How's everyone hanging in there with the cost of living these days?

[on the brink]

I considered locking the spare, but was told it was useless as thieves can cut across chains and locks - they carry the tools they need. They are real pros, familiar with car models and spare tire resale values.

Instead, I keep the spare in the laundry room, and rely on ACA's tire-repair shop-on-wheels truck. In CABA and vicinity, it takes about an hour to show up and repair the tire on site.

 

[LuckyLuke]

There will be a devaluation of the official rate to at least 1300-1400 per USD in the first half of 2025 for the simple reason that the farm sector will not export if the current FX regime continues. The BCRA is not accumulating foreign reserves and significant amount of foreign currency denominated debt is coming due in 2025 and beyond. Trump may help Milei out with some cash but the devaluation will have to happen just the same.

What is the farm sector going to do? Let their produce rot? This is the same sector that not too long ago was threatening not to repatriate funds because the peso exchange rate was too weak against the dollar.

Although I do think they prefer having a preferential exchange rate (dolar soja, dolar agro, etc.) on a weak peso than having to compete on a even playing field with a strong peso...

 

[chris]

What is the farm sector going to do? Let their produce rot? This is the same sector that not too long ago was threatening not to repatriate funds because the peso exchange rate was too weak against the dollar.

Although I do think they prefer having a preferential exchange rate (dolar soja, dolar agro, etc.) on a weak peso than having to compete on a even playing field with a strong peso...

Price of Argentine loom at a Trader Joe's in USA is $20 per pound; USA produced filet mignon is $24 per pound. Is this competitive?

 

[ArgentinaVet]

What is the farm sector going to do? Let their produce rot? This is the same sector that not too long ago was threatening not to repatriate funds because the peso exchange rate was too weak against the dollar.

Although I do think they prefer having a preferential exchange rate (dolar soja, dolar agro, etc.) on a weak peso than having to compete on a even playing field with a strong peso...

In the case of soy they will store their production in silo bolsas until a more attractive FX/tax regime emerges and will substitute future soy plantings for crops that they can sell into the domestic market. Keep in mind that many farm exports also pay a substantial "retenciones" export tax (soy 33%, corn and wheat 12%, beef 9%, sunflower seed oil 7%). This percentage comes off the USD value of exported product.

 

[steveinbsas]

What is the farm sector going to do? Let their produce rot?

No matter what happens in rhe future regarding export taxes, the agricultural sector will continue to poison every living creature that reduces crop production so they have a greater yield of contiminated fruits, vegetables, legumes they can sell as either "food" for livestock and/or humans and their pets.

Until and unless I have no option, only the livestock (beef, pork and chicken, and butter) producers of the "farm sector" will get a single peso from me. I don't find consuming the meat, eggs, and butter produced from grain fed animals as desireable as those who are grasss fed, but l'll take it every day over eating anything produced by the agriculture sector, especially anything made from soy, which is not only fed to livestock, but converted to "cooking oil" and added to many higly processed foods (including flour to make bread) that are consumed by hundreds of millions worldwide every day.

PS: When we were in our eatly teens, my brother and I made enough to go bowling by pulling (by hand) young corn stalks growing in rhe soybean fields on the family farm near Charleston, Illinois. That job does not exist today, thanks to herbacides

PS2: Full disclosure: I don't consume "organic" fruits, vegetables, nuts or seeds (or "seed" oil), either. That's because of the natutal toxins) they contain. I do consume coffee and a little olive every day and I am fully aware that both of them, even if they are claimed to be "organic" contain a number of natural toxins. I am not sure about olive oil, but I recently watched a video that asserted that coffee contains 150 separate toxins.

 

[JeffR]

I just returned from the casino in Palermo. It was PACKED. And that's after many machines there were recently increased to A$2 with a minimum bet of 100 pesos. Most don't play minimum but more. That, coupled with the outdoor festival of asado and empanadas (which had prices high enough that even made me take notice) on the casino property, would make many wonder what's with all the doom and gloom.

"What's with all the doom and gloom." I used to wonder the same thing for quite some time.

Then one day I was sitting outside, having lunch at a restaurant in Palermo and was amazed at all of the people crowding the locales. They were mainly young locals, not tourists. Even though young people enjoy spending their money on entertainment, the amount I saw seemed above and beyond. And I thought the same thing - if the economy is so bad, why are people spending so much?

Then it finally dawned on me. An entire generation of Argentinians is being trained to believe that money has no value. This mean they'll never have enough money for a car, house, starting a family or business, etc.

 

[Stephano]

I went to Tigre last weekend and had lunch on one of the restaurants in Puerto de Frutos. Granted this is a quite touristic area, but prices are now almost at US levels, not New York, but not much cheaper than let's say Philadelphia. It was packed.

 

[Frinkiac8]

"What's with all the doom and gloom." I used to wonder the same thing for quite some time.

Then one day I was sitting outside, having lunch at a restaurant in Palermo and was amazed at all of the people crowding the locales. They were mainly young locals, not tourists. Even though young people enjoy spending their money on entertainment, the amount I saw seemed above and beyond. And I thought the same thing - if the economy is so bad, why are people spending so much?

Then it finally dawned on me. An entire generation of Argentinians is being trained to believe that money has no value. This mean they'll never have enough money for a car, house, starting a family or business, etc.

Pan para hoy, hambre para mañana has been the rule here forever. Everyone is conditioned to this. Younger people especially but even my in-laws would think like this -- spend everything the second you get it.

 

[carride]

Pan para hoy, hambre para mañana has been the rule here forever. Everyone is conditioned to this. Younger people especially but even my in-laws would think like this -- spend everything the second you get it.

Yet there is also a new thinking to invest for real savings. Even if only plaza-fijo (similar to locked in CDs), but also many young people know how to put money in Fondos and Acciones (Funds and individual Stocks). MercadoPago and all the banks make it easy, some reporting the 30-40% annual interest earned on a daily basis, and brokerage accounts are more accessible now too. These methods were just starting to become popular in recent years, and this year have shown true gains and also USD saving options. I guess many people could/should have nagging concerns that it will all come crashing down again.

 

[FrankPintor]

Pan para hoy, hambre para mañana has been the rule here forever. Everyone is conditioned to this. Younger people especially but even my in-laws would think like this -- spend everything the second you get it.

We also discussed the consideration, some time back, that with high inflation, people preferred to spend their Peso income as soon as possible, rather than watch it shrink in their bank accounts. Difficult to say if it's the same now.