An Inflation Moment

This is a excellent article about Buenos Aires from the 1900s
http://www.oldandsold.com/articles29/south-america-33.shtml

HOW THE NABOBS OF BUENOS AIRES LOOK, ACT, AND LIVE-A NATION OF GAMBLERS WHO SPEND MILLIONS A YEAR ON RACES, LOTTERIES, AND THE STOCK-EXCHANGE-BEHIND THE SCENES AT THE CLUBS-A NIGHT AT THE OPERA-WELL-DRESSED WOMEN AND IMPUDENT YOUNG MEN-CURIOUS CUSTOMS OF COURTSHIP AND MARRIAGE—ODD FEATURES OF FAMILY LIFE.
HIGH life in Buenos Aires! High life in the Paris of South America, where millionaires are thicker than blackberries in August and honey-lipped heiresses swarm like bees in midsummer! We may see it out driving in the park of Palermo, or meet it every afternoon on the Calle Florida. We may take chances with it every Sunday at the races, or we may stare at its diamonds every night during the opera season. If we have good introductions we may go inside its mansions and attend its fine dinners, or perhaps take part in a game at the Jockey Club, where fortunes often change hands in a night.
The races are one of the social institutions of the Argentine capital. The president and his cabinet, the officers of the army and navy, everyone, in fact, who pretends to be anybody, attends them, and this notwithstanding that they are always held on Sundays. The chief race track is owned' by the Jockey Club. The club is the most celebrated in South America; its initiation fee is three times that of any club in New York, and its annual dues amount to a larger sum than many an Argentine young man earns in a year. Its clubhouse will compare favourably in furniture and finishings with almost any palace of Europe. The races are managed by this club, and all the money won and lost passes through its hands. The club takes a certain percentage of all the bets made, and when I tell you that last year more than 413, 000, 000 were publicly wagered you can see that a small percentage gives the club a big income.
There are many fine horses in Argentina, and the races are usually well contested. The day I attended, them eighty-seven horses were entered, and the grand stand contained more than ten thousand people. A building covering about half an acre was devoted to pool-selling, and a stream of men went to and from the windows of the building to make their bets or to receive their winnings. Every one was betting. Men, women, and children put their money on every race, and as the horses neared the winning-post the crowds in the grand stand went wild. Teri thousand people then rose to their feet, some climbing on the benches, and now and then a yell went up from many throats. The crowd was well dressed ; it was composed of both men and women and of all' classes. The choice seats were reserved for the members of the Jockey Club and their friends, and a cheaper section was patronized by the poor.
The Portenos, as the citizens of Buenos Aires are called, spend their Sunday afternoons up to three o'clock at the races. The races begin at 12 o'clock and end at 3 o'clock. At about 3:30 P. M. you will see the carriages leaving the race track for Palermo Park. This is a beautiful forest and garden, covering 850 acres, situated on the northern edge of the city, beyond the Recoleta cemetery and park, adjacent to one of the finest residence sections. It was formerly the estate of the dictator Rosas, who beautified it. It has fine drives, magnificent palm trees, and winding lakes, with here and there a café.
It is on Sundays and on Thursdays that all fashionable Buenos Aires comes to Palermo, and on some Sunday afternoons as many as a thousand carriages and ten thousand pedestrians are to be seen there at one time. Carriages are used by all classes. The people of the Latin races are fond of show, and the Spaniard, the Italian, and the Argentine of even moderate means will starve himself during the week in order that he may take a drive on Sunday. The rich are proud of their horses and carriages, and some of the turnouts, with coachmen and footmen in livery, are magnificent. The harness is often plated with silver and gold, and horses are of as choice a stock as you will find in Hyde Park or in the Bois de Boulogne. Young bloods sit on high drags and drive with gloved hands. On the backs of other vehicles you see stiff-backed little tigers sitting or gorgeously dressed footmen standing. Cavalry officers in uniform gallop by, and boys canter along on ponies.
At five o'clock on Sunday afternoons the crowd is the densest. It is then the height of the day at Palermo, and the sight is one for the gods and men, especially for men, for most of the carriages are open, and the majority of the women who sit in them are of that beautiful type which is seen at its best in Buenos Aires. Rosy faces, with luscious lips and large luminous eyes, look out at you from nearly every carriage that passes. The pictures are well framed. There are no dark mantas or head shawls, such as they have in Peru ; there is no prudish modesty, no dropping of the eyes or blushing. These are live flesh-and-blood girls, not nuns. They are girls who are not afraid to look a man in the face and who are evidently able to care for themselves, although their fathers and mothers by Spanish custom keep them secluded. They do not walk alone on the streets, and one seldom sees them out of doors, except in carriages. They are, however, on dress parade every afternoon at the windows, and as you look up, if the street is clear, you may, perhaps, be rewarded with a smile.
Buenos Aires is a theatre-going city. It has twenty-six houses of amusement, at which its people spend in the neighbourhood of $2,000,000 a year. The most fashionable of all is the Italian Opera, where the boxes for the season cost $1,000 in silver and upward, and where some of the greatest singers of the world take part. The boxes are usually taken for the season, and an Argentine " swell" would rather sell his shirt and wear a «dickey " than give up his place in a box at the opera. The orchestra or pit is next in price to the boxes. A seat there costs sixteen dollars a night, or a little more than five dollars in gold, and the seats in the « peanut gallery" are as low as twenty-five cents.
