Has inflation hit?

[Alpinista]

The federal government of Argentina is on par with a US major college student government. These people are in way over their heads.

I dont disagree with your statement, but i dont think that this answers the question asked.

i am neither American nor Argentine, but i think here it is (conceptionally) a more centralistic government system,i.e. a province here has less power than a state in the US. But someone with more insight mIght clarify.

 

[on the brink]

Argentina was set up as a federalist country, but it never worked as such. The provinces must send all taxes collected to the central government, which decides how much or how little to apportion to each province. The central government controls funding and the provinces have to come begging hat in hand. That way, the central government reserves all power to itself.

 

[London2Baires]

Don't underestimate Argentina's resiliency. It has been left for dead quite a few times before.

Hence the old addage; If you leave argentina and come come back in 2 years, everything will be completely different. But if you leave and come back in 10, everything will be exactly the same.

 

[EL_TIGRE_de_Tigre]

I dont disagree with your statement, but i dont think that this answers the question asked.

i am neither American nor Argentine, but i think here it is (conceptionally) a more centralistic government system,i.e. a province here has less power than a state in the US. But someone with more insight mIght clarify.

No you are right, the post did everything but answer the question.

Truthfully, it is what I was thinking upon reading the question, nothing more.

I have no clue as to the answer of the question, it's all one big mess. And all I could think of was how watered down student government is.

 

[jblaze5779]

Interesting. So if you're spending US or even Canadian dollars your purchasing power has essentially doubled in the last 8-9 months.

Pretty much. Some of my friends are paying far less dollarwise for their apts then they were a couple years ago. Getting into a dollar based lease is not the smartest thing to do. Maybe the landlord could demand this last year but now it's a buyer's market.

 

[EL_TIGRE_de_Tigre]

Pretty much. Some of my friends are paying far less dollarwise for their apts then they were a couple years ago. Getting into a dollar based lease is not the smartest thing to do. Maybe the landlord could demand this last year but now it's a buyer's market.

Any agreement in USD is to the advantage of the provider.

It is pure crazy to agree to a USD structure on anything in Argentina. Anyone who does this is giving up the farm.

 

[jblaze5779]

Any agreement in USD is to the advantage of the provider.

It is pure crazy to agree to a USD structure on anything in Argentina. Anyone who does this is giving up the farm.

I find myself in this predicament. At the time of my lease there were no apts in Neuquen. 2 months later was the oil collapse and then covid. I'm actually considering breaking this lease and paying the penalty and moving. I'll be whole in two months at a new apartment and ahead from there on out.

 

[Alpinista]

Interesting. So if you're spending US or even Canadian dollars your purchasing power has essentially doubled in the last 8-9 months.

Your purchase power increased quite significantly, but it has not doubled.
There is still a basic inflation of ca 40-50% annually. Quick example: for a basket of 10’000 pesos you paid last Nov/Dec as you say CAD 200. The basket is now 8 months later 13’000 pesos. You pay now ca CAD 130. 1-(130/200) =35%. So your life is roughly one third cheaper now than last Nov/Dec.

 

[EL_TIGRE_de_Tigre]

I find myself in this predicament. At the time of my lease there were no apts in Neuquen. 2 months later was the oil collapse and then covid. I'm actually considering breaking this lease and paying the penalty and moving. I'll be whole in two months at a new apartment and ahead from there on out.

Don't beat yourself up!

You made the best decision you could with THE INFORMATION YOU HAD AVAILABLE TO YOU AT THAT POINT IN TIME.

And ... being as things were ... this is what you had to do, to get the geography you desired.

Going forward, the landscape has changed. And if you can change / take advantage of it ... simply do what you proposed in your post. Make a change and you will be better for it. Perhaps much better? You may lower your costs and, or find a nicer place to live.

GIVE IT A SHOT! Nothing ventured - Nothing gained.

 

[sergio]

Overall i share your doom & gloom view. Two things
1) naturally it is difficult to predict when inflation will really kick in. However, my view is that it won’t take 5 years. I would be very surprised if that doesnt happen within 12 months time. And once it is spiralling out of control, there is also no limit to even four digit inflation
2) whereas i see also the economy hit rock bottom next year, this is not to say that it will result in a lost generation. If (and thats a very big IF) a new government came into power in the next years and do structural reforms that are required, then it could go up quickly. If this will happen, i have my doubts. Somehow Argentinians seem to be happy with the Peronist version of socialism ....

The romance of Peronism is still so great that people can't see reality.