Do I need to think about inflation even if I live with USD from overseas rental income

FallenAngel

Registered
Is it good news for me? I am sorry about bad English skill
Yes, it is good for you. In real terms your purchasing power will increase. Your real purchasing power will go up and down, but it will always trend up overall at least for the next several years. Local assets (real estate, for example) along with anything that is labor heavy (restaurants, taxis, argie produced goods, etc) will begin to get cheaper in real terms.

The Argentine worker / consumer was previously subsidized. The use of debt / reserves to make the peso artifically strong also has the effect of 1) subsidizing capital flight 2) subsidizing argentine workers. Both of these things will disappear now.

Thus, the Argentine worker will take a severe hit in real income. This has the effect of lowering cost of all labor inputs into argie produced goods / services. So, this is where you will save a lot of money as an expat.

In addition, my guess is the new gov will implement new subsidies again like subsidized utility services, etc. These subsidies are paid for by robbing argentines of their savings and transferring the wealth to you the beneficiary of the subsidy. So, this is another benefit you will receive as an expat.
 

Rich One

Registered
We should go shopping now NO IVA, yes ideally prices 21 % cheaper (Calculated from the bottom up) than last Wednesday. Unless prices were marked up and the IVA discounted , I doubt that ??
 
Need I worry about Argentina becomeing Venezuela?I really want to visit BA,Mendoza,Cordoba and try to go usuaia... :(

NO, you do NOT need to worry about Argentina becoming Venezuela. People that say things like that I believe are just totally wrong. Yes, Argentina will continue to have their own crises over the next several decades (as always) but it won't get as bad as Venezuela. Will just never happen.
 

Daniel82

Registered
Actually under the CFK years, since it was impossible to get dollars most shops/restaurants gave very favorable conversion rates, out of desperation for obtaining dollars.
 

ben

Active Member
Actually under the CFK years, since it was impossible to get dollars most shops/restaurants gave very favorable conversion rates, out of desperation for obtaining dollars.
This is not accurate.
It was never impossible to get dollars, unless you're talking about the legal rate.
The blue rate was, of course, widely accessible, and shops generally accepted USD at a discount to the legal rate.
To use the legal rate as a barometer in those days makes very little sense.
 
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