rather than an actual increase in costs.

Is this the reason that since the government is trying to curb inflationary expectations and do not change economic policies, which generally tend to maintain economic stability despite global financial turbulence.

It is very sad for me to see some of my compatriots trying to destabilize a democratically elected government, supported by the lack of economic knowledge that is ordinary citizens, citing false economic theories, or arguing only complaints that far from providing the solutions that claim, further confuse the public fueling inflationary expectations are very dangerous for any economy of any country, developed or not.

These pundits, often very famous, but very few real successes, seems to not understand that their comments are fueling a vicious machinery of impoverishment and marginalization that eventually will reach them somehow.

They act as if they lived, not just another country but another planet, off the streets, shops, hospitals, etc.. They seem to think that when they leave their luxury cars to dinner at fancy restaurants too, anything that can cause touch.

A small example, if poverty that generate sparks a epidemic of dengue in the head who can enter the insect transmits the disease is going to ask what their economic status before chopping.

Another example, if the waiter who serves you at your luxurious restaurant, contracted a communicable disease as aerial, product of the poor conditions of living, how can these "gentlemen" to prevent the approach to take the order of contagion?

In closing, the attitude taken by these 'gentlemen', far from seeming appropriate or decent looks more like the words of a madman who does not notice the damage that his actions could cause, or mercenaries under the orders of robber barons who can not look beyond the immediate economic benefits, although the medium to long term representing his own ruin and unfortunately the rest of us.

"The Bicentennial Fund was not the product of a hot afternoon," said President

At a business lunch at Olives, defended the controversial government initiative and stressed the figures of the country in the year of the crisis, "The key agreement is the need for a strong domestic market," he said, the UIA demanded for access credit

President Cristina Kirchner held a meeting with businessmen most influential country in the Quinta de Olivos, in an attempt to set a working agenda with the industry.

Shortly after 1330, the President began a presentation to the contractors invited in which he highlighted the figures of 2009. "Fortunately, not what everybody thought," he said.

In a passage of his long speech explaining that the creation of the Bicentennial Fund "was not the product of a hot afternoon," but "has to do with functions that have to comply with the reserves and monetary stability is achieved.

After a review of public accounts, the President tried to show employers that this country is a fertile ground for investment, and that "there will be more meetings" from which took place today.

The president also stressed the basis of a possible point of meeting with businessmen, according to his definition: "The key to that is we have an agreement on the need for a strong domestic market, so also you can sell. "

In that coincided President of the UIA, Hector Mendez, leaving the meeting, but made a difference with the Government on the weight of labor costs and access to credit.
And theorized: "Without customers there is no capitalism. Preotegida And an offer was one of the keys to the year 2009".

"In the year of greatest crisis in the world we still have growth of 0.9%. Without the period 2003-2008 would have been impossible to overcome the crisis as we did in 2009," he said.

The Government yesterday waiting for more than 80 entrepreneurs, including Jorge Brito, Luis Pagani, Eduardo Elsztain, Enrique and Sebastian Eskenazi, Eduardo Eurnekian, Aldo Roggio, Carlos Bulgheroni, Alfredo Coto, Gerardo Werthein, Viktor Klima, Eduardo Costantini and Marcelo Mindlin . Also attending Carlos de la Vega, Argentina Chamber of Commerce, and Cristiano Rattazzi, UIA.

There was no agreement and the opposition takes control of the Senate

The negotiations failed and the distribution of power is defined in the afternoon session

Unless an unforeseen last-minute, kirchnerismo lose control today of the 25 standing committees of the Senate, and also various bicameral, at the hands of a coalition of 37 non-government legislators. Thus, this sector will be key to the operation of a camera that he intended to use Government House as a bastion of resistance to the advance of the opposition in the House of Representatives.

The new distribution of power will emerge today from the preparatory meeting, scheduled for 15, governed for the next two years until the end of term of Cristina Kirchner.
The intention is to block kirchnerista not impose by force of votes in the preparatory meeting minutes which includes the agreement that are discussing for two weeks and, until last night, still had all the signatures.

