Little did magic of distributive speech last

Portada en Ingles

The illusionist message of Argentine president Cristina de Kirchner partly paralysed the upper echelons of farming sector, which won't decide future measures till Friday.

However, the rank and file continues next to roads, there are blocks in some areas and the farmer Alfredo De Angeli has stated that a grain strike will be staged (transport won't be blocked, but they will note down farmers sending cereals to market). In turn, truckers are threatening to carry out a general strike on roads as of today.

People bought twice as much as dollars and Argentine Central Bank (BCRA, in its Spanish acronym) sold $100 millions in the future. International reserves plummeted $150 millions in 24 hours.

Moreover, strong rejection is observed in provinces: they complain because, by paying more export tariffs, farmers deduct their Income Tax contribution that these districts receive.

The province of San Luis lodged an appeal before the Supreme Court of Justice because it's discriminated by national government, which has already been accepted and sent to the executive to give explanations. Meanwhile, the province of Cordoba is threatening to appeal to a similar measure. Moreover, differences arose in meeting held yesterday between president Cristina de Kirchner and Santa Fe governor Hermes Binner.

Another problem, this time a legislative one: the executive order grants works, funds and powers not envisaged by the Budget. It won't be legal and great discussion will be observed due to this interference. Moreover, according to many lawmakers, Cristina admitted an abuse in her speech, after saying that this is a demand on extra income. In this way, export tariff should be considered a violation of Argentine Constitution, since it must be approved by the Congress, rather than by a legislative office of Customs Code (as government said).

Several economists entertain themselves with the derivation of "sliding-scale". If promised future works are subjected to commodities prices, one should think of "sliding-scale" hospitals, "sliding-scale" housing, "sliding-scale" roads and "sliding-scale" schools. At least, their construction. It does not look serious.

Again, as an alternative, rumour has it that cabinet chief Alberto Fernandez will invite rural leaders to talk. By all appearances the 90 days of crisis stretch again.

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