Returns dolar turista

[lunar]

Facts. A good relationship with the US means to take debt. An excess of currency make the Us dollar to be cheap and it means that our exports are less competitive.
Read since 1957:

Historia económica de Argentina - Wikipedia, la enciclopedia libre

es.wikipedia.org

If at some point the USA decided just to give the dollars to Argentina and not ask for anything in exchange, that would also be very bad for the Argentine economy. Cheap US dollar is bad! (read this). Expensive US dollar is also bad! (read that). And you can always make a link to some article that contains the ultimate economic wisdom.

 

[TheDonald]

Show me I'm wrong.
We compete with the US in farming.

I'm not sure what is meant by "We compete with the US in farming." What crops are you referring to? Corn? Soybeans? Marijuana?

Competition among nations in agriculture typically is defined by only a few variables. Labor costs, internal infrastructure costs, interest rates and distance to buyer markets. Most of the reports I have read indicate that Argentina has some of the lowest economic returns from its agriculture industry in the world. The reasons are simple. Compared to the competition, Argentina has high labor costs. Compared to the competition, Argentina has expensive and inefficient infrastructure. Argentina has the highest interest rates in the world right now. Argentina has certain advantages in markets where the transportation distance is short, but those are few. The recently imposed taxes will only make the Argentine agricultural situation worse. I am not sure what this has to do with the US.

 

[TheDonald]

If at some point the USA decided just to give the dollars to Argentina and not ask for anything in exchange, that would also be very bad for the Argentine economy. Cheap US dollar is bad! (read this). Expensive US dollar is also bad! (read that). And you can always make a link to some article that contains the ultimate economic wisdom.

Very shortly, the US will "give" Argentina several billion dollars. The IMF loan to Argentina, has a principal amount of $57B, but $3B-$4B has not been disbursed. The IMF is 18% funded by the US. Right now, investors expect Argentina to force a haircut on creditors of about 60 cents on the dollar. In other words, for every dollar borrowed, Argentina will pay back 40 cents. If the IMF loan is $52B, and the US contribution is 18%, then the US "lent" Argentina about $10B. If Argentina will pay back 40 cents of every dollar, the US will get back $4B of that loan and will get chopped for $6B.

In essence, every American taxpayer is poised to donate his or her portion of $6B to Argentina in 2020.

This does not apply to US citizens who pay no federal taxes.

 

[Bajo_cero2]

I'm not sure what is meant by "We compete with the US in farming." What crops are you referring to? Corn? Soybeans? Marijuana?

Competition among nations in agriculture typically is defined by only a few variables. Labor costs, internal infrastructure costs, interest rates and distance to buyer markets. Most of the reports I have read indicate that Argentina has some of the lowest economic returns from its agriculture industry in the world. The reasons are simple. Compared to the competition, Argentina has high labor costs. Compared to the competition, Argentina has expensive and inefficient infrastructure. Argentina has the highest interest rates in the world right now. Argentina has certain advantages in markets where the transportation distance is short, but those are few. The recently imposed taxes will only make the Argentine agricultural situation worse. I am not sure what this has to do with the US.

Well, this is the consequense of a good relationship with the US during Mauricio Macri government.
When I assert that we compete is because we are both big producer of, for example, soybean.
Argentina becomes competitive with a proper exchange rate where the usd is more expensive.
This is very basic.

 

[MilHojas]

Argentina's black market peso tumbles on 'tourism tax' fears

Argentina's black market peso fell almost 8% against the dollar on Monday after a senior official flagged the return of a so-called tourism tax on spending in dollars, a move to help prop up the local peso and help fill drained state coffers.

www.reuters.com

The peso was down 7.93% at 72.50 per U.S. dollar in the informal market, traders said, taking it around 20% away from the official spot rate.

 

[TheDonald]

Well, this is the consequense of a good relationship with the US during Mauricio Macri government.
When I assert that we compete is because we are both big producer of, for example, soybean.
Argentina becomes competitive with a proper exchange rate where the usd is more expensive.
This is very basic.View attachment 6416

I don't understand your argument. In the last year, the Argentine peso has gone from 35 to the dollar to 70 to the dollar. If that isn't the "proper" exchange rate you speak of, I don't know what would be?

 

[ghost]

Communism (Cuba) and totalitarian, corrupt "socialism" (Venezuela) are not models for success. And excessive taxes do not create a stable or strong economy that benefits the majority. If this government really cares about the people, the two Fernandezes must have gone through some sort of spiritual transformation during their political exile.

Correct, but. You might as well be talking to a rock.

 

[Bajo_cero2]

I don't understand your argument. In the last year, the Argentine peso has gone from 35 to the dollar to 70 to the dollar. If that isn't the "proper" exchange rate you speak of, I don't know what would be?

MM kept the USD too low for too long because this is great for financial ganbling and money flight. Now that the economy is destroyed, what difference does it makes. It is going to take years to recover.
You ask for a proper exchange rate? That is scary. You have to see how many usd are at the Central Bank and divide the by the USD plus Lebacs and Leqics. This is very scary.

 

[sergio]

MM kept the USD too low for too long because this is great for financial ganbling and money flight. Now that the economy is destroyed, what difference does it makes. It is going to take years to recover.
You ask for a proper exchange rate? That is scary. You have to see how many usd are at the Central Bank and divide the by the USD plus Lebacs and Leqics. This is very scary.

Years to recover? I doubt there will ever be a recovery.

 

[TheDonald]

MM kept the USD too low for too long because this is great for financial ganbling and money flight. Now that the economy is destroyed, what difference does it makes. It is going to take years to recover.
You ask for a proper exchange rate? That is scary. You have to see how many usd are at the Central Bank and divide the by the USD plus Lebacs and Leqics. This is very scary.

Are you sure you're a lawyer? You keep jumping from argument to argument in an illogical and disoriented manner.

Much has been made about the economy 2F has inherited. As we reflect on Macri, let's not forget the economy he inherited and the urgent changes that needed to be made. Just as Alberto's economy will be strongly influenced by what Macri left him, so was Macri's economy strongly influenced by the dumpster fire Cristina (thief) left Macri.

When Macri took office, inflation was running 45% annually. Argentina's trade deficit was huge. The country was in a disgraceful state of default and capital markets were completely closed to it. Cristina was printing pesos like crazy, which caused the domestic money supply to spin out of control. And due to Argentina's status as a rogue nation, foreign exchange reserves had dwindled to a level equally low to that of now. Last, the only thing that helped CFK in her last year was a strong peso - but the peso gained strength only because Macri was poised to be elected. This encouraged western investors to buy Argentine assets, including bullish bets on the peso. If not for Macri's expected arrival to office, CFK's peso would have been equally weak as her first years, which would have exacerbated her dismal management of the Argentine economy.

CFK left Macri an awful mess. This tied Macri's hands. Macri leaves Alberto a similar situation.