Ignorance or bliss?

[dennisr]

The money that the goverment is saving is at Banco Central. The big goal of the K is that there are savings. It may sound weird but it is a big deal here. On 2001 the country was on bankruptcy.

Let me get this right, Central Bank reserves are SAVINGS?
The Central Bank’s reserves are a product of the printing presses: purchase dollars. And do not forget about the 30 billion deposit from private retirement accounts: 2008. I have a tough time understanding your definition of savings. I would love to be your money manager.

 

[Bajo_cero2]

Definitely things aren't growing as fast or nice as the government would like you to believe. Granted other countries are having their own issues/problems but here in Buenos Aires it's very obvious to see massive amounts of businesses are closing and going out of business. Just walk around Recoleta alone and you can see tons of kiosko's, corner stores, storefronts that are all going out of business. Some very quickly after they opened. You can't keep up with 25%-30% inflation, forced salary increases, etc and expect to successfully have a business.

I predict you will see more and more businesses shuttering in the next 2 years here. It's an almost impossible atmosphere to run a company here if you want to operate in "white". Even in black many of these places are shutting down and that trend will probably continue.

This is Argentina, not sweden. This is normal.

 

[citygirl]

Bajo_cero - Do you have or run a business here? Just curious.

ETA - You are the one making assertions like "the economy is growing" without having any facts. I can give you the "official" and real numbers is you like. B/C you know - as a business manager - it's one of those things that are kind of important to me

 

[SaraSara]

This whole thread has gone beyond absurdity now.

So, let's all agree: this is not Sweden, the economy is growing, inflation is felt only by the upper classes, the Central Bank's reserves are really savings, and we have the most enlightened government ever.

As Candide said, everything is for the best in the best of all possible worlds.

 

[Bajo_cero2]

It's useless to argue with someone who consider a 20% inflation rate "some inflation".

27%+ raises are what the unions got, and that's the real rate of inflation in Argentina.

Well guys, you are green about inflación. This is absolutely normal in this country and this is not big deal. If food raises 20% I raise 20% my fees. And everybody do the same. Unions fights for a salary raise and so on.

When we talk about the danger of inflation we mean hiper inflation:
http://es.wikipedia.org/wiki/Hiperinflación

The crisis of 1989 the inflation rate was 1.923 % per year.

This country had inflation since 1949, so what????? It is normal.

1948-1974: La tasa promedio de inflación (medida por el entonces denominado Índice de Costo de Vida) fue de aproximadamente un 28% anual, aunque registraba bruscas fluctuaciones. Así por ejemplo en 1958 fue del 31.6 % y en 1959 saltó a un 113.7%, cayendo a un 27.3% en 1960.

As you see, between 28% up to 113% per year it is normal. This is a fact.

1975-1985: desde el “Rodrigazo” (Junio de 1975) hasta el lanzamiento del Plan Austral la inflación en Argentina se manifestó con tasas de crecimiento elevadísimas que superaban los tres dígitos anuales.

1989 hiperinflación.

As you see, in one month there was a 200% raise in prices. I remember those days when prices raise hour per hour.

You can learn more about inflation here:
http://www.eumed.net/cursecon/ecolat/ar/2005/afb-infla.htm

So, guys, I survived 1989, I insist, you are green, no offense, welcome to Argentina.
Regards

 

[fifs2]

This whole thread has gone beyond absurdity now.

So, let's all agree: this is not Sweden, the economy is growing, inflation is felt only by the upper classes, the Central Bank's reserves are really savings, and we have the most enlightened government ever.

As Candide said, everything is for the best in the best of all possible worlds.

and also don`t forget SaraSara that if there is a lack of food in the shops (meat, dairy, sugar etc) that is because we are all so much richer that everyone is eating these products out of supply..according to channel 5 tv last night..lol

 

[jaredwb]

Well, I think that people who live in a country with a huge crisis but with economist and politicians who have the magic idea of...printing money to give them to banks, constinue expending money in very expensive wars and who insist in the same recipe that created the crisis as a way to solve it among some others naive solutions, those people have really good reasons to be very scared.

I agree!! As do a massive majority of the U.S. voters as proved last night!

 

[dennisr]

Well guys, you are green about inflación. This is absolutely normal in this country and this is not big deal. If food raises 20% I raise 20% my fees. And everybody do the same. Unions fights for a salary raise and so on.

Sir, the record speaks for itself: predictable ten year cycles of boom and bust for Argentine. And always, the common theme, the Achilles heal for Argentina is inflation. Every Government on the planet cooks the books, but damn, this stuff is off the charts.

 

[earlyretirement]

This is Argentina, not sweden. This is normal.

Therein itself lies the problem with Argentina. People thinking that 27%+ a year inflation is "normal". I'm sorry to report to you that is NOT "normal". I don't care what country in the world you are talking about.

Maybe compared to places like Zimbabwe it's not bad but I hate to report to you that having that kind of inflation is NOT normal.

And your logic that if you have to pay your employees 27% more than you'll just raise your prices 27% more is not good logic. I'm not sure if you are a business owner or not but clearly that logic doesn't hold true. Maybe in the supermarket you can keep raising your prices 27% and it will work but most businesses you simply can't charge 27% more and pass that on to your clients.

It's the reason why you are seeing more and more businesses closing down and why you will see that trend continuing over the next few years if inflation keeps going at those levels.

Somehow some of you try to justify to yourselves (and others) this is somehow "normal" but I'm sorry to rain on your parade....it's not.

 

[Gringoboy]

Therein itself lies the problem with Argentina. People thinking that 27%+ a year inflation is "normal". I'm sorry to report to you that is NOT "normal". I don't care what country in the world you are talking about.

Maybe compared to places like Zimbabwe it's not bad but I hate to report to you that having that kind of inflation is NOT normal.

And your logic that if you have to pay your employees 27% more than you'll just raise your prices 27% more is not good logic. I'm not sure if you are a business owner or not but clearly that logic doesn't hold true. Maybe in the supermarket you can keep raising your prices 27% and it will work but most businesses you simply can't charge 27% more and pass that on to your clients.

It's the reason why you are seeing more and more businesses closing down and why you will see that trend continuing over the next few years if inflation keeps going at those levels.

Somehow some of you try to justify to yourselves (and others) this is somehow "normal" but I'm sorry to rain on your parade....it's not.

Couldn't agree more.
I'm a Brit (not that it matters) and have been running a PC shop in the high street for two years now and the prices I pay creep up every single month.
I too have to pass that on or my customers or the business wouldn't be viable. Having said that, the technical support/service I carry out is a very different story and so I try to balance that accordingly.
It's tricky, because you need the business but you can't just give the stuff away.
Just have to weather the storm