The only section missing is that of Senator Carlos Menem (La Rioja). Spokesmen for the former president asserted that the record Rioja sign today and will join the opposition bloc.

According to the document, the ruling will have seven members, a total of 15 in each of the standing committees. In other words, will not have enough signatures to get majority opinion.

Moreover, the ruling bloc will not preside over the 25 commissions, 13, leaving the remainder, including management considerations in the hands of a Senator Kirchner. The change in the balance of power in the Senate puts the ruling party in a disadvantageous situation clearly for the first time since the arrival of the Kirchner government in 2003.
The highest office

For now, the Pink House may set the name of the provisional president of the body, an important post, since it is the second stage in the presidential line of succession if headless, for the Buenos Aires Jose Pampuro.

However, dissident Peronism continued to insist last night in that chair to impose Salta Juan Carlos Romero or, failing that, keep the vice-chairmanship of the body, which is reserved for the radical Juan Carlos Marino (La Pampa).

Negotiations will continue this morning, although last night the leader of the Radical bloc, Gerardo Morales (Jujuy), confirmed that his party will respect the parliamentary tradition and support the continuity of Pampuro.

The mechanics of defining the session will end at noon. This was the agreement reached yesterday at a meeting of parliamentary work.
It appears that if no consensus, the new scheme of fees shall be settled by the votes. In that case, the proposal will claim the majority Kirchner, ie eight members, management fees, which are considered key. These are the Budget and Finance, Constitutional Affairs, Agreements, Defense and Foreign Affairs.

This would not be accepted by non-government conglomerate, protected by the 37 votes, plus one half of the total body, which already has consolidated for this vote.
According to the agreed order yesterday in parliamentary work, the preparatory meeting will begin with the swearing of the Cordovan Norma Morandini (Civic and Social Front) on his bench, which was postponed last December 10 because the journalist was traveling in the outside.

The ruling holds that will not prevent the swearing-Morandini, so it's going to make a quorum to start the session. In the UCR warned yesterday that there are no impediments to Cordoba lawmaker can take his seat, even though the site only has 36 senators sitting. "She can make a quorum because the title has already been approved and is a senator of the Nation," Morales said.

In the Mexico Summit, Cristina condemned Britain for oil exploration in the Falklands

In his speech to the 33 heads of state participating in the Summit meeting of Latin America and the Caribbean (CALC), Cristina Kirchner condemned the attitude of Britain to start oil exploration in the area near the Falkland Islands .

"Argentina will insist on your claim, provided in the democratic vocation and the vocation of international law," said the President at the meeting to be held in Cancun, Mexico. And he reiterated: "The installation of a platform violates provisions of the UN."

"There has been a certain naivety about what it means to control the great powers of non-renewable resources such as fisheries," said Cristina Kirchner.

Finally, the President thanked the leaders "for the support" to the claims of Argentina.

The Government's intention is to make the agents sign a statement of rejection of unilateral action by Britain.

The President has participated since noon at the plenary meeting of the Rio Group in Cancun, Mexico, which will run until 1630. At that meeting, the president addresses the escalation of disputes with the United Kingdom.

The opening ceremony was conducted by Mexico's President Felipe Calderón. The president praised the "integration" of Latin America and the Caribbean and spoke of a "new institutionalism".

As indicated by the agency Telam, all participating countries, including Caribbean, some of them former British colonies, will support Argentina's protest against the UK initiative, as part of Argentina's sovereignty claim over the islands.

Meanwhile, the President has scheduled for the 20 an interview with the president-elect of Chile, Sebastian Pinera.

Will be the first direct contact with the future Cristina Kirchner's center agent, who happen to Michelle Bachelet on March 11.

Meanwhile, the countries of the region also advanced in the establishment of a regional body similar to the Organization of American States (OAS), but without the presence of the United States and Canada.

The Central Bank will give the Government $ 24,700 million

Profits are equal to 2009 and the Bicentennial Fund, whose creation is a mystery

While awaiting the decision of Justice and Congress in support of the Bicentennial Fund, the Government prepares to use another box, equivalent to that fund, to be funded by increased public spending ahead of elections next year.

