Sit Tight...Your Dollar is About To Go ALOT Further!

[Lucas]

Thats it in a nut shell, I think both johnny and jb5 (and bafinance) are right (Lucas as usual has no idea what he's talking about.)

The government's currency manipulations are unsustainable and eventually the market will correct itself, this seems pretty obvious. But it's probably not going to happen overnight on monday.

And as usual you are trying to put down this country as well as me in every opportunity you can grab, well let me tell you just one thing and that is that you are the one who DO NOT have had the minimum idea of what is going on here as the many others preachers of doom and gloom that we still having inside and out of this country.

I saw all this before and I also saw people like you posting crap at every opportunity you see fit, they are the ones as yourself who are WISHING that this country will go to the pits again so people like you could have the opportunity to feed on carrion.

Well unfortunately for people like yourself there is no carrion at this time and place, better to move to other places were you can feed easily and to your heart content, there are many places in Europe right now, good luck.

 

[jb5]

I'm not sure why anyone would think a devaluation of the peso would stop Argentina from thriving. In fact it will be essential to continue extensive trade with Brazil and LAM overall, it would help worldwide exports, it would attract foreign investment, tourism would go up....

It's just the opposite of that, it will make Argentina a realistic participant in both a LAM and world economy.

 

[fedecc]

With the small detail of argentinians being even poorer....

 

[Lucas]

Hey!...But that is a very small detail and price to pay (<--read: a sarcastic reference here), many, many Argentines are used to that in particular with previous 2003 governments, except in the days of the 1 to 1 in these times the Argentines who were poor even become poorer, and of course there were also the ones who went overseas for a holiday and a shopping spree in Europe, Miami, Cancun, London, Rome, Paris, etc. Those same ones who want this country to go back to 'the good ol' times' those times for a fistful of few, of course these are not Argentines...OH! Wait a second... Yes they are!...a scourge.

 

[jb5]

While overseas vacations may be impacted, most Argentines would benefit by the things I cited above. Most Argentines don't vacation abroad or buy imported products. They work in factories, offices and on farms.

The wealthy won't be able to turn their pesos into as many dollars, but don't be too worried for them, they will rent out their mansions in dollars to the employees of multinationals, who will create jobs and produce a growing middle class for Argentina as they did in India and China.

CFK may be doing much Argentines like, but creating a strong, sustainable middle class isn't one of them. The fistful few still have most of everything. Been to Barrio Parque lately?

 

[Lucas]

While overseas vacations may be impacted, most Argentines would benefit by the things I cited above. Most Argentines don't vacation abroad or buy imported products. They work in factories, offices and on farms.

The wealthy won't be able to turn their pesos into as many dollars, but don't be too worried for them, they will rent out their mansions in dollars to the employees of multinationals, who will create jobs and produce a growing middle class for Argentina as they did in India and China.

CFK may be doing much Argentines like, but creating a strong, sustainable middle class isn't one of them. The fistful few still have most of everything. Been to Barrio Parque lately?

A sustainable middle class is the goal and the dream to fulfill as it was in Peron's era all that as been destroyed in previous 2003 governments, the poor got poorer and the middle class was wiped of the map, only a fistful few, the corrupts, the speculators, the scum of society flourished and these are the ones you are talking about now.

They horded all the wealth they can hold, accumulated power and closed the gates to the rest of society, now those gates are coming down maybe a bit slowly but steadily as they cry and moan for this because they have now to share with the rest of society and that word isn't in their vocabulary.

 

[jb5]

No Lucus, that's what you're missing, while the poor are getting some subsidies they didn't get in the past and things are getting better for them, the middle class, which grew for a while, is in trouble.

By being hostile to foreign companies, the number of middle class jobs is in serious decline. Several categories of such jobs were growing after 2002, but inflation combined with an overvalued peso is making them rapidly disappear.

Wealthy Argentines, on the whole, are not creating middle class jobs, foreign companies were. They were paying fair wages and growing companies here to have increasing numbers of well paid employees. But most are leaving and few new ones are coming.

As an employer here providing very well paid jobs to great Argentine employees, it saddens me to see these talented young people's job opportunities declining rather than growing as they should have. But few employers can give 25% raises every year so they're choosing countries with lower inflation-- which is most countries. And more fair employment policies.

So while I'm sure you think CFK had done great things to protect workers, how do you think that's working for all of the people whose employers have fled to Brazil and Chile?

Now you want her to keep propping the peso? I really don't think you want to see the ugly consequences of that for most here.

While there may be a few selfish individuals who want to live like they did with dollars in 2002, I think most of the expats here are here because we love the country and we want the best for it.

 

[Lucas]

Everything seeming a little pricey?

Don't stress too much! For those of you who have/earning in U$D....the rate is likely to change significantly in the next few months.

The Arg Gov has been buying pesos out of the exchange market with dollars to keep the dollar vs pesos exchange rate artificially low (election time).

Well......the dollar reserves are running low and unfortunately Cristina is getting re-elected.....But....the Gov can no longer afford to keep bailing out the peso.

Shortly...the dollar will buy more pesos...how many more? Who knows! Only the free market will tell.

Laugh all the way to the bank

Do you still laughing in your way to the bank?

"Do you want to know who is buying dollars in Argentina?"

Powerful capitals camouflaged as small savers

The head of the Central Bank unravel the origin of the demand in the foreign exchange market.


"The 37 percent are buyers of more than u$s100.000 dollars a month, and only the 7% buy less than u$s1.000 dollars."

"Taking the total of individuals and 'legal' persons (the latter, 'companies') that did buy dollars between July and September of this year, the ones who purchased more than $ 100,000 a month on average, accounted by 37% of the buyers total. The subjects, whether individuals or companies, who bought 1 (one) thousand dollars below the monthly average are only the 7% of the total. Those possessing great personal wealth, or large companies that spend their dollars assets in important quantities are really the ones who move the market, they agitate the water trying to generate fear among the small players and savers, who are a minority in the exchange market, not only for the figures they handle but by how many they are against the big ones responsible for moving the great amount of capital around."


"What does means to 'deepen' this model of country?

Against these attacks, the attitude of big business trying to generate fear among small investors, seeing the headlines of major newspapers that deliberately are baiting and inventing totally ridiculous situations, deepening this model is to generate a better and more efficient state, "said Marco of Pont.
"It means more coordination between all agencies in the public sector, that AFIP can do and validate each purchase at any transaction in foreign currency, in advance and efficiently, I think it's an innovation that should be celebrated by everyone" she said.

 

[Desde2008]

Now you want her to keep propping the peso? I really don't think you want to see the ugly consequences of that for most here.

While there may be a few selfish individuals who want to live like they did with dollars in 2002, I think most of the expats here are here because we love the country and we want the best for it.

What an awesome analysis. I am a BA Expat for life because of my Argentine friends and family here. When they struggle, we all struggle. Given all the complaining about the culture here, I have a lot of admiration for their strength of spirit, their survival instincts and their strong sense of loyalty to friends, family and country.

 

[evitaduarte]

Can someone give me today's black/blue/parallel rate of exchange for the US$? Where is it easiest to get pesos at this rate? Are casas de cambio giving a decent rate?