Question On Inflation.

[rrptownley]

a decent bottle of wine for 14 pesos?

please define decent....

Don't worry, our friend is lost in time and hit 2014 into his flux capacitor instead of 2004.

Doc tests the time machine by accelerating it to 88 m.p.h., sending it one minute into the future, and demonstrates the time circuits by entering an example date of November 5, 1955, the day he invented the flux capacitor.

 

[Matiasba]

So, the existence of the dollar itself is the root of the evil and without the dollar there would not be inflation?

Matias, seriously, do you read anything besides K-propaganda pamphlets?

really you got that from what I wrote?
think what you want...

 

[sleslie23]

I disagree. With inflation, and this country has a history with that, the strongest currency is like a good, people go and look for refuge in the dollar, that creates demand, that creates inflation. inflation and dollar always on a par.

I see economics is not your strong point.

 

[eorl]

a decent bottle of wine for 14 pesos?

please define decent....

What's wrong with vino toro??

 

[Rich One]

I think it's cheap here. I have a super apartment in Recoleta for like 650 USD. For a litre of milk it's like 8 pesos (60-70 cents) you can get a decent bottle of wine for 14 pesos (1 dollar) food is cheap if you use dollars. But you need to plan ahead and bring the cash for your entire stay until you can get out and re-load. Who on earth uses the official rate? You are losing half your money.
Cinema tickets are 37 pesos each (2-3 bucks) if you go on Wednesdays.
Earning money here sucks but spending it here is a blast.

Your prices are a blast jajajajaj wine, milk etc. . I guess its all a matter of standards. Movie tickets $70 , Milk carton $15, wine Themidor in carton $15.

 

[ElQueso]

I disagree. With inflation, and this country has a history with that, the strongest currency is like a good, people go and look for refuge in the dollar, that creates demand, that creates inflation. inflation and dollar always on a par.

Matias, what you described is why a blue market for dollars exists, in conjunction with the government's artificially low official rate (which for some reason you didn't mention), not what causes inflation.

There can be a number of causes for inflation. One of the usual culprits, which the government here have done, is to create money. That, along with many other things the policies of this government have done, is what causes inflation. It's like every step they take they are limiting markets and capital and opportunities, every one of which either exacerbates the problem or makes it more difficult to recover.

You can't ignore the free market and pretend that it isn't real, because it's made up of human wants and needs, which the government simply cannot regulate no matter how hard it tries. And as we see in the US with things like marijuana and other drugs, prostitution, and here with dollars, people will find a way to fulfill their wants and needs.

You can interfere in the free market with varying results (usually short term gains and long term losses, although the reality often seems contrary to theory ), but that's a bit different than trying to destroy the free market altogether (which the government seems bent on doing). Every time the government spends money to keep the official rate down and spends money to keep the blue rate down, they're creating short term gains but the rubber band flexes eventually and the losses down the line will most likely be worse.

Has nothing to do with the blue rate dollar. The blue rate dollar is simply a better reflection of reality than the official rate.

 

[Gringoboy]

When I tell my friends and family over in the UK about the inflation here, their eyes glaze over as if I just told a joke and forgot the punchline.

 

[Killarney]

There are numerous wines for 14-15 pesos and although perhaps you are experts I have drank wine all over the world from Australia to Portugal, USA, Spain, Germany, Italy, France and there is nothing wrong with it.
It reminds me of a joke that we played on a rather pompous friend of ours that he was drinking an extremely expensive bottle of wine. He went on and on about the textures and flavours. It was like a 99 cent bottle.
Anyone who has been to Portugal (I was living there the last year) can testify you can find excellent wines for 1-2 euros.
All I know is they taste good and I never have the slightest hangover which indicates it's not full of crap additives.
And milk is 8 pesos. Movie tickets are 37 pesos at Abasto centro commercial on wednesdays.
Not sure where you are shopping but if you want to spend more money be my guest.....

 

[thorsten]

There is a reason that statisticians use a consumer basket instead of single products to measure inflation...

 

[nkotb]

Killarney - so you have a friend who's an idiot. That doesn't change the fact that a 14-15 peso wine is plonk.