These are the utilities that the Central Bank (BCRA) won in 2009, projected at $ 24.700 million? U.S. $ 6.365 billion, according to the retail price of the dollar the day before yesterday?, Quite a sum of around U.S. $ 6569 million in the fund Bicentennial, whose formation caused the biggest political crisis of recent years. "As resources belonging to the Government, be transferred to the Treasury," said a senior source in the Economy Ministry.

The economy minister, Amado Boudou, defended, in conversation with La Nacion, the legitimacy of this huge movement of funds, which dramatically shrinking in the gain of the BCRA, key support financial stability of a country.

In that sense, Boudou rule out quasi-fiscal deficit can be generated to the governing body of monetary policy and financial system. "What caused quasi-fiscal deficit was the tendering strategy and Nobac Lebac [words] for the management of Martin Redrado, with high interest rates, the economy minister said.
Instead, according to the minister, from changes in the leadership of the Central, the new procurement policy maintains the objective of sterilization of money, but at a lower cost than in the past.

The BCRA to transfer profits to the government are essentially accounting profit last year, corresponding to the rise in government bonds which the Central Bank has in its portfolio and improving the value of the exchange rate.

In 2008, the entity that now presides Mercedes Marco del Pont had already transferred money to the Treasury by this concept, but the controversy was amplified last year earnings because it was "little genuine", as the discussion generated among analysts. The Ministry of Economy negotiated each year the turn of the utilities with the board of Central Bank, after arduous technical discussions when you close the balance of the body, in late March.
In 2008 and 2009, the funds pass was around $ 4500 million annually.

In both cases, it was a relatively small share of the budget surplus, this year, however, would be an amount greater than the total savings projected as the budget. Moreover, the resolution will be easier, as close to Marco del Pont said that "if it asks Economy, there will be no conflict in giving those funds."
About Boudou minister confirmed the strategy, beyond the fate of the Bicentennial Fund in court or in Congress in the coming days. The controversy over the transfer of all of Central Bank profits to the Treasury can be summarized in two central elements:

l The implementation of the Bicentennial Fund would generate, as warned Redrado, the issuance of $ 25.000 million to finance current and capital expenditure, by freeing budgetary resources previously earmarked for repaying debt. This would add a similar amount by the Central Bank's profits and thus would add to the current monetary circulation approximately $ 50,000 million that would put pressure on prices. The figure seems even more significant if one considers that the total monetary base is about 115,000 million pesos.

l Unlike the Bicentennial Fund, which had run into trouble in the courts (at least so far) and which parliamentary approval is in doubt, the appropriation of profits for the Government will be automatic if the BCRA does not express any resistance. In fact, the new leadership confirmed its agreement with the strategy of injecting more money to expand their utmost activity level.For Néstor Kirchner, it means to grow nearly 7% in 2010, even with the inflation risk which means as investment, as government's own admission, does not grow since last year.

Now President Cristina Kirchner called on businessmen, the president of the BCRA and the Minister of Industry, Debora Giorgi, began meeting with various sectors and Boudou defends the Bicentennial Fund and debt swaps as tools to restore private sector confidence. But paradoxically, if the Government has its way, inflation topped up, provided by 20 to 25 percent by 2010.

"When an investment starts, implies an increase in inflationary pressures by increasing aggregate demand. After a few years, increasing productive capacity, that demand and supply becomes able to reduce the pressure on prices," warned an economist . Beyond inflation risk, the political decision to capture all profits are taken while the Central Bank faced more bad news: after a positive fourth quarter in 2009, in January and February resumed capital flight.
In January, according to numbers that are handled in reserve reached U.S. $ 1000 million, offset by a similar trade surplus in February, and is projected at U.S. $ 1500 million. Since 2007, the net capital outflow was U.S. $ 47.000 million.

