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or about your gf dilma
Question On Inflation.
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camberiu
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Not true at all. At the time, my father was also a member of the ALN, a competing guerrilla group than that of Dilma. There was support flowing in from both Cuba and the USSR. The problem was that the Brazilian guerrilla movement in general was extremely inept and disorganized. My father, a former guerrilla himself, admits to that.
splattermatter
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Buenos Aires is not like Tokyo, London or New York...not even close to be being close to use a comparison...
You have to get the few bags of precios cuidados ones -- I usually see them at Carrefour, just one of the Serenissima brands, otherwise the rest yes are more expensive, but honestly I have to go by 9am or else they get all bought out -- I have literally seen the owner of the chino down the street from the Carrefour walking down the aisle with a cart full of them, and then I presume he puts them on sale at his own pleace with a mark up (this is on mondays when there's 30% back in cheques on lacteos). The cheap butter also manages to disappear the same way....
citygirl
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Oh, thought you were talking about cartons. I never buy in the bag, I inevitably wind up spilling it.
Syngirl - yes, that makes sense. I'm sure the majority gets resold. I watched a guy buy in bulk at Makro once and then saw the same guy off-loading the stuff 2 blocks away at his kiosko.
Syngirl - yes, that makes sense. I'm sure the majority gets resold. I watched a guy buy in bulk at Makro once and then saw the same guy off-loading the stuff 2 blocks away at his kiosko.
Give me some examples of free market monopolies.
Now, this doesn't mean that when a new product comes out that certain companies don't have a corner on the market to begin with. In fact, Libertarians call this a good thing and say that we don't need patents because over the long term patents are means to help monopolies, or at least concentration of market share, along, whereas in a free market the first people to get a product out will profit greatly, recouping their expenditures, and as others enter the market they will have to keep up with bettering their product along with the competition in order to continue to survive, since they don't have a monopoly on the patent that either prevents someone from legally using their technology without royalties, for years and years to come.
Eventually competition will come in, if there is no interference from the government, and even things out.
Monopolies are created when the government allows them to happen, either implicitly or explicitly. In the US there were a number of monopolies in the past created specifically from government intervention, or government creating the correct climate to allow one or two companies to corner the market.
The only thing a government should do in relation to a monopoly is to ensure that the monopoly didn't come into existence via malfeasance, and then leave the market to balance out.
Milk is still relatively cheap. Someone stated they can only get milk at 12 pesos, but in the bags (not the cartons) we pay around 8-9 pesos at the Disco down the street and I never have problems finding it. I can remember milk in the same bags a couple of years ago around 4 pesos. Much like the Big Mac combo in McDonalds, although that has risen but still not as high as other combos, because the government uses that to "prove" inflation isn't as bad as everyone says it is.
With milk and other dairy prices set by the government, of course Serinisima and Sancor are raising prices with other products. And no one else wants to get into the market - it's a zero-sum game for those who are not already in it. Particularly between the horrendous labor laws and extremely high taxes the government imposes on business and in addition to price controls in the dairy market. The government controls aspects of the market which prevents other players from entering into it. The government has created conditions which foster monopolies and the government likes that because there are fewer companies with which they have to push around.
I just have to laugh about that bolded section.
Dude, you are saying once again that the demand for dollars creates inflation (which I believe you refuted in a different post with someone else). Demand does not create inflation. Demand may cause higher prices until the market is saturated - this happens because people are recouping their investment costs in production and as costs are paid off, production because easier and volume increases, prices lower.
Currency is not a product, but rather a commodity. Flooding a market with too many dollars reduces the demand for dollars and allowing the market to build naturally causes the peso, in comparison, to fall in value naturally because the peso already is crap. That's why people flock to the dollar and that doesn't create inflation. Stupid government policies, like printing a lot of pesos to cover internal costs devalues a currency, which makes it weak against other currencies that do not have the problem (or as much of a problem, and again, unfortunately, the dollar is a special situation due to port-World War II advantage-taking and idiocy from the US).
The government saturated the market with dollars, lowering demand, and it took a lot of dollars to saturate the market, dollars which the government could use for other things, like, I don't know, paying off money they borrowed in the past instead of inventing a crisis because they don't want to pay their debt? I know, too many on this board think Argentina is a victim of "vultures" but I continue to call BS on that. The government is controlling the market by keeping a very high artificial official price on the peso and continuing to print money where there is no increase in production and value to offset it and is creating its own inflation. Another government policy from the past, the corralito, causes citizens to start panicking when they see inflation and start raising prices themselves, which does indeed help things.
The dollar has nothing to do with inflation here.
You can't just say you know things but don't remember how you know. Particularly because you are parotting what the government here says and it makes no sense whatsoever. Like you, the government states that something like printing money is not causing inflation, but rather for some mysterious reason people are flocking to the dollar and causing inflation. If there was no or little inflation, the peso would be stronger and there would be no need for people to flock to the dollar.
And if the blue dollar market is so small compared to the official rate (which I agree with, BTW) - how in hell can it make so much difference to cause 40% inflation anyway, across the economy???? Think critically!
