Argentina's inflation makes the NY Times front page

[on the brink]

Think 9% Inflation Is Bad? Try 90%.

With the world grappling with rising prices, a tour through Argentina reveals that years of inflation can give rise to a truly bizarre economy.

www.nytimes.com

Archived version

 

[carride]

Sharable version login not required

 

[BeraRane]

"La inflación argentina nota de tapa del New York Times en estos momentos. Pero, pobres gringos, no entienden nada. No saben cómo podemos hacer cálculo económico con inflación y no llegan a captar que los argentinos somos los mayores expertos mundiales en la materia."

The words of Libertario Carlos Maslaton.

 

[Ries]

I think they got it backwards- the truly bizarre economy leads to the inflation, although a certain amount of the inflation is global. But the bizarre economy, and the reasons it is that way, are way too convoluted and historical for a reporter to cover.
Pretty much everything the reporter finds so amazing has existed, in varying degrees, in the 15 years I have been involved in Argentina, and, realisitcally, for at least 50 years. Sure, prices are crazy right now, just like they were in the late 70s when a friend of mine had a job in a pharmacy, and they stopped even pricing the items for sale- you had to consult that days price list at the register when you bought, and he would spend his entire 2 week paycheck at the grocery store within 15 minutes of getting it, because waiting even a day lessened its value.
The more things change, the more they stay the same. Meanwhile, average rent for a one bedroom in NYC is $3500 a month.
Whch is not to say times are not tough right now for many Argentines. Obvio, they are, and equally Obvio, there need to be change.

 

[Redpossum]

I think they got it backwards- the truly bizarre economy leads to the inflation, although a certain amount of the inflation is global. But the bizarre economy, and the reasons it is that way, are way too convoluted and historical for a reporter to cover.
Pretty much everything the reporter finds so amazing has existed, in varying degrees, in the 15 years I have been involved in Argentina, and, realisitcally, for at least 50 years. Sure, prices are crazy right now, just like they were in the late 70s when a friend of mine had a job in a pharmacy, and they stopped even pricing the items for sale- you had to consult that days price list at the register when you bought, and he would spend his entire 2 week paycheck at the grocery store within 15 minutes of getting it, because waiting even a day lessened its value.
The more things change, the more they stay the same. Meanwhile, average rent for a one bedroom in NYC is $3500 a month.
Whch is not to say times are not tough right now for many Argentines. Obvio, they are, and equally Obvio, there need to be change.

I've said it before, and I'll say it again. Argentina is like non-Euclidean geometry - the rules are just different.

If you don't live here, you can't possibly understand.

 

[perry]

I think they got it backwards- the truly bizarre economy leads to the inflation, although a certain amount of the inflation is global. But the bizarre economy, and the reasons it is that way, are way too convoluted and historical for a reporter to cover.
Pretty much everything the reporter finds so amazing has existed, in varying degrees, in the 15 years I have been involved in Argentina, and, realisitcally, for at least 50 years. Sure, prices are crazy right now, just like they were in the late 70s when a friend of mine had a job in a pharmacy, and they stopped even pricing the items for sale- you had to consult that days price list at the register when you bought, and he would spend his entire 2 week paycheck at the grocery store within 15 minutes of getting it, because waiting even a day lessened its value.
The more things change, the more they stay the same. Meanwhile, average rent for a one bedroom in NYC is $3500 a month.
Whch is not to say times are not tough right now for many Argentines. Obvio, they are, and equally Obvio, there need to be change.

You make it sound that now in 2022 people are living just as they were many years ago . There is over 50 % poverty now this was not the case in 2005 to 2019. Peoples wages have been decimated meaning that their earning potential is limited. Comparing New York with Buenos Aires is not valid as wages in New York are over 12 to 20 times more than Buenos Aires and if we go by this equation Buenos Aires property rentals are dearer .

 

[Reply Guy]

Wages are way higher in the US especially amongst the professional jobs like engineers. I'm friends with a few here who work in multinationals and make around $1200 per month. In NYC they'd be making 15-20k per month.

There will be a massive devaluation, articles about the younger generation moving to Spain and the US. Despair amongst the Argentine people. Some opportunistic politician will takeover, probably from the right since AF will get the blame. Money will flow in again, global growth will return, there will be a boom, articles about Argentines moving back, is Argentina finally realizing their potential. New riches won't adequately reach the masses, a peronist will rail against the bourgeois class win election and spend all the money, then a crash again, and renew the cycle.

 

[wineguy999]

…a peronist will rail against the bourgeois class win election and spend all the money, then a crash again…

Very astute, but I think you misspelled steal.

 

[chris]

Wages are way higher in the US especially amongst the professional jobs like engineers. I'm friends with a few here who work in multinationals and make around $1200 per month. In NYC they'd be making 15-20k per month.

There will be a massive devaluation, articles about the younger generation moving to Spain and the US. Despair amongst the Argentine people. Some opportunistic politician will takeover, probably from the right since AF will get the blame. Money will flow in again, global growth will return, there will be a boom, articles about Argentines moving back, is Argentina finally realizing their potential. New riches won't adequately reach the masses, a peronist will rail against the bourgeois class win election and spend all the money, then a crash again, and renew the cycle.

Something like that is possible. My guess is that a moderately conservative government will be elected, there will be some restraint in public spending, agreements made with the IMF and a little more equilibrium. Peronism is losing momentum just as Communism did. Who would have thought that the USSR and its European satellites could collapse? It happened. At some point the cycle you describe could be broken because it will just run out of steam as it did in the USSR. This system cannot be sustained forever.

 

[chris]

Wages are way higher in the US especially amongst the professional jobs like engineers. I'm friends with a few here who work in multinationals and make around $1200 per month. In NYC they'd be making 15-20k per month.

There will be a massive devaluation, articles about the younger generation moving to Spain and the US. Despair amongst the Argentine people. Some opportunistic politician will takeover, probably from the right since AF will get the blame. Money will flow in again, global growth will return, there will be a boom, articles about Argentines moving back, is Argentina finally realizing their potential. New riches won't adequately reach the masses, a peronist will rail against the bourgeois class win election and spend all the money, then a crash again, and renew the cycle.

One thing that isn't mentioned in the article is the 85% rate that can be obtained for CD (Plazo Fijo) accounts.