During my last night at the opera the Italian star Tomagno sang in "Wilhelm Tell," but the audience interested me even more than the singing. There were, I should say, at least 3,000 people present, and every man and woman in the boxes and orchestra was in full dress. There was not a man in a business suit save in the upper galleries. The women were without bon-nets, and most of them had on low-necked gowns, with arms bare, unless when covered with long white gloves reaching as far as the biceps. The dresses were more costly than those one sees at a White House reception. There were jewels everywhere. There was, I venture to say, a good half-peck of diamonds on the feminine part of the audience ; diamonds as big as the end of my little finger hung from the lobes of pink ears, clusters of diamond flowers rested in beds of lace upon voluptuous bosoms, and combs set with diamonds fastened the well-groomed tresses of Argentine beauties on the crowns of their shapely heads. There were pearls as large as marrowfat peas, necklaces of them, joined at the centre with great rubies or emeralds. There were also sapphires and opals and gold galore.
Most of the women were pretty, representing as many varieties of complexion and feature as you will see at the Metropolitan Opera House in New York. I did not notice a predominance of the Spanish type ; so many of the rich Argentine families have intermarried with foreigners that their women are as cosmopolitan in appearance as our own. Some of them were homely, and not a few, I say it with hesitation, owed much of their good looks to their make-up. Powder and paint are artistically used in Buenos Aires and there is no capital city where the professional hairdressers and face enamellers have a better trade. I have been told that these people have their regular clientèle of rich women, who come regularly to be made up before they set out for their drive in the park or an evening at the opera. On opera nights you have to engage your enameller beforehand, or wait in the anteroom for hours before he will call out "Next."
However this may be, the effect at the opera is magnificent. The opera house in Buenos Aires is very large, the largest, I believe, in South America. It has five galleries, the lower three of which are of boxes. When the curtain is up the men behind the ladies in the boxes are practically out of sight, and from the pit where I sat in my sixteen-dollar seat, I could see above me the busts of the ladies resting as it seemed on the red plush railing of the galleries. There were hundreds of these busts running tier upon tier, making a flesh-and-blood beauty-show far superior to the London waxworks and well worth coming to Argentina to behold. In addition to the ordinary boxes, there is a special gallery in the opera house called the " cazuela," where ladies can come without escorts, and in which men are not al-lowed. Seats in this cost from two to five dollars each; and the gallery, I noticed, was well patronized.
The opera at Buenos Aires is rather a social event than a musical entertainment. I would fail if I attempted to describe the importance with which dress is regarded. In my simple American way I first thought of not going in evening dress, but fearing that my morning costume of black might possibly attract attention I put on an evening suit. It was warm, however, and I did not wear gloves. On entering the house I found that every man in the orchestra except myself had on "kids," and everyone carried in his hand a tall silk hat. Between the acts the men rose to their feet, clapped on their hats, and then sauntered to and fro through the house. Some stood at their seats with their opera glasses to their eyes and stared at the women, regardless of whether they knew them or not; but the greater part walked to the entrances to the aisles and stood there in knots, with their hats on, and feasted their eyes upon the women. It was a sort of cannibal feast, but the paint and enamel on most of the faces were so thick that it drew no blood to the surface.
And this brings me to a custom of the young dandies of the Argentine capital, who make a business of standing on the street and greedily staring at ladies as they go by. In no other city does this rudeness prevail to such an extent as in Buenos Aires. It is most common on the Calle Florida, which is the Broad-way or Regent Street of the Argentine capital. It is the fashionable shopping street, its stores being those of the chief jewellers, confectioners, milliners, tailors, and fashionable restaurateurs. The street has not more than twenty feet of roadway between its -narrow sidewalks.
Every afternoon from four to six o'clock a line of carriages moves up one side of the Calle Florida and down the other. It may grow dark, but up to six p. m. the line is solid, and you may here see a thousand prancing horses moving to and fro. The carriages are usually open, and in them sit the most fashion-able ladies of the city. They drive here every evening, merely because it is the fashion, and the young men stand on the street and stare at them as they pass. Every afternoon the Calle Florida is thronged with knots of young men who have come out for this purpose. They are well dressed and well groomed. They carry canes and wear gloves; they smoke cigarettes as they look about them. From time to time they make comments on the women who go by, and not infrequently say things which are absolutely indecent. Not long ago one of them ventured a remark to an American girl who was passing along the street. What he said was an insult, and the young American rewarded him with a slap across the mouth which almost knocked him to the ground. The ordinary Argentine girl would have pouted and passed on. Within the past year or so the Argentine police have been trying to stop this insulting of women, and now any woman who makes a complaint can have her insulter taken at once to the city authorities for trial.
