Ignorance or bliss?

[Bajo_cero2]

I'm sorry, this is just not correct. Salaries do not raise at the rate of inflation for everyone. Only encargados & truck drivers. We are not in these professions. Now because our salary doesn't rise but all costs rise I will no longer be able to pay my cleaning lady. So now my cleaning lady not only does her salary not rise but she now has less hours work per week. So she doesn't buy anything besides canasta familiar and so on & so forth.

Well, the world is in a huge crisis, here is better than Spain for sure. The US were very bad last year too when I was there. I know that this country has a story about isolation, but don´t exagerate about that, we are not in another planet.

You seems to have no idea about our history. Any small crisis around the world was enough to make our economy fall in a huge crisis. Now there is the most important crisis since the big depresion and we have our historical average inflation. Guess what? It is great even this is not heaven. Be realistic.

No. I'm sorry but frankly you have your head in the sand.

You forgot your manners in your country.

That's just silly. We are basing the whole of the Argentine economy of the canasta familiar? I can't take that seriously. Is this CFK's plan?? Printing money and making sure everyone can afford the "canasta familiar"? This sounds like a good plan to you?

This has nothing to do with any plan, I just was trying to explain you how the real cost of living was mesure in this country for the last 50 years. If this is too sophisticated to undertand for you just let me know.

This morning I read that in the US they are printing money for speed up the economy: inflation.

As far as I know the K plan to deal with the crisis is related to produce wealth: industry and farming to collect taxes. Both are in an historical record.

Don't worry. You & I will soon be poor enough so that the K's will give us subsidies.

Don`t talk about me please. I am not an employed.

Regards

 

[mini]

Well, the world is in a huge crisis, here is better than Spain for sure.

Well, no. They don't have huge (and growing) villas in Spain. I'd much rather be poor there than here.

The US were very bad last year too when I was there.

I live & work here.

You seems to have no idea about our history. Any small crisis around the world was enough to make our economy fall in a huge crisis. Now there is the most important crisis since the big depresion and we have our historical average inflation. Guess what? It is great even this is not heaven. Be realistic.

You are speaking of it like there is nothing BAD going on. If this is your history than we should prepare for another serious crisis, no?

You forgot your manners in your country.

I'm just telling it how I see it.

This has nothing to do with any plan, I just was trying to explain you how the real cost of living was mesure in this country for the last 50 years. If this is too sophisticated to undertand for you just let me know.

Having no plan is not exactly sophisticated. It's chaotic.

This morning I read that in the US they are printing money for speed up the economy: inflation.

I don't live there, I live here.

Don`t talk about me please. I am not an employed.

I wasn't responding to you with that statement. I was responding to "jazrgz".

 

[LAtoBA]

This morning I read that in the US they are printing money for speed up the economy: inflation.

Because the US economy is so sluggish right now they are comfortably able to print more money without affecting inflation much, which by the way is hovering near 1%. Argentina's true rate of inflation is somewhere between 20-25%. Printing money typically begets more inflation. That should be the last thing Argentina should be doing right now.

 

[CapnRick]

Down south where we live, my wife and I were commenting on...

1. a lot of local small businesses are closing down
2. construction projects that have laid dormant for years are suddenly bustling with activity

One might infer from these indicators that there is so much inflation and government/employee meddling that people are closing down financially marginal operations ...and dumping their ready cash into bringing potential rental income properties lease-ready... as a means of preserving capitol/buying power.

There is a finite limit to the amounts precious metals and other purchasing power preservation tools available.

 

[Bajo_cero2]

Well, no. They don't have huge (and growing) villas in Spain. I'd much rather be poor there than here.

Well, I meant that there 20% of people has no job, exactly like it was here on the 2001 crisis.

I live & work here.

Lucky you, there you will have no work. Here you will have no mucama.

You are speaking of it like there is nothing BAD going on. If this is your history than we should prepare for another serious crisis, no?

Well, we were never better during a world crisis. So, this is not sweden, usually in a worl wide escenario like this one we have 1000% inflation and people riot at the streets and looting supermarkets for food. So, don´t be so naive.

Having no plan is not exactly sophisticated. It's chaotic.

Well, you asume that missquoting me.

I don't live there, I live here.

You live in this planet and the mistakes the US makes dealing with his crisis affects the whole world.

