Spike In Blue Rate

[MikeB12]

The data show that media is extremely influential, perhaps even more than you're aware. And while talking to friends and seeing the prices increase are interesting points, who told your friends about the inflation or the blue dollar? Who told the store owners? How do you know your friends are right? For example, would you vote for a president based on what your friends say?

From a Federal Reserve working paper:
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Let me ask you this: Why do governments care about the media in the first place? Why do the Ks hate Clarin? Why does Correa go after journalists? Why does Obama take time out of his campaign schedule to meet up with the CEO of Comcast?

And if the media here were doing their job well, the last thing they'd be advising everyone to do is save in dollars...

Why wouldn't they advise people to save in dollars or other stable currencies? It would not be good for the economy as a whole obviously, but if you are an individual it is sound advice. You can't save in pesos or you lose too much money from inflation.

On another note that is slightly related - in the media I always see them assigning different reasons as to why the blue is rising. One day it was summer vacations, the other it was because of new policies, the next it's semana santa demand, and now because it's the beginning of the month apparently.

"El inicio de mes, con el consiguiente cobro de salarios, dio algo de impulso a la demanda por parte de ahorristas, además de empresas e inversores, que buscaron refugio en la divisa e incentivaron el alza."
http://www.infobae.com/notas/704486-La-mayor-demanda-de-principio-de-mes-impulso-la-suba-del-dolar-libre.html

So today they say the rate went up because of the beginning of the month, it went up 1%. There should not be a journalistic explanation of what caused the 1% rise. Markets fluctuate a degree just because of "noise" and its not always some generalization that you can attribute it t . I see this all the time on Bloomberg.com "Market down 1% because of tensions in Korea." When the reason could nothing more than one trader at a big hedge fund was feeling pessimistic and dumped a bunch of stock for totally unrelated reasons.

 

[sesamosinsal]

Why wouldn't they advise people to save in dollars or other stable currencies? It would not be good for the economy as a whole obviously, but if you are an individual it is sound advice. You can't save in pesos or you lose too much money from inflation.

Well, if you read the article that Maria Belen Chapur wrote for Infobae, you'd walk away thinking that the dollar was king, that the entire world trusts the dollar just because the U.S. respects laws. To some extent, this is true. Nonetheless, the article never refers to the fact that many U.S. rivals--namely the BRICS--are making calculated moves to force the dollar out as the global reserve currency. (Sidenote: Maria Chapur should really consider a different career...)

The Russians and the Chinese, in particular, have understood for years that U.S. global power is largely derived from the dollar. After all, it's the only country that can press CTRL+P to buy anything in the world that it needs.

Just recently China and Brazil agreed to a currency swap totaling $30 billion. It's not a significant amount in the grand scheme of things. However, over the past several years, these agreements have been growing. Turkey/Iran, Iran/India, Brazil/Argentina, Russia/China, etc., etc. all have arrangements to do business in their respective currencies. To me, it seems pretty obvious what they're doing... For others? Not so much.

If I had a significant amount of wealth, I wouldn't be preserving it in fiat currencies -- that's for sure.

 

[Napoleon]

I first logged into Ambito a week ago. Before that I received the information from friends who exchanged dollars at the blue rate.

Ambito is heavily subsidized by the national government, as is it's subsidiary "The Buenos Aires Herald". If the government really wanted to end the publishing of the blue rate, they could in a heart beat. Look what they did with the true inflation rate. One AR$500,000 fine and everyone else stopped publishing the actual rate of inflation.