Coping With Currency Restrictions

[nicoenarg]

BTW Matias, my wife and I earn in pesos. We earn just enough to make it every month. We are both vehemently against price controls. The way this government enacts price controls without fixing their own house is what creates even more uncertainty in this country. It never fixes the underlying problem. "Price controls till October". Everyone dreads it when October comes around because everyone knows there is no real fix after that. Your fatalistic attitude about "what happens in Argentina every 10 years" is, quite frankly, confusing, to be extremely polite.

"What happens in Argentina every 10 years" is not some prophetic fate that Argentina has to deal with. What happens in Argentina every 10 years is created by your dear politicians and the people who keep voting them in so they can get more goodies.

My wife is Argentine, by the way, so your claim that it is only the foreigners and Argentines with access to dollars who don't want price controls is utterly and completely false. We don't want price controls because they, on their own, never fix the problem. We want real fix to the economy. We want the politicians to stop using the Central Bank as their personal printing press. We want the politicians to stop throwing money on "para todos" programs. And we want the people to stop voting boludos in every 2 years!

Edited: Never mind.

 

[cuore]

Since the last dictatorship this country started to think in dollars. If you go to Chile or Brazil, for example, people dont think in dollars, properties are valued in their local money, apartments in reales, etc. Argentina used to be like that, but the last dictatorship imposed values in dollars and after that we did not have stability, hyperinflation, etc, so the dollar continued till today being the currency to talk of.

Of course, again, the military is to be blamed for every single problem current Argentina is facing... those damn soldiers!!!!!

 

[ajoknoblauch]

Of course, again, the military is to be blamed of every single problem current Argentina is facing... those damn soldiers!!!!!

They were certainly major contributors, but every government since them has plenty to answer for as well.

 

[Matiasba]

BTW Matias, my wife and I earn in pesos. We earn just enough to make it every month. We are both vehemently against price controls. The way this government enacts price controls without fixing their own house is what creates even more uncertainty in this country. It never fixes the underlying problem. "Price controls till October". Everyone dreads it when October comes around because everyone knows there is no real fix after that. Your fatalistic attitude about "what happens in Argentina every 10 years" is, quite frankly, confusing, to be extremely polite.

"What happens in Argentina every 10 years" is not some prophetic fate that Argentina has to deal with. What happens in Argentina every 10 years is created by your dear politicians and the people who keep voting them in so they can get more goodies.

My wife is Argentine, by the way, so your claim that it is only the foreigners and Argentines with access to dollars who don't want price controls is utterly and completely false. We don't want price controls because they, on their own, never fix the problem. We want real fix to the economy. We want the politicians to stop using the Central Bank as their personal printing press. We want the politicians to stop throwing money on "para todos" programs. And we want the people to stop voting boludos in every 2 years!

Edited: Never mind.

You missunderstood, what you say of price controls are 100% a product of your mind. I do not support price controls or think theyre the real solution. Read better.

What Im saying is that every 10 years this country explodes, and its not the politicians fault, but the peoples with money fault. the people who rule the country, who is above governments. Remember in every crisis (that sent million people into poverty like its happening now in Europe) there were lots of people who actually won, so pretty much were them who provocated that. Proof is that happened several times with different type of governments, from left to right, from friendlier to enemies like the Ks, from militars to democratics. Its not a political problem, but a cultural-economic problem, of not trusting the country, of searching for protection in dollars instead of investing in the peso. They dont want to wait the process of fortifying the peso, the country in general, so with their short term vision, take the money out.

 

[Matiasba]

Of course, again, the military is to be blamed of every single problem current Argentina is facing... those damn soldiers!!!!!

Think what was the purpose of an anticonstitutional and antidemocratical government.... was it because they wanted to use the force cause they were bored or was it because they wanted to implant BY FORCE LIKE THEY DID WITH OTHER NEIGHBORING NATIONS A SOCIO ECONOMIC MODEL?
Facts show me the results of those coups were disastrous, for the people in general, BUT excellent for multinationals, for corporations, for people that rule the country.
Every government governs for somebody. Theres always a sector that has more beneffits than others, which was the sector benefitted with the militars? the more concentrated capital, international capitals. They tried to implant a model so they could manage the country. The debt multiplied for 6 after dictatorship and then the creditors in a big part provocated the hyperinflation of 1989.

They forced to take debt, of course from his friends, the US, as well as they sold us weapons, like they do world wide........

No, theyre totally innocent, no human right violation, everything under the law, their changes in the economic structure of the country you can not see them till today.

Advice: study more of Argentine history.