Moyano said that the discussions will end up in joint agreements despite the "tensions and threats"

The union leader acknowledged that "there was an inflation that is not normal" in certain products, called "revolutionary" Bicentennial Fund; questioning Cobos and Reutemann, the CGT said the wage discussions "have no floor or ceiling"

The secretary general of the CGT, Hugo Moyano, said he was confident that the discussions will end this year wage agreements despite the "tensions and threats" that may occur. In addition, the union leader praised the Bicentennial Fund and criticisms launched against Vice President Julio Cobos and Senator Carlos Reutemann.
"Obviously, when discussing wages, there is tension in the corporate sector, who say they will have to close their businesses and there we launched the threat of unemployment. But that always happens in the salary discussion is normal," said the leader CGT to the radio 10. "The important thing is that it is realized neither one thing nor the other and reach agreements as in recent years," he said.

Moyano also considered that "what matters is going forward" and assessed that the salary discussion "is going to be like in previous years, with many pressures."
"There are bids threats, but ultimately, as happened with the teachers, it was agreed," said the proprietor of the trade union confederation. He questioned demurred districts to raise pay for teachers: "There are provinces that say they will not be able to pay an amount as it agreed to the Nation, but have to think that teachers deserve a decent wage because they have the enormous responsibility of educating our children. "

Moyano also acknowledged that "in some particular goods inflation was not normal, as in the flesh." He said that the discussion should be read in salary.
Fund "revolutionary." The union leader also defended the Bicentennial Fund calling it "revolutionary" because it would allow the use of central bank reserves "that can not be used.

"The money from the reserves are at an interest rate of 0.5 percent profit and when requesting a loan is paid up to 15 percent," Moyano evaluated. He said that using reserves is a matter of common sense, "while calling it" absurd "not to use reserves and" pay 15 percent. "

For Moyano, the Fund was established Bicentennial is "valuable and revolutionary" because it "allows you to use the reserves can not be used, they are there, everybody looks at them and can not be used to have a need to revitalize the economy by the global crisis. "

Barrage of criticism. Moyano criticism launched after several opposition figures. He said that Vice President Julio Cobos has "complete and utter lack of dignity."
"It's unfortunate that it is fulfilling the role because no one recognizes him as vice president, attacked the leader of the CGT. "Utilize the seal is set to vice president and head of the opposition," he said.

For Moyano, Cobos has a "complete and utter lack of dignity as a man of politics."

Outbursts. About Senator Carlos Reutemann, who had accused him of wanting to "steal the Casa Rosada and Plaza de Mayo," Moyano said not wanting to delve into the issue "because there escapes me another outburst."

The union leader also dismissed the senator santafecino entity to catalog it as "a man of sport" that belongs to the "inventions of [Carlos] Menem, as [Ramon] Palito Ortega".
The driver also said "there is an email circulating that 1975 Reutemann with" Mimiche ' "his ex-wife-is what a pair of golf gloves in London.
"The nonsense that says the display as" Moyano said. Ironically, Santa Fe said that if the return to Formula One, "and would neither second.

Finally, Moyano questioned Deputy Elisa Carrio, who said "people are used to also listen to his nonsense.

Discussions with no floor or ceiling. The press secretary of the CGT, Héctor Daer, told the joint Radio America this year will be "prudent" to avoid inflation and said that negotiations will be "free" and "no floors or ceilings.

"Each of the unions will see what the parameter that adjusts to maintain the purchasing power of wages," said Daer. He added: "We will not be imprudent to generate an inflationary surge that we have to negotiate wages every month and live in an inflationary process, with the collapse of its own purchasing power of wages."
For Daer, "the limit of prudence is to assess the situation of the industry and the purchasing power of workers", but considered that the increase of 23.5% for the national government gave teachers "could be a parameter to take into account, but not a floor. "

While Daer acknowledged that there are no uniform position among the various unions, said there is no doubt that "all unions will go to preserve the purchasing power of wages," and emphasized that "this involves going to open negotiations without laying down floors or ceilings.