We hear a good deal said of « Young America" and his impudence. The boys of Argentina are even more precocious than those of the United States. An Argentine father seldom whips his son, and the children generally have much more liberty south of the equator than north of it. The Sunday School is almost unknown, and the ordinary ideas of morality are so loose that children are brought up in a most pernicious way.
As to lying, this is common among men, women, and children. The polite lie is met with everywhere; it is even encouraged, and a father will sometimes say about his little girl or boy in admiring tones: « Why, hear that child lie!" or « How well it does lie "; « Why, I could not lie better than that myself." They have the Spanish ideas of honour. You might, for instance, call an Argentine a liar and he would think nothing of it; he might even consider it a compliment; but if you should call him a coward, he could not consistently rest until he had knocked you down or stabbed you under the fifth rib.
The young Argentines learn wickedness at a much younger age than our boys. Many of them have depraved minds at fifteen and they then begin to pose as men. Boys talk politics before they are out of knee-pants. Nearly every college has its political factions. The students organize revolts against the professors, thus training themselves to get up revolutions against the government when they grow older.
The well-to-do young Argentine is not brought up to any business. He has a prejudice against trade and work and wants a profession. It is the fashionable thing to study law and thus get the title of doctor, even though the young man may not expect to practice.
The Argentine children learn the languages easily, and many young men speak both French and English. The girls of the richer classes are usually good linguists, but outside the languages they know but little. I doubt whether you will find a score of young girls in Buenos Aires who have any such education as is given at our first-class women colleges.
As to family life, it is hard to learn much about that in the high circles of the Argentine. Each family is run as a close corporation, and when a son is married he usually brings his wife home, when sometimes an addition is built to the house, and the newly-married couple moves into it. The sexes are not kept apart as much as in other parts of South America before marriage. Still there is no such indiscriminate calling and courting as in the United States. If a young man pay any attentions to a young woman he is understood to mean business, and if he go to her house often a marriage proposal is expected to follow. When he calls he does not see his sweetheart alone, and he is not permitted to be with her unless the family or some part of it is present.
After marriage there is more freedom, but even then women are closely watched. I am told that wives are usually faithful to their husbands and that the percentage of good married women is greater in Buenos Aires than in many of the capitals of Europe. One seldom hears of a scandal in connection with a wife or a mother of a high Argentine family. The country is Catholic and there is no such thing as a divorce, although there are separations. The women are proud, and their regard for their children often keeps them from making a fuss about things which otherwise they could not pardon. As to the men, there are many good husbands, but there are not a few who have the Parisian idea of such things, and who seem to model their lives after that of the heroes of French novels. The percentage of illegitimate births is very high.
The women are the religious element of Buenos Aires. They maintain the churches, attend mass regularly, and 'manage all the charities of the country. One of the chief charitable organizations which they control is supplied with funds from the national lottery, a certain percentage of its receipts being given them. This lottery has drawings weekly and the sums realized are enormous. The women take charge of the profits and spend the money for charity. Such actions must have a bad effect upon the character of the people. You cannot make a child think that it is bad to gamble when his mother handles ill-gotten gains, no matter for what good object. The result is that the Argentines are a nation of gamblers, and Buenos Aires to-day is as badly affected by its lottery as was New Orleans when the Louisiana raffle was in operation.
There are drawings now every week, the grand prize at times being upwards of $10o,000 in silver, and at Christmas time $i,000,000. Last year $28,000,000 worth of lottery tickets were sold. There are lottery offices in every block ; you meet lottery ticket peddlers on every corner, and one is not safe from them even at the doors of the churches. Among the gambling institutions are the ball alleys, the races, and the stock-exchange. In the lotteries, the ball alleys, and on the race course, I see by a statement in a Buenos Aires paper, that $47,000,000 were lost and won last year, while the sales at the stock-exchange footed up the enormous amount of $436,000,000 in gold. The total foreign trade of Argentina during that year was less than $120,000,000 in gold, showing that three-fourths of the business of the exchange was done on worthless paper. There is a great deal of private gambling in Buenos Aires. There are card tables at the clubs where a "hacienda" may be lost in a night, and there are many small gambling hells that carry on their business contrary to law under the very eyes of the police.
 