Edit: I suggest you to go to an escribania and look after the BOLETOS DE COMPRAVENTA of properties of BsAs, say before 1975 and after. Before 975 they were in pesos and after, lets say 1983, in dollars. SHOCKING.

 

[nicoenarg]

You missunderstood, what you say of price controls are 100% a product of your mind. I do not support price controls or think theyre the real solution. Read better.

What Im saying is that every 10 years this country explodes, and its not the politicians fault, but the peoples with money fault. the people who rule the country, who is above governments. Remember in every crisis (that sent million people into poverty like its happening now in Europe) there were lots of people who actually won, so pretty much were them who provocated that. Proof is that happened several times with different type of governments, from left to right, from friendlier to enemies like the Ks, from militars to democratics. Its not a political problem, but a cultural-economic problem, of not trusting the country, of searching for protection in dollars instead of investing in the peso. They dont want to wait the process of fortifying the peso, the country in general, so with their short term vision, take the money out.

Ignoring the rest of regurgitated BS. The value of pesos is worthless in 3 years. I'd say folks take a little too long to get the money out.

But yes...blame everyone else. I mean it just CAN'T possibly be that there is capital flight BECAUSE of inflation and government's economic policies. But no...for Argentines like you, there's always Casper hiding somewhere pulling the damn strings.

 

[Matiasba]

Ignoring the rest of regurgitated BS. The value of pesos is worthless in 3 years. I'd say folks take a little too long to get the money out.

But yes...blame everyone else. I mean it just CAN'T possibly be that there is capital flight BECAUSE of inflation and government's economic policies. But no...for Argentines like you, there's always Casper hiding somewhere pulling the damn strings.

Edit: nevermind

 

[nicoenarg]

read better. Its not about this government Im talking.

Matias, I don't think you understand sarcasm. Constantly saying "read better" doesn't mean you should stop reading and trying to understand yourself.

Edit: nevermind

That's what I thought.

 

[cuore]

Think what was the purpose of an anticonstitutional and antidemocratical government.... was it because they wanted to use the force cause they were bored or was it because they wanted to implant BY FORCE LIKE THEY DID WITH OTHER NEIGHBORING NATIONS A SOCIO ECONOMIC MODEL?
Facts show me the results of those coups were disastrous, for the people in general, BUT excellent for multinationals, for corporations, for people that rule the country.
Every government governs for somebody. Theres always a sector that has more beneffits than others, which was the sector benefitted with the militars? the more concentrated capital, international capitals. They tried to implant a model so they could manage the country. The debt multiplied for 6 after dictatorship and then the creditors in a big part provocated the hyperinflation of 1989.

They forced to take debt, of course from his friends, the US, as well as they sold us weapons, like they do world wide........

No, theyre totally innocent, no human right violation, everything under the law, their changes in the economic structure of the country you can not see them till today.

Advice: study more of Argentine history.

Edit: I suggest you to go to an escribania and look after the BOLETOS DE COMPRAVENTA of properties of BsAs, say before 1975 and after. Before 975 they were in pesos and after, lets say 1983, in dollars. SHOCKING.

I certainly don't need to learn Argentine history from you. No worries about me, I'm very well read, both the kind of books you like and those you would never read but thanks for caring

 

[ARbound]

There is a terrible cycle here in Argentina that is exacerbated by multiple interlinked causes.

1. Foreign governments will not lend to Argentina (or only at very high interest rates)
2. Argentines will not save in Pesos because you earn negative interest
3. Argentines with dollars will not keep them here because of the corrals
4. Multiple exchange rates do not work
5. It is 2014, Argentines want stuff from outside Argentina
6. Turning away Brinks trucks worth of your own currency from a neighbor country isn't good at instilling confidence
7. The market is being manipulated from INDEC to Price Controls to Subsidies
8. There is not enough goods in/from Argentina to even consider pegging again

The only way I see to start bringing things away from the cliff is to force the currency to it's real value (devalue it to around $1 USD= $1 ARS),
admit inflation is around 27.5%, end the price freezing, cut subsidies to things that come from other countries, settle the court cases with the
hold out bondholders, sell off Aerolineas as it is bleeding money (in USD), pass a law that bans corrals and insure deposits like the FDIC except
for foreign currency too and issue bonds related to Vacca Muerta, change the dollar cash trading system to make it fair and reasonable and include a yearly limit for personal savings in Argentine banks, and finally cut spending on things like the military, Football, and other non-essentials.

Maybe none of this stuff would work, but the only thing happening now that I will give the BNA credit for is devaluing the currency. The Peso is
way over valued and it's time to bring that inline with reality.