Defying sheep syndrome seems to
work. Brazil has overtaken the UK and thus has become the world’s sixth largest
economy!
Reading
the Economist and other western
corporate media outlets one is made to believe that Argentine and Brazilian
economies will stagnate this year and that economic growth will drop
significantly due to declining demand on agriculture commodities etc. What you
won’t read in mainstream corporate media is that due to economic shifts from west to east and north to south, and a
subsequent declining European economy, Brazil has overtaken the UK and thus has
become the world’s sixth largest economy.
LATAM not adhering to vulture finance
system dictated by IMF, World Bank and Corporations
As for Argentina things look promising as well, despite the
deliberate negative economic outlook prognosis published by corporate media who
simply can’t accept that by defying the IMF, World Bank, Wall Street
indoctrinated Global Eco – vulture finance system, still succeeded in achieving
economic growth.
As mentioned numerous times on this blog, even if there is a
decline in demand for agricultural commodities, Argentina will still continue
exporting agriculture commodities and thus keep on stimulating its economy.
Argentina has one advantage over most of other agriculture economies around the
world, it still has vast amount of fertile land available, something which other
agriculture commodity producing countries don’t have.
FAO: INCREASED FARM LAND PURCHASE BY
FOREIGN INVESTORS IN LATAM
A prove as to what global impact Argentina’s agronomics have is the high
number of foreign agriculture land ownership, the significance of which the
current Argentine Government realized and subsequently passed a bill,
restricting foreign land ownership. Interest in Argentine fertile farm land
also has stirred the attention of the UN
FOOD AND AGRICULTURE ORGANIZATION, FAO,
who recently warned of intense land purchase in Argentina and Brazil for the
production of food. The FAO warns that the region’s governments must find
ways of ensuring that the process of land concentration, and land in foreign
hands do not have negative effects for the food security and local economy.
According to the FAO there is a
massive resurgence in the interest to invest in land in the region. It is much
stronger than presumed be in terms of investment in land or the concentration
phenomenon.
In ten years the value of land in Uruguay and Argentina increased seven-fold
and a tremendous concentration process of land in Latin America. By giving away
massive land to foreign entities Argentina is giving away the gold of the
future: “WATER”. According to a study conducted by the UNEP - United
Nations Environment Program, certain countries, including Argentina,
bordering the Andes Mountains will be essential for world food export in the
not too distant future, because of the combination of fresh water supply and
fertile land in order to produce animal feed as well as crops.
Further
prove is Saudi Arabia's largest dairy company announcing it was buying
Argentine farm operator Fondomonte for 83 million dollars to secure access to a
supply of animal feed. Fondomonte operates three farms in Argentina. The
acquisition will give Riyadh-based Almarai Co. control of roughly 30,000
acres of farmland just ahead of the implementation of the foreign
ownership of productive land bill, instigated by the Argentine Government to
curb in foreign land ownership in Argentina.
Almarai said the deal is in line with Saudi’s policy of “securing supplies and conserving local
resources”.In spite of its desert climate, Saudi Arabia for decades
produced millions of tons of home grown wheat with the help of generous farm
subsidies. It is now trying to wind down domestic production because of concern
over dwindling water supplies.
WATER: THE COMMODITY OF THE FUTURE,
even George BUSH junior realized the significance and bought land in ARGENTINA containing
various fresh water wells!!!
In view of increasing water shortage, Argentina has the advantage to develop
water export industry and ship water to Middle Eastern countries which suffer
notorious water shortages. Oil-rich Gulf Arab nations have shown increased
interest in buying farmland and other agricultural assets particularly in
Argentina to ensure reliable food supplies. Even George Bush junior realized the
significance of water and bought land in Argentina containing various freshwater
wells!
NATURAL RESOURCES BALANCING ACT
Nevertheless it will need a fine balancing act by the current and future
governments of Argentina when it comes to water related issues. On the one hand
oil and gas extraction as well as mining are lucrative industries in Argentina,
promising large revenues but require enormous amount of water and have
devastating environmental impact on the country. On the other side, agronomics
are also lucrative and also require water. To make the right choice will be
difficult.
FOREIGN
INVESTMENT IN FERTILE FARM LAND AND MINING INDUSTRY PROVES THAT INVESTORS ARE
CONFIDENT WITH ARGENTINA’S ECONOMIC STRATEGIES
If the economic outlook was really as bleak as projected by Corporate
Mainstream Media, and entities such as the IMF, World Bank etc. no country or corporation
would invest strongly in farm land acquisition or natural resource extractions
in Argentina and the rest of LATAM.
THE FEAR OF THE 1ST WORLDS
RULING ELITE TO LOSE POWER AND INFLUENCE TO 3RD WORLD EMERGING
ECONOMIES
In view of these facts it becomes evident as to why Corporate mainstream
media such as the Economist, Wall Street
Journal, to name but a few, try
to portray a economic doomsday scenario for Argentina and other LATAM countries,
because key players of 1st world nations fear to lose eco political
influence to emerging 3rd world emerging economies.
No comments:
Post a Comment