I followed the link - the article is headed:

"High Life in Argentina
( Originally Published Early 1900's )"

It's a cute period piece - must be from the very early 1900s, judging by the references to horse-drawn carriages.

In 1903 my grandfather imported a Peugeot car from France. It came complete with crystal flower vases and an assortment of wrought-silver cigarette and pill boxes. He rode in style to his office, wearing a silk top-hat.

Those were the times when the Argentinian aristocracy traveled by steamer to France each year, accompanied by a retinue of servants and a couple of cows so the family could have fresh milk during the trip.

Sad how things have changed.
;););)

(I still have one of those silver pillboxes, and the top hat is somewhere in the spare room.)
 
perry said:
I have to concur with Ashley and say that the wealthy Argentines are spending like crazy and lately it has become a frenzy. Many comments here are plain wrong in regards to real estate and foreigners . Currently only 2 percent of all sales in the Capital Federal are to foreign citizens and over 95 percent of all enquiries in our office are from cashed up argentinians. Many people fail to realise the wealth of portenos and their buying power. Now I am talking about between 10 and 20 percent of Buenos Aires citizens but this is over a million consumers who have at their disposal huge amount of dollars to spend .

Going back to real estate there is no country in the world that people can buy real estate in cash and in such huge amounts like this one . Properties in good areas of the Capital Federal are around US $ 200,000 and over 95% of purchases are in cash without any financing. This tells you a lot about Argentina .

In regards to inflation and foreigners I completely disagree . Argentina since its inception has been a trading society where the merchant class had a complete stanglehold on the society . The inflation we see today has been going on in Argentina for over 100 years and in the 1980s was the worlds highest ever recorded at over 5000 percent per annum . There were no expats in these periods but of course many like to find scapegoats for internal problems.

Inflation will not go down here and might get much worse and I would not be suprised in 5 years time that Buenos Aires is the worlds most expensive city to live in. It has happened before and twice in the 20th century it was the worlds most expensive . Be prepared....
Perry: I think you are right about the inflation. The big question was and still is [and no one has ever figured this out] there is a reasonable economic logic to inflation as seen in most of the modern economies, Argentina on the other hand produces a form of inflation that refuses to fit any known model in logical economics. Thus, back to your statement. "Expect it"...........Yes. And then the inevitable implosion.
 
As to Buenos Aires becoming the most expensive city to live in, I think Perry's five-year estimate is optimistic - that will probably happen much sooner.

