THE US DOLLAR - Strong Again? When, How, Why

[Matty]

Did anyone see the lines today in downtown? Loads of people looking to buy dollars and exchanging some. The wait was close to one hour. Others were making large withdrawals off their $$ accounts. hmmmm.... Saw an interesting La Nacion article today about INDEC and "right numbers being reported", is this the winter of discontent in BsAs? 2001, revisited? Argentine Post mentioned something as well.

 

[soulskier]

Interesting observation Matty. Can you report back if this continues? Gracias!

 

[sergio]

A crash is coming. Not nearly as bad as before however. Lots of rumors are going around at the moment, even among highly placed people. There is talk of banking restrictions. Property is not selling. There is a lot of anxiety in the air. People are worried, withdrawing money and buying dollars. When the crash comes current absurd prices will be corrected and there will be some opportunities for those willing to invest here. In the meantime the country is growing increasingly tense with a sense that we are in trouble.

 

[soulskier]

Sergio, how do you think it will unfold? Like 2001 where the banks took all the money and closed up shop?

 

[soulskier]

Sergio, could it be that the world economy is in trouble and Argentina is feeling those effects?

 

[RWS]

Quoting "soulskier": "Sergio, could it be that the world economy is in trouble and Argentina is feeling those effects?"
I'm not Sergio, but that is what I think.

 

[Smartypants]

Sergio, could it be that the world economy is in trouble and Argentina is feeling those effects?

I think so too and I think it's much smarter to have Argentina Peso than Dollar in your safe. Reales is also a good choice


Peter Tosh - The day the dollar dies
http://www.youtube.com/watch?v=nPmrWwNeuKE

 

[sergio]

No, I do not think the crash will be like 2001. Not nearly so severe. There are rumors of banking restrictions. Who knows if there is truth behind it. As for keeping pesos, you would have to be mad to do so. People are buying dollars because of inflation and fear that the peso will sink further. Is Argentina being affected by world economic woes? I suppose it can't avoid it but it is also benefiting from incredibly high commodity prices. Ironic that the government is taking such a hardline with the agricultural sector. The absurd prices we are seeing in almost all goods can not go on. The state can not keep on raising salaries. A correction is inevitable.

 

[bigbadwolf]

Is Argentina being affected by world economic woes? I suppose it can't avoid it but it is also benefiting from incredibly high commodity prices.

All commodity exporting nations are doing well, be the commodity oil, wheat, or metals. Argentina has to be something of an anomaly if its economic woes are increasing and one must conclude that its problems are home-grown.
To keep one's money in pesos has to be silly. Buy euros. Or Brazilian reals. Or Russian roubles. Or gold. But not the dollar.

 

[DA]

Actually keeping or buying US dollars would be a pretty smart move at this time, the dollar has never been this low compared to other currencies and commodities, The Euro is way overrated, and the US dollar needs to and most likely will increase in value against other currencies. This is my opinion after reading different statements made by persons below:
Ben Bernanke - Chairman FOMC
Jean Claude Trichet- the president of the European Central Bank
Henry Paulson - Secretary of the US Treasury,
Jean Claude Juncker- head of the EU's group of finance ministers, ECOFIN
How can you argue with that, and remember buy low and sell high, not the other way around.