Devaluation Thread Continued

[rrptownley]

The vocally anti-Kirchnerite, ex-head of Banco Central (BCRA), Carlos Perez in an interview yesterday thinks that the Government will not devaluate the peso further and ride the rest of their mandate maintaining the cepo, whatever the damage done to the economy. He says:

• the Banco Central's net reserves are estimated to be at 20 billion USD, if you account the unpaid foreign currency debt, the dollar restrictions for importers and subtracting the amounts in agreed currency swaps.
• it was Christina who ordered the introduction of the cepo, not AFIP, nor BCRA, nor the Ministry of Economy.
• there has been a use and abuse of the issue of currency. There are excess pesos and a noticeable lack of dollars.
• The exit of Martin Redrado [ex-head of Banco Central after Perez, he quit in October] from the Central Bank left in evidence that the entity began to operate as personal fund of the national Government.

Infobae Article

 

[French jurist]

To keep it simple

Base monetaria (december) = 423MM$ --> http://www.bcra.gov....infomondiae.pdf
Reserves (december, a raw figure) = 28MMUS$

423/28 = 15.10 (or 21 if we take into account your 20MMUS$)


Now with the elections in a few months, prepare the popcorn

 

[estebandepraga]

wouldn't it be dull in a country with almost no inflation, no cepo, no surprise devaluations, no blue , green or black market?
imagine a place where you don't have to have an alternative plan due to strikes or protests!
crime something which really makes the news and IS news and a land where you have electricty, cell coverage, water and gas all year round!!
does such a place exist???
YES and it's not called utopia !
it's called the vast majority of countries where you or your families originally came from!

 

[pauper]

Please, take it to the Festivus thread.

 

[EdRooney]

In my country of origin we have 0 inflation.
There is no blue or green or whatever black market currency.

We also have 45% of youth without jobs. The economy has contracted 40% in the last 6 years, and people are being evicted en masse from their homes.
Everyday people can buy less and less because wages and pensions are decreasing/non-existent.
People who had life's savings have seen it handed over to a small group of bankers.

But, hey there is no inflation and no dollar blue!

Inflation sucks, but I'll take it any day over the austerity being doled out in Europe.

 

[Joe]

When I think of the meaning of austerity, I think of decreasing debt levels, not rising debt levels.

Maybe it's a Keynesian thing....

 

[nikad]

In my country of origin we have 0 inflation.
There is no blue or green or whatever black market currency.

We also have 45% of youth without jobs. The economy has contracted 40% in the last 6 years, and people are being evicted en masse from their homes.
Everyday people can buy less and less because wages and pensions are decreasing/non-existent.
People who had life's savings have seen it handed over to a small group of bankers.

But, hey there is no inflation and no dollar blue!

Inflation sucks, but I'll take it any day over the austerity being doled out in Europe.

Where are you from Ed?

 

[Dublin2BuenosAires]

Where are you from Ed?

I dunno, but they don't eat milanesas there...that's for sure.

 

[EdRooney]

Excellent chart Joe.

See how the debt/GDP ratio reacts as austerity is applied in each country?
1: Expenditures are cut, meaning less demand in the economy
2: Less demand means GDP goes down, and
3: As a result of decreased GDP, the debt ratio rises again.

The best example is Greece: look at your chart. Why does it have that dip in 3Q 2011 followed by an abrupt increase? Because GDP contracted due to the austerity measures. The braindead policy does not work and the IMF admitted as much, but the same policies continue to be pushed not only in Europe, but by the same clowns here that call for cutting deficits.

Austerity means: killing demand by reducing government expenditures. This is done in the name of reducing deficits and preventing inflation, but given the decreased demand in the economy it has the opposite effect. You cannot kill the demand side of your economy and then expect growth. And who suffers from there being no growth? Ask the millions of Greeks who are struggling to feed their families just so some wealthy investors can enjoy 0% inflation.



And note on the chart: no money for milanesas in Cyprus.

 

[Girino]

The best example is Greece: look at your chart.

Not only we are doing shit, but we aren't even doing the best shit. I so wish I could wash away being Italian!