Argentina accelerates towards a full socialist crash

Obviously Argentina is rushing into socialist catastrophe, after the government decided to nationalize with no equal compensation the petrol giant YPF. In fact Argentina cannot pay the real price for this company, as the country is in permanent budget problems and  with constantly going down economy. With a socialist leader like Cristina Fernandez de Kirchner the country is simply buying time by stealing other's property and spending this "income" to cover current expenses. And the Spanish REPSOL (owner of 51% of YPF) is not the first victim of this policy. It is also not the biggest victim. Before nationalizing the oil giant Kirchner nationalized the private pension savings of common people. The sum was $30 billion so the own population of Argentina is the main victim of the president.

This type of economic decisions inevitably lead to an entire catastrophe. Argentina is removed from the "investment map". No one will invest there under the danger of his property being expropriated. And as in current global economy the investments are the main instrument of creating growth and progress, so such countries are doomed to poverty and continuing populism. It is funny to note that now Argentina is nationalizing a company it has privatized years ago. So the message is clear - don't be fool to buy in Argentina, the government can change and your money will become government money :)))
Nationalizing is bad even for the seized companies. They usually become worse managed, the corruption increases and much useless expenses appear. So even the idea of better running the YPH by expropriating it is wrong.
Cristina is simply a driver of a car that accelerates downhill. The only thing she does is to dismantle the yet existing brakes.

Dobri

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