Miami officials should erect a statue in honor of Argentina’s President Cristina Fernandez de Kirchner : thanks to its disastrous economic policies , Argentines are coming to invest heavily there, and Argentine developers are building some of the most spectacular building projects in the city .
According to preliminary results of a study by the Association of Realtors in Miami, to be published in November this year the Argentine only be overcome by Venezuelans as the primary group of foreign buyers in the Miami area . In 2011 , Argentine ranked third , behind Venezuelans and Brazilians.
But Argentines are leaving a mark more important than others , because the Argentine construction companies are building some of the most ambitious projects in the Miami area .
Over the weekend , the main article on the front of the Miami Herald reported on luxury hotels and buildings being built by Argentine real estate developer Alan Faena near South Beach. According to the Herald article , Faena is becoming lethargic Miami Beach area in the “new and dazzling epicenter of the city.” The price of the penthouse of the building when ready Slaughter House : $ 50 million .
Another recent article in the Miami Herald had submitted to the Melo, of Argentina , family is a group of developers modernizing Edgwater area , near downtown Miami. ” A real estate boom in Edgwater , next fashion district in Miami,” read the headline .
Eduardo Constantini , one of the most important Argentine developers, is finishing a gated community in Key Biscayne , the first new project there in 13 years and is building a huge luxury project in Bal Harbour. Other Argentine businessmen , Uruguay and Chile are building luxury apartments, many of which are sold in advance Argentines eager buyers.
As a real estate agent told me , ” I can sum up in one word why my customers come here Argentines : panic.”
During the boom of raw materials in recent years , the Fernandez government gave huge subsidies to the population to gain votes , instead of attracting investments to reduce poverty permanently .
A staggering 45 percent of Argentines now receive money monthly from the government, either because they are public employees or because they charge cash grants , according to an article in the August 18 newspaper. The number of public employees has increased by 52 percent over the last decade , says economic research group FIEL .
All this helped Fernandez be re-elected in 2011, and led many Argentines believe the tall tale that Argentina discovered a new “economic model” .
But now that the international price of Argentine soybeans and other commodities stabilized , the harsh reality became clear : the government has been spending more than it can .
Argentines have seen this movie many times in the past, and you know how it ends : with devaluations that leave most poorer than before . And , as so often before, those who can are buying dollars, or buying properties abroad.
Since the beginning of the year, Argentina ‘s reserves have fallen from 43 billion to 35 billion. Inflation, according to official figures is 10 percent per year, is calculated by most independent economists at about 26 percent.
Martin Redrado, who was president of the Central Bank of Argentina between 2004 and 2010, did not seem surprised when I told a telephone interview about the new waves of Argentine buyers in Miami.
” No confidence in Argentina because our economic policies are improvised , erratic and changing ” Redrado said . “It’s like in Venezuela , on a smaller scale .”
My opinion: The saddest thing about Argentina is that instead of using revenues from exports of raw materials to improve education , health and infrastructure materials such as Brazil is doing , the Fernandez government continues to waste money on subsidies passengers , and selling the idea that all is well. Bread for today , hunger for tomorrow .
Meanwhile, the once good levels of education in the country have collapsed , infrastructure stumbles , and Argentine investors to buy apartments flee abroad. No one should be surprised if Miami officials go to sleep every night thinking, “Thank you, Cristina ! “