New bills = bad news

[SaraSara]

Today the ATM dispensed only crisp, brand new hundred peso bills. In the past that has meant the government's printing press was working overtime, which meant inflation was heating up.

Anyone else had the same experience?

 

[tez]

Uuff I did notice that the other day after a long streak of getting surprisingly tattery bills from the ATMs. Dummy me: "Awesome new bills!"

Crossing our fingers that they are just reissuing new bills to replace out the old, worn out ones?

Makes me hurt to think about more inflation.

 

[davonz]

I was in zimbawe when they had hyper inflation, and i would get worried here if the started printing on just one side of the paper, because it cost more than the value of the paper..

 

[sergio]

Argentina is not yet in Zimbabwe's situation but it's clear that inflation is out-of-hand. The question is: Will the dollar rise against the peso as a result?

 

[orwellian]

Yeah I've had that experience here since I've got here. And it's pretty common in Europe too since most new bills are introduced into the system through ATM's.

 

[mini]

I haven't specifically noticed the new 100s but I did notice that the 5s are back in circulation. Around Christmas it was impossible to get 5s.

 

[Lucas]

Don't despair and please what's more important don't start a gossip of an imminent economic disaster in the country.

The Central Bank adjusted growth projection 2010-2011 accordingly to the demand of money supply, that's why you are seeing all that new shinny money coming out from the EFTPOS...they smell pretty good too!

"While the measure may cause the economy to overheat, it will boost growth in the short term, according to Morden. With warrants, “your payments are based upon growth, so anything that promotes growth is going to suggest a higher payout,” she said.

Payment on the warrants is triggered when growth is above 3 percent and the inflation-adjusted value of the country’s gross domestic product surpasses a base-case scenario laid out in the contracts. Morgan Stanley this month raised its 2010 growth forecast for Argentina to 9.7 percent, which would be the fastest expansion in Latin America, from 4.6 percent. JPMorgan Chase & Co., Royal Bank of Canada and Goldman Sachs Group Inc. boosted their estimates for Argentina in the past two months."

Bloomberg

 

[ghost]

Morgan Stanley this month raised its 2010 growth forecast for Argentina to 9.7 percent, which would be the fastest expansion in Latin America, from 4.6 percent. JPMorgan Chase & Co., Royal Bank of Canada and Goldman Sachs Group Inc. boosted their estimates for Argentina in the past two months."

Bloomberg

Anytime Goldman and Morgan and the rest of that rat pack start to pump, it's time to be nervous. These are the fine folks who authored the 2001 disaster and the 2008 meltdown. If Goldman is boosting their estimates that means they are selling on the backside. Dirtbags.

 

[Lucas]

Anytime Goldman and Morgan and the rest of that rat pack start to pump, it's time to be nervous. These are the fine folks who authored the 2001 disaster and the 2008 meltdown. If Goldman is boosting their estimates that means they are selling on the backside. Dirtbags.

Noo, no, no that all changed now don't you remember when Obama said "We cannot go back to business as usual" ...that's over.

 

[ghost]

Noo, no, no that all changed now don't you remember when Obama said "We cannot go back to business as usual" ...that's over.

Obama has nothing to do with how these crooks operate offshore. In fact neither Obama or any other head of state has much control over "To Big to Fail". So buckle up and ride.