Are you guys following soybean prices? Nothing short of locust plagues, a five-year drought in Argentina, or the Chinese developing a sudden collective allergy to soybean products will change the flood of dollars coming in to pay for that commodity.

That keeps the peso strong and the dollar weak -- coupled with the local 30%-plus yearly inflation rate, dollar expats can expect to be broke in two years, tops.

I'm researching real estate listings in the US - right now there are fabulous foreclosure deals to be had, and there is also less crime, a good free library system, and fast Internet connections.

It's a pity American pizza is so bad, but you can't have everything....:D
 
Argentina’s biggest inflation maker is she has monitized her debt. Printing pesos to service the debt: buy dollars. Her dollar reserves are a product of the printing presses not soy beans. It is a very dicey practice. And the way things are going in the world, currency wars, things are going to get real crazy. A wheel barrow may be the tool of choice when making purchases.
 
I agree that inflation is an issue but for people living in Palermo, Belgrano, Recoleta or any of the popular barrios for expats and tourists, it's not just inflation. Property taxes are higher there so anything you buy in a store is going to be more expensive. And let's be honest, they are charging more because they know that this is where all the foreigners are.

We just moved to Caballito a month ago and it is the cheapest place we have lived so far. The food in the markets is cheaper, meat is cheaper (the cheapest I've seen it in months) fruits and vegetables are cheaper and better quality.

Where you are living has a lot to do with how much to pay.
 
Here in Del Viso (out of Capital, not fancy), in the best carniceria, a kilo of paleta costs 23$ and a kilo of bife de chorizo 31.50$.
Too 36 eggs cost 10$.
It would be fun to make a thread to compare the price of basic products.
 
SaraSara said:
As to Buenos Aires becoming the most expensive city to live in, I think Perry's five-year estimate is optimistic - that will probably happen much sooner.

Are you guys following soybean prices? Nothing short of locust plagues, a five-year drought in Argentina, or the Chinese developing a sudden collective allergy to soybean products will change the flood of dollars coming in to pay for that commodity.

That keeps the peso strong and the dollar weak -- coupled with the local 30%-plus yearly inflation rate, dollar expats can expect to be broke in two years, tops.

I'm researching real estate listings in the US - right now there are fabulous foreclosure deals to be had, and there is also less crime, a good free library system, and fast Internet connections.

It's a pity American pizza is so bad, but you can't have everything....:D
We got us a couple of properties in the US for much less than they would cost here, paid in cash, rented them out and are set. We rent down here and there is no way I would pay the current prices, they are ridiculous.
 
dennisr said:
Argentina’s biggest inflation maker is she has monitized her debt. Printing pesos to service the debt: buy dollars. Her dollar reserves are a product of the printing presses not soy beans. It is a very dicey practice. And the way things are going in the world, currency wars, things are going to get real crazy. A wheel barrow may be the tool of choice when making purchases.
Lol and unfortunately one of the printers broke last week, replacing it costs 150 million usd ( read on some newspaper, will post the link if I find it )
 
Actually I have to disagree about the price on rentals in Las Canitas at least. They aren't going up. We've been tracking them for the past 6+ months because the second year of our contract came up yesterday and we were girding ourselves for an increase. According to what we've been seeing in the classifieds rentals in the area have plateaud for the past six months, if not longer. As tourist season approaches, short terms yes, will go up. But we haven't noticed any inflation nor difference in scarcity of apartments for rent in the barrio since we signed our last contract in Oct 2009. Las Canitas is a small area, there's not usually a lot on offer, and if anything we're seeing a few more ads for apartments, and they are long term.

Regarding the amounts of new cars -- there's been a few articles in the papers the past month or so about the scandalous practice of auto dealerships giving their cars for free to politicians -- they don't even pay their own insurance. This is a ridiculous practice. They also are giving them to celebrities (which doesn't bother me, celebrities don't hold positions in the senado etc) -- which is part of the reason for the increase n the number of new cars we see around Canitas.

However, although Canitas is a wealthier neighbourhood, on the street the most popular car is probably a Ford Focus or Peugeot 206 -- not as cheap as the Gol, but not exactly luxury cars either. It's just that on Baez on a weekend night of course they all want to pull up in their imports to look flash...
 
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