The drop in the soya prices and another raw material is
bringing Latin America to the global crisis.
The Latin American countries have been dealing well with the global financial
crisis and have been growing at very good rates, some of them around 6 %. Thanks
to previous learned lessons in the past
decade and how they readjusted the economic and financial system and also
because most of them have now a strong link with China and the rest of Asia, eager
of the raw material and food of the Latin American countries.
But now the
prices of the raw materials (copper and even gold) and also the soya (one of
the main products of the Latin American economies) has been falling for a
while. Everyone can think it is because the raw materials use to vary time to
time their prices (offer and demand), but never before 15-20 raw material have
been rising and falling all together. The reason can be because the slow
recovery of USA and the European crisis has put in a halt the Chinese growth.
But no, the main reason again is for those how manage the money and the market.
Like in the 90s they speculate with the technology bubble and more recently
with the state market they have been speculating with the raw material market
for a while, and we know now very well what happen when everyone is speculating
in the same market.
Actually the
soya price is U$ 437, when the last august was in a record price of U$
534. The soya export have a high tax
retention in some of the countries (Argentina 34%) and if they start to lose
those millions of dollars, the Latin America grow and investment will put on
halt in a moment where the global market is in total chaos.
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