Regards

 

[Bajo_cero2]

Because the US economy is so sluggish right now they are comfortably able to print more money without affecting inflation much, which by the way is hovering near 1%. Argentina's true rate of inflation is somewhere between 20-25%. Printing money typically begets more inflation. That should be the last thing Argentina should be doing right now.

Printing money during a crisis produces inflation here, in the US and in china. Wait and see.
Regards

 

[Bajo_cero2]

One might infer from these indicators that there is so much inflation and government/employee meddling that people are closing down financially marginal operations ...and dumping their ready cash into bringing potential rental income properties lease-ready... as a means of preserving capitol/buying power.

Very interesting.
In this country you can assert that we are in crisis when the constuction industry stops and the dollar rise. If prices are rising but the dollars stays at 4 pesos and constuction works there is no crisis.

Argentina is a place where people learnt to be very flexible in order to adapt and survive. So, long term busisness is not our way of thinking. People don´t close busisness because they are in bunkrupsy, they close them just in case and looks for something more profitable.
I started a busisness when I was a student regarding cultivating aquarium plants with artificial light. When the electricity multas began my busisness was profitable any way but I closed immediatly just in case. I did´t lose money. My competitors were very happy when I closed, they went into bankruptcy.

So, this is the year before elections. Former President K just die. Nobody know what the f...ck is going to happend. The US had created the crisis and they are doing stupid things that all the argentinians know that are going to fail because we are experts in crisis. In fact, we think that the US crisis is just starting. And this is standard here that the year before elections people spend less money and wait. Peron use to say "desmontar hasta que aclare" (Stop horse riding and wait until sunrise)

So, usually after elections the economy speed up. This is the way things works here.

Welcome to Argentina. Try to lear from us how to deal with the crisis. Whe have this expertise.

Last year I was running my former girlfriend busisness in NYC during the crisis. I started doing that because the first month she managed it she sold 40% comparing with the same month the year before (she used to sale 10, she sold 4). I managed in the argentinian way. All the other busisness around had the same issue. Crisis included I managed to get same profit that the year before with less sales of course because I did´t play with the wrong rules.

Live and learn.

Regards

 

[Lucas]

Originally Posted by LAtoBA
Because the US economy is so sluggish right now they are comfortably able to print more money without affecting inflation much, which by the way is hovering near 1%. Argentina's true rate of inflation is somewhere between 20-25%. Printing money typically begets more inflation. That should be the last thing Argentina should be doing right now.

Printing money during a crisis produces inflation here, in the US and in china. Wait and see.
Regards

Indeed...

Before the G-20, the Asian giant joins criticism
China asked to "explain" the United States for its monetary policy <click>

Injection by the Fed

Cui said China would monitor closely the impact of the plan of the U.S. Federal Reserve announced this week to buy $ 600,000 million in treasury bonds to stimulate the economy.

"They owe us an explanation. I've seen a lot of concern about the impact of this policy on financial stability in other countries. As the largest issuer of a reserve currency, we would expect (USA) take a responsible position," he added.

Original article...ambito financiero.com
China le pidió "explicaciones" a EEUU por su política monetaria

 

[mini]

I don't understand why you keep comparing Argentina to other countries if you keep saying that Argentina is completely different from any other country & all that's happening here is "normal".

Lucky you, there you will have no work. Here you will have no mucama.

That's a huge assumption that we would have no work. So there is not point talking about it. That's why I said we live and work HERE.

And the example of the mucama is just that an example. I'm sorry you didn't understand that.

It is being said the poor are not hurt by inflation. This can not possibly be true. If the middle class can no longer afford to hire people like mucamas, laborers, gardeners, mozos, store clerks then these people will no longer have money to afford to buy things and then it's a vicious circle. Never mind the fact that they will then never get out of poverty.

If people don't see this than they are putting their heads in the sand.

It seems you & I are talking in circles. And I'm starting to lose the plot.
So, maybe it's best to leave there.

 

[Bajo_cero2]

Never mind the fact that they will then never get out of poverty.

Well, this is a poor country with a lot of poor people. Even we are not well we were worst and under this world wide crisis we should be much worst. I don´t know what do you expect. That´s the way it is here. I don´t like it either.

If people don't see this than they are putting their heads in the sand.

In my opinion you have your head in the sand. Why? We never had less than 10% of people without work. I don´t know the statics rigth now but I know that it was about 8%. So, even if some people is half employed, we are still better than our average rate.

It seems you & I are talking in circles. And I'm starting to lose the plot.
So, maybe it's best to leave there.

Your wish is my command. Regards