Argentina on the cusp of hyperinflation

[gouchobob]

Interesting article on this subject linked below.

http://seekingalpha.com/article/261362-argentina-on-the-cusp-of-hyperinflation

 

[ellbee]

My husband was telling me that this happened in the 80s and he had to witness this first hand.

His mother had to go to the supermarket one day and buy a lot of food cause she didn't know if the price would go up the next day......

this is sad. and i see it coming......
poor us...

 

[fifs2]

His mother had to go to the supermarket one day and buy a lot of food cause she didn't know if the price would go up the next day......

As I hear it prices in supermarkets would go up in the same day. Wonder how this iphone generation who as adults have only known good times will cope with the fun ahead if it happens.

 

[notebook.fix]

Moyano got to be the Worker's hero in the last 24hrs...he's got his 27% pay rise for the truckers & the minimum tax threshold raised to AR$5782.

It's interesting to see the politics at play though, when the opposition tried to sit down a negotiate the minimum tax rates for workers, the K government basically made sure they could not sit down & vote on it.

Why? - A. Cause in an election year, every little vote counts.

The plan was..."Keep it in the family"... Call the news photographers & Get Moyano to walk into the casa rosada 48hrs later & ask for the very same tax benefit- GIVE him what he requests & do a press conference about it -So...in the end...Moyano & the Ks get the credit for giving this long overdue tax change to the workers.

It's a nice Win/Win for Moyano & the Ks Keep'n the 'good feelin' in 'la familia'.

EDIT: I meant to say...watch prices skyrocket in the next few months. If you think we had inflation at 25%....hold on to your hats for the next phase of this wild economic ride!

Interesting article on this subject linked below.

http://seekingalpha.com/article/261362-argentina-on-the-cusp-of-hyperinflation

 

[ellbee]

yes, this generation is spoiled. especially if you have lived in another country that doesn't have an unstable economy like Argentina.

My husband, who has been through the Argentina's economic crisis, doesn't worry at all. I , on the other hand, I'm kinda worried about it. Since I have never in my life experienced hyperinflation at all.

He said the 80s were the hardest years for Argentina. One day you were able to buy food and afford it and the next day, you didn't know if you were able to buy bread because it was too expensive for your pocket.

This hyperinflation (he says) has been all over the news since 2002. This is why he doesn't worry about it.
Perhaps we shouldn't....

 

[BAwithkids]

With all this inflation, is there any indication that the peso will drop in value relative to the dollar?

 

[jaredwb]

Interesting article on this subject linked below.

http://seekingalpha.com/article/261362-argentina-on-the-cusp-of-hyperinflation

LOVE THIS PART:


"That would place Argentina second only to Hugo Chavez’s Venezuela, where the International Monetary Fund estimated in October that prices rose 33.3 percent last year, the highest in the world."


GOOD JOB ARGENTINA!

 

[gouchobob]

With all this inflation, is there any indication that the peso will drop in value relative to the dollar?

Hard to say in the future, the peso in the last couple of years has declined against the dollar but nowhere close to the actual inflation rate.

 

[barnaby33]

We are all printing to oblivion, trying to inflate our way out of our problems. The only question for the AR Peso is, will there be another flight to safety of the US dollar? I think there will be. Its still the tallest midget in a group of monetary midgets.

 

[MikeB12]

thanks for posting the article gauchobob.

unforunately, the policies which the gov't are enacting that are meant to benefit the working man and the lower class may do more harm than good in the long run.

inflation always hits the lower class the hardest, the rich are never all that hurt by inflation as they can make financial transactions to hedge off high inflation...and some will even make money off of it.

oh well, should be interesting this year.