Down, down, down (a peso devaluation thread)

[Philsword]

Take a look at the chart comparing deficit, it's rather striking.
http://www.google.com/publicdata/ex...dim=country:ARG:USA&ifdim=country&hl=en&dl=en

The point is? I guess that Argentina's data is incomplete of falsified so that its not even published? The point I was making that for the last 50 years per capita GDP has been almost stagnant, i.e. if you have lived in Argentina over the last 50 years your economic situation probably hasn't significantly improved. Economic growth here is badly trailing the rest of the world.

 

[John.St]

The point is? I guess that Argentina's data is incomplete of falsified so that its not even published? The point I was making that for the last 50 years per capita GDP has been almost stagnant, i.e. if you have lived in Argentina over the last 50 years your economic situation probably hasn't significantly improved. Economic growth here is badly trailing the rest of the world.

The point is, that if you compare economies, you have to compare more that raw GDP. If the US deficit continues, GDP/capita will end up close to Argentina, for the same reason: mismanagement.

Define trailing. Argentina has actually been following the world average since the mid 1960's.
http://www.google.com/publicdata/ex...untry:ARG&ifdim=country&tdim=true&hl=en&dl=en

 

[Philsword]

The point is, that if you compare economies, you have to compare more that raw GDP. If the US deficit continues, GDP/capita will end up close to Argentina, for the same reason: mismanagement.

Define trailing. Argentina has actually been following the world average since the mid 1960's.
http://www.google.com/publicdata/ex...untry:ARG&ifdim=country&tdim=true&hl=en&dl=en

No what your chart shows is that Argentina use to have GDP per capita above the world average and now it is below, which is my point. Economic growth has been below average which has led to stagnating incomes.

As far as the U.S. debt situation it has to be dealt with at some point i.e. spending cuts, higher taxes, its quite doable. Remember there was a surplus at the end of Clinton's second term. Historically the debt level was actually higher than now back in the late 40's, this was paid down and the economy boomed in the next couple of decades. Obviously nothing is going to happen now until after the 2012 elections. Hopefully enough of the right people will be elected that a consensus can be reached to deal with the problem. What do you see in this years election in Argentina? The possibility of change or continuation of policies that have led to Argentina's dismal economic performance over the last 50 years?

 

[salgueiro]

http://en.mercopress.com/2011/08/22...tingency-or-emergency-plan-to-face-the-crises

Economy Minister Amado Boudou rejected the possibility that Argentina launches a brusque devaluation of its currency to make exports more competitive and insisted Argentina needs no emergency or contingency plan to face the challenge of the current crisis in the developed economies.
....“No policy change in the matter until October, or following October”, said Boudou."
You mean , right after the next election?

 

[ghost]

No what your chart shows is that Argentina use to have GDP per capita above the world average and now it is below, which is my point. Economic growth has been below average which has led to stagnating incomes.

As far as the U.S. debt situation it has to be dealt with at some point i.e. spending cuts, higher taxes, its quite doable. Remember there was a surplus at the end of Clinton's second term. Historically the debt level was actually higher than now back in the late 40's, this was paid down and the economy boomed in the next couple of decades. Obviously nothing is going to happen now until after the 2012 elections. Hopefully enough of the right people will be elected that a consensus can be reached to deal with the problem. What do you see in this years election in Argentina? The possibility of change or continuation of policies that have led to Argentina's dismal economic performance over the last 50 years?

Unfortunately, change will not be part of Xtinas agenda. And, yes she will be re elected. So buckle up, it will be a bumpy ride.
As far as the US debt issue is concerned, it's a fairly easy fix after the Tea Bagger morons are ejected from congress and the rest of congressional fools get the mandate that "it's all about the people, not the party".

 

[Carolina Girl]

why must everyone be so "technical" when all we have to say is that NEVER has it gone up in value..... against the dollar. It has always gone down until the government changes the currency "artificially" from within...not from natural economic factors, for example: an "edict" from 4:1 to 1:1

 

[Philsword]

why must everyone be so "technical" when all we have to say is that NEVER has it gone up in value..... against the dollar. It has always gone down until the government changes the currency "artificially" from within...not from natural economic factors, for example: an "edict" from 4:1 to 1:1

I guess they could do this but it would be very disruptive economically, all the counters would have to be reset, you could make it 10 dollars to one peso. This is done all the time in countries when the current currency is replaced with a new currency usually minus a zero or two. Venezuela did this a year or two ago but it was a flop. Changing the currency doesn't do anything if the underlying problems causing the issue(i.e. high inflation) aren't dealt with.

 

[Xeneizes]

Write back in 6 months, I suspect scraping by in B.A. will lose it appeal.

Eventually I will want to make more than I do, but it won't be in 6 months. And when that time happens I'll do something about it, but it won't change the fact that the time I have then spent here is invaluable for dozens of reasons besides money. And that is the point of noarmadillos and me that all of you bitter expats can't seem to understand.

By the way if you live in Argentina it will have to be for the love of something other than money.

Did you even read my post or the OP's follow up posts? That is exactly why we are here.

 

[jb5]

Xeneies, its Just different people at different stages in life in AR for different reasons.

You're a recent college grad and can afford to take a couple of years to go on an adventure, knowing you'll return to the US and focus more on career in all likelihood.

If you were 30 and came here looking to make a life, you'd probably feel differently.

I also don't get the bitterness though, if a place isn't the cheap city people thought it was (I remember your original posts!), and/ or life just isn't what they thought it would be, moving on is way better than bitching constantly. But the bottom line is, many will not have better prospects back at home now.

 

[Xeneizes]

Xeneies, its Just different people at different stages in life in AR for different reasons.

You're a recent college grad and can afford to take a couple of years to go on an adventure, knowing you'll return to the US and focus more on career in all likelihood.

If you were 30 and came here looking to make a life, you'd probably feel differently.

I also don't get the bitterness though, if a place isn't the cheap city people thought it was (I remember your original posts!), and/ or life just isn't what they thought it would be, moving on is way better than bitching constantly. But the bottom line is, many will not have better prospects back at home now.

I know this, which is why I decided to turn down money to come here now rather than uproot my entire life to do so when I'm 30. The thing that bothers me is how everyone is so sure we're going to hate our lives in 6 months. We're here for different reasons, with different expectations.

Just because a person can't afford to live the glorious expat lifestyle they are used to anymore is no reason to blindly tell all those on a forum to run away from Argentina. But setting expectations is important, and my first thread has been great for preparing me for life here. I was under budget my first recorded week without much effort. But I'm keeping a strict budget because I know it won't be easy all the time.