We are all Keynesians now

One of the most cited quotes in economics, originally written by Simon Kuznets, says that there are four types of countries: developed, underdeveloped, Japan, and Argentina.


They will have to export to get US $$$. So the shift of the economy will be towards producing goods/services that can be sold outside the country to earn the money. Argentina is (was?) a major beef producer. That is an export the US market would buy.

Until the Shiny beef producers cry for “protection”.


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But the way there is a focus changes. That is what offends people. “They” did this or that.

Did JP Morgan ever get the press the Rothschilds did?

Does Israel ever get the press the UK gets over its colonial past?

The animals are different.

The point is whose tool is it in who’s hands?

It is not like antisemitism is just made up. If Israel was Muslim this current conflict would get as much attention as Yemen. Of course, people in the media are often Jewish which invites the discussion and is heartache as well.

They won’t get it. Consumers want the product. Companies will go for it. Argentina was a major beef exporter for decades. Meeting US govt regulations will not be hard. Domestic consumption will go down as their economy does. So the ranchers best option is exports to the US–to get the US $$$ they need for their economy.

Consumers want Samsung and LG washers and dryers, but the administration a few years ago imposed a protectionist tariff against Korean laundry equipment to protect Whirlpool.

In the 80s, consumers wanted Japanese cars and motorcycles, but “voluntary export restraints” were imposed on the cars, to protect the “Big Three” from their own sloth, and a protectionist tariff was imposed on bikes to protect Harley, which, at that time, was a plaything of this guy.

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When the first case of BSE was detected in the US, a US processor of very high grade beef had a problem. Most of his customers were outside of the US, particularly Japan, and they were demanding 100% BSE testing for the beef he sold them. The processor, at his own expense, built and equipped a lab to do the testing, because that is what his customers wanted, and were willing to pay for.

The other beef processors did not want to bother with 100% testing, and didn’t want anyone asking them to perform 100% testing.

Mysteriously, the USDA, which was sole source for the BSE testing kits, refused to sell them to the processor. The processor had to sue the USDA to be allowed to perform testing at his own expense, because that was what his customers wanted.

This is Shiny-land, where, if you have size, doing the right thing, free market competition, and the law, are secondary.


“The top exports of Argentina are corn ($8.88B), soybean meal ($8.63B), soybean oil ($6.17B), delivery trucks ($3.89B) and wheat ($2.71B) exporting mostly to Brazil ($11.2B), China ($5.93B), United States ($4.55B), India and Chile ($3.93B).”


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What’s that have to do with anything? They can still be a major beef producer/exporter and that other stuff too.

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Well, we were discussing the Argentine economy, and the question of earning foreign reserves/dollars came up. Beef was not one of the top five exports, so it wouldn’t help much.

Actually, as the link showed, Argentina is not that big on imports and exports. It is the #28 economy in the world but ranks #48 in exports and #51 in imports.


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Argentina’s bizarre economic history begins with wealth almost predestined:

extravagantly rich soils of the pampas,
water resources,
relative geopolitical safe zone allowing small military budgets
good ports

BUT, the Spanish crown had neglected Argentina while suppressing innovation and development, and potential disaster lurked in its quarrelsome wealthy rapacious idiot ruling elites.

Argentina was wealthy and growing strongly into the roaring 20’s and was not badly hurt at the beginning of the Great Depression, but then the cycle of elite contention for power took a dark turn as attempts at autarkey and then monetary manipulation became addictive. The Perons sprinkled glitter on top of the disaster. They have never escaped cyclic monetary madness and relative impoverishment.

That is all.

david fb


Good thing someone else is to blame, Spain, the US, you name we will take the blame. You take the desperation and poverty.