Supermarket Blackout Movement /tomorrow Friday

[sleazemerchant]

Im not sure about that video. If impression is the cause of inflation, how about the enormous quantity of countries that doubled and triplied their emissions and with almost no inflation? didnt that happened with the UK and the US, and one of the consequences in the US was deflation? Impression not necesarily equals inflation. That video is wrong.

In the USA there was a giant "bursting" of a credit-driven asset bubble; the general deflation that would have occurred across the economy would have been devastating and may have made the 1930's depression look tame in comparison. The Fed created demand and thus inflated the popped asset bubble by buying said "popped" toxic assets and by expanding the money supply. Inflation did not occur because the increase in the monetary supply was swimming upstream against deflationary tendencies and because of massive demand for US government securities at near zero interest rates.
In the case of Argentina reckless government fiscal and monetary policy is the initial cause of the inflation; at this point, with the inflation so ingrained in the economy it has become an inertial issue. Demand push and wage push factors drive primarily drive this; Argentines have nowhere to put their money except to buy consumer goods and services; demand outstrips supply so prices rise, the resulting price increases call for more wage push, increases the government deficit (via increased salaries) and requires the printing of more money, which devalues the currency.
The way out for Argentina is to initially raise interest rates far above inflation (40-45%), which will cool demand and lower inflation as a result of less currency chasing the supply of goods and services. As inflation slows, wage push will also slow which will facilitate the BCRA to stop increasing the monetary supply to cover government expenditures which will lead to a stabilized currency and less demand for USD. Naturally, the current administration will never implement such orthodox economic measures as social unrest is almost guaranteed.

 

[EdRooney]

Ha! When I said here a few weeks ago that BCRA should raise interest rates to 30% I was called a rabid interventionist. Sleazemerchant wants to go to 45%. I guess that makes me Milton Friedman.

 

[Gaucho_ec]

One thing I don't get. Ok, Mercado Central IS damn cheaper. But is just ONE case. Why boycott the supermarkets when I go there in first place because is the cheapest place for me? (no car, no way to get to Mercado Central) Shouldn't boycott as well a chino? a kiosco? Or is it the provider? The distributor? Somewhere in the chain (except in Mercado Central one) we should find the "golpista" that rose the prices with "no reason"?

PS: Just playing government's advocate
PS2: I buy Diary products on Monday and Cheese&Ham on Martes (Carrefour) then mostly at Dia, unless there's a 100% at Jumbo or a 2x1 or similar.

 

[Dublin2BuenosAires]

Really the only thing i buy in supermarkets are household essentials and dairy. I'd love to escape the clutches of the dairy monopolies because the quality is so poor. Veg and meat i tend to go local. My kingdom for some decent milk, butter and cheese. Sadly that involves re-balancing the budget, el galpon and places like that aren't feasible for us pesos slaves.

Ps..matias, seriously, as pointed out previously, do you think no one else in the supply chain has raised their prices? Just the supermarket?

 

[Matiasba]

Ps..matias, seriously, as pointed out previously, do you think no one else in the supply chain has raised their prices? Just the supermarket?

As I said before, I can understand a difference of 15% - 20%, but the differences are bigger, just compare Supermercados Dia with Carrefour, Jumbo and Disco. The 90% of the products cost the half!! How do you explain that? the same with carnicerias and verdulerias!!!

 

[Dublin2BuenosAires]

As I said before, I can understand a difference of 15% - 20%, but the differences are bigger, just compare Supermercados Dia with Carrefour, Jumbo and Disco. The 90% of the products cost the half!! How do you explain that? the same with carnicerias and verdulerias!!!

Cost of doing business, I would think that it's fairly obvious that an additional 20% does not cover the cost of running a business and making a small margin. This to me is glaringly obvious, but that's OK that you don't think so.

More room for my supermarket sweep later on. Hopefully there will be offers on the boring household necessities type stuff

 

[GS_Dirtboy]

Where is Mercado Central?

(looking at food budget and Disco receipts)

Anyone have an address? Thanks!

 

[Matiasba]

Cost of doing business, I would think that it's fairly obvious that an additional 20% does not cover the cost of running a business and making a small margin. This to me is glaringly obvious, but that's OK that you don't think so.

More room for my supermarket sweep later on. Hopefully there will be offers on the boring household necessities type stuff

cost of doing bussiness? do you know how this chains operate? they put lower prices than theirs competitors so they can meke them out of bussiness!! historically chains werent the higher prices, never. This years with inflation they mutated into greedy corporations, especulating, growing and concentrating (Jumbo bought Disco and Norte, for example, Walmart bought Chango Mas, etc). Historically the chinos and the almacenes, and family stores were much more expensive than supermarkets. Now today its the other way round.

 

[Dublin2BuenosAires]

Where is Mercado Central?

(looking at food budget and Disco receipts)

Anyone have an address? Thanks!

You pass it on the way out to Ezeiza, its on autopista ricchiera, think it's the boulogne sur mer exit. Note, there are hours for the public then hours for traders.

 

[Dublin2BuenosAires]

cost of doing bussiness? do you know how this chains operate? they put lower prices than theirs competitors so they can meke them out of bussiness!! historically chains werent the higher prices, never. This years with inflation they mutated into greedy corporations, especulating, growing and concentrating (Jumbo bought Disco and Norte, for example, Walmart bought Chango Mas, etc). Historically the chinos and the almacenes, and family stores were much more expensive than supermarkets. Now today its the other way round.

Sounds like more monopolies in the food chain, if only we had a govt who cared about that sort of thing.....

Don't get me wrong, I really don't like supermarkets but for cleaning stuff, household produce etc, it's the cheapest and simplest for me. I try not to get too much "real" food from them. Discount days are hard to ignore however.

That said, you're economics are way out and you keep ignoring the mention of all the costs they have. It's killing me to defend them, especially here where as you correctly mention monopolies in the food chain are an issue, primarily with quality, but it would be ignorant (in the most repectful way) not to acknowledge the cost of operating a supermarket.

Here's a fun exercise, are there balance sheets and fundamentals of these companies not available online? With some research we could probably talk real figures and see what the year on year increase in profit really is. Guarantee you'd be surprised.