The coming USA currency crisis and Argentina

[Cangurito]

What will be the impact on argentine property values if the USD continues to devalue and is ultimately replaced by an new international reserve currency backed by gold and oil?

Will argentina ditch the dollar for the new reserve? Will property valuations be performed using the new currency or will the peso be used instead? Should we assume that capital values will remain the same for propert regardless of the currency used?

 

[sergio]

Your doomsday scenario will not happen however even if it were to, the dollar figures can be adjusted to another currency. The dollar amounts are really just a point of reference as the actual deeds are stated in pesos.

 

[steveinbsas]

Yo The dollar amounts are really just a point of reference as the actual deeds are stated in pesos.

Actually, the US dollar figure is also stated on the deeds.

 

[orwellian]

Nobody knows what is going to happen, anyone who tells you differently is a fool. If the dollar fails, then Argentina will surely move away from it. And they are doing that right now in bilateral trade with other countries. It doesn't make any economical nor political sense for them to be pegged to the dollar.

 

[smirkypants]

Did you hear? The sky is falling.

 

[Cangurito]

Did you hear? The sky is falling.

Smirkypants, the sky began falling economically speaking in 2007. The financial cyclone has not passed and we are in the eye of the storm. Don't be fooled into thinking the worst is over.

Next: commercial real estate defaults, more money printing, less money lent by chinese, higher interest rates, lower dollar.

The us spends more than it makes and debt per family is around 18,000.

 

[Cangurito]

Nobody knows what is going to happen, anyone who tells you differently is a fool.

Only a fool would believe the crisis is over. How can an economy that spends and borrows more than it produces ever expect to grow or repay the interest on debt? It's quite laughable really.

 

[Cangurito]

Your doomsday scenario will not happen however even if it were to, the dollar figures can be adjusted to another currency. The dollar amounts are really just a point of reference as the actual deeds are stated in pesos.

This makes sense to me even if the title deed quotes USD or pesos.

 

[orwellian]

Only a fool would believe the crisis is over. How can an economy that spends and borrows more than it produces ever expect to grow or repay the interest on debt? It's quite laughable really.

My post was meant as an answer to Sergio who said "Your doomsday scenario will not happen".

The crisis is clearly not over, in fact it's a lot worse. Before we had the housing bubble, now the whole stock market is a huge bubble just waiting to implode.

The sane thing would be to prepare for the worst, as this crisis unprecedented.

 

[gouchobob]

You can go back through this site and find predictions of an imminent collapse of the dollar from years ago.

I don't think the value of the dollar is a major factor in real estate here. The big negative in Argentina for real estate or any other investment is the Argentine government.