Greferendum

[Bajo_cero2]

Sorry, I don't get this logic. If they just want to sell cheap and be poor, they could do it already. But I guess they don't want to sell hotel rooms for dólar a day, just to bring tourists.

Tell me, how satisfied were shoemaker and seller with this deal?

In Argentina we have pesos, the economy is not in usd. So, it doesn' t matter how much is in usd, it matter what you can do with this money in the local economy. The show maker was happy because before, with an economy attached to the usd, they didn't have any sells because they were too expensive because they paid salaries too high in usd while selling the shoes at 20 usd instead of 100, the profit was a lot higher because the cost was in pesos devaluated.

Here is where you don't understand. They were not able to sell the shoes at 20 usd before because the cost was 60. After the crisis, they were able to sell them at 20 usd because the cost was 5. (I m inventing costs of course, just to explain you how does it works).

Nobody is happy being poor, but reality is reality, the economy of a country is not different from the economy of a home. If you overspend, you go to bunkrupsy. Of course is great to live like a rich, when you are not, but sooner or later you crash with reality.

The shoes at 20 usd brought a lot of turism for Tango, turism that we don't see nowadays when our economy become too expensive again.

So, if Greece prints Dragmas, they can buy what they produce in Greece with a devaluated currency, but imported goods are going to be expensive. I guess Argentina can do that because we produce food, I don't know how much food has Greece to import.

 

[Bajo_cero2]

The Prediction of the Drachma at 30 % of the Euro value was forecast ed by EXPERTS..!

So the 100 Euro hotel room would cost 30 Drachmae.......
The Argentine 200 % devaluation was the motor that produced the Recovery...ending the fake convertibility., Send Cavallo to Greece.

In fact, Cavallo created the disaster and insisted in it (to be attached to the usd). The one who devaluated was Rodriguez Saa and later Duhalde.

 

[ben]

In Argentina we have pesos, the economy is not in usd. So, it doesn' t matter how much is in usd, it matter what you can do with this money in the local economy.

Right, it isn't as if a TON of stuff around here follows the dollar pretty closely (the blue dollar, yes). And as if that doesn't trickle down in short order to the rest of the economy.

At least since the cepo cambiario began, inflation here has followed the blue dollar almost exactly.

So, if Greece prints , they can buy what they produce in Greece with a devaluated currency, but imported goods are going to be expensive. I guess Argentina can do that because we produce food, I don't know how much food has Greece to import.

Argentina gets to do that because they try to pretend they don't need to import anything. This is most clear with the final-assembly-in-TDF-from completely-imported-components-Samsung-phones, and all the other 'locally produced' electronics. It's clear with the amount of iPhones I see around me left and right, rather huge considering that there is no legal way to procure one in this country. It's also clear from the madness in the textile/clothing industries, where everything is supposedly from here but most stuff isn't. I could go on.

The authorities turn a blind eye to the corruption in a million sectors because things would blow up otherwise. Is that not the definition of a broken system?

 

[thorsten]

The authorities turn a blind eye to the corruption in a million sectors because things would blow up otherwise. Is that not the definition of a broken system?

For the people who are on the receiving side of the embezzlement, it's considered a successful system

People who compare the situations in Argentina and Greece one two one have no idea about how the economies work in both countries. Even if Greece would go in default and not pay back a single cent of the debt, they would quickly end up in a disaster with lack of essential goods like food, petroleum, medicine, ... I doubt the importing companies would be too successful trying to purchase these goods with a newly printed local currency.

 

[Joe]

Speaking of Bankers:

Caught On Tape: HSBC Bankers Recreate ISIS Beheading Execution

One is alledged to be Toongeorges

http://www.zerohedge...ading-execution

This is arguably a worse bank experience than trying to open an Argentina checking account without a DNI.

 

[ajoknoblauch]

Speaking of Bankers:

Caught On Tape: HSBC Bankers Recreate ISIS Beheading Execution

One is alledged to be Toongeorges

http://www.zerohedge...ading-execution

And now, the rest of the story: http://www.theonion.com/americanvoices/bankers-fired-over-fake-isis-beheading-video-50800

 

[mikic007]

Bajo, I would agree with you, if I wouldn't have any desire whatsoever to buy anything tied to foreign currency. But! As Ben said, doesn't work, since majority wouldn't be so altruistic just to make system work. The result is, that even when blue doesn't go up, everyone is highers prices thus making inflation. Just in case..

But I agree with the part about budget. Problem is, Greeks try to get through unscathed or at least for the longest possible period. It's a circle hard to break, until it breaks itself. And again, majority of the world has to produce, to make money, not everyone has opportunities as Argentina.

 

[Bajo_cero2]

Bajo, I would agree with you, if I wouldn't have any desire whatsoever to buy anything tied to foreign currency. But! As Ben said, doesn't work, since majority wouldn't be so altruistic just to make system work. The result is, that even when blue doesn't go up, everyone is highers prices thus making inflation. Just in case..

But I agree with the part about budget. Problem is, Greeks try to get through unscathed or at least for the longest possible period. It's a circle hard to break, until it breaks itself. And again, majority of the world has to produce, to make money, not everyone has opportunities as Argentina.

Here is a misunderstanding. You talk about Argentina 2015 while i talk about Argentina 2001. During a crisis where the is no cash people spend in living not in luxuries because they can't.

I didn't propouse something i imagined, i just described what happend here to help to predict what might happend there.

Now you hace inflacion because the crisis is over long time ago. During a corralito you have the opposite issue, prices and salaries go down.

 

[Rich One]

I wonder what US taxpayers would say if we had to pay 50 billion to support Puerto Rico or Cuba. Like some claim the German taxpayers should do? B)

 

[Joe]

I wonder what US taxpayers would say if we had to pay 50 billion to support Puerto Rico or Cuba. Like some claim the German taxpayers should do? B)

Unless it involves Khardashian's posterior or the latest football results the US taxpayer is oblivious. They already squandered billions of US dollars on Greece via the IMF and maybe only a handful of US taxpayers are even aware of it.