Effects Of A Default On Expats

[ajoknoblauch]

GS, my friend, theres a confussion I already mentioned.

I was always talking when I referred to "a minority who does that" of a total of the society, NOT THE SAVERS. When I said minority I was talking of Argentine society. Of course I know that people can not save in pesos, I suggest you read my second post on this thread in Page 1 talking of a history of argentine migrating to dollar due historical problems with inflation. IS THE ONLY WAY TO SAVE HERE. No discussion about that.

Of course the only people that can save here do it in dollars, but that is a minority of argentine population. I clarified that in the last page but Bajo cero still says that there are lots of argentines saving in dollars. Then I responded that in this country the people that save are a minority, less than 30%.

GS, my friend, theres a confussion I already mentioned.

I was always talking when I referred to "a minority who does that" of a total of the society, NOT THE SAVERS. When I said minority I was talking of Argentine society. Of course I know that people can not save in pesos, I suggest you read my second post on this thread in Page 1 talking of a history of argentine migrating to dollar due historical problems with inflation. IS THE ONLY WAY TO SAVE HERE. No discussion about that.

Of course the only people that can save here do it in dollars, but that is a minority of argentine population. I clarified that in the last page but Bajo cero still says that there are lots of argentines saving in dollars. Then I responded that in this country the people that save are a minority, less than 30%.

Suggesting that Argentina continues to be governed by the wealthy minority for the wealthy minority.

 

[Bajo_cero2]

You dont have any idea.

Poverty is around 30%, but the rest (70%) is not all upper middle class, the rest is lower middle class, the bigger strata in this country is lower middle class, inmense, and the second more important is the lower class. Those together are more than 50% of the society, those are the most vulnerable and the ones that "se fueron a la lona" in the 90s. The ones that can save, not working class, not lower middle class, are some middle middle class (like public teachers or porteros de edificio, so figure out how much they can save, 500 pesos/month? 50 dollars?) some upper middle class, and of course the upper classes; they are less than the 30% of the society.
Upper midddle class + upper classes are less than 20% of the society (17% + 3% according to a paper from 2012 I read and I cant find)

So, those who can save 500 pesos, they buy usd. We are talking about 17.000.000 people.

By the way, the other tiny 20% means 8.000.000 people.

 

[Matiasba]

but its not everyone who saves in dollars!! lots of people choose to spend that money, lots of middle class people choose to not save 50 dollars per month. Thats why we had lot of consumption, lots of people acceeding for the first time to a moto (the good par excellence of the middle class these years) or a laptop or an AC, or start building a second floor to their humble house the ones that have more luck. This K model, with inflation, was made not to save but to spend, to reactivate economy, to reproduce the virtuous cycle of the economy, spend spend spend not save. Of course if you inundate the economy with pesos there will be people that prefer to save than spend, and thats why the dollar restrictions. In fact, is also the spend spend spend cause of inflation, its a very important increase of demand, of basic goods, like food. Lots of people consuming also provokes inflation, a demand inflation, so saving in dollars should have stopped this and decrease inflation. Part of the inflation explains that people spend and not save.

 

[ajoknoblauch]

but its not everyone who saves in dollars!! lots of people choose to spend that money, lots of middle class people choose to not save 50 dollars per month. Thats why we had lot of consumption, lots of people acceeding for the first time to a moto (the good par excellence of the middle class these years) or a laptop or an AC, or start building a second floor to their humble house the ones that have more luck. This K model, with inflation, was made not to save but to spend, to reactivate economy, to reproduce the virtuous cycle of the economy, spend spend spend not save. Of course if you inundate the economy with pesos there will be people that prefer to save than spend, and thats why the dollar restrictions. In fact, is also the spend spend spend cause of inflation, its a very important increase of demand, of basic goods, like food. Lots of people consuming also provokes inflation, a demand inflation, so saving in dollars should have stopped this and decrease inflation. Part of the inflation explains that people spend and not save.

Matías, your capacity for rationalizing the irrational appears limitless. If people can't save in a stable currency, they will spend it as quickly as possible because next month it will be worth a fraction of its present value. This is not a virtuous cycle.

 

[ben]

Matías, your capacity for rationalizing the irrational appears limitless. If people can't save in a stable currency, they will spend it as quickly as possible because next month it will be worth a fraction of its present value. This is not a virtuous cycle.

Also causes this country's insane obsession with cuotas sin interés... even for those who can afford to buy the item outright, makes more sense to convert the money to USD and lock in the price in pesos - effectively, selling the peso short. Year over year, invariably a winning strategy.

 

[wild_horses]

Hi,

Majority of the people in Argentina save in pesos. Saving in dollars is for the upper middle class of Buenos Aires, nobody else.

http://www.infobae.com/2014/07/31/1584619-presidente-del-banco-provincia-pide-billetes-200-y-500-pesos

Cheers!

 

[scotttswan]

Hi,

Majority of the people in Argentina save in pesos. Saving in dollars is for the upper middle class of Buenos Aires, nobody else.

http://www.infobae.c...200-y-500-pesos

Cheers!

Save....in....pesos.....

:lol:

Uruguayan? Chilean?

 

[Don Alberto]

If the majority of the people in Argentina save in (Argentine) pesos the root cause of all Argentina's economical problems are explained, because then the majority of the people in Argentina have one- or, at most, two-digit IQs.

No Argentino I have ever met would ever dream of saving in Argentine pesos.

 

[Somewhereinba]

Saving in pesos... What other investment can perform so well and lose you 30% annually.

 

[wild_horses]

Save....in....pesos.....

:lol:

Uruguayan? Chilean?

Hi,

Your source? Shall I take the word of the President of Banco Provincia or the word of a vulture expat?

hmmmm...

Cheers!