Argentina About To Have 2 Different Currencys Peso-Cedin

[Montauk_Project]

Trying to find inflation chart. . . will post if I do.

 

[citygirl]

Whenever I complain about inflation, my husband talks about the 300% inflation of his youth. Which to him wasn´t a huge problem, because there was a lot of work.
Many Argentines will prefer inflation with jobs and growth to "stability" with no inflation.
They prefer this to the economic crisis of the 90s which had a stable currency with a lot of unemployment and deindustrialization.
They distrust banks, would never have a savings acount with pesos so the fact that the peso is loosing value means little because they will spend it as soon as they get it, or find a way to "save" in property, cars, electronics, etc. Remember, in Argnetina used property has high resale values.
It is a problem if you export and have an exchange rate that doesn´t keep up with inflation, but most Argentines don´t export (businesses and farmers do).
Since 2008 people have been saying that the economy is going to crash. . . still waiting on that one!

Well, businesses and farms are the backbone of the economy so what affects them will affect everyone eventually.

And since 2008, people have been saying the economic model is unsustainable. I'd say the indications are proving that assumption correct. With the exception of a few posters on here, I'd say most would agree that the economy is heading in the wrong direction.

 

[Gringoboy]

I can see the headlines...
'Argentina economy minister receives Nobel prize for economics. World in awe as rule books are rewritten. Concerned economists re examine their five year plans. President Cristina Fernandez de Kirchner announces amnesty on money laundering activities. President Obama muses: why didn't I think of that?'

 

[sesamosinsal]

We are get used to inflation, that averages 110% per year during the las 80 years.
Besides, we do accept the peso as a reserve of wealth, only for temporary exchange of goods and services. For wealth we resort to the US dollar par excellence, though lately Euros are also used for that purpose. Argentina destroyed 5 or 6 currencies since the 1950´s, with one present peso equal to 10,000,000,000,000 pesos of 1950

Do you believe that Argentina's monetary policies are really a whole lot different from the Eurozone or the United States?

 

[dennisr]

If equal ( monetary policy) why did the USA and Eurozone miss out on the 30% inflation rate? Darn, we miscalculated.

 

[camberiu]

If equal ( monetary policy) why did the USA and Eurozone miss out on the 30% inflation rate? Darn, we miscalculated.

Several reasons. The main is that the system was so leveraged and the wealth destruction during the 2008 crisis was so great, that even all the money that was printed is just a drop in the bucket when compared to all the money that was lost during the financial meltdown. The banks are so under water, so insolvent, that even all the money that was printed is not enough to cover the holes. That is why so little inflation.

 

[dennisr]

Then Mr. Bernanke did an exemplary job of managing monetary policy. Am just amazed anyone could equate the monetary policy of the Eurozone and the USA with the monetary policy of Argentina. You loose me there.

 

[camberiu]

Then Mr. Bernanke did an exemplary job of managing monetary policy.

Not really. he continued the policy that allowed the Internet, housing and commodities bubble sot happen and we might be looking at a Japanese like scenarios for decades to come.

 

[Inferno.]

“Los argentinos tienen que tener en claro que los únicos que emiten dólares están en Washington. Miren qué bárbaro sería todo si uno podría emitir dólares”. CFK, August 2012.

Now the country is going to be bárbaro!

 

[Rich One]

Is it posible to buy Cedins in the secondary market at 20 % discount and then go to the Central Bank and request your greenbacks and sell at the Blue rate? Then again repeat the operation. seems a good opportunity.If you do it several times a day

Cheers