"Every time I start the talks and there is little tension between trade unions and business chambers, they come out to say that you have to put ceiling, as the Industrial Union of Argentina raised 15 percent in that sense," said Press Secretary of the CGT.

Controversial changes in the body to combat laundering

Directors appointed to six technicians with no experience of discovering illegal operations




The renewal of the controversial intelligence unit (FIU) is ongoing. After the departure of its two top officials and their replacement by an economist without experience in combating money laundering, the Government yesterday appointed six of the seven members of its advisory council, which caused more controversy.



The six new board members also lack experience in detecting money laundering operations, according to rebuild the nation and confirmed two high officials involved in their appointments. Not working in state agencies as required by the law governing the operation of the Unit.



The appointment of magistrates was published in the Official Gazette yesterday. All six share a few characteristics: they all live in the La Plata and all respond to the new owner of the FIU, Jose Sbattella, except one



of them, closer to the justice minister, Julio Alak.



La Nacion Sbattella denied that the appointments have violated the law and defended the "quality" of his team. "These are people with experience and management capacity? Said?. And you can not break a law that came virtually without application, without even apply administrative fines or penalties. Moreover, one can not violate something that is not already running. "



Central Bank (BCRA) was appointed Germain Saller; by the National Securities Commission (CNV), Leonardo Pérez Candreva; by the Ministry of Economy, Mario Camano, for the interior minister, Gustavo Ruben Oliva, for the of Justice, Ricardo Eskenazi, and by the Ministry of Counter-Narcotics (Sedronar), Ricardo Angelucci.



26,119 law says that each one must be "official representative" of the organism to the FIU. But several of them do not integrate the payroll of the respective ministries or even appear in other areas of the state as Anses.



The case chosen by the Sedronar is even more controversial. By law must be "an expert on issues related to money laundering. But Angelucci lacks experience, knowledge or studies in the field, as probed La Nacion. In recent years he served as undersecretary of production, and Buenos Aires before, as director for the province of Buenos Aires in the Central Market. From there he went after a confrontation with the Domestic Trade Secretary Guillermo Moreno, which included a beating from thugs in his office.



Angelucci account, however, with backups of worth. Besides sharing Sbattella efforts at the Institute of Fiscal and Economic Studies (IEFE), there are few who say the deputy governor Alberto Balestrini or up to Interior Minister Florencio Randazzo, among its sponsors.



Saller also joined the ranks of IEFE, and with Perez Candreva collaborated in writing a book on theory and macroeconomic policy. They were also part of the economic group against the lockout, which was formed in full bid with producers for retention agrocupecuarios phones. The first one went further and published in a column Página/12 in December 2007, telling about his position: "What complains the field?"

Tax exempt about 1500 patients

LA PLATA, BUENOS AIRES, ARGENTINA .- The tax liabilities of about 1,500 delinquent taxpayers who are affected by serious illnesses will be exempted from payment of an agreement signed yesterday by the Ministry of Health of Buenos Aires and the Buenos Aires Revenue Agency (ARBA) .

"The measure is aimed at people who are important in medical treatment of terminally ill, on whom the province has issued a precautionary measure and have their property seized," said the owner of ARBA, Martin Di Bella.

According to the resolution emphasized the goal of lifting the precautionary measures is to avoid inconvenience to the taxpayers, who must allocate the funds seized the attention of urgent health issues.
"It suggests that these funds can be used for the seriously ill live in dignity and achieve face treatments," said the owner of the collection agency.

To obtain a tax benefit, the relatives of the sick should seek certification from the Ministry of Health or a public hospital which shows conclusively the medical diagnosis and then continue the process in ARBA.
"The intention is that the disease is as painless as possible," said Di Bella, and continued: "We do not waive our tax liability, but we recognize that the patient's particular situation warrants the use of these funds immediately."

Financial movements
The agreement includes the lifting of protective measures on money, securities and assets deposited in the financial system, credit or third party rights, arranged as part of a process of constraint.

"It is for patients or their families can make the necessary financial move, unhindered, to address the extreme circumstance that touches them suffer", La Nacion reported ARBA sources.