…on Peru imports:
After this post a couple of days ago, your humble scribe received a mail from reader ‘RC’ who made some insightful comments, but also noted that one of the reasons for the boost in imports is the importing of capital goods (bienes de capital) for the mining industry. In his otherwise very smart reply, RC’s point here stuck out because it’s one of the classic chunks of bullshit that is trundled out by the mining industry in Peru any time they feel the need to defend their activities. It’s always “Oh, the boom in mining can also be seen in the massive new amounts of capital goods we’re importing and aren’t we wonderful” and all that. Well folks, as the charts here clearly show there has been an absolute rise in capital goods imports (cream colour on top chart) but the gain compared to the other sectors of import goods (consumer goods (bienes consumo), supplies (insumos) and other (otro)) is basically zero. This “capital goods is the reason for import rises is just another one of those truthiness canards that suit certain people and has been accepted as fact by those who haven’t really checked the figures…..i.e. 99% of journalists.
End of wonky CotD that only five of you will care about.