Effects Of A Default On Expats

[ajoknoblauch]

Expats that live in dollars are for a default. As always, people that hold dollars are against Argentina.

Almost all my income is in dollars, but I would hope to see an economically stable Argentina (which, however desirable, may be unrealistic).

 

[Matiasba]

Look. Its quite simple: if you have dollars and want to have more money you expect that the peso goes down and the dollar up. The peso down has a lot of negative implicancies for Argentines. The only ones in Argentina that want the peso down are the ones that have dollars. A very little percentage. They all bet for the dollar gaining weight in the relationship with the peso. Quite simple. You can go now that are not longer an ignorant.

 

[thorsten]

I wonder if you ever got paid in US$ from renting out your flat Matias...

To the OP: I don't think one can generalize defaults and thus predict the effects they have on us. It can go from "regular life goes on just as before" to riots and disorder; if Argentina goes into another default now, I'm pretty sure we will be on the first mentioned side.

 

[Dublin2BuenosAires]

Look. Its quite simple: if you have dollars and want to have more money you expect that the peso goes down and the dollar up. The peso down has a lot of negative implicancies for Argentines. The only ones in Argentina that want the peso down are the ones that have dollars. A very little percentage. They all bet for the dollar gaining weight in the relationship with the peso. Quite simple. You can go now that are not longer an ignorant.

I use dollars for long term savings and pesos for everything else.

I dont want the dollar to rise, I wish the peso was stable but I wont bet my future on it. Dont impose your ill thought out generalisations on me.

ps...your flat, and that inconvenient USD price. Ouch. I often wonder, is hypocrisy a form cowardice? Talking that talk but not walking the walk.

 

[thorsten]

Look. Its quite simple: if you have dollars and want to have more money you expect that the peso goes down and the dollar up. The peso down has a lot of negative implicancies for Argentines. The only ones in Argentina that want the peso down are the ones that have dollars. A very little percentage. They all bet for the dollar gaining weight in the relationship with the peso. Quite simple. You can go now that are not longer an ignorant.

First of all, your "betting analogy" is off; most Argentines who convert their savings in US$ just don't want to lose a significant portion every year. And even if we'd use your analogy: Betting on an outcome does not imply that this is the outcome one desires, just that this is the outcome which has the highest expected value. Quite simple.

 

[nlaruccia]

Expats that live in dollars are for a default. As always, people that hold dollars are against Argentina.

What do you mean "against Argentina?" Do I sense bitterness in that comment because you possibly don't save in dollars? I think one thing is to be against the government, and another thing is to be against the people that make up a country. Ditto on what everyone else aforementioned.

 

[ajoknoblauch]

Look. Its quite simple: if you have dollars and want to have more money you expect that the peso goes down and the dollar up. The peso down has a lot of negative implicancies for Argentines. The only ones in Argentina that want the peso down are the ones that have dollars. A very little percentage. They all bet for the dollar gaining weight in the relationship with the peso. Quite simple. You can go now that are not longer an ignorant.

You have greatly oversimplified matters, Matías. A weak peso can benefit Argentina by making its exports more competitive, and that can stimulate employment. It could make imported goods more expensive, but since the government has decreed you can't import anything anyway, that hardly matters.

 

[gpop]

Ok, so here's a practical, real example.
I want to buy a car. I have most of it in pesos I've saved over time while cars have been getting rapidly more expensive than my savings. So, I considered taking a personal loan to cover the remainder.
Will a default now screw me even more? Should I even bother to buy a car now anyways as the costs will be too much to even consider? What the hell do I do with those [now] almost useless pesos?

 

[nlaruccia]

Im sorry you did not appreciate it, but my post was indeed an answer to your question and how will affect expats. I dont see any provocation.

Right, saying expats and Argentines saving in dollars are against Argentina isn't provocative. Trouble maker. That's not what lacoqueta asked.

 

[Matiasba]

First of all, your "betting analogy" is off; most Argentines who convert their savings in US$ just don't want to lose a significant portion every year. And even if we'd use your analogy: Betting on an outcome does not imply that this is the outcome one desires, just that this is the outcome which has the highest expected value. Quite simple.

As I said, is very little the people that save in dollars. A tiny minority.

And I dont care of people wanting a stable peso or Argentines not being damaged. This is beyond their will (and Im sure they all have trully good wishes for Argentina). They just want more value to the money they have. Something totally reasonable, everyone would want that. Thats why this is so tricky, and thats why the dollars restrictions. Or you have your money in dollars or you have it in pesos. Everyone wants dollars, as I sais before (if you read me) is the only way